The total crypto market capitalization has bounced from just below $200 billion on April 22 to over $214 billion at press time. This is a positive sign as it shows that the sentiment is to buy the dips. If the market capitalization rises above $217 billion, it would open the gates for a rally to about $250 billion. A positive sign during the recent bullish move has been that along with Bitcoin several altcoins have also shown strength.
As Bitcoin halving nears, tweets regarding “halving “ have picked up and are currently ranked second among the topics discussed related to Bitcoin, according to crypto social sentiment analysis firm TheTIE.
Another survey conducted by the global peer-to-peer Bitcoin marketplace Paxful states that 50% of the respondents believe that a failure in the traditional finance system could result in a shift to Bitcoin. The chief operating officer and co-founder of Paxful Artur Scahabck said that many participants expect “mainstream adoption” in the next 6 to 10 years. However, the survey also had non-believers who said that the crypto bubble could burst in the same 6-10 years time frame.
Argentina is in talks with some of the world’s largest institutional investors to avoid a ninth sovereign debt default. The Argentine pesos has been one of the worst global currencies to hold as it has lost about 75% of its value against the US dollar since 2018. Interestingly, during the same period, the weekly volume of Bitcoin purchased with Argentine pesos has surged 1,028%. This shows that when investors lose faith in fiat currencies, they gravitate towards cryptocurrencies.
Global Macro Investor CEO Raoul Pal believes that the current crisis caused by the coronavirus outbreak could drive investors towards gold and Bitcoin. Pal expects Bitcoin to “go from a $200bn asset class to a $10tn asset class” in the next five years.
Bitcoin (BTC) surged above the symmetrical triangle and the horizontal resistance at $7,454.17 on April 23. This was a huge positive but the bulls have not been able to take advantage of this breakout.
BTC–USD daily chart. Source: Tradingview
This shows hesitation at higher levels. The bears will now attempt to drag the BTC/USD pair below $7,454.17. If successful, a retest of the breakout level from the symmetrical triangle at $7,220 is possible.
If the pair rebounds off this level, the bulls will again attempt to drive the price above the $7,454.17-$7,740.37 resistance zone. If successful, a rally to $8,000 and then to $9,000 is possible.
The 20-day exponential moving average is gradually sloping up and the relative strength index is in the positive territory, which suggests that the bulls have a slight advantage.
The first sign of weakness will be a break below the 20-day EMA and the bearish scenario will come into play below $6,471.71. Therefore, the stop loss on the long positions can be retained at $6,200.
Ether (ETH) continues to trade inside the ascending channel with a positive bias. The 20-day EMA ($169) is sloping up and the RSI is in the positive territory, which indicates that the bulls have the upper hand.
ETH–USD daily chart. Source: Tradingview
If the bulls can propel the ETH/USD pair above the ascending channel, the momentum is likely to pick up. Above the channel, a rally to $250 is possible. The pair remains bullish as long as it trades inside the top-half of the channel.
The first sign of weakness will be a break below the 20-day EMA and the trend will turn in favor of the bears on a break below the channel. Therefore, the stop-loss on the long positions can be trailed higher to $155.
The bulls pushed XRP above the downtrend line on April 23 but could not sustain the price above it. Currently, the bulls are again attempting to sustain the price above the downtrend line.
XRP–USD daily chart. Source: Tradingview
If successful, a move to $0.20570 is likely. The bears might again defend this level but a break above it can start an uptrend that can result in a rally to $0.25.
The gradually upsloping 20-day EMA ($0.187) and the RSI just above the midpoint suggests a marginal advantage to the bulls.
However, if the XRP/USD pair turns down from the current levels or from the overhead resistance at $0.20570 and breaks below $0.17372, the trend is likely to favor the bears. Therefore, the protective stop-loss on the long positions can be trailed higher to $0.170.
BCH–USD daily chart. Source: Tradingview
If the bulls can thrust the BCH/USD pair above $250, a move to $280.47 is possible. A breakout of this level will invalidate the bearish head and shoulders pattern, which could result in a rally to $350.
Conversely, a break below $200 will complete the bearish H&S pattern, which has a target objective of $119.53. The stop-loss on the long positions can be kept at $197.
Bitcoin SV (BSV) is close to the resistance line of the symmetrical triangle. A breakout of the triangle will be a positive sign that can result in a move to $227. The bears are again likely to mount a defense of this level.
BSV–USD daily chart. Source: Tradingview
However, if the bulls can push the BSV/USD pair above $227, a new uptrend is likely. The first target on the upside would be $268.842 and above it $319.424.
Conversely, if the pair turns down from the current levels and plummets below the support line of the triangle, it will signal weakness. Below $170, the pair can decline to $146.20 and then to $100. Therefore, the stops on the long positions can be kept at $165.
The bulls are attempting to push Litecoin (LTC) above the overhead resistance of $43.67. If successful, a move to $47.6551 is possible. The bears are likely to defend this level aggressively but if crossed, a new uptrend is likely to begin.
LTC–USD daily chart. Source: Tradingview
Above $47.6551, the LTC/USD pair can rally to $52.2767, which might act as minor resistance. However, if the bulls can break above this level, a rally to $63 is possible.
Conversely, if the bulls fail to sustain the price above $43.67, the consolidation is likely to extend for a few more days. A break below $35.8582 will open the gates for a further decline. Therefore, the long positions can be held with a stop at $35.
EOS is trading in the upper half of the $2.3314-$2.8319 range. The 20-day EMA ($2.56) is gradually sloping up and the RSI is in the positive territory, which suggests that bulls have a slight advantage.
EOS–USD daily chart. Source: Tradingview
If the bulls can drive the EOS/USD pair above $2.8319, the momentum is likely to pick up. The target objective for the breakout from the range is $3.3324. If the traders can push the price above this level, the uptrend can reach $3.8811.
However, if the bulls fail to break out and sustain the price above $2.8319, the pair might spend a few more days inside the range. Lower levels can be expected on a break below the support of the range at $2.3314. Therefore, the protective stops on the long positions can be kept at $2.20.
Binance Coin (BNB) has bounced off the 20-day EMA ($15) and has re-entered the rising wedge. However, the rebound lacks momentum, which shows hesitation among the bulls to buy at higher levels.
BNB–USD daily chart. Source: Tradingview
If the BNB/USD pair turns down from the current levels or from the resistance line of the wedge and breaks below the 20-day EMA, it will signal an advantage to the bears. Below the 20-day EMA, the next support is at 13.65.
Conversely, if the bulls can drive the pair above the wedge, it will invalidate the bearish pattern. This could result in a rally to $21.50. For now, the stops on the long positions can be kept at $13.
Tezos (XTZ) picked up momentum after bouncing off the 20-day EMA on April 21. Today, the altcoin reached our first target objective of $2.75. The bears are likely to defend this level aggressively.
XTZ–USD daily chart. Source: Tradingview
This could result in a minor correction or a few days of consolidation. Therefore, the short-term traders can book partial profits if the bulls struggle to scale the XTZ/USD pair above the overhead resistance. The stops on the rest of the long positions can be trailed higher to breakeven.
With the 20-day EMA ($2.15) sloping up and the RSI in the overbought zone, the advantage is with the bulls. Above $2.7529, a rally to $3.2712 is possible. This bullish sentiment could take a beating if the bears sink and sustain the price below the recent swing low of $2.0618.
Failed breakouts are usually the first warning sign of waning demand at higher levels. Chainlink (LINK) climbed above the resistance at $3.83 on April 23 but the bulls could not sustain the breakout.
LINK–USD daily chart. Source: Tradingview
Currently, the bulls are again struggling to hold the price above $3.83. This shows selling at higher levels. However, the positive sign is that the LINK/USD pair has not given up much ground.
The 20-day EMA ($3.32) is sloping up and the RSI has been sustaining above the 60 levels, which suggests that bulls have the advantage.
If the pair can climb and sustain above $3.83, the uptrend is likely to resume. The first level to watch out for is $4.2023 and then $4.9762. The first sign of weakness would be a drop below the trendline.
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