Certain altcoins, such as Bitcoin and DOGE, fell below their respective support levels. According to crypto analyst Rakesh Upadhyay, this is an alarming sign that the bulls may be losing control. So, what are the levels that can act as strong support? The analyst examines the charts of the top 10 cryptocurrencies to find out.
An overview of the cryptocurrency market
cryptocoin.comAs you follow, Bitcoin and most major cryptocurrencies have retreated from their recent local peaks, indicating that traders are booking profits. Is the current pullback a buying opportunity or has the trend turned down? This will probably be the question on every investor’s mind. John Bollinger, creator of Bollinger Bands, said in a recent tweet that Bitcoin has turned down from the upper Bollinger Band and reached the middle band near the breakout level. He noted that this is a “logical place” and advised traders to “be careful”.
The correction may worry short-term crypto investors, but for long-term investors who believe they have bottomed out, this could be an opportunity to build their portfolios with the cryptocurrencies of their choice. It is usually a good strategy to avoid buying during a downtrend and wait for the price to stop falling before continuing to buy.
BTC, ETH, BNB, XRP and ADA analysis
Bitcoin (BTC): There is a sign of weakness
Bitcoin crashed on April 19 and closed below the 20-day exponential moving average (EMA) ($28,869). This was the first close below the 20-day EMA since March 13, signaling weakness.
Buyers tried to recover on April 20, but failed to break through the barrier at the 20-day EMA. This shows that the bears are trying to turn this level into resistance. BTC could slide to $26,500 in the next stage and then to the neckline of the inverted head and shoulders (H&S) pattern at $25,250. If the price recovers from $25,250, this will indicate that the neckline is acting as a higher ground. The bulls will then try to push the price above the 20-day EMA. If they succeed, BTC could rise as high as $32,400.
Ethereum (ETH): Bears fulfill plans
The bulls tried to protect the Ether price above the 20-day EMA ($1,942) on April 19 and 20, but the bears had other plans. They continued the selling pressure and pulled ETH below the 20-day EMA on April 21.
An initial support on the downside is the 38.2% Fibonacci retracement level at $1,846. This level is likely to attract strong buying by the bulls. If the price turns up from this level, it increases the probability of a rise to $2,200. Contrary to this assumption, if the price continues to decline and slides below $1,846, ETH could drop to $1,755, the 50% retracement level, and then to $1,663, the 61.8% retracement level.
Binance Coin (BNB): Bulls make a strong effort
BNB recovered from the $318 support on April 21 and climbed above the 20-day EMA ($324). This shows that the bulls are making a strong effort to stop the decline at $318.
The flat 20-day EMA and the relative strength index (RSI) just above the midpoint give neither the bulls nor the bears a clear advantage. If the bulls propel the price above the $338-350 resistance zone, BNB could gain momentum and rise towards $400. Conversely, if the price drops once again and dips below $318, it will indicate that the bears remain active at higher levels. In this case, BNB could drop to the 200-day simple moving average (SMA) ($295), which is an important level for the bulls to defend.
Ripple (XRP): Bears are not in the mood to relax
The bulls tried to start a rebound in XRP and pushed the price above the 20-day EMA ($0.49) on April 19 and 20, but the bears were not in a mood to relax.
The bulls tried to stop the decline near the 50% Fibonacci retracement level of $0.47, but the bears continued the selling pressure and dragged the price below this level. XRP could drop to the 200-day SMA ($0.41) in the next phase. It looks like the pair could trade in a wide range between $0.56 and $0.30 for a while. If the price rebounds from the 200-day SMA, XRP could trade in the upper half of the range, while a break below it could keep the pair in the lower half.
Cardano (ADA): Bears make a comeback
The bears managed to pull off Cardano’s ADA and ADA fell below the April 20 neckline of the inverted H&S pattern. This indicates that the bears are making a comeback.
If the bears fix the price below the neckline, it will signal that the breakout on April 13 could be a bull trap. This could lead to long liquidation, extending the decline to the 200-day SMA ($0.35). This level is likely to attract solid buying by the bulls. The flat 20-day EMA ($0.40) and the RSI near the center do not give the bulls or bears a clear advantage. If the bulls want to top out, they will have to kick and sustain the price above the neckline. ADA could rally to $0.46 later.
DOGE, MATIC, SOL, DOT and LTC analysis
Dogecoin (DOGE): Bears show stiff resistance
DOGE witnessed highly volatile movements 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 indicate that the bears are selling on every minor rally. This will increase the risk of a collapse below the 200-day SMA. If this happens, DOGE could dive towards the key $0.07 support. This negative view will be invalidated if the price rises from the current level and rises above $0.10. This will indicate solid buying near the 200-day SMA. DOGE could then reach $0.11, where the bulls may again face tough bears resistance.
Polygon (MATIC): Uncertainty resolved to the downside
The uncertainty of the symmetrical triangle formation on Polygon’s MATIC was resolved on the downside with the 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, a break below the 200-day SMA will increase the probability. This could intensify the selling and push the MATIC down towards the $0.74 pattern target. Contrary to this assumption, if the bulls push the price above the 20-day EMA, it will suggest a strong buy lower. MATIC can then rise to the resistance line of the triangle. A break and close above this level could tip the chart in favor of the bulls.
Solana (LEFT): Stuck
Solana’s 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 pushed the price below the 20-day EMA, they have yet to retest the 200-day SMA. This indicates that there is no aggressive selling at lower levels. The 20-day EMA is flattening and the RSI is just below the midpoint, indicating a range-bound move in the near term. SOL could swing in the wide range between $27.12 and $15.28 for a while. If the price breaks below the 200-day SMA, the SOL could drop to $18.70. However, if the price rises and rises above the 20-day EMA, the SOL could rise to $27.12.
Polkadot (DOT): Bears are selling aggressively
The DOT fell sharply and broke below the uptrend line on April 19. This signals the aggressive selling of 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 that the bears have successfully held the level. This started a downward move towards the 200-day SMA ($5.93). Buyers are expected to fiercely defend the zone between the 200-day SMA and $5.70 as if they fail to do so, the selling could get even more intense and the DOT could drop as low as $5.15. This bearish view will be invalidated in the near term if the bulls push the price above the uptrend line and sustain it.
Litecoin (LTC): The bullish momentum weakens
Litecoin dropped below the 20-day EMA ($93) on April 19, signaling that its bullish momentum is weakening.
Buyers tried to push the price back above the 20-day EMA on April 20, but the bears refused. This shows that the bears are trying to turn the 20-day EMA into resistance. Sellers will then try to further strengthen their positions by pulling the price below the strong support at $85. If they succeed, LTC could reach the 200-day SMA ($78). If the bulls want to block this decline, they will need to quickly push the price above the 20-day EMA and the overhead resistance at $96.
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