The countdown to the Bitcoin halving is underway, and Bitcoin (BTC) is showing strength as the event approaches. This indicates that sentiment remains positive, and traders are taking advantage of buying opportunities. According to CoinShares data, digital investment products received $646 million in inflows last week, bringing the year-to-date inflows to $13.8 billion, surpassing the $10.6 billion in 2021.
On-chain analytics firm Santiment predicts that inflows into spot Bitcoin exchange-traded funds (ETFs) will remain high until the Bitcoin halving. However, it remains to be seen if there will be a drop-off in ETF volume and on-chain volume immediately after the event.
It is difficult to predict how the markets will behave after the halving, but analysts are generally optimistic about the long-term outlook. SkyBridge Capital CEO Anthony Scaramucci believes that Bitcoin could reach $170,000 during this cycle. He also expects Bitcoin to eventually trade at half the valuation of gold, but warns of volatility along the way.
In terms of resistance levels to watch for Bitcoin and altcoins, let’s analyze the charts:
S&P 500 Index:
The S&P 500 Index has shown uncertainty about its next directional move, forming an outside-day candlestick pattern on April 4 and an inside-day candlestick pattern on April 5. The 20-day exponential moving average has flattened out, indicating a balance between supply and demand. A break below 5,146 could signal a corrective phase, while a break above the all-time high of 5,265 would resume the uptrend.
U.S. Dollar Index:
The U.S. Dollar Index turned down sharply from the 105 overhead resistance level on April 2, suggesting bearish activity. However, the index has not dropped below the moving averages, indicating that lower levels are being bought. The index may trade between the 50-day SMA and 105 for some time. A break above 105 could lead to a rally to 106 and 107, while a drop below the 50-day SMA could sink the index to 103 and 102.
Bitcoin:
Bitcoin broke above a symmetrical triangle pattern on April 8, which indicates bullish dominance. The BTC/USDT pair is likely to retest the all-time high of $73,777, with a potential target of $84,000 if it surpasses that level. However, if the price falls below the 20-day EMA, it may drop to the 50-day SMA.
Ether:
Ether has been trading within a range of $3,056 and $3,679, showing indecision between buyers and sellers. If the price breaks above $3,679, it could rally to $4,093 and $4,488. On the other hand, a sharp decline below the 20-day EMA may indicate continued range-bound action.
BNB:
BNB continues to trade within a symmetrical triangle pattern, indicating a balance between supply and demand. If the price breaks above the triangle, it could retest the March 16 high at $645. However, if the price turns down from the downtrend line, it may remain inside the triangle. A drop below the triangle would favor the bears.
Solana:
Solana is struggling to stay above the 20-day EMA, suggesting bearish pressure. If the price falls from the current level, it could drop to the critical support at $162. On the other hand, a rebound from $162 and a move above the 20-day EMA would indicate further range-bound action between $162 and $205.
XRP:
XRP’s fall below the uptrend line did not attract sustained bearish momentum, and the price has moved above the moving averages. This suggests range-bound action between $0.56 and $0.69. To enhance the prospects of a rally, the price must break above $0.69, while a sustained drop below $0.56 could lead to further downside.
Dogecoin:
Dogecoin has moved back above the 20-day EMA, indicating bullish momentum. If the price breaks above $0.23, it could rally to $0.30. However, a drop below the 20-day EMA would suggest bearish activity and increase the likelihood of a decline to the 50-day SMA.
Cardano:
Cardano has held above $0.57 and moved to the 20-day EMA. A turn down from this level would indicate bearish control and a potential completion of a head-and-shoulders pattern, leading to a downward move. On the other hand, a break above the 20-day EMA would open the doors for a rise to $0.68 and potentially $0.81.
Toncoin:
Toncoin has surged above the overhead resistance zone of $5.50 to $5.69, suggesting the start of the next leg of the uptrend. If the price stays above $5.69, it could rally to the next target at $7.09. However, a drop below $5.50 could lead to a deeper correction.
It’s important to note that this article does not provide investment advice or recommendations, and readers should conduct their own research before making any decisions.