BTC and altcoins remain in a narrow range, suggesting that sideways trading is likely to continue in the near term.
The US Dollar Currency Index (DXY) fell sharply after rising above 101 on April 20, but this weakness in the US dollar did not help Bitcoin (BTC), possibly because the S&P 500 index is struggling to build on the strong rally on April 19. This suggests that Bitcoin is still closely tied to the U.S. stock market.
Despite the lackluster price action, research predicts several positives for Bitcoin this year. According to a report by Insider Intelligence, the number of adult cryptocurrency users in the U.S. could surge from 28.3 million in 2021 to 33.7 million in 2022. As the number of crypto users grows, the company also expects the use of cryptocurrencies to increase U.S. adult purchases to 3.6 million, up 70 percent this year.
Daily cryptocurrency market performance. Source: Coin360
Another positive sign that could lead to an increase in adoption is that Australia's financial regulator approved the first Bitcoin exchange-traded fund, which will begin trading on April 27. The Australian Financial Review expects the fund to attract about $1 billion in inflows.
Can the higher levels of Bitcoin and select altcoins continue to attract bearish sell-offs? Let's take a look at the charts of the top 10 cryptocurrencies to find out.
BTC/USDT
Bitcoin has rebounded sharply from $38,536 on April 18, indicating a weak buying at a lower level. The buyer continues to buy and pushes the price to the 50-day Simple Moving Average (SMA) ($42,104).
BTC/USDT daily chart. Source: TradingView
The 20-day Exponential Moving Average (EMA) ($41,811) flattened out, with the Relative Strength Index (RSI) slightly below the midpoint, indicating a balance between supply and demand.
If prices rise and stay above the 50-day moving average, this balance may tilt in favor of buyers. This will increase the likelihood of a rise to $43,900. If the bulls manage to overcome this obstacle, the momentum may pick up and the BTC/USDT pair may rebound to the 200-day moving average ($48,052).
Contrary to this assumption, if the price falls sharply from the current level, it indicates that the bears are active at a higher level. The seller will then try to pull the pair to the support line of the ascending channel.
Ether/USDT
Ether (ETH) fell below the 50-day moving average (3,000) on April 18, but the bears were unable to sustain the lower levels. Long buys fall and push the price back above the 50-day moving average.
ETH/USDT Daily Chart. Source: TradingView
Buyers pushed prices above the 20-day moving average ($3,113) on April 20, but the long wick on candlesticks on the day indicated that bears continued to sell at higher levels. The bears are currently trying to keep the price below the 20-day moving average.
If they succeed, the ETH/USDT pair may consolidate in a narrow range between $2,883 and $3,166. Such narrow trades are unlikely to last long and could lead to a significant widening of the range in the coming days.
A break below $2,883 could push the pair down to an uptrend line, while a break above $3,166 could clear the way for a retest of the 200-day moving average ($3,491).
BNB/USDT
Bulls bought a drop below the 50-day moving average ($408) on April 18, indicating strong demand at lower levels. Sustained buying pushed BNB above the 20-day moving average ($419) on April 19, but bulls are struggling to maintain this momentum.
BNB/USDT Daily Chart. Source: TradingView
A flat moving average and an RSI slightly above the midpoint indicate range fluctuations in the short term. If the price falls from the current level or above the resistance level, the bears will once again try to move the BNB/USDT currency pair below the 50-day moving average. A break below and closing below $391 could result in a fall to a strong support level of $350.
Alternatively, if the price bounces back from the 20-day moving average ($419), the bulls will try to push the pair higher to the strongest resistance level of $445 and challenge the 200-day moving average ($471).
Ripple/USDT
The long tail of the Ripple (XRP) candlestick on April 18 indicates a strong buying at a lower level. The price reached the 50-day moving average ($0.78) on April 19, but the bears are vigorously defending this level.
XRP/USDT Daily Chart. Source: TradingView
If the price falls from the current level, it indicates that the XRP/USDT pair may remain in the range between the 50-day SMA and $0.69 for some time. A break below $0.69 could open the door to a possible drop to $0.60.
Conversely, if the price rises, the bulls will try to push and sustain the pair above $0.80. If they manage to do this, the pair could rise to the upper zone between the 200-day moving average ($0.87) and $0.91. Flat moving averages and RSI near the midpoint do not give a clear advantage to bulls or bears.
Sol/USDT
Solana (SOL) rebounded from the support line of the ascending channel on April 18, indicating that bulls are buying on dips. The bulls pushed the price above the 20-day moving average ($107) on April 19, but are still struggling to maintain a high level.
SOL/USDT Daily Chart. Source: TradingView
This suggests that the bears will continue to sell on every small rally. If the price falls below the 50-day moving average ($101), the bears will once again try to break the SOL/USDT pair below the ascending channel and retest the key support at $75.
Conversely, if the price rises from its current level, the bulls will try to challenge the resistance above $122. A break above and above this level could open the door to a potential rally to the 200-day moving average ($147).
ADA/USDT
Cardano (ADA) broke below the direct support level of $0.91 on April 18, but the bears were unable to depress the price. This suggests that the bulls are trying to form higher lows.
ADA/USDT Daily Chart. Source: TradingView
If buyers push prices above the psychological level of $1, the bullish momentum could pick up. The ADA/USDT pair may rebound to $1.10 and then retest the key resistance at $1.26. A breakout and closing above this level will indicate the beginning of a new uptrend.
Alternatively, if the price falls from the upper resistance level, the bears will once again try to pull down the pair. The pair may first fall towards $0.87, and if the level breaks, the fall could extend to a strong support of $0.74.
Luna/USDT
Terra's LUNA token rebounded from a strong support level of $75 and reached the 20-day moving average ($91) on April 18. This indicates that market sentiment is still positive and traders are buying on dips.
LUNA/USDT daily chart. Source: TradingView
The relief rally continued on April 19, with buyers pushing prices above the 50-day moving average ($93). The bulls will try to maintain the momentum and push the LUNA/USDT pair to a psychological level of $100. If the bulls clear this hurdle, the likelihood of retesting historical highs increases.
Conversely, if the price falls from the current level or $100, the bears will try to pull the pair down below the 20-day moving average. If they succeed, this will indicate that the trader may be profiting from the rally. This may cause a range of days to form.
Related: BTC and ETH will hit record highs in 2022 – CEO of Celsius
AVAX/USDT
AvAX broke below the uptrend line on April 18, but the bears were unable to sustain the lower levels. Strong buying by the bulls ensured a recovery and prices reached a moving average.
AVAX/USDT Daily Chart. Source: TradingView
The bears set up strong resistance at the moving average. If the price continues to move lower, the bears will try to sink again and hold the AVAX/USDT pair below the uptrend line. If they succeed, the drawdown could widen to $65.
Contrary to this assumption, if the price rises and breaks through the moving average, it indicates strong bullish demand. This could open the door to a possible rebound to $99. Bulls must overcome this obstacle in order to signal the formation of an ascending triangle pattern.
Dogecoin/USDT
Dogecoin (DOGE) rebounded again from the 50-day moving average ($0.13) on April 18, indicating that bulls are actively defending the level.
DOGE/USDT Daily Chart. Source: TradingView
The rally rose above the 20-day moving average ($0.14) on April 19, but bulls are struggling to maintain higher levels. This indicates that the bears are rebounding to the direct resistance level of $0.15.
If the price falls below the 20-day EMA, the bears will again try to move the DOGE/USDT currency pair below the 50-day EMA. If they succeed, the pair may fall to 0.12 USD.
Conversely, if the price recovers from its current level and breaks above $0.15, the bulls will try to push the pair above the neckline. If successful, the pair will complete the reverse head and shoulders pattern, which aims at $0.25.
Points/USDT
Polkadot (DOT) appeared on April 18, indicating that bulls are defending the direct support level of $17. The price has reached the moving average, which can be a tough obstacle.
DOT/USDT Daily Chart. Source: TradingView
The 20-day moving average ($19.15) and the 50-day moving average ($19.31) are flat and close to each other, while the RSI is slightly below the midpoint, indicating a balance between supply and demand.
If DOT/USDT breaks above the 50-day moving average, this balance could tilt in buyers' favor. The pair will then attempt to bounce back to a strong upper resistance level of $23.
Conversely, if the price falls from its current level, the bears will again try to pull the pair to the direct support level of $17 and then to $16 again.
The views and opinions expressed herein are solely those of the author and every investment and trading action involves risk. When making a decision, you should conduct your own research.