Bitcoin (BTC) experienced significant selling pressure last week, but there is a positive sign that strong buying occurred at lower levels near $61,000. This indicates that sentiment remains positive and traders see dips as buying opportunities.
However, the selling may not be completely over. Markus Thielen, the head of research at 10x Research, stated in a recent note that Bitcoin miners may sell off $5 billion worth of Bitcoin over the four to six months following the Bitcoin halving. Thielen believes this could keep Bitcoin trading sideways for the next few months.
A sideways market can trap both bulls and bears by giving false breakouts in both directions. Traders should be cautious and wait for sustained breakouts before making significant trades.
To determine if the correction is over, it’s important to look at the resistance levels Bitcoin needs to surpass. Let’s analyze the charts to find out.
S&P 500 Index:
The S&P 500 Index dropped to the 50-day simple moving average (5,115) on April 12, indicating that bears are attempting to take control. If the 50-day SMA is breached, the index could enter a corrective phase. The first support on the downside is at 4,900, followed by potential selling pressure at the 20-day exponential moving average (5,174). A drop below 4,900 would increase the likelihood of a deeper correction, while a push above the 20-day EMA could lead to a rally to 5,265.
U.S. Dollar Index:
The U.S. Dollar Index (DXY) rebounded from the 50-day SMA (104) on April 9 and surpassed the overhead resistance at 105 on April 10, completing an ascending triangle pattern. The price has reached 106, where strong resistance from bears is expected. If the price turns down from 106 but bounces off 105, it will indicate that the bulls have turned the level into support, potentially leading to a rally to 107. On the other hand, a sharp downturn below 105 would suggest a rejection of the breakout and could lead to a slide toward the uptrend line of the triangle.
Bitcoin:
After bouncing off the $60,775 support, Bitcoin has reached the moving averages, where bears are likely to defend. If the price turns down from the moving averages, bears will attempt to push the BTC/USDT pair below $60,775, signaling a deeper correction with a potential drop to the 61.8% Fibonacci retracement level of $54,298. On the contrary, if the price breaks above the moving averages, it suggests the pair could continue trading within the range of $60,775 to $73,777 for a few more days. A break and close above $73,777 would indicate a resumption of the uptrend toward $80,000.
Ether:
Ether (ETH) broke below the $3,056 support on April 13, but quickly recovered above it on April 14. The recovery could reach the 20-day EMA ($3,369), a crucial level to watch. If the price turns down from the 20-day EMA, the ETH/USDT pair could drop to $3,056 and subsequently to $2,852. However, if buyers maintain the price above $3,056, it suggests the range-bound action will continue. A break above the 20-day EMA could lead to a rally to $3,679, with $4,100 as the target for a stronger up move.
BNB:
BNB has been consolidating within a large range between $495 and $635, indicating indecision about the next move. The 20-day EMA ($574) and the RSI near the midpoint provide no clear advantage to either bulls or bears. If the price breaks and stays above the 20-day EMA, the BNB/USDT pair could climb to $635. A break and close above this level would signal the start of the next uptrend leg to $692. However, if the price turns down from the 20-day EMA, it suggests bears are selling on rallies, potentially leading to a drop to the support at $495.
Solana:
Solana turned down from the 20-day EMA ($167) on April 12 and fell below the 50-day SMA ($164). The bears continued selling on April 13, bringing the price to the crucial support at $126. The long tail on the April 13 candlestick indicates strong defense by bulls at $126. If buyers push the price to the moving averages, it is expected to face significant resistance. A sharp downturn from the moving averages would lead bears to attempt to sink the SOL/USDT pair below $126, potentially resulting in a drop to $100. However, if the price rises above the moving averages, it would invalidate the negative view and open the possibility of a rally to $205.
XRP:
XRP has been trading within a large range between $0.41 and $0.74 for several months. On April 13, the price dropped near the support of the range, but strong buying at lower levels is evident from the long tail on the candlestick. The bulls are trying to initiate a relief rally, which could face resistance near the 20-day EMA ($0.57). If the price turns down from the current level or the 20-day EMA, bears will attempt another move toward $0.41. On the other hand, bulls will aim to keep the price above $0.46 and push the XRP/USDT pair above the moving averages to maintain the range-bound action.
Toncoin:
Toncoin (TON) continues to trade within an ascending channel pattern, favoring buyers. The price has reached the resistance line of the channel, where bears are expected to defend. If the price turns down from the resistance line, the TON/USDT pair could drop to the support line, and a break below the channel would signal a potential trend change. However, if buyers push the price above the channel, it suggests an increase in momentum and could lead to a rally to $8.56 and eventually $10.
Dogecoin:
Dogecoin sliced through the 50-day SMA ($0.17) support on April 13, indicating aggressive selling. The bulls are attempting a recovery, but they may face resistance at the moving averages. If the price turns down from the moving averages, it suggests bears view rallies as selling opportunities, potentially resulting in a drop to the strong support at $0.12. On the other hand, if buyers push the price above the moving averages, it indicates solid demand at lower levels and could lead to a rally to $0.20.
Cardano:
Cardano plunged below the $0.57 support on April 12, completing a bearish head-and-shoulders pattern. The price also dropped below the $0.46 support on April 13. However, it climbed back above $0.46 on April 14, indicating buying at lower levels. The bulls will attempt a recovery, likely facing strong selling at the 20-day EMA ($0.56). If the price turns down from the 20-day EMA, the ADA/USDT pair could drop to $0.46 and then to $0.40. A break below $0.40 could lead to a further drop to $0.35. The first sign of strength will be a rise above the 20-day EMA.
Disclaimer: This article does not provide investment advice or recommendations. Readers should conduct their own research before making any decisions.