Major altcoins such as Bitcoin and Dogecoin (DOGE) continue to bounce from critical support areas, increasing the likelihood of a sharp downward move. Bitcoin (BTC) tumbled sharply on April 21, maintaining its tight correlation with US equity markets reversing direction, after US Federal Reserve Chairman Jerome Powell hinted that a 50bps rate hike was “on the table” in May. If history repeats itself, NDX could witness a sharp correction. Due to the close correlation between Bitcoin and NDX, this could be negative for the crypto markets in the short term. The low price action and weak macro environment in cryptocurrencies has caused a decrease in Google searches for Bitcoin and Ethereum. Even cryptocurrency volumes have been on a downtrend for a while. Can BTC, DOGE and major altcoins continue their downside or is it time for a relief rally? As Kriptokoin.com, we convey analyst opinions and price analysis.
Here are the price analyzes for BTC, DOGE and 8 altcoins:
Bitcoin (BTC) and Ethereum (ETH)
Bitcoin above the 50-day simple moving average (SMA) on April 21 It broke above ($41,977) but the bulls failed to sustain higher as seen from the long wick on the day’s candlestick. The price reversed direction at $42,976 and settled below the 20-day exponential moving average (EMA) ($41,478). Selling continued on April 22 and bears are trying to push the price towards the support line of the ascending channel pattern. The downward sloping 20-day EMA and the relative strength index (RSI) in the negative region suggest that the bears have prevailed. If the price drops below the support line of the channel, selling could intensify and the BTC/USDT pair could drop to $33,000. Conversely, if the price rises from the current level or support line, it indicates that the bulls are actively buying lower. The bulls will have to push and sustain the price above $43,000 to signal strength. The pair could then rise to the 200-day SMA ($47,965) and then challenge the channel’s resistance line.
Ethereum (ETH) has been stuck between the 20-day EMA ($3,087) and the 50-day SMA ($3,003) for the past few days. Several attempts to break out of this tight range have failed, suggesting that bulls buy on dips while bears sell on rallies. The falling 20-day EMA and the RSI in the negative zone give sellers a slight edge. If the price dips below $2,883, the probability of a developing ascending triangle pattern falling to the bullish line increases. The bulls are likely to establish a strong defense at this level. If the price bounces back from the bullish line, buyers will make another effort to push the ETH/USDT pair above the 20-day EMA. If they are successful, the pair could rally to the 200-day SMA ($3,486). A break and close above this level will complete the ascending triangle pattern and result in a potential trend reversal.
BNB and Ripple (XRP)
The long wick on the April 20 candlestick indicates that the bears are selling at $445 on rallies near the overhead resistance. BNB continued to move down and broke below the 50-day SMA ($408) on April 21. If the bears sink the price below $391, the sell-off could accelerate and the BNB/USDT pair could drop to the strong support at $350. If the price bounces back strongly from this level, the pair can be expected to stay between the $350 and the 200-day SMA ($471) for a while. Alternatively, if the price breaks out of the strong support zone between the 50-day SMA ($408) and $391, the bulls will try to take the pair to $445 and then the 200-day SMA. A break and close above this level could indicate a potential trend reversal.
Ripple (XRP) has been stuck between $0.69 and $0.91 for the past few days. Although the price recovered from the support of the range on April 12, the bulls failed to break through the general hurdle at the 50-day SMA ($0.78), indicating a lack of demand at higher levels. The bears will now try to push the XRP/USDT pair below the $0.69 support. If they manage to do so, the pair could drop to $0.62 and later to $0.54. The 20-day EMA ($0.76) has started to drop and the RSI is in the negative territory, indicating that the path of least resistance is to the downside. Alternatively, if the price forcibly rises to $0.69, it will indicate a strong accumulation by the bulls. Buyers will then try to break the overhead barrier at $0.80 again and push the pair to $0.91.
Solana (SOL) and Cardano (ADA)
Solana (SOL) broke above the 20-day EMA ($105) on April 19 but the bulls failed to sustain higher levels. The bears pulled the price below the 20-day EMA on April 20. Selling continued and the bears are trying to keep the price below the 50-day SMA ($101). If this happens, the SOL/USDT pair could drop to the support line of the ascending channel. This is an important level to consider because if it does, the pair could drop to strong support at $75. Contrary to this assumption, if the price bounces off the current level of the channel or the support line, buyers will try to push the pair back above $111. If they manage to do so, the pair could rally to $122.
Cardano (ADA) is consolidating in downtrend. The price has dropped from the 50-day SMA ($0.97) on April 21, showing that the bears are aggressively defending the overhead resistance at $1. The falling 20-day EMA ($0.97) and the RSI below 40 suggest the bears have prevailed. If the sellers push the price below $0.87, selling might pick up momentum and the ADA/USDT pair could drop to the critical support at $0.74. This is an important level for the bulls to defend because if it is broken, the downtrend could resume. The bulls will need to push and sustain the price above $1, considering that the bears may lose control. The pair could then rally to $1.10 and then attempt a rally to the stiff overhead resistance at $1.26.
Terra (Luna) and Avalanche (AVAX)
Terra (LUNA) fell from $100 on April 21 from psychological resistance. The positive point is that the bulls did not allow the price to stay below the 20-day EMA ($91). Buyers will now try to push the LUNA/USDT pair above $100 again. If this happens, the bullish momentum could increase and the pair could rally towards its all-time high of $119. The bears are likely to make a strong defense at this level. On the other hand, if the price declines from the current level or the overhead resistance drops to $100, the probability of a break below the support at $88 increases. If the price stays below this level, the pair could decline to strong support at $75. A break and close below the 200-day SMA ($68) could signal a potential trend reversal.
Avalanche (AVAX) has been trading between the 20-day EMA ($80) and the bullish line for the past few days. Usually, this type of narrow range trading causes a sharp trend move. The falling 20-day EMA and RSI in the negative zone suggest that the bears have an advantage. The evolving ascending triangle pattern will be invalidated if the price stays below the bullish line. This could bring the AVAX/USDT pair down to strong support at $65. Alternatively, if the pair rebounds from the current level, buyers will make another attempt to push the price above the moving averages. If successful, the pair could rally to the overhead resistance zone between $99 and $104.
Dogecoin (DOGE) and Polkadot (DOT)
Dogecoin (DOGE) is in a downtrend. The price dropped from $0.15 on April 20. On April 21, it fell to the 50-day SMA ($0.13). This indicates that demand is declining at higher levels. Repeated testing of a support level could weaken DOGE price. If the price breaks below the 50-day SMA, the bears will attempt to pull the DOGE/USDT pair to the strong support at $0.12. The bulls are expected to defend this level strongly, but if the support is broken, the decline could extend to the critical level at $0.10. Conversely, if the price bounces back from the 50-day SMA, the bulls will attempt to push the pair above the overhead resistance at $0.15. If they do, the pair could rally to the overhead resistance at $0.17.
Polkadot (DOT) has consolidated in a wide range between $16 and $23 for the past few days. The bulls pushed the price above the 50-day SMA ($19) on April 20 and 21 but were unable to sustain higher. This shows that the bears are selling in the rallies. If the price breaks below the immediate support at $18, the DOT/USDT pair could drop to $17. The slowly descending 20-day EMA ($19) and the RSI just below the midpoint offer a slight advantage for the sellers. Alternatively, if the bulls push and sustain the price above the 50-day SMA, the pair may attempt a rally to the overhead resistance at $23. The bulls will need to break through this hurdle for the start of a new upward move.
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