4 - 7 minute read
The month of April has seen risky assets like the S&P 500 Index and Bitcoin (BTC) extend their up-move, with gains of around 1.5% and 4% respectively. However, with the possibility of the United States banking woes escalating further, a correction could be on the horizon. In an interview with Bloomberg, JPMorgan Asset Management’s chief investment officer, Bob Michele, suggested that the turmoil at First Republic Bank is unlikely to be limited to the bank only, and could cause a domino effect. This could lead to a correction in the U.S. equity markets, and it is difficult to predict how Bitcoin will react to such a crisis.
Bitcoin & Solana
In the near term, Bitcoin and select altcoins are showing strength, leading analysts to study the charts of five cryptocurrencies that may outperform over the next few days. Among them is Solana (SOL), which did not break back below the downtrend line during the most recent leg of the correction, indicating demand at lower levels. If buyers propel the price to the overhead resistance at $27.12, the key resistance to watch for in the near term, the SOL/USDT pair may accelerate toward $39.
Cosmos
Another cryptocurrency that analysts are watching is Cosmos (ATOM), which has seen the bulls fiercely defending the support at $10.20. Buyers have pushed the price above the moving averages and will try to reach the downtrend line. If they break and close above it, it will open the doors for a potential rally to $13.50 and then to $15.50.
Internet Computer
However, not all cryptocurrencies are showing strength. Internet Computer (ICP) slipped below the 50-day SMA on April 26, but that proved to be a bear trap. The price turned up on April 27 and started a strong recovery. If the price does not give up much ground from the current level or rebounds off the 20-day EMA, it will suggest that the bulls are buying the dips, thereby enhancing the prospects of a rally to the downtrend line where the bears will again mount a strong defense.
Hedera
Hedera (HBAR) is another cryptocurrency that has seen the bears repeatedly try to sink it below $0.06, but the bulls held their ground. If buyers thrust the price above the resistance line, the bullish momentum may pick up and the HBAR/USDT pair could rally to the overhead resistance at $0.08.
The Bottom Line
While some cryptocurrencies are showing strength, others are vulnerable to a correction if the United States banking woes escalate further. It is essential to keep an eye on the moving averages and key resistance levels to gauge the market’s direction. Traders should conduct their research and analysis before making any investment or trading decisions.
