Bitcoin (BTC) has seen a sharp fall of around 9% this week, indicating that some traders may be booking profits in fear of a resumption of the downtrend. Analysts expect Bitcoin to reach the $26,600 to $25,000 zone where buying interest may pick up. When an asset emerges from a bear market, it tries to form higher lows on the way up. These levels act as strong supports during subsequent corrections. The current pullback could end up forming a higher floor for Bitcoin, which may act as a launch pad for the next rally.
The correction in Bitcoin has pulled several altcoins lower. Only a handful of major cryptocurrencies are holding out and looking strong on the charts. Let’s study the charts of five cryptocurrencies that may outperform on the way up.
Buyers are trying to arrest Bitcoin’s correction at the 50-day simple moving average ($26,983) but the shallow bounce suggests that the bears are not willing to give up. The 20-day exponential moving average ($28,606) has started to turn down and the relative strength index (RSI) is in the negative zone signaling that bears have a slight edge. The selling could pick up further if the 50-day SMA cracks.
The BTC/USDT pair could then tumble to the breakout level of $25,250. This is an important level to keep an eye on because if this support crumbles, the pair may plunge to $20,000. Buyers will have to push and sustain the price above the 20-day EMA to signal a comeback. That could attract buying and push the price toward the $31,000 to $32,500 resistance zone.
BNB (BNB) is witnessing a tough battle between the bulls and the bears. Sellers are active above $338 while the bulls are fiercely defending the 50-day SMA ($316). The BNB/USDT pair rebounded off the 50-day SMA on April 21 and the bulls are attempting to clear the hurdle at $338. If they succeed, it will enhance the prospects of a rally above $346. The pair may then soar toward $400. The gradually upsloping 20-day EMA ($325) and the RSI in the positive territory indicate that bulls have a slight edge.
Cardano (ADA) turned down and plunged back below the neckline of the inverse H&S pattern on April 20. This indicates that the bears are trying to trap the aggressive bulls. A minor positive in favor of the buyers is that they are trying to guard the 50-day SMA ($0.37). The 20-day EMA ($0.40) has turned down and the RSI is just below the midpoint, indicating that sellers are trying to seize control. If the price plummets below the 50-day SMA, it will suggest that the bears are in the driver’s seat. The ADA/USDT pair could then collapse to $0.30.
Monero (XMR) turned down from the neckline of the developing inverse H&S pattern but the sharp recovery from lower levels indicates aggressive buying on dips. Buyers have pushed the price back above the 20-day EMA ($157) and will again try to challenge the neckline. If this level is scaled, it will complete the bullish setup, clearing the path for a potential rise to $185 and thereafter to the pattern target of $199.
TON is a relatively new cryptocurrency that has been gaining traction in the market. It is the native token of the Free TON blockchain, which is a community-driven project that aims to create a decentralized internet. TON is currently trading at $0.50, up by around 30% in the last 24 hours. The token has been seeing a lot of interest from investors due to its potential to disrupt the centralized internet. If TON can continue to gain traction in the market, it could see significant upside potential.
In conclusion, while Bitcoin and several altcoins have seen a correction in the market, there are still some cryptocurrencies that are holding strong and may outperform on the way up. Investors should keep a close eye on these cryptocurrencies and look for opportunities to build their portfolios during dips in the market. As always, it is important to do your own research and invest wisely.