Bitcoin (BTC) has experienced some profit-taking in recent days, but the bears have been unable to push the price below $64,500. However, there is a possibility that Bitcoin may face renewed selling pressure if history repeats itself.
According to crypto analyst Rekt Capital, Bitcoin is entering the “Danger Zone” where it tends to undergo corrections. This period typically occurs 14 to 28 days leading up to the halving event, which is expected to take place on April 20 in this cycle.
In 2020, Bitcoin witnessed a 20% decline during this period, while in 2016, the correction was as high as 40%.
Analysts will closely monitor the inflows into spot Bitcoin exchange-traded funds (ETFs) to gauge the strength of the uptrend. If inflows remain steady during a pullback in Bitcoin, it indicates a high likelihood of the uptrend continuing. However, if inflows decrease significantly, it may delay the next leg of the uptrend.
Now, let’s analyze the charts to identify the important support levels for Bitcoin and altcoins.
S&P 500 Index:
The S&P 500 Index has seen a pullback from 5,180 but found support at the ascending channel pattern’s support line. If the bulls manage to push the price above the overhead resistance of 5,189, the index may climb to the channel’s resistance line. However, a turn down from the resistance line could keep the index within the channel for some time. Breaking below the 20-day EMA (5,100) could lead to a decline towards the 50-day SMA (4,972).
U.S. Dollar Index:
The U.S. Dollar Index (DXY) has pulled back to the moving averages, indicating strong buying at lower levels. If the price stays above the moving averages, it could rise to 105, where strong resistance is expected. On the other hand, a turn down from the moving averages could lead to another attempt to sink the index to 102. A break below this level could result in a drop to 101.
Bitcoin:
Bitcoin has bounced off the 20-day EMA ($65,830), indicating that bulls are buying on dips to strong support levels. The BTC/USDT pair faces resistance at the breakdown level from the ascending channel pattern. A break below the 20-day EMA could signal a fall to $59,000, while a push back into the channel could indicate a rejection of the breakdown. In that case, bulls may attempt to drive the pair to $73,777, with a potential rise to $80,000.
Ether:
Ether (ETH) dropped below the 20-day EMA ($3,619), but the bears are struggling to sustain lower levels. If the bulls manage to push the price back above the 20-day EMA, the ETH/USDT pair could rally towards the overhead resistance of $4,093, signaling the resumption of the uptrend. However, a turn down and a break below $3,400 would suggest negative sentiment and a possible decline to $3,200 and later to the 50-day SMA ($3,077).
Solana:
Solana (SOL) has been in a strong uptrend, and attempts at a pullback have been aggressively bought by the bulls. The price has reached the overhead resistance of $205, which could pose a challenge. However, if the bulls prevail, the SOL/USDT pair could start its journey towards the all-time high of $260. The RSI suggests a possible consolidation or correction in the short term, with the 20-day EMA ($156) as a key support level to watch.
BNB:
BNB has pulled back in an uptrend, but the bulls have held the price above the 38.2% Fibonacci retracement level of $534. The rising moving averages and positive RSI indicate the upper hand for the bulls. A rise above $591 could lead to a retest of the overhead resistance at $645. Conversely, a break below $534 may suggest bearish control, with a potential drop to the 20-day EMA ($509) and further to $460.
XRP:
XRP slipped below the 20-day EMA ($0.62), indicating a weakening bullish grip. The price has turned lower from the 20-day EMA, suggesting bearish activity at higher levels. The XRP/USDT pair could dive to the uptrend line unless the bulls manage to push the price above the 20-day EMA and start a recovery towards $0.67 and $0.74.
Cardano:
Cardano bounced off the 50-day SMA ($0.62), but struggles to break above the 20-day EMA ($0.70). The price turning down from the 20-day EMA indicates bearish selling on rallies and increases the likelihood of a break below the 50-day SMA. If that happens, the ADA/USDT pair may drop to $0.57. On the other hand, a rise above the 20-day EMA could propel the price to the overhead resistance of $0.81 and potentially to $0.92.
Avalanche:
Avalanche rebounded sharply off the $50 level, indicating strong buying at lower levels. The price has surpassed the overhead resistance of $61.50, suggesting the start of the next leg of the uptrend. If the breakout is sustained, the AVAX/USDT pair could climb to $87. However, if the price fails to hold above $61.50, the pair may remain range-bound between $50 and $62.
Dogecoin:
Dogecoin plummeted below the $0.15 support, indicating bearish control. Although the bulls pushed the price back above the 20-day EMA, recovery attempts have been sold. If the bears manage to sink the price below $0.14, the DOGE/USDT pair could slide to the 50-day SMA ($0.11). To prevent a fall, the bulls need to maintain the price above $0.16, which could keep the pair within the $0.15 to $0.19 range.
Please note that this article does not provide investment advice or recommendations. Readers should conduct their own research and analysis before making any investment decisions.