The latest consumer price index (CPI) report in March revealed a marginal increase of 0.1%, lower than economists’ expectations of 0.2% and February’s 0.4% advance. Though inflation is showing signs of slowing down, the year-on-year CPI increased by 5%, well above the Federal Reserve’s target of 2%. The report indicates a potential price floor for Bitcoin and select altcoins. An expansive monetary policy is generally positive for risky assets, and the upcoming Bitcoin halving next year is also expected to have a positive impact on cryptocurrency prices. While the short-term outlook remains uncertain, the long-term prospects are bullish.
Bitcoin (BTC) is currently facing resistance near $30,550, but the bulls have not given up much ground, indicating strong demand at lower levels. However, the bears are likely to try and pull the price below the 20-day exponential moving average ($28,163), which is the key support level to watch. If successful, the selling could intensify, and the BTC/USDT pair may slump to the support at $25,250. On the other hand, if the price continues to move up or rebounds off the 20-day EMA, it will signal strong demand at lower levels, enhancing the prospects of a rally to $32,400, which is likely to behave as a formidable resistance.
Ether (ETH) has bounced back from the 20-day EMA ($1,831) on April 9, but the bulls have been unable to push the price above the immediate resistance at $1,943. If the price turns down from the current level and breaks below $1,824, the ETH/USDT pair will form a double top in the short term, which may tug the price down to the strong support at $1,680. To keep the uptrend intact, the bears will have to protect the 20-day EMA and force the pair above the resistance at $1,943. If successful, the pair may resume its up-move, and the $2,000 level may offer resistance, but it is likely to be crossed, with the pair rallying to $2,200.
Binance Coin (BNB) surged above the $318 resistance on April 11, but the long wick on the candlestick shows that the bears are selling near $338. The 20-day EMA ($315) is flattish, and the RSI is turning down toward the center, indicating a potential range-bound action in the near term. If the price slips below the 20-day EMA, the BNB/USDT pair may oscillate between $338 and the 200-day SMA ($292) for a few days. Alternatively, if the price rebounds off the 20-day EMA with strength, it will suggest buying on dips. The bulls will then again try to kick the pair above the overhead zone between $338 and $346.
XRP’s (XRP) long wick on the April 11 candlestick shows that the bears are trying to stall the recovery at $0.53. Sellers will try to strengthen their position by pulling the price below the 20-day EMA ($0.49). If successful, several short-term bulls may be forced to close their positions, and the XRP/USDT pair may then slump toward the next support at $0.43. Instead, if the price rebounds off the 20-day EMA, it will suggest that bulls continue to view the dips as a buying opportunity. The bulls will have to overcome the stiff resistance at $0.53 to regain the upper hand.
Cardano (ADA) turned down from the neckline of the inverse head and shoulders (H&S) pattern, indicating that the bears are trying to halt the recovery at this level. The 20-day EMA ($0.38) is an important level to watch out for on the downside. If the price bounces off this level, it will suggest that the sentiment remains positive, and traders are buying on dips. That will increase the likelihood of a break above the neckline, completing the reversal pattern, and the ADA/USDT pair may then start a new uptrend toward $0.60. Conversely, if the pair plummets below the 20-day EMA, it will suggest that short-term traders are booking profits, which may sink the pair to the 200-day SMA ($0.35).
Dogecoin’s (DOGE) rebound off the moving averages could not even reach the 38.2% Fibonacci retracement level of $0.09, indicating that the bears are selling on every minor rise. The DOGE/USDT pair has slipped back to the moving averages, showing that bears are trying to strengthen their position. If they yank the price below the moving averages, the pair may fall to the crucial support at $0.07. On the other hand, if the price rebounds off the moving averages, it will suggest that the bulls are aggressively protecting the level. Buyers will then make one more attempt to push the price toward the $0.11 level.
The bears are attempting to sink Polygon (MATIC) below the support line of the symmetrical triangle pattern. If successful, it will suggest that the supply exceeds demand, and the MATIC/USDT pair may then descend toward the 200-day SMA ($0.99), which is an important level to keep an eye on. If this level gives way, the pair may start a downtrend. Conversely, if the price turns up from the current level and breaks above the 20-day EMA ($1.11), it will indicate that the bulls are in control, and the pair may rally to $1.28.
In conclusion, while the short-term outlook for cryptocurrencies remains uncertain, the long-term prospects are bullish. The CPI report indicates a potential price floor for Bitcoin and select altcoins, and the upcoming Bitcoin halving next year is expected to have a positive impact on cryptocurrency prices. Traders will closely monitor the charts of the top-10 cryptocurrencies to determine whether the rally will extend further or if traders will book profits in the near term, pulling Bitcoin and altcoins lower.