The price of Bitcoin BTC $28,131 has not changed much over the long weekend; it is still trading inside a constrained range. In the weekly chart, Bitcoin is on course to create a third straight Doji candlestick formation. This implies that both Bitcoin bulls and bears are unsure of the direction of the next move.
Not just Bitcoin is trapped inside a range. The S&P 500 Index has been trapped in a range for nine months. Jurrien Timmer, director of the global macro at asset management Fidelity Investments, tweeted on April 7 that a breakout was due “sooner or later.”
Some altcoins have seen profit booking due to Bitcoin’s failure to break above the $30,000 mark, although only a few have seen small pullbacks. This suggests that traders are maintaining their positions in anticipation of a rise.
Let’s examine the charts of a few other currencies that could rise and begin an uptrend if Bitcoin breaks into the higher. What obstacles must be overcome for these five cryptocurrencies to become bullish?
Bitcoin Price Analysis
During the previous two days, Bitcoin has been trading in a narrow range, signaling that both bulls and bears are unsure of their positions. An increase frequently follows tight ranges in volatility.
A flattening of the 20-day exponential moving average ($27,500) and a slow slippage toward the middle of the relative strength index (RSI) are both signs of the latter. This shows that supply and demand are in balance.
Some short-term stop losses may be triggered if the price drops below the 20-day EMA, sending the BTC/USDT pair down to the breakout level of $25,250.
On the other hand, if the price makes a strong rebound off the 20-day EMA, it will indicate that traders are still buying the dips and that the sentiment is still bullish. A rise above $29,200 might make a rally to $30,000 and then to $32,500 more likely.
On the 4-hour chart, the 20-EMA is flattening down, and the RSI is barely below the midway. This gives neither the bulls nor the bears a definite advantage. This ambiguity is unlikely to last very long, and a trend in one way may start soon. Yet, predicting the breakout’s path might be challenging.
Consequently, holding off on placing directional bets is preferable until the breakthrough occurs. On the upside, $29,200, and on the downside, $26,500, are crucial levels to watch. A breach of either level could initiate an immediate trending move.
Cardano Price Analysis
The fact that the bulls are preventing Cardano ADA $0.390 from falling below the 20-day EMA ($0.37) suggests demand at lower prices. The 20-day EMA is rising upward, and the positive RSI reading indicates that upward movement is the direction of least resistance. The inverted head and shoulders (H&S) pattern’s neckline may be reached by the ADA/USDT pair first. A breakthrough and closure above this barrier will indicate a possible trend change. The pair may then surge toward the $0.60 pattern target.
The price has crossed the 20-EMA on the 4-hour chart, and the bulls will now attempt to cross the resistance at the downtrend line. If they do, it will imply that the pullback might have ended. The two may ascend to the neckline, where the bears would probably launch a fierce resistance.
On the other hand, it would indicate that bears are active at higher levels if the price encountered resistance at the downtrend line. Below $0.37, selling might pick up speed, and the pair might fall to the 200-SMA.
Bears must immediately pull the price below the 20-day EMA to stop the upward movement. The pair’s price might fall to $0.30 and eventually to the 200-day simple moving average ($0.35).
Stellar Price Analysis
Stellar XLM $0.104 reversed from the $0.12 overhead resistance, and the price is now very close to the 20-day exponential moving average ($0.10). Bulls are probably going to purchase dips to the 20-day EMA.
The bulls will once more attempt to cross the overhead barrier if the price reverses off the 20-day EMA. If successful, the XLM/USDT pair will finish a bullish rounding bottom pattern. That might be the beginning of a fresh upward trend. The pair may increase in value to $0.15 before moving toward the pattern’s $0.17 target.
In contrast to this presumption, a price decline and a break below the 20-day EMA would indicate that bulls are losing market control. The pair may then reach the 200-day SMA ($0.09). This is a make-or-break level for the bulls because if it breaks, the pair might crash below $0.07.
The pair is correcting inside a falling wedge pattern, according to the 4-hour chart. The bulls will try to raise the pair above the wedge as the price rallies off the support line. If they succeed, the pair may increase to $0.11 and then $0.12.
On the other hand, it will indicate that the selling has gotten worse if the price declines and breaks through the support line. Tiny support exists at $0.10, but if it falters, the drop may continue to the 200-SMA.