Markets

Bitcoin and select altcoins have fallen below their respective support levels — a worrying sign that the bulls could be losing their grip.

Bitcoin (BTC) and most major cryptocurrencies have pulled back from their recent local highs, signaling profit-booking by traders. Is the current pullback a buying opportunity, or has the trend turned lower? This is likely to be the question in every trader’s mind.

Bollinger Bands creator John Bollinger said in a recent tweet that Bitcoin had turned down from the upper Bollinger Band and reached the middle bank, near its breakout level. He said it was a “logical place” and advised traders to “pay attention.”

The correction could worry short-term crypto traders, but for long-term investors who believe that a bottom is in, this could prove to be an opportunity to build their portfolio with cryptocurrencies of their choice. It is generally a good strategy to avoid buying on the way down and wait for the price to stop falling before resuming purchases.

What are the levels that may act as strong support? Let’s study the charts of the top 10 cryptocurrencies to find out.

Bitcoin price analysis

Bitcoin fell and closed below the 20-day exponential moving average (EMA) ($28,869) on April 19. This was the first close below the 20-day EMA since March 13, indicating weakness.

Buyers tried to stage a recovery on April 20, but they could not overcome the barrier at the 20-day EMA. This suggests that the bears are trying to flip the level into resistance. The BTC/USDT pair may next slip to $26,500 and thereafter to the neckline of the inverse head-and-shoulders (H&S) pattern at $25,250.

If the price rebounds off $25,250, it will indicate that the neckline is acting as a higher floor. The bulls will then try to propel the price back above the 20-day EMA. If they manage to do that, the pair may rise to $32,400.

Ether price analysis

The bulls tried to maintain the price of Ether (ETH) above the 20-day EMA ($1,942) on April 19 and 20, but the bears had other plans. They maintained their selling pressure and yanked ETH below the 20-day EMA on April 21.

The first support on the downside is the 38.2% Fibonacci retracement level of $1,846. This level is likely to attract strong buying by the bulls. If the price turns up from this level, it improves the prospects for a rally to $2,200.

Contrary to this assumption, if the price continues lower and breaks below $1,846, the ETH/USDT pair could tumble to the 50% retracement level of $1,755 and thereafter to the 61.8% retracement level of 1,663.

BNB price analysis

BNB (BNB) rebounded off the $318 support on April 21 and rose above the 20-day EMA ($324). This suggests that the bulls are making a strong effort to arrest the decline at $318.

The flattish 20-day EMA and the relative strength index (RSI) just above the midpoint do not give a clear edge either to the bulls or the bears. If bulls thrust the price above the $338–$350 resistance zone, the BNB/USDT pair may pick up momentum and soar toward $400.

On the contrary, if the price once again turns down and breaks below $318, it will suggest that the bears remain active at higher levels. The pair may then slump to the 200-day simple moving average (SMA) ($295), which is an important level for the bulls to defend.

XRP price analysis

The bulls tried to start a recovery in XRP (XRP) to push the price above the 20-day EMA ($0.49) on April 19 and 20, but the bears were in no mood to relent.

The bulls tried to arrest the fall near the 50% Fibonacci retracement level of $0.47, but the bears maintained the selling pressure and pulled the price below it. The XRP/USDT pair may next drop to the 200-day SMA ($0.41).

It looks like the pair may trade inside a large range between $0.56 and $0.30 for a while longer. If the price rebounds off the 200-day SMA, the pair may trade in the upper half of the range while a break below it may keep the pair stuck in the lower half.

Cardano price analysis

The bears succeeded in pulling Cardano‘s ADA (ADA) back below the neckline of the inverse H&S pattern on April 20. This suggests that the bears are making a comeback.

If bears pin the price below the neckline, it will signal that the breakout on April 13 may have been a bull trap. That could lead to long liquidation, which may extend the decline to the 200-day SMA ($0.35). This level is likely to attract solid buying by the bulls.

The flattish 20-day EMA ($0.40) and the RSI near the center do not give a clear advantage either to the bulls or the bears. If bulls want to come out on top, they will have to kick and sustain the price above the neckline. The ADA/USDT pair may then rise to $0.46.

Dogecoin price analysis

Dogecoin (DOGE) witnessed hugely volatile moves on April 19 and 20. The bulls are trying to hold the 200-day SMA ($0.08) but are facing stiff resistance from the bears.

If the price turns down from the 20-day EMA ($0.09), it will suggest that the bears are selling on every minor rally. That will increase the risk of a collapse below the 200-day SMA. If that happens, the DOGE/USDT pair may dive to the crucial support at $0.07.

This negative view will be invalidated if the price turns up from the current level and soars above $0.10. That will indicate solid buying near the 200-day SMA. The pair may then reach $0.11, where the bulls may again face formidable resistance from the bears.

Polygon price analysis

The uncertainty of the symmetrical triangle pattern in Polygon‘s MATIC (MATIC) resolved to the downside with a break below the support line on April 19.

The bulls are trying to protect the 200-day SMA ($1.01), but any recovery is likely to face stiff resistance at the 20-day EMA ($1.11). If the price turns down from the 20-day EMA, it will increase the possibility of a break below the 200-day SMA. That could intensify selling and sink the MATIC/USDT pair toward the pattern target of $0.74.

Contrary to this assumption, if bulls thrust the price above the 20-day EMA, it will suggest strong buying at lower levels. The pair may then rise to the resistance line of the triangle. A break and close above this level may turn the table in favor of the bulls.

Related: Warren Buffett was wrong about a ‘rat poison’ Bitcoin portfolio, data shows

Solana price analysis

Solana‘s SOL (SOL) has been stuck between the 20-day EMA ($22.61) and the 200-day SMA ($20.91) for the past two days.

Although the bears have yanked the price below the 20-day EMA, they have not yet been able to retest the 200-day SMA. This suggests a lack of aggressive selling at lower levels.

The 20-day EMA is flattening out, and the RSI is just below the midpoint, indicating a range-bound action in the near term.

The SOL/USDT pair may swing inside the large range between $27.12 and $15.28 for some time. If the price slips below the 200-day SMA, the pair may drop to $18.70; but if the price turns up and rises above the 20-day EMA, the pair may surge to $27.12.

Polkadot price analysis

Polkadot}s DOT (DOT) turned down sharply and plunged below the uptrend line on April 19. This indicates aggressive selling by the bears.

The bulls tried to push the price back above the 20-day EMA on April 20, but the long wick on the candlestick shows the bears protected the level successfully. That started a downward move toward the 200-day SMA ($5.93).

Buyers are expected to fiercely guard the zone between the 200-day SMA and $5.70 because if they fail to do that, the selling may intensify further and the DOT/USDT pair could dive to $5.15. This bearish view will invalidate in the near term if bulls push and sustain the price back above the uptrend line.

Litecoin price analysis

Litecoin (LTC) plunged below the 20-day EMA ($93) on April 19, indicating that the bullish momentum has weakened.

Buyers tried to push the price back above the 20-day EMA on April 20, but the bears did not relent. This suggests that the bears are trying to flip the 20-day EMA into resistance.

The sellers will next try to strengthen their position further by sinking the price below the strong support at $85. If they manage to do that, the LTC/USDT pair may reach the 200-day SMA ($78).

If bulls want to prevent this decline, they will have to quickly drive the price above the 20-day EMA and the overhead resistance of $96.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Bitcoin hit a year-to-date high at $31,000 and ETH’s price followed. Which altcoins will be next?

Bitcoin (BTC) and Ether (ETH) are trading above the psychologically important levels of $30,000 and $2,000, respectively, suggesting the crypto winter may be on its last legs. 

Some analysts are calling for an altseason to begin, but it may be too early for that. When most crypto bears turn bullish, Bitcoin will likely turn down sharply and catch the late entrants off guard. That could hurt sentiment in the short term and cause a sell-off in altcoins. After the weak hands are shaken out, the crypto markets may stabilize and begin a sustained uptrend.

Data from on-chain intelligence platform Glassnode suggests that there are significant similarities between the current having cycle and the previous ones. However, Ecoinometrics warned that an economic recession could alter things.

Let’s watch the charts of the top 10 cryptocurrencies to spot the critical resistance levels that may start a pullback.

Bitcoin price analysis

The bears tried to stall the up-move on April 12 but the bulls did not give up. They resumed their purchases on April 13 and cleared the hurdle at $30,550 on April 14.

If buyers sustain the price above $30,550, the BTC/USDT pair may rally to $32,400. The bears are expected to protect this level with all their might.

If the price turns down from this level but does not break below the 20-day exponential moving average (EMA) at $28,542, it will enhance the prospects of a rally above $32,400. If this level is scaled, the pair may zoom toward $40,000.

On the other hand, if the 20-day EMA cracks, it will suggest that the bears are trying to make a comeback. That could clear the path for a possible drop to $25,250.

Ether price analysis

Ether bounced off the 20-day EMA ($1,870) on April 12, indicating that the bulls are vigorously guarding the level.

The buying continued on April 13, with the bulls pushing the price above the psychologically important level of $2,000. That attracted further buying, with the ETH/USDT pair climbing toward $2,200. This is a crucial level for the bears to defend because if they fail to do that, the pair may witness a buying stampede. The pair could then skyrocket to $3,000.

Conversely, if the price turns down from $2,200 and breaks below $2,000, the pair may tumble to the 20-day EMA. This is an important level to keep an eye on because a break below it may pull the pair to $1,680.

BNB price analysis

The bulls did not allow BNB (BNB) to dip below the 20-day EMA ($317) on April 12 and 13. This indicates that the sentiment is turning positive and traders are buying the dips.

The 20-day EMA has started to turn up and the relative strength index (RSI) has jumped above 60, suggesting that the tide is turning in favor of the bulls.

Buyers will try to solidify their position by catapulting the price above the $338 to $346 overhead zone. If they manage to do that, the BNB/USDT pair may pick up momentum and rally to $360 and subsequently to $400.

On the contrary, if the price turns down from the overhead zone, it will suggest that the bears are active at higher levels. That may keep the pair stuck between the 20-day EMA and $346 for some time.

XRP price analysis

Buyers successfully protected the 38.2% Fibonacci retracement level of $0.49. That attracted further buying in XRP (XRP), which pushed the price toward the overhead resistance zone of $0.56 to $0.58.

The upsloping 20-day EMA ($0.49) and the RSI in the positive zone indicate that bulls have a slight edge. If buyers kick the price above $0.58, the XRP/USDT pair may start an up-move that could reach $0.65 and then $0.80.

Contrarily, if the price turns down from the overhead zone, it will suggest that the pair may consolidate between $0.49 and $0.58 for a few days. The trend will favor the bears if they yank the price below $0.49.

Cardano price analysis

Cardano (ADA) soared above the neckline of the inverse head-and-shoulders (H&S) pattern on April 13, completing the reversal setup.

Usually, the price turns down after the breakout from a pattern and retests the breakout level. In this case, the ADA/USDT pair may dip to the neckline. If the price rebounds off this level, it will suggest that the bulls have flipped the level into support. That may start an up-move toward the pattern target of $0.60.

Contrary to this assumption, if the price turns down sharply and breaks below $0.37, it will suggest that the breakout above the neckline was a fake out. The pair may then plunge to $0.30.

Dogecoin price analysis

Dogecoin (DOGE) bounced off the moving averages on April 12, as seen from the long tail on the day’s candlestick.

The bulls tried to drive the DOGE/USDT pair above the 38.2% Fibonacci retracement level of $0.09 but the bears did not budge. This suggests that the sentiment remains negative and traders are selling on rallies.

Buyers must push and sustain the price above $0.09 to indicate that the selling pressure may be reduced. The pair may then ascend to the 61.8% retracement level of $0.10. Usually, a break and close above this level results in a 100% retracement. If that happens, the pair may soar to $0.11.

Polygon price analysis

Polygon (MATIC) slipped below the support line of the symmetrical triangle pattern on April 12 but the long tail on the candlestick shows that the bulls aggressively bought at lower levels.

The MATIC/USDT pair turned up and broke above the 20-day EMA ($1.11) on April 13. That may have trapped the aggressive bears, resulting in a short squeeze. The pair reached the resistance line of the triangle on April 14, where the bears are posing a strong challenge.

If bulls thrust the price above the triangle, the rally may reach the resistance at $1.30. This level may again prove to be a strong hurdle, but if crossed, the up-move could reach $1.60. This positive view will invalidate in the near term if the price turns down and plunges below $1.08.

Related: BTC price targets see $33K next as Bitcoin eyes key resistance flip

Solana price analysis

The bulls have built upon the breakout from the downtrend line in Solana (SOL). This shows demand at higher levels.

The rising 20-day EMA ($21.74) and the RSI near the overbought zone indicate an advantage to buyers. The SOL/USDT pair could rise to $27.12, where the bears may mount a strong defense. If bulls overcome this barrier, the pair may resume its climb toward $39.

On the downside, the downtrend line is the key level to watch out for. The bears must sink and sustain the price below the downtrend line to trap the aggressive bulls. The pair may then collapse to $15.28.

Polkadot price analysis

The long tail on the April 12 candlestick shows that the bulls purchased the dip to the 20-day EMA ($6.32). Polkadot (DOT) continued its northward march and broke above the downtrend line on April 13 but the bulls are facing selling at higher levels.

The DOT/USDT pair turned down from the 61.8% Fibonacci retracement level of $6.85, with the bears trying to tug the price back below the downtrend line. If they do that, the pair may drop to the 20-day EMA. A break below this level may sink the pair to the crucial support at $5.70.

Conversely, if the price turns up and closes above $6.85, it may propel the price to the neckline of the inverse H&S pattern. If bulls pierce this overhead resistance, the pair may start a new uptrend.

Litecoin price analysis

Litecoin (LTC) turned up from the 20-day EMA ($91) on April 13, indicating that the bulls continue to view the dips as a buying opportunity.

The bulls tried to strengthen their position further by pushing the price above the immediate resistance at $96 on April 14 but the long wick on the day’s candlestick shows that the bears are aggressively selling on rallies.

If bears yank the price below the 20-day EMA, it could trap several aggressive bulls. The LTC/USDT pair may then slump to $85. On the other hand, if the price turns up and sustains above $96, it will open the gates for a potential rally to $106.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.