Bitcoin (BTC) is trying to stay above the nearest support level, and traders look to see if the price can stay strong and stay above the 2022 annual open price at $46,200 for the second week in a row.
April is historically the best performing month of the year for the S&P 500, according to Sam Stovall, chief investment strategist at CFRA. If history repeats itself and the close correlation between the US stock markets and Bitcoin continues, this could bode well for crypto markets in the near term.
Daily display of crypto market data. Source: Coin360
Another sentiment booster could be that the 19th million Bitcoin went into circulation on April 1. The crypto markets will have to wait a long time for the remaining 2 million Bitcoin as the last Bitcoin is expected to be mined in 2140. This could shift the focus on how there is only a small amount of Bitcoin left to be mined and the growing demand could lead to scarcity and higher prices.
Could Bitcoin stay above its critical support and if so, will altcoins rise? Let’s take a look at the charts of the top 5 cryptocurrencies that could prolong their recovery in the short term.
BTC/USDT
Bitcoin is witnessing an uphill battle between the bulls and the bears near the key $45,400 level. The bears tried to pull and hold the price below this level, but the bulls held out. This suggests that the bulls are trying to turn the level into support.
BTC/USDT daily chart. Source: TradingView
The rising 20-day exponential moving average ($44,333) and the relative strength index (RSI) in positive territory indicate that the path of least resistance is upward. The critical level to watch on the upside is the 200-day moving average ($48,276).
If bulls push the price above this barrier, the BTC/USDT pair is likely to gain momentum. The rally may encounter minor resistance at the $50,000 psychological level, but if this level is crossed, the next stop could be at $52,000.
Contrary to this assumption, if the price falls from current levels or overhead resistance, the bears will try again to get the pair below $45,400 and the 20-day EMA. If that happens, the pair could fall towards the 50-day SMA ($41,615).
BTC/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows that the price is correcting since it reaches the resistance line of the rising channel. Recovery attempts by the bulls are facing solid resistance near the downward trendline. If bulls push and hold the price above the downtrend line, the pair could rise towards the channel’s resistance line.
A pause and close above the channel could signal the resumption of the uptrend. Alternatively, if the price falls from the downtrend line, the bears will try to sink the pair towards $44,000. If this level bursts, the drop could reach as high as $42,594.
FAT/USDT
VeChain (VET) rose above the $0.07 overhead resistance on March 27, but the bears halted the recovery near the 200-day SMA ($0.09). One small positive is that the bulls have not allowed the price to fall below the $0.07 breakout level.
FAT/USDT daily chart. Source: TradingView
If the price rises from current levels, the bulls will make another attempt to clear the overhead hurdle on the 200-day SMA. If they manage to do that, it suggests a possible trend change. The VET/USDT pair could then rise as high as $0.10 and later to $0.13.
The rising 20-day EMA ($0.06) and the RSI in the positive territory indicate an advantage for buyers. This bullish opinion becomes invalid if the price falls and moves below the 20-day EMA. Such a move could pull the pair towards the 50-day SMA ($0.05).
VET/USDT 4-hour chart. Source: TradingView
The 20 EMA has leveled off and the RSI is near the midpoint on the 4-hour chart, indicating a supply/demand balance. If the price moves above $0.08, the bulls will try to propel the pair above $0.09. If they do, the pair could extend its upward movement.
Conversely, if the price falls and moves below the 50-SMA, the pair could fall to the critical level of $0.07. If bulls turn this level into support, the pair will try again to move above $0.09, but if the support bursts near $0.07, the bears may be back in the game.
THETA/USDT
Theta Network’s THETA token has been between $2.50 and $4.40 for the past few weeks. The bulls tried to push the price above the overhead resistance but failed. This suggests that the bears continue to aggressively defend the level.
THETA/USDT daily chart. Source: TradingView
If the price does not fall below $3.80, it suggests that traders are not closing their positions soon as they expect the upward move to continue. The rising 20-day EMA ($3.54) and the RSI near the overbought zone indicate that the path of least resistance is upward.
If buyers bring the price above the overhead zone between $4.40 and the 200-day SMA ($4.77), it signals the start of a possible uptrend. The THETA/USDT pair may then gain momentum and rally towards USD 6.
Contrary to this assumption, if the price drops below the 20-day EMA, the next stop could be the 50-day SMA ($3.17). Such a move suggests the pair could remain range-bound for a few more days.
THETA/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows that the bears have repeatedly thwarted attempts by the bulls to push the price above the $4.40 overhead resistance. The 20 EMA has leveled off and the RSI is near the midpoint, indicating a supply/demand balance.
If the price falls below the 50-SMA, the short-term advantage may tip in favor of the sellers. The price could then drop to $3.50. On the other hand, if the price breaks and stays above the overhead resistance, the bulls will gain the upper hand.
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RUNE/USDT
THORChain (RUNE) has been trading in a major bearish triangle pattern for several months now. The sharp rally of the past few days has pushed the price towards the downward trendline of the triangle where bears are building strong resistance.
RUNE/USDT daily chart. Source: TradingView
If the price falls from its current level, the RUNE/USDT pair could fall towards the 20-day EMA ($9.75). This is an important level to watch out for because if the price bounces back after the 20-day EMA, it suggests that sentiment remains positive and traders are buying on dips.
That could raise the prospect of a break above the downward trendline. If that happens, the bearish triangle setup will become invalid, which could be a bullish sign. The pair can then rise to $17.
This bullish view will be negated in the near term if the price falls and moves below the 20-day EMA. That could pull the pair towards the 200-day SMA ($7.88).
RUNE/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows the pair facing strong resistance near USD 13. One small positive is that the bulls have not let the price fall and are holding it below USD 11. Therefore, this is going to be an important level to keep an eye on.
If the price moves below this support, the pair could fall towards the next major support of $10. Conversely, if the price bounces back from $11, buyers will again try to resume the uptrend by bringing the pair above the overhead resistance .
AAVE/USDT
Aave (AAVE) broke out of the downward trendline on March 29, signaling a possible trend change. The bears tried to slow the recovery during the 200-day EMA ($226), but the bulls didn’t give up much ground.
AAVE/USDT daily chart. Source: TradingView
Buying resumed on April 1 and the AAVE/USDT pair broke above the 200-day SMA. If the price remains above the 200-day SMA, it signals the start of another upward move.
If bulls push the price above USD 262, the rally could extend to the psychological level of USD 300. The bears may offer solid resistance at this level, but if bulls overcome this barrier, the upward move could reach $350.
This bullish view will be invalidated in the near term if the price falls and plummets below the 200-day SMA. The bears could then pull the price towards the 20-day EMA ($187).
AAVE/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows the bulls buying the dips ahead of the 20 EMA. If bulls push the price above $261.20, the uptrend may resume. This rally may see resistance in the overhead zone between $283 and $300.
The RSI is showing signs of negative divergence indicating that bullish momentum could be weakening. If the price falls and moves below the 20 EMA, it suggests that the bulls may be making gains in the near term. That could take the pair to the 50-SMA.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Coin-Crypto. Every investment and trading move involves risks, you should do your own research when making a decision.