BTC and Altcoins Price Analysis
BTC and a few altcoins may be preparing for an oversold move, but traders beware: it’ll most likely be a dead cat bounce. The US dollar index (DXY) has surged beyond the March 2020 highs and may soon threaten the multi-year highs achieved in January 2017. Bitcoin’s price movement is often inversely related to DXY. As a result, a significant recovery in Bitcoin may be impossible until the dollar reverses its recent advance.
Although Bitcoin has yet to confirm a bottom, institutional investors have begun purchasing at lower prices. According to data analytics company Coinglass, Canada’s Purpose Bitcoin exchange-traded fund added 1,132 BTC to its holdings. Santiment, a behavior analytics resource, also revealed that the crowd’s enthusiasm for purchasing the dip had reached a six-week high.
BTC/USDT
On April 26, Bitcoin’s rebound stalled around the 20-day exponential moving average (EMA) ($40,618), indicating that sentiment is still negative and traders are selling on rallies. A slight positive is that the price bounced off the ascending channel’s support line on April 27, indicating that bulls are attempting to defend this level. If the rally continues, bulls will try to take the price above the 20-day EMA and the 50-day simple moving average (SMA) (S42,038). If they are successful, the BTC/USDT pair may be able to stay inside the channel for a few more days.
ETH/USDT
On April 26, Ethereum turned down from the 20-day EMA ($3,014), showing that bears continue to sell on rallies to this level. The bears will now attempt to push the price back up to the uptrend. If bears push the price below the uptrend line, the ETH/USDT pair may fall to $2,450. The bulls will try to halt the collapse at this level, but the selling might pick up if they fail, and the pair could fall below $2,159.
Alternatively, if the price rises from its current level, buyers will aim to push the pair over the 20-day EMA once more. If they succeed, the couple might advance to $3,200 before attempting an upward move to the 200-day SMA ($3,470).
BNB/USDT
On April 26, BNB closed below the immediate support of $391, indicating near-term weakness. Bulls are currently seeking to re-enter the market above the breakdown level. If they are successful, the price could move to the 20-day moving average ($408). It is a crucial resistance to watch because if bulls overcome it, the BNB/USDT pair might rise to $431 before attempting a rally to $460.
In contrast, if bears convert the $391 level to resistance, the BNB/USDT pair may restart its decline and fall into the solid support at $350. The 20-day EMA is sloping downward, and the RSI is in the negative zone, indicating that the path of least resistance is to the downside.
XRP/USDT
The lengthy tail of Ripple (XRP) on the April 25 candlestick indicates significant purchasing at lower levels. The bulls, however, were unable to keep the price above $0.70 on April 26, resulting in another sell-off. The bears have the upper hand, as seen by the downsloping 20-day EMA ($0.72) and an RSI near the oversold zone. If the price falls below the immediate support level of $0.62, the XRP/USDT pair could fall to the strong support level of $0.55.
In contrast to this idea, if the market recovers from its present level, the bulls will make another attempt to push and sustain the pair above the breakdown level of $0.69. If they are successful, the couple might reach the 50-day simple moving average ($0.77).
