Bitcoin (BTC) experienced a significant drop on April 12 and 13, resulting in approximately $2.5 billion worth of cryptocurrency liquidations. This fall has had a major impact on short-term leveraged long positions, which were hoping for a continuation of the rally leading up to and after the Bitcoin halving.
The decline in Bitcoin has also affected altcoins, with some of the top 20 cryptocurrencies by market capitalization falling by around 20%. As a result, Bitcoin’s market cap dominance reached 56.3% on April 12, the highest level in three years.
Despite the concerns among short-term traders, there is a positive sign that Bitcoin’s price has not yet broken below the crucial $60,000 support. This suggests that the fall is a normal pullback in a bullish market. While caution is advised, there is no need for panic.
In order to determine the support levels necessary for a relief rally to begin, let’s analyze the top 5 cryptocurrencies that appear strong on the charts and may lead the recovery.
Bitcoin’s price has been range-bound between $60,775 and $73,777 for several days, indicating uncertainty about its next move. The BTC/USDT pair slipped below the 50-day simple moving average ($66,743) and the $60,775 support, but the long tail on the candlestick indicates that bulls are defending the support level. A recovery attempt may face resistance at the 20-day exponential moving average ($67,807), and a break above it would clear the path for a rally to $73,777.
Binance Coin (BNB) has been experiencing indecision between bulls and bears, forming a large range in its price action. The support level to watch is $495, and a break below it may lead to a downtrend towards $400. On the other hand, a rise above the uptrend line could result in a possible rise to $600 and then $635.
Toncoin (TON) has been rising within an ascending channel pattern, indicating bullish sentiment. The support line near $7.50 is crucial, and a failure to sustain the lower levels may attract buyers and push the price towards the resistance line. A descent to the 50-day SMA ($4.28) would negate the optimistic view.
VeChain (VET) has been consolidating within a large range between $0.036 and $0.051, indicating a balance between supply and demand. The support level to watch is $0.036, and a break below it could start a downtrend towards $0.025. On the other hand, a break above the moving averages would signal that the range-bound action may continue for a few more days.
Bitget Token (BGB) has experienced a pullback in its strong uptrend, indicating profit booking by short-term traders. The support level to watch is the 50-day SMA ($1.02), and a rally to the overhead resistance of $1.38 may trap aggressive bears.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and make informed decisions.