Bitcoin (BTC) and several altcoins traded in a narrow range over the weekend. So what levels might be next? Here is analyst Rakesh Upadhyay’s analysis of BTC and 4 altcoins (DOT, APE, CAKE, XMR) …
What’s next for the leading cryptocurrency Bitcoin?
Bitcoin fell below the psychological support of $40,000 on April 22, but the bears failed to develop this advantage. Consecutive intraday candle formations on April 23 and April 24 indicate indecision between bulls and bears. The 20-day exponential moving average (EMA) of $41,150 is sloping down and the relative strength index (RSI) is in negative territory, suggesting that sellers have a slight advantage. If the bears sink and hold the price below $39,000, the BTC/USDT pair could drop to the support line of the ascending channel. The bulls are expected to defend this level strongly.
bulls will need to push the price above the 50-day simple moving average (SMA) of $41.993 to indicate that the correction may be over. The pair could then attempt a rally to the 200-day SMA at $47,828. On the other hand, if there is a decline, the sell-off could intensify further to $34,322 and $32,917. The 4-hour chart shows the price stuck in a tight range between $39,177-$39,980.
This shows that the bears are trying to turn the $40,000 level into resistance. The pair could decline to $38,536 if the price dips below $39,177. A break and close below this level could open the doors for a decline to $37,000. Contrary to this assumption, if the price rises from the current level and rises above the 50-SMA, the bullish momentum may increase and the pair may rise to the 200-SMA.
What are the prospects for Altcoin Polkadot (DOT)?
Polkadot (DOT) has been trading near the overhead resistance at $19 for the past few days. This shows that the bears are successfully holding the level, however, the bulls don’t seem to have left much room for the sellers. The bearish 20-day EMA of $19 and the RSI in the negative zone suggest that the bears have a slight advantage. If the price drops and dips below $18, the probability of a drop to the strong support at $16 increases.
Upadhyay said, “Conversely, if the bulls push the price above the $19 50-day SMA, the bullish momentum could increase and the DOT/USDT pair could rise to the overhead resistance at $23. The bears are expected to make a strong defense at this level,” he said. The 4-hour chart shows the formation of a descending triangle pattern that will complete with a break and close below $18. If this happens, the pair could drop to $17 and later to $16. If it is exceeded above this level, it is thought that $ 23 can be seen.
What does the analysis of Altcoin Monero (XMR) show?
Monero (XMR) is correcting in an upward move. The price dropped from $290 on April 22, which suggests that the bears’ psychological level is posing a strong challenge near $300. The XMR/USDT pair could drop to the 20-day EMA of $245 first, which is likely to act as a strong support. If the price bounces back strongly from this level, it will indicate that the bulls are buying on the dips. The pair could then attempt a break above the overhead resistance at $300 again. If this happens, the pair could rally to $340. On the downside, it is stated that the pair could slide to $215.
The pair dropped below the 50-SMA, indicating profits have been booked by short-term traders. If the price dips below $250, selling could accelerate and the pair could drop to $240 and later to the 200-SMA. Any recovery could face selling at the 20-EMA. The bulls will have to push and sustain the price above the 20-EMA to indicate that the correction may be over. The pair could rally to $280 later and then $290.
APE/USDT analysis
indicates that it is resolved. The 20-day EMA of $13.67 is up and the RSI is in the positive zone indicating the bulls are in command. There is a minor resistance at $18.44 from where the APE/USDT pair fell on April 23. If the price rises from the current level, the bulls will try to push the pair above $18.44. If they are successful, the pair could climb to $20 and later to $24.
The 4-hour chart by the analyst shows that the pair dropped from $18 but recovered sharply from the 20-EMA. This shows that the sentiment is positive and traders are buying on the dips. If the price stays above $17, the bulls will attempt to continue the upward move. While the rising 20-EMA shows the advantage for buyers, the RSI has formed a negative divergence suggesting that the positive momentum may weaken. “Selling may intensify if the price drops from the current level,” Upadhyay says.
Is the next uptrend for DeFi altcoin project CAKE?
PancakeSwap (CAKE) recently bounced off the downtrend line, showing the bulls turning the level to support. The price has climbed above the 20-day EMA and is struggling to reach the 200-day SMA ($11.52). The 20-day EMA of $8.69 and the 50-day SMA of $7.71 are gradually rising and the relative strength index is in the positive territory, indicating that the bulls have prevailed. If buyers hold and sustain the price above the 200-day SMA, the CAKE/USDT pair could rally to $13.50 and later to $15.
Contrary to this assumption, if the price drops from the 200-day SMA, it will indicate that the bears have not given up yet and continue to sell in the rallies. The pair could then drop to the 20-day EMA. If the price bounces back from this support, a break above the 200-day SMA will increase the likelihood. This positive view could be invalidated if the price breaks below the 50-day SMA.
If the price rises from the current level or the 20-EMA, buyers will try to push the pair above the psychological level of $10. If they are successful, the couple can gain momentum. Contrary to this assumption, if the price drops from the current level, the bears will try to push the pair below the 20-EMA. If they do, the pair could slide to the 50-SMA and later to the 200-SMA. A break and close below this support could indicate that the bears are back in the game.
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