The U.S. dollar currency index (DXY) turned down sharply after rising above 101 on April 20 but this weakness in the dollar has not helped Bitcoin (BTC), possibly because the S&P 500 is struggling to build upon its strong rally on April 19. This indicates that Bitcoin remains tightly correlated with the U.S. equity markets.
Irrespective of the lackluster price action, research projects several positives for Bitcoin this year. A report by Insider Intelligence shows that the number of adult crypto users in the U.S. could surge from 28.3 million in 2021 to 33.7 million in 2022. Along with the growth in the number of crypto users, the firm also expects the use of cryptocurrencies to make purchases by U.S. adults to increase to 3.6 million, a growth of 70 percent this year
In another positive sign which could lead to increased adoption, Australian financial regulators have approved the first Bitcoin exchange-traded fund which will begin trading on April 27. The Australian Financial Review expects the fund to attract about $1 billion in inflows.
Could the higher levels in Bitcoin and select altcoins continue to attract selling by the bears? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin turned around sharply from $38,536 on April 18, indicating strong buying at lower levels. The buyers continued their purchase and pushed the price to the 50-day simple moving average ($42,104).
The 20-day exponential moving average ($41,811) has flattened out and the relative strength index (RSI) is just below the midpoint, suggesting a balance between supply and demand.
This equilibrium could tilt in favor of the buyers if the price rises and sustains above the 50-day SMA. That will increase the possibility of an up-move to $43,900. If bulls manage to overcome this barrier, the momentum may pick up and the BTC/USDT pair could rally to the 200-day SMA ($48,052).
Contrary to this assumption, if the price turns down sharply from the current level, it will suggest that bears are active at higher levels. The sellers will then attempt to pull the pair to the support line of the ascending channel.
ETH/USDT
Ether (ETH) broke below the 50-day SMA (3,000) on April 18 but the bears could not sustain the lower levels. The bulls purchased the dip and pushed the price back above the 50-day SMA.
The buyers drove the price above the 20-day EMA ($3,113) today but the long wick on the day’s candlestick suggests that bears continue to sell at higher levels. The bears are currently attempting to sustain the price below the 20-day EMA.
If they succeed, the ETH/USDT pair could consolidate in a tight range between $2,883 and $3,166. This tight range trading is unlikely to continue for long and may result in a sharp range expansion within the next few days.
A break below $2,883 could sink the pair to the uptrend line while a break above $3,166 could clear the path for a possible retest of the 200-day SMA ($3,491).
BNB/USDT
The bulls purchased the drop below the 50-day SMA ($408) on April 18, indicating strong demand at lower levels. Sustained buying pushed Binance Coin (BNB) above the 20-day EMA ($419) on April 19 but the bulls are struggling to sustain the momentum.
The flattish moving averages and the RSI just above the midpoint suggest a range-bound action in the near term. If the price turns down from the current level or the overhead resistance, the bears will again attempt to sink the BNB/USDT pair below the 50-day SMA. A break and close below $391 could result in a decline to the strong support at $350.
Alternatively, if the price rebounds off the 20-day EMA ($419), the bulls will attempt to push the pair above the strong resistance at $445 and challenge the 200-day SMA ($471).
XRP/USDT
The long tail on Ripple’s (XRP) April 18 candlestick suggests strong buying at lower levels. The price reached the 50-day SMA ($0.78) on April 19 but the bears are defending this level with vigor.
If the price turns down from the current level, it will suggest that the XRP/USDT pair could remain range-bound between the 50-day SMA and $0.69 for some time. A break and close below $0.69 could open the doors for a possible drop to $0.60.
Conversely, if the price turns up, the bulls will try to push and sustain the pair above $0.80. If they manage to do that, the pair could rise toward the overhead zone between the 200-day SMA ($0.87) and $0.91. The flat moving averages and the RSI near the midpoint do not give a clear advantage either to the bulls or the bears.
SOL/USDT
Solana (SOL) bounced off the support line of the ascending channel on April 18, indicating that the bulls are buying the dips to this level. The bulls pushed the price above the 20-day EMA ($107) on April 19 but are struggling to sustain the higher levels.
This suggests that the bears continue to sell on every minor rally. If the price breaks below the 50-day SMA ($101), the bears will make another attempt to sink the SOL/USDT pair below the ascending channel and retest the critical support at $75.
Conversely, if the price rises from the current level, the bulls will attempt to challenge the overhead resistance at $122. A break and close above this level could open the doors for a potential rally to the 200-day SMA ($147).
ADA/USDT
Cardano (ADA) broke below the immediate support at $0.91 on April 18 but the bears could not keep the price down. This suggests that the bulls are attempting to form a higher low.
If buyers propel the price above the psychological level at $1, the bullish momentum could pick up. The ADA/USDT pair could then rally to $1.10 and later retest the critical resistance at $1.26. A break and close above this level will suggest the start of a new uptrend.
Alternatively, if the price turns down from the overhead resistance, the bears will again attempt to pull the pair down. The pair could first drop to $0.87 and if this level cracks, the decline may extend to the strong support at $0.74.
LUNA/USDT
Terra’s LUNA token bounced off the strong support at $75 and reached the 20-day EMA ($91) on April 18. This suggests that the sentiment remains positive and traders are buying on dips.
The relief rally continued on April 19 and the buyers pushed the price above the 50-day SMA ($93). The bulls will attempt to sustain the momentum and drive the LUNA/USDT pair to the psychological level at $100. If bulls clear this hurdle, the possibility of a retest of the all-time high increases.
Conversely, if the price turns down from the current level or $100, the bears will try to pull the pair below the 20-day EMA. If they succeed, it will suggest that traders may be booking profits on rallies. That could result in a range formation for a few days.
Related: BTC and ETH will break all-time highs in 2022 — Celsius CEO
AVAX/USDT
Avalanche (AVAX) dipped below the uptrend line on April 18 but the bears could not sustain the lower levels. Strong buying by the bulls ensured a recovery and the price reached the moving averages.
The bears are mounting a stiff resistance at the moving averages. If the price continues lower, the bears will again try to sink and sustain the AVAX/USDT pair below the uptrend line. If they succeed, the decline could extend to $65.
Contrary to this assumption, if the price turns up and breaks above the moving averages, it will suggest strong demand by the bulls. That could open the doors for a possible rally to $99. The bulls will have to overcome this barrier to signal the formation of an ascending triangle pattern.
DOGE/USDT
Dogecoin (DOGE) once again rebounded off the 50-day SMA ($0.13) on April 18, suggesting that the bulls are defending the level aggressively.
The rebound rose above the 20-day EMA ($0.14) on April 19 but the bulls are struggling to sustain the higher levels. This suggests that the bears are selling on rallies to the immediate resistance at $0.15.
If the price slips back below the 20-day EMA, the bears will again try to sink the DOGE/USDT pair below the 50-day SMA. If they succeed, the pair could slide to $0.12.
Conversely, if the price turns up from the current level and breaks above $0.15, the bulls will attempt to push the pair above the neckline. If they succeed, the pair will complete an inverse head and shoulders pattern, which has a pattern target at $0.25.
DOT/USDT
Polkadot (DOT) turned up on April 18 indicating that bulls are defending the immediate support at $17. The price has reached the moving averages which may act as a stiff hurdle.
The 20-day EMA ($19.15) and the 50-day SMA ($19.31) are flat and close to one another while the RSI is just below the midpoint, suggesting a balance between supply and demand.
This balance could tilt in favor of the buyers if the DOT/USDT pair breaks and sustains above the 50-day SMA. The pair will then attempt to rally to the strong overhead resistance at $23.
Conversely, if the price turns down from the current level, the bears will again attempt to pull the pair to the immediate support at $17 and then to $16.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Market data is provided by HitBTC exchange.