According to CoinShares, institutional influx into crypto products in the first quarter was $ 4.5 billion, up 11% from the fourth quarter of 2020. This shows that institutional interest is growing, but quarterly growth has slowed from 240% recorded in the fourth quarter of 2020.
As the price of bitcoin rises, more funds are needed to maintain levels. Consequently, if institutional inflow does not increase in the next few days, Bitcoin (BTC) and other altcoins could witness a major correction.
The next correction could test the resolve of institutional investors, and even though these investors have big pockets, some of them may have jumped into crypto just for quick speculative profits. There is always the possibility that investors could dump their positions if Bitcoin starts a correction.
While this could accelerate the decline, lower levels could attract investors who may have missed the bus earlier. If this assumption is confirmed, market volatility could remain high over the next few days.
Let’s analyze the charts of the top 10 cryptocurrencies to see if it is predicting a possible correction.
BTC / USDT
Bitcoin’s failure to cross the tough overhead resistance zone between $ 60,000 and $ 61,825.84 appears to have attracted profits from short-term traders. This brought the price back below the 20-day exponential moving average ($ 56,863) today.
If price holds below the 20-day EMA, bears may sense the open and are likely to challenge critical support at the 50-day simple moving average ($ 54,333). If this support breaks and the bears manage to keep the price below the 50-day SMA, selling could intensify.
The next support on the downside is $ 50,460. If this level also gives way, the BTC / USDT pair could fall to $ 43,006.77. The flattening moving averages and the falling of the Relative Strength Index (RSI) below 52 indicate that the bulls may be losing control.
Contrary to this assumption, if the price bounces off the 50-day SMA, the bulls will make another attempt to push the pair to a new all-time high. If they succeed, the pair can begin their journey towards the next target of $ 69,540 followed by $ 79,566.
ETH / USDT
Ether (ETH) broke a new all-time high on April 2, but failed to take off and continue to rally. This signals indecision among the bulls, and even though they managed to push the price to a new all-time high of $ 2,150 on April 6, the rally has since stalled.
This could have upset impulsive traders who appear to have dumped their positions today, leading to a drop to the 20-day EMA ($ 1,904). If the ETH / USDT pair rebounds strongly from the 20-day EMA, it will indicate demand at lower levels.
The bulls will then make another attempt to raise the price above $ 2,150. If they succeed, the pair could start on its way to the next target at $ 2,618.14.
This positive outlook will fade if bears decline and keep the price below the 20-day EMA. Such movement will indicate a possible change in sentiment, which could drag the price down to the trend line.
BNB / USDT
Binance Coin (BNB) is in a strong uptrend. The bears tried to bring the price back below the breakout level of $ 348.69 today, but the long tail on the candlestick shows that the bulls were aggressively buying the decline.
The rising moving averages and the RSI near the overbought zone suggest that the bulls are firmly in control of the market. If buyers are able to channel $ 348.69 in support, then the BNB / USDT pair could start the next phase of the uptrend, which could cause the price to hit $ 500 and then $ 530.
On the other hand, if the price drops below $ 348.69, it would mean that higher levels are attracting traders to take profits. Bullish momentum could weaken if bears push the price below the 20-day EMA ($ 314).
XRP / USDT
The XRP break above $ 0.65 on April 5 completed the inverted head and shoulders pattern with a target of $ 1.11. Altcoin hit that target on April 6 when it hit an intraday high of $ 1.11.
Traders who follow technical analysis seem to have taken profits near the target, which led to a sharp pullback today.
The bulls are trying to stop the retracement near the 50% Fibonacci retracement level at $ 0.84 as seen in the long tail of the candle. If buyers can withstand the rebound, it would mean accumulation at lower levels and maintain the prospect of a break above $ 1.11.
On the other hand, if the XRP / USDT pair falls below $ 0.84, the correction could deepen to the 61.8% Fibonacci retracement level at $ 0.77. Such a deep correction may delay the start of the next uptrend segment.
ADA / USDT
Cardano (ADA) tried to rally on April 6, but the long wick on the daily candle indicates no demand at higher levels. The bears jumped at the opportunity today and are trying to bring the price down to $ 1.03.
The bulls are likely to aggressively defend the $ 1.03 support. If the price rebounds strongly from this level, the bulls will try to push the price above the moving averages. If they can do this, the ADA / USDT pair could remain in range for a few more days.
The flat 10-day EMA ($ 1.18) and the RSI near the midpoint suggest a balance between supply and demand.
This neutral point of view will become invalid if the support for $ 1.03 cracks. In this case, the pair can start its path to support at $ 0.80, and then at $ 0.70.
DOT / USDT
The failure of the bulls to push the price above all-time highs of $ 146.80 on April 5 and 6 could attract profit taking from short-term traders. This could bring Polkadot (DOT) back below the $ 42.28 breakout today.
The bulls are currently trying to defend the 20-day EMA ($ 38). If they manage to achieve a strong rebound from this support, it will indicate accumulation at lower levels. Buyers can then make another attempt to break the historic high. If they succeed, the DOT / USDT pair could rise to $ 53.50.
On the contrary, a weak rebound will indicate weakness and lack of urgency for traders to buy aggressively. This will open the chances for the bears to push the price below the moving averages. If that happens, the pair could drop to $ 26.50.
UNI / USDT
Uniswap (UNI) tried to rise above the $ 32.50 resistance but failed. This shows the lack of buyers at higher levels. The bears are now trying to push the pair below the $ 27.97 to $ 25.50 support zone.
If they succeed, the UNI / USDT pair could start on its way to the next support at $ 22 and then $ 18.
However, the flat 20-day EMA ($ 29.59) and the RSI near the midpoint suggest a balance between supply and demand. If the bulls are able to defend the support zone, the pair is likely to extend its movement within the range for a few more days.
LTC / USDT
Litecoin (LTC) broke above the symmetrical triangle resistance line on April 5, followed by another upward move on April 6, which brought the price into tough resistance at $ 246.96.
The inability of the bulls to break the $ 246.96 barrier may have attracted profit taking from short-term traders and selling aggressive bears. This drove the price down to the breakout level from the triangle today.
If the LTC / USDT pair aggressively rebounds from this level, it will indicate that the bulls are accumulating on the downturns. Buyers will then make another attempt to climb the wall at $ 246.96. If they succeed, the pair could begin their journey towards $ 307.42.
On the contrary, if the bears drop the price below the moving averages, the pair could fall to the triangle support line.
LINK / USDT
Chainlink (LINK) broke through the $ 32 resistance level on April 5 and followed it with another move higher on April 6, but the bulls were unable to challenge the all-time high of $ 36.93. This suggests that the bears have not given up and are active at higher levels.
The LINK / USDT pair dropped below the $ 32 level today. The bulls are trying to protect the 20-day EMA ($ 29.85). If they manage to do this and push the price back above $ 32 over the next few days, it would imply accumulation at lower levels.
The bulls could then try to push the price above $ 36.93 again. Conversely, if the bears push the price below the moving averages, it would mean that the recent break above $ 32 was a bullish trap. The pair could then drop to $ 24.
THETA / USDT
After trading in a tight range for the past few days, THETA rallied today and tried to break the upper resistance of $ 14 to $ 14.96. However, the bears thwarted this attempt, as seen by the long wick on today’s candle.
If they succeed, THETA / USDT could start the next leg of the uptrend with a target of $ 17.65 followed by $ 22.50. The 20-day EMA ($ 11.13) began to reverse again and the RSI climbed above 68, suggesting that momentum is favoring the bulls.
However, the bears are unlikely to give up easily. They will try to stop the uptrend in the upper resistance area. If they succeed, the couple can extend their stay within the range for a few more days.
The views and opinions expressed here are those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move carries a risk. When making a decision, you should do your own research.
Market data provided HitBTC exchange.