Bitcoin and select altcoins experienced a sharp decline on April 19, but the bulls are trying to defend their respective support levels. The past three days have seen Bitcoin witness volatile moves, indicating that buyers and sellers are vying for supremacy. While the latest sell-off may have been triggered by high inflation figures in the United Kingdom and regulatory uncertainty in the United States, profit booking was not limited to Bitcoin, as most major altcoins also turned lower. Despite the possibility of a deep correction, Glassnode’s analysis on April 17 suggests that several on-chain indicators are pointing toward the end of the bear market, which means dips may be viewed as a buying opportunity by long-term investors.
Bitcoin is currently witnessing a keen battle between the bulls and the bears at the 20-day exponential moving average ($29,092). The bears are trying to sink the price below the 20-day EMA, while the bulls are attempting to start a strong rebound. If the price snaps back from the 20-day EMA, it will suggest that the sentiment remains positive and that traders are viewing the dips as a buying opportunity. The bulls will then make one more attempt to overcome the resistance zone between $31,000 to $32,000. If they succeed, it will indicate the resumption of the uptrend. The BTC/USDT pair may then soar to $40,000. However, if the bears tug the price below the 20-day EMA, the selling could accelerate, and the pair may slump to $27,800 and subsequently to $26,500.
The bulls tried to resume the uptrend in Ether (ETH) on April 18, but the bears remained sellers near the overhead resistance at $2,200. The ETH/USDT pair has pulled back to the 20-day EMA ($1,949), which is just below the psychological support of $2,000. This is an important support for the bulls to defend because a break and close above it may tilt the advantage in favor of the sellers. The pair may first collapse to $1,800 and later to $1,700. Alternatively, if the price rebounds off the 20-day EMA, it will suggest that the bulls are trying to flip the $2,000 level into support. If they can pull it off, the pair may rally to $2,200. A break and close above this level will clear the path for a potential rally to $3,000.
Buyers defended the $338 level on April 17 and 18, but failed to push the price above the $350 resistance in Binance Coin (BNB). That may have emboldened the bears who pulled BNB to the 20-day EMA ($325) on April 19. This is an important level to keep an eye on because if it cracks, the selling could intensify, and the BNB/USDT pair may nosedive to the 200-day simple moving average ($294). This level is likely to attract solid buying by the bulls. Another possibility is that the price turns up quickly from the 20-day EMA. If that happens, it will suggest that the bulls are buying the pullbacks. They will then make another attempt to kick the price above $350. If they can pull it off, the pair may shoot up to $400.
XRP rebounded off the 20-day EMA ($0.50) on April 18, but the bulls could not clear the overhead hurdle at the resistance line. The price turned down sharply on April 19 and collapsed below the 20-day EMA ($0.50). However, the long tail on the candlestick shows that the buyers are trying to arrest the decline at the 50% Fibonacci retracement level of $0.47. Any attempt to recover is likely to face strong selling in the zone between the resistance line and $0.58. On the downside, a break below $0.47 could drag the XRP/USDT pair down to the 200-day SMA ($0.41). The bulls are likely to aggressively buy the dips to this level.
Cardano (ADA) is in a pullback, which has reached the breakout level of the neckline of the inverse H&S pattern. If the price snaps back from the neckline, it will suggest that the bulls have flipped the level into support. That will enhance the prospects of a break above $0.46. The ADA/USDT pair may then start its northward march toward the pattern target of $0.60. The $0.52 level may act as a resistance, but it is likely to be crossed. However, if bears pull the price below the neckline, it will suggest that the breakout may have been a bull trap. The pair may then tumble to the 200-day SMA ($0.35), where the bulls may step in to arrest the decline.
Dogecoin (DOGE) had been gradually moving higher, but the bulls hit a wall near the 61.8% Fibonacci retracement level of $0.10. The bears pulled the price below the 20-day EMA ($0.09), but they could not sustain the lower levels. The bulls bought the dip and started a recovery as seen from the long tail on the April 19 candlestick. If buyers maintain the buying pressure and push the price above $0.10, the DOGE/USDT pair could reach the crucial resistance at $0.11. Alternatively, a break below the 200-day SMA ($0.08) may keep the pair range-bound between $0.11 and $0.07 for some time.
After trading near the resistance line of the symmetrical triangle pattern for a few days, Polygon (MATIC) turned down and reached the support line. The flattening 20-day EMA ($1.13) and the RSI below 50 indicate that the bulls may be losing their grip.
