The number of Bitcoin whales holding at least 1,000 BTC has increased in recent months, according to a Glassnode report. The report also points out that the accumulation continued during the recent recession of March 12 and 13, when the price of Bitcoin fell below $ 4,000. This suggests that whales are optimistic about Bitcoin due to the event coming in half in May.
Canadian asset manager 3iQ launched the Bitcoin Fund on the Toronto Stock Exchange (TSX), which is linked to Bitcoin. Tyler Winklevoss said it was a historic moment because it was the “first Bitcoin public fund to be listed on a large stock exchange”. The fund offers investors the opportunity to add Bitcoin to their wallets without worrying about the security or preservation of cryptocurrencies.
Daily performance of the cryptocurrency market. Source: Coin360
As the panic in global markets subsides, Bitcoin is increasingly uncorrelated with all other asset classes. Over the past ten days, Bitcoin’s correlation with gold and the S&P 500 has become negative. On the other hand, the correlation of Bitcoin with the main cryptocurrencies has increased sharply.
Although Bitcoin did not rally during the current crisis, we like that it behaved like a mature asset and held its own. This is likely to attract institutional investors who may want to expose themselves to an uncorrelated asset like Bitcoin, which has proven itself in one of the worst crises of all time.
Today, the total cryptocurrency market capitalization has dropped below $ 200 billion, which shows downward pressure. Let’s study the graphs of the main cryptocurrencies to find the critical support levels to watch.
BTC / USD
Bitcoin (BTC) has failed to break out of the 50-day simple moving average in the past three days. This attracted the booking of profits by short-term traders who had entered lower levels. It also gave a bear short-circuit opportunity to try to resume the downtrend.
BTC – USD daily chart. Source: Tradingview
The 20-day exponential moving average ($ 6,834) is likely to provide solid support on the downside. If the BTC / USD pair bounces near this level, it will signal strength and increase the possibility of an SMA breakout at 50 days. Above $ 7,500, a rally at $ 8,000 and above at $ 9,000 is possible.
Contrary to our hypothesis, if the bears descend and maintain the pair below the EMA at 20 days, a fall to $ 6500 and below $ 5660.47 is likely.
The 20-day EMA flattens out and the relative strength index drops below the midpoint, suggesting short-term consolidation. For now, traders can maintain the stop loss on long positions at $ 5,600.
ETH / USD
Although Ether (ETH) jumped on April 6, the bulls could not reproduce the same movement to push it above the 50-day SMA. This suggests that bears are aggressively defending the level.
ETH – USD daily chart. Source: Tradingview
Currently, the ETH / USD pair has plunged into the 20-day EMA ($ 152), which should act as solid support. If the pair bounces off this level, the bulls will again try to raise it above the SMA at 50 days ($ 174).
If successful, a new uptrend with a target goal of $ 250 will begin. There is minor resistance at $ 208.50 but we expect it to be crossed.
Contrary to our hypothesis, if the pair drops below the 20-day EMA, a drop to $ 117,090 is likely. Therefore, stops on long positions can be kept at $ 135.
XRP / USD
Although the XRP closed (UTC time) above the 50-day SMA on April 08, the bulls could not take advantage of this advantage. This shows that bears aggressively defend the 50-day SMA. Currently, the bears are trying to lower the altcoin below the EMA at 20 days ($ 0.183).
XRP – USD daily chart. Source: Tradingview
If successful, the XRP / USD pair can dive towards the solid support of $ 0.15983. A break below this level will indicate an advantage to the bears.
Conversely, if the pair rebounds on the EMA at 20 days, the bulls will again try to start a new upward trend towards $ 0.25. For now, traders can hold stops on long positions at $ 0.155.
BCH / USD
Bitcoin Cash (BCH) surpassed the SMA by 50 days on April 8 and 9, but the bulls failed to maintain the break. This shows a lack of buyers at higher levels. The bears will now try to seize the advantage by pushing the altcoin below the EMA at 20 days ($ 238).
BCH – USD daily chart. Source: Tradingview
If the bearers keep the BCH / USD pair below the 20-day EMA, a drop to $ 200 and below to $ 166 is likely. Traders can hold stops on long positions at $ 197.
On the other hand, if the pair rebounds to current levels or from $ 200, the bulls will try to push it above $ 281 again.
BSV / USD
Bitcoin SV (BSV) climbed to $ 227 on April 9, which was just below our first target of $ 233,314. However, the bulls could not maintain the higher levels and the altcoin fell sharply.
BSV – USD daily chart. Source: Tradingview
The inability of bulls to maintain higher levels is a huge drawback. He suggests booking profits by short-term traders and selling by aggressive bears. The BSV / USD pair fell at 20-day EMA to $ 181.7.
If the bearers keep the price below the 20-day EMA, a drop to $ 146.96 is possible. However, if the pair rebounds to current levels, this will increase the possibility of a rally to $ 268,842. Therefore, traders can keep the stop loss on long positions at $ 165.
LTC / USD
Although Litecoin (LTC) remained above the critical level of $ 43.67 for three days, the bulls could not propel it above the 50-day SMA. This attracted the sale, as the bears attempted to push the altcoin below the EMA at 20 days ($ 42.25).
LTC – USD daily chart. Source: Tradingview
If the price remains below the 20-day EMA, a drop to $ 35.8582 is likely. This is an important level of support to watch because if it cracks, the drop can extend to $ 30.
However, if the LTC / USD pair bounces back to current levels or $ 35.8582, the bulls will again try to push it above the 50-day SMA ($ 48.15). If successful, a rally at $ 63 is likely. Traders can maintain the stop loss on long positions at $ 35.
EOS / USD
The EOS is down from the 50-day SMA ($ 2.82), which shows that bears aggressively defend this level of resistance. If the altcoin falls below the recent breakout level of $ 2.4001, a fall to $ 2.0632 is likely.
EOS – USD daily chart. Source: Tradingview
The two moving averages flattened and the RSI fell below the midpoint, suggesting a few days of beach-related action.
The trend will turn in favor of bulls if they can drive the EOS / USD pair above the SMA at 50 days. In such a case, a rally to $ 3.1802 then to $ 3.86 is possible. Traders can protect their long positions with the $ 2 stop loss.
BNB / USD
The bulls failed to drive Binance Coin (BNB) over the 50-day SMA for four consecutive days. This resulted in sales by short-term bulls and aggressive bears. A break below the EMA at 20 days ($ 13.70) will strengthen the bears.
BNB – USD daily chart. Source: Tradingview
If the BNB / USD pair remains below the 20-day EMA, a fall to the next support at $ 11.2552 is likely. If this level also cracks, the pair will become extremely negative.
On the other hand, if the pair bounces on the EMA at 20 days, it will indicate that the sentiment is to buy the lows. The bulls will then try to push the price towards $ 17.50 and above all above the target objective of $ 21.50. Therefore, traders can hold their long positions with the stop loss at $ 11.
XTZ / USD
Tezos (XTZ) crossed the downtrend line on April 8, which triggered our purchase suggested in the previous analysis. However, altcoin has dropped from the 50-day SMA, which is a negative sign.
XTZ – USD daily chart. Source: Tradingview
The bears will not try to drop the XTZ / USD pair below the 20-day EMA ($ 1.84). If successful, a drop to $ 1.65 and below $ 1.4453 is possible. Therefore, traders can maintain the stop loss on long positions at $ 1.40.
Conversely, if the pair rebounds on the EMA at 20 days, it will signal to buy on the lows. If the price exceeds $ 2.185, the pair should go up to $ 2.75 and then to $ 3.33.
LINK / USD
The strong recovery from the recent lows has helped Chainlink (LINK) become the tenth largest cryptocurrency in terms of market capitalization. The 20-day EMA ($ 2.61) has increased and the RSI is in the positive zone, which suggests that the bulls have the upper hand.
LINK – USD daily chart. Source: Tradingview
If the LINK / USD pair rebounds on the SMA at 50 days ($ 3.04) or on the EMA at 20 days, the bulls will try to resume the bullish movement. A break above the overhead resistance at $ 3.5948, which is Fibonacci’s 61.8% retracement of the recent fall, should be a huge benefit.
Above this level, a rally to $ 4.9762 is possible. Although the bears could try to stop the rise to $ 4.2023, we expect this level to be crossed.
Our bullish view will be invalidated if the pair drops below the two moving averages. Such a decision can bring the price down to $ 2. However, we give it a low probability of happening.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Each investment and trading movement involves risks. You have to do your own research when you make a decision.
Market data is provided by HitBTC Exchange.