Certain altcoins like Bitcoin and MATIC are witnessing a pullback. According to crypto analyst Rakesh Upadhyay, this suggests that investors may be reserving profits and reducing risk. Will investors buy the dip in Bitcoin and major altcoins or could the correction go deeper? The analyst examines the charts to find out.
An overview of the cryptocurrency market
Pullbacks are part of uptrends. These not only help shake off weak hands, but also give traders the opportunity to add to their positions or make new entries. Currently, Bitcoin is witnessing a correction as the bulls and bears battle for control, but is this a buying opportunity or the start of a trend reversal?
The Crypto Fear and Greed Index rose to 69, indicating that traders are starting to get greedy again. In such a situation, it is time to be cautious in the near term. Because when new traders start pushing prices higher, experienced traders sell strongly and buy on dips.
cryptocoin.comARK Invest CEO Cathie Wood said in a recent interview that Bitcoin and Ethereum are seen as safe-haven assets like gold. Ray Dalio, founder of Bridgewater Associates, meanwhile, does not see Bitcoin as an “effective store of wealth or medium of exchange.” He describes it as “a very, very poor alternative to gold.” This shows that some former investors are still uncertain about Bitcoin’s future prospects. Now it’s time for analysis…
BTC, ETH, BNB And XRP analysis
Bitcoin (BTC): Bulls are booking profits
Bitcoin dropped from $31,000 on April 14, signaling the bulls’ profit reservation. The bears will try to take advantage of the situation and push the price towards the 20-day EMA ($28,937).
If the price bounces back from the 20-day EMA, it will indicate that sentiment remains positive and traders view the dips as a buying opportunity. The bulls will then make another attempt to push the price higher to the hard overhead resistance of $32,400. This remains the key level to watch as a break and close above it could open the doors for a potential rally to $40,000. This positive view will be invalidated in the near term if the price drops below the 20-day EMA. This could discourage bears who will try to lower BTC to $27,800 and later to $26,500.
Ethereum (ETH): In a bullish trend, but…
Ether is in an uptrend but it is facing resistance near the critical top of $2,200. This indicates that some short-term traders may be booking profits after the strong rise over the past few days.
ETH could drop as low as the psychological support at $2,000 and then the 20-day EMA ($1,930). In an uptrend, buyers usually try to defend the 20-day EMA during pullbacks. In this case, if the price turns up from the 20-day EMA, it will indicate that lower levels are attracting buyers. This could increase the likelihood of a break above $2,200. If this level is exceeded, ETH can rise up to $ 3,000. Conversely, if the price drops below the 20-day EMA, it will indicate that the bulls are rushing to the exit. ETH could then slide down to $1,680 and then the 200-day SMA ($1,482).
Binance Coin (BNB): Bulls fail to hold highs
BNB continued its northward journey and broke above the overhead resistance zone of $338 to $346 on April 16. However, the bulls are having a hard time holding on to higher highs.
The bears are trying to push the price below the breakout level. If the price dips below $338, it could trap a few aggressive bulls. This could result in a long liquidation, which could lower BNB to the 20-day EMA. If the bulls want to keep the recovery intact, they will have to fiercely defend this level. Alternatively, if the price rises from the current level and rises above $350, it will indicate that the bulls are in the driver’s seat. BNB could then climb to $360 and later to $400. This level is likely to act as a tough resistance again.
Ripple (XRP): Bears try to initiate correction
The bears are attempting to initiate a correction in XRP after a failed attempt to push the price above the $0.56 to $0.58 resistance zone on April 14.
If the bears pull the price below the 20-day EMA ($0.50), XRP could drop to the 50% Fibonacci retracement level of $0.47. This level can witness strong buying by the bulls as if it is broken XRP could drop to the vital support of $0.43. If the bulls want to avoid this short-term bearish projection, they will have to push the price above the overhead zone. If they do, XRP could accelerate towards $0.65 and then extend the rally to $0.80.
ADA, MATIC, DOGE and SOL analysis
Cardano (ADA): Price could turn down
ADA The upside movement stopped near $0.46. The price may turn down and retest the breakout level from the reversal H&S pattern.
The rising 20-day EMA ($0.40) and the RSI near the overbought zone suggest that the bulls have an advantage. If the price bounces back from the neckline, it will indicate that the bulls have turned the level to support. In this case, ADA could continue its upward move towards the $0.60 formation target. Contrary to this assumption, if the price continues to drop and breaks below the neckline, it will indicate that the bears are active at higher levels. This, in turn, could trap a few aggressive bulls and drop ADA to the 200-day SMA ($0.35).
Polygon (MATIC): Bulls struggle to sustain breakout
The bulls pushed MATIC above the resistance line of the symmetrical triangle formation on April 16 but are struggling to sustain the breakout.
If the bears manage to push the price below the resistance line, this will indicate a lack of demand at higher levels. In this case, MATIC can extend the stay in the triangle for a few more days. The 20-day EMA ($1.13) has gradually risen and the RSI is in the positive zone, indicating that the bulls have a slight advantage. If MATIC price turns up from the resistance line, it will indicate that the bulls have turned the level to support. MATIC can then rise to $1.30, where the bears can again make a strong defense.
Dogecoin (DOGE): Buyers do not give way to sellers
The bears tried to stop the DOGE rebound at the 38.2% Fibonacci retracement level of $0.09 from April 14-16, but the buyers did not give way to the sellers.
Buyers asserted their dominance and pushed the price above the overhead resistance on April 17. However, the long wick on the candlestick shows that sellers are holding the 61.8% retracement level at $0.10. Sellers will try to strengthen their positions by pulling the price below the moving averages. If they are successful, DOGE could stay in the wide range of $0.07 to $0.11 for a few more days. Conversely, if the price rises from the current level and rises above $0.10, it will indicate that the bulls are attempting a reversal. DOGE could then rise to the key $0.11 resistance. A break above this level will signal a possible recovery in momentum.
Solana (SOL): Bulls are in no rush to take profits
The fact that Solana has remained above the downtrend line since April 11 shows that the bulls are in no rush to take profits.
The 20-day EMA has started to turn up and the RSI is in the positive zone, which indicates that the bulls have the upper hand. However, bears are unlikely to give up easily. They will try to protect the overhead resistance at $27.12. If the price drops sharply from this level, the SOL could retrace as far as the 20-day EMA. If the price rebounds strongly from the 20-day EMA, it will increase the likelihood of a rally to $39. Conversely, if the price dips below the 20-day EMA, it will indicate that the SOL could oscillate between $15.28 and $27.12 for a while.
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