5 - 8 minute read
Bitcoin (BTC) has been trading below $29,000 for the past several days. While some believe that Bitcoin could rise to $30,000, others are of the opinion that a local top has been made. Bloomberg Intelligence senior macro strategist Mike McGlone said that cryptocurrencies, along with the stock market, crude oil, and copper may find it difficult to sustain the recent bounce because bank liquidity levels remain tight.
On the other hand, SkyBridge Capital founder Anthony Scaramucci, while speaking with Yahoo Finance, said that Bitcoin’s bear market may be over, but he added that it was a guess. However, Scaramucci highlighted that Bitcoin has repeatedly outperformed other asset classes over the long term.
Bitcoin has formed a symmetrical triangle near $29,000, which suggests uncertainty among the bulls and the bears about the next directional move. The upsloping 20-day exponential moving average ($27,406) and the relative strength index (RSI) above 58 suggest that bulls have a slight edge. If the price rebounds off the support line, the buyers will attempt to thrust the BTC/USDT pair above the triangle. If they manage to do that, the pair may start the next leg of the up-move. The pattern target of a breakout from the triangle is $31,280.
Ether’s (ETH) rally turned down from $1,943 on April 5, indicating that the bears are guarding the psychological level at $2,000 with vigor. The first support is at $1,857. If this level gives way, the ETH/USDT pair could pullback to the 20-day EMA ($1,794). This remains the key level for the bulls to defend if they want to keep the up-move intact. If the price rebounds off the 20-day EMA, the bulls will again try to overcome the obstacle at $2,000. If they do that, the pair may ascend to $2,200.
XRP has stayed above the 38.2% Fibonacci retracement level of $0.49 for the past few days, indicating that the bulls are buying on shallow dips. The upsloping 20-day EMA ($0.47) and the RSI in the positive territory indicate that bulls have the upper hand. Buyers will next try to propel the price to the overhead resistance zone of $0.56 to $0.58. A close above this zone will signal the start of the next leg of the recovery.
Dogecoin’s rise on April 3 was used by traders to lighten their positions. This shows that the sentiment remains negative, and traders are selling on rallies. The sharp pullback in the past four days suggests that the DOGE/USDT pair will continue to trade inside the large range of $0.07 to $0.11 for some more time.
Polygon has formed a symmetrical triangle pattern, indicating indecision among the bulls and the bears. If the price rebounds off the support line of the triangle, it will suggest that the bulls are protecting this level. That could keep the pair inside the triangle for a while longer. If the price climbs above the 20-day EMA ($1.11), the bulls will again try to propel the MATIC/USDT pair to the resistance line of the triangle.
While the markets remain uncertain, some clear indicators suggest that the bulls are gaining a slight edge over the bears. The overall trend is up, and traders should proceed with caution while keeping a close eye on key levels to protect their investments from unnecessary losses.