According to crypto analyst Rakesh Upadhyay, certain altcoins such as Bitcoin and MATIC fell sharply on April 19, but the bulls’ attempt to defend their own support levels is a minor improvement. What are the key support levels likely to be maintained by the bulls? The analyst examines the charts of the top 10 cryptocurrencies to find out.
An overview of the cryptocurrency market
As you follow on Kriptokoin.com, Bitcoin has been witnessing fluctuating movements for the last three days. The increase in volatility indicates that buyers and sellers are competing for supremacy. Bitcoin rebounded sharply on April 18, but gave back all its gains on April 19. The latest wave of sales may have been triggered by high inflation figures in the UK and regulatory uncertainty in the United States. Profit booking is not limited to Bitcoin as most major altcoins are also on the decline.
Daily cryptocurrency market performance / Source: Coin360While a deep correction is possible, Glassnode said in its analysis on April 17 that some on-chain indicators point to the end of the bear market. If that’s the case, dips can be viewed by long-term investors as a buying opportunity. Now it’s time for analysis…
BTC, ETH, BNB, XRP and ADA analysis
Bitcoin (BTC): There is a fierce battle between bulls and bears
Bitcoin is witnessing a sharp battle between bulls and bears at the 20-day exponential moving average ($29,092). The bulls are trying to start a strong recovery while the bears are trying to push the price below the 20-day EMA.
If the price bounces back from the 20-day EMA, it will indicate that the sentiment remains positive and traders view the dips as a buying opportunity. The bulls will then make another attempt to surpass the $31,000 to $32,000 resistance zone. If they are successful, this will indicate the resumption of the uptrend. BTC could then rally as high as $40,000. The bears are likely to have other plans. If they pull the price below the 20-day EMA, selling could accelerate and BTC could drop to $27,800 and then to $26,500.
Ethereum (ETH): Bulls failed to sustain uptrend
The bulls tried to continue the uptrend in Ether but the bears remained sellers near the $2,200 overhead resistance.
ETH has retreated to the 20-day EMA ($1,949) just below the psychological support of $2,000. This is an important support for the bulls’ defense as a break and close above it could turn the advantage in favor of the sellers. ETH could drop to $1,800 and later to $1,700. Instead, if the price rebounds from the 20-day EMA, it will indicate that the bulls are attempting to turn the $2,000 level to support. If they manage to do so, ETH could rise as high as $2,200. A break and close above this level will open the way for a potential rally to $3,000.
Binance Coin (BNB): Bears may be emboldened
Buyers defended the $338 level on April 17 and 18 but failed to push the price above the $350 resistance. This may have discouraged bears pulling BNB. It reached the 20-day EMA ($325) on April 19.
This is an important level to consider, because if it is broken, selling could intensify and BNB could slide as low as the 200-day simple moving average ($294). This level is likely to attract a solid buy by the bulls. Another possibility is for the price to quickly bounce back from the 20-day EMA. If this happens, it will indicate that the bulls have bought the pullbacks. They will then make another attempt to push the price above $350. If they manage to do so, BNB could rise as high as $400.
Ripple (XRP): Bulls failed to break through overall hurdle
XRP rebounded from the 20-day EMA ($0.50) on April 18 but the bulls failed to break through the general hurdle at the resistance line.
The price declined sharply on April 19 and settled below the 20-day EMA ($0.50). However, the long tail on the candlestick shows that buyers are attempting to stop the decline at the 50% Fibonacci retracement level of $0.47. Any attempt to recover could face strong selling in the region between the resistance line and $0.58. On the downside, a break below $0.47 could push XRP as low as the 200-day SMA ($0.41). The bulls are likely to buy dips from this level aggressively.
Cardano (ADA): In retreat
Cardano is in a pullback reaching the breakout level of the neckline of the inverted H&S pattern.
If the price bounces back from the neckline, it will indicate that the bulls have turned the level to support. This would increase the likelihood of a break above $0.46. ADA could then begin its northward march towards the $0.60 pattern target. The $0.52 level could act as a resistance but it is likely to be surpassed. Contrary to this assumption, if the bears pull the price below the neckline, it will indicate that the breakout could be a bull trap. In this case, ADA could slide as low as the 200-day SMA ($0.35) and the bulls could step in to stop the decline.
DOGE, MATIC, SOL, DOT and LTC analysis
Dogecoin (DOGE): Bulls hit a wall
DOGE was gradually rising but the bulls hit a wall near the 61.8% Fibonacci retracement level of $0.10.
The bears pushed the price below the 20-day EMA ($0.09) but were unable to sustain lower levels. The bulls bought the dip and started a recovery as seen from the long tail on the April 19 candlestick. If buyers continue the buying pressure and push the price above $0.10, DOGE could reach the key $0.11 resistance. Alternatively, a break below the 200-day SMA ($0.08) could hold the DOGE between $0.11 and $0.07 for a while.
Polygon (MATIC): Reached support line
After trading close to the resistance line of the symmetrical triangle pattern for several days, MATIC turned down and reached the support line.
The flattening 20-day EMA ($1.13) and the RSI below 50 suggest that the bulls may be losing control. A drop below the support line will turn the short-term advantage in favor of the bears. MATIC can then drop to the 200-day SMA ($1) where buyers will make a strong defense. The first sign of strength will be a break and close above the resistance line. This could open the doors for a potential rally to $1.30 for MATIC.
Solana (LEFT): Bulls failed
The failure of the bulls with Solana hovering above the $27.12 resistance may have lured short-term bulls to take profits.
The SOL broke below the 20-day EMA ($22.82) on April 19, but the long tail on the candlestick shows the bulls trying to hold the level. If the price turns up from the current level, buyers will try to push the SOL back above $27.12 and start the journey towards $39. On the other hand, if the price dips below the 200-day SMA ($21.02), it will signal that the SOL could consolidate between $27.12 and $15.28 for a few days.
Polkadot (DOT): Bears stay on the defensive
Polkadot bounced off the 20-day EMA ($6.49) on April 18, but the bears continued to defend the 61.8% Fibonacci retracement level at $6.85.
The strong selling of the bears pushed the price below the 20-day EMA on April 19, but the bulls are trying to maintain the uptrend line. If the price turns up from the uptrend line, the buyers will try to continue the upside move again and push the DOT to the neckline of the inverted H&S pattern. On the contrary, if the uptrend line gives way, the bears will try to lower the DOT to $5.70. This is an important level to consider, as below this the SOL could drop as low as $5.15.
Litecoin (LTC): Bulls failed to sustain higher levels
Litecoin broke above the close resistance of $96 on April 14 and reached $103 on April 18. However, the bulls failed to sustain higher levels.
The bears’ aggressive profit booking pushed the price below the $96 support. This indicates that the bulls may be in a rush for the exit. Selling could accelerate further if the price breaks and stays below the 20-day EMA ($94). In this case, LTC could extend its decline to $85. Conversely, if the price turns up from the current level, it will indicate that the bulls continue to accumulate lower. The bulls will then try to push the price back towards the stiff overhead resistance of $106.
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