A few days of consolidation from BTC price could lead to a healthy bounce from LUNA, NEAR, VET and STEPN.
The month of April has been a forgettable one for equities and cryptocurrency investors. Bitcoin (BTC) plummeted 17% in April to record its worst ever performance in the month of April. Similarly, the Nasdaq Composite plunged 13.3% in April, its worst monthly performance since October 2008.
However, a major positive for crypto investors is that Bitcoin is still above its year-to-date low near $33,000. In comparison, the Nasdaq 100 has hit a new low for 2022 while the S&P 500 is just a whisker away from making a new year-to-date low. This suggests that Bitcoin has managed to avoid a major sell-off, indicating demand at lower levels.
Along with Bitcoin, Ether (ETH) has also managed to sustain well above its year-to-date low. According to cryptocurrency intelligence firm Jarvis Labs, both Ether whales and retail fish have been accumulating at lower levels.
After surviving the onslaught in April, could Bitcoin start a strong recovery and pull altcoins higher? Let’s study the charts of the top-5 cryptocurrencies that may outperform in the near term.
BTC/USDT
Bitcoin slipped to the support line of the ascending channel on April 30 but the rebound off it today suggests that the bulls are defending the level with all their might.
Although the downsloping 20-day exponential moving average ($39,956) suggests advantage to sellers, the positive divergence on the relative strength index (RSI) indicates that the negative momentum may be weakening.
If the rebound sustains, the bulls will attempt to push the price above the 20-day EMA. If they succeed, it will suggest accumulation near the support line. The pair could then rise to the 50-day simple moving average ($41,954).
On the contrary, a weak rebound will signal a lack of aggressive buying near the support line. If the price turns down from the current level or the 20-day EMA and breaks below the channel, the BTC/USDT pair could drop to $34,322 and later retest the critical support at $32,917.
The 4-hour chart shows that the price has been declining inside a falling wedge pattern. The RSI has formed a positive divergence, indicating that the bearish momentum may be weakening.
If the price breaks above the resistance line of the wedge, the pair could pick up momentum and rally to $41,000. This level may again act as a resistance but if bulls clear this hurdle, the next stop could be $43,000.
Conversely, if the price turns down from the 20-EMA and breaks below the wedge, the selling could pick up momentum.
LUNA/USDT
Terra’s LUNA token has been consolidating in an uptrend for the past several days. The price rebounded off the strong support at $75 today, suggesting that the bulls are defending this level aggressively.
The LUNA/USDT pair could now attempt a rally to the 20-day EMA ($88). This level could act as a hurdle where the bears might try to stall the up-move. If the price turns down from the 20-day EMA, it increases the odds of a break below the $75 support.
If that happens, the pair will complete a bearish head and shoulders pattern, signaling a potential trend change.
Conversely, if bulls propel the price above the 20-day EMA, the pair could again rise to the psychological resistance at $100. The buyers will have to clear this barrier to indicate that the correction may be over.
The price has rebounded off the strong support at $75 and the bulls will now attempt to push the pair above the 20-EMA. If they manage to do that, it will suggest that the selling pressure could be reducing. A break and close above the 50-SMA could indicate that the pair may remain range-bound between $100 and $75 for some…
Read More: cointelegraph.com