According to crypto analyst Rakesh Upadhyay, the leading crypto has a significant level of support allowing altcoin projects such as Bitcoin (BTC), VeChain (VET), Theta Network (THETA), THORChain (RUNE) and Aave (AAVE) to rise higher .
Market overview in light of leading crypto
Bitcoin (BTC) is trying to stay above the nearest support level and traders are wondering if the price can stay strong and for the second week in a row its 2022 annual opening price. It’s watching to see if it can break above $46,200.
April has historically been the best performing month of the year for the S&P 500, according to Sam Stovall, chief investment strategist at the CFRA. The analyst states that if history repeats itself and the close relationship between US stock markets and Bitcoin continues, it could bode well for crypto markets in the near term.
Daily view of crypto market data / Source: Coin360 As we reported onKriptokoin.com, another emotion-enhancing factor may be that 19 million Bitcoins circulate on April 1st. . For the remaining 2 million Bitcoins, the crypto markets will have to wait a long time, as the last Bitcoin is expected to be mined by 2140.
According to the analyst, miners can focus on only a small amount of Bitcoin remaining, and the increased demand for BTC could lead to shortages and raise prices. Can Bitcoin stay above its critical support and if it does, will altcoin projects rise? The analyst examines the charts of the top 5 cryptocurrencies that could prolong their recovery in the short term. We have prepared Rakesh Upadhyay’s analysis with his own narration for our readers.
Leading crypto Bitcoin (BTC)
Bitcoin is witnessing a tough fight between bulls and bears near the key level at $45,400. The bears tried to push and sustain the price below this level, but the bulls held their ground. This shows that the bulls are trying to turn the level to support.
BTC daily chart / Source: TradingView The ascending 20-day exponential moving average ($44,333) and the relative strength index (RSI) in the positive zone indicate the path of least resistance to the upside . The critical level to watch on the upside is the 200-day simple moving average ($48,276).
If the bulls price rises above this barrier, BTC is likely to gain momentum. The rally may face minor resistance at psychological $50,000 but if this level is surpassed, the next stop could be $52,000. Contrary to this assumption, if the price drops from the current level or overhead resistance, the bears will try to push BTC back below $45,400 and the 20-day EMA. If this happens, BTC could drop to the 50-day SMA ($41,615).
BTC 4-hours chart / Source: TradingView The 4-hours chart shows that price has corrected since reaching the resistance line of the ascending channel. The bulls’ attempts to recover are facing stiff resistance at the downtrend line. If the bulls push and sustain the price above the downtrend line, BTC could rally to the resistance line of the channel. A break and close above the channel could signal a resumption of the uptrend. Alternatively, if the price turns down from the downtrend line, the bears will try to push BTC down to $44,000. If this level is broken, the drop could be extended to $42,594.
Initial altcoin project VeChain (VET)
VeChain broke above the overhead resistance at $0.07 on March 27, but the bears stopped the recovery at the 200-day SMA ($0.09). A minor positive is that the bulls are not allowing the price to drop below the $0.07 breakout level.
VET daily chart / Source: TradingView If the price rises from the current level, the bulls will make another attempt to break through the overall hurdle at the 200-day SMA. If they succeed, it will suggest a possible change in trend. VET could then rally to $0.10 and later to $0.13.
The ascending 20-day EMA ($0.06) and the RSI in the positive zone suggest advantage for buyers. This bullish view will be invalidated if the price drops below the 20-day EMA. Such a move could pull VET to the 50-day SMA ($0.05).
VET 4-hours chart / Source: TradingView The 20-EMA has flattened and the RSI is near the midpoint on the 4-hour chart showing the balance between supply and demand. If the price rises above $0.08, the bulls will attempt to push VET above $0.09. If they do, VET can prolong its upward move. Conversely, if the price declines and dips below the 50-SMA, VET could drop to the critical level at $0.07. If the bulls turn this level to support, VET will attempt to rise above $0.09 again, but if the $0.07 support is broken, the bears could return to the game.
Second altcoin project Theta Network (TETA)
Altcoin has been hovering in a range between $2.50 and $4.40 for the past few weeks. The bulls tried to push the price above the overhead resistance but failed. This indicates that the bears continue to defend the level aggressively.
THETA daily chart / Source: TradingView If the price does not drop below $3.80, it will show that traders are not closing their positions in a hurry as they expect the upward movement to continue. The ascending 20-day EMA ($3.54) and the RSI near the overbought zone suggest the path of least resistance to the upside.
Buyers will signal the start of a possible uptrend if the price moves above the overhead zone between $4.40 and the 200-day SMA ($4.77). THETA can gain momentum later and rise to $6. Contrary to this assumption, if the price breaks below the 20-day EMA, the next stop could be the 50-day SMA ($3.17). Such a move suggests THETA could stay in range for a few more days.
THETA 4-hour chart / Source: TradingView The 4-hour chart shows that bears have repeatedly blocked attempts by bulls to push the price above the overhead resistance at $4.40. The 20-EMA has flattened out and the RSI is near the midpoint, suggesting a balance between supply and demand. If the price breaks below the 50-SMA, the short-term advantage may be in favor of the sellers. The price could then drop to $3.50. On the other hand, if the price breaks above the overhead resistance and continues, the bulls will gain the upper hand.
Third project THORChain (RUNE)
The altcoin has been trading within a large descending triangle pattern for several months. The sharp rise over the past few days has pushed the price towards the downtrend line of the triangle where the bears are forming strong resistance.
RUNE daily chart / Source: TradingView If the price drops from the current level, RUNE could drop to the 20-day EMA ($9.75). This is an important level to watch out for because if the price bounces back from the 20-day EMA, it will show that the sentiment remains positive and traders are buying on the dips.
This could increase the likelihood of a break above the downtrend line. If this happens, the bearish triangle setup will be invalid and it could be a bullish sign. The altcoin could rally to $17 later. This bullish view will be rejected in the short term if the price declines and dips below the 20-day EMA. This could push RUNE to the 200-day SMA ($7.88).
RUNE 4-hours chart / Source: TradingView 4-hours chart shows RUNE facing strong resistance near $13. A minor positive is that the bulls do not allow the price to drop below $11 and continue. Therefore, this becomes an important level to consider. If the price breaks below this support, RUNE could drop to the next major support at $10. Conversely, if the price returns to $11, buyers will attempt to resume the uptrend again by pushing RUNE above the overhead resistance.
The latest altcoin project Aave (AAVE)
AAVE broke out of the downtrend line on March 29, indicating a potential change in trend. The bears tried to stop the recovery at the 200-day EMA ($226), but the bulls did not give up much ground.
AAVE daily chart / Source: TradingView Buying resumed on April 1 and AAVE broke above the 200-day SMA. If the price stays above the 200-day SMA, it will signal the start of a new upward move.
If the bulls push the price above $262, the rally could extend to the psychological level at $300. The bears may face stiff resistance at this level, but if the bulls break this hurdle, the upward move could reach $350. This bullish view will be invalidated in the short term if the price drops and dips below the 200-day SMA. The bears can then pull the price to the 20-day EMA ($187).
AAVE 4-hour chart / Source: TradingView 4-hour chart shows bulls buying dips to the 20-EMA. If the bulls push the price above $261.20, the uptrend could resume. This rally could face resistance in the upper zone between $283 and $300. The RSI is showing signs of a negative divergence, indicating that the bullish momentum may weaken. If the price drops and dips below the 20-EMA, it suggests that short-term bulls can take profits. This could bring the pair down to the 50-SMA.
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