Bitcoin and Ether have hit year-to-date highs at $31,000 and $2,000 respectively, suggesting that the crypto winter may be on its last legs. While some analysts are calling for an altseason to begin, it may be too early for that. When most of the crypto bears turn bullish, Bitcoin is likely to turn down sharply and catch the late entrants off guard. That could hurt sentiment in the short term and cause a sell-off in altcoins. After the weak hands are shaken out, the crypto markets may stabilize and begin a sustained uptrend.
Data from on-chain intelligence platform Glassnode suggests that there are significant similarities between the current having cycle and the previous ones. However, Ecoinometrics warned that an economic recession could alter things. Let’s watch the charts of the top-10 cryptocurrencies to spot the important resistance levels that may start a pullback.
The bears tried to stall the up-move on April 12 but the bulls did not give up. They resumed their purchase on April 13 and cleared the hurdle at $30,550 on April 14. If buyers sustain the price above $30,550, the BTC/USDT pair may rally to $32,400. The bears are expected to protect this level with all their might. If the price turns down from this level but does not break below the 20-day EMA ($28,542), it will enhance the prospects of a rally above $32,400. If this level is scaled, the pair may zoom toward $40,000. On the other hand, if the 20-day EMA cracks, it will suggest that the bears are trying to make a comeback. That could clear the path for a possible drop to $25,250.
Ether bounced off the 20-day EMA ($1,870) on April 12, indicating that the bulls are guarding the level with vigor. The buying continued on April 13 and the bulls pushed the price above the psychologically important level of $2,000. That attracted further buying and the ETH/USDT pair started its climb toward $2,200. This is a crucial level for the bears to defend because if they fail to do that, the pair may witness a buying stampede. The pair could then skyrocket to $3,000. Conversely, if the price turns down from $2,200 and breaks below $2,000, the pair may tumble to the 20-day EMA. This is an important level to keep an eye on because a break below it may pull the pair to $1,680.
The bulls did not allow BNB (BNB) to dip below the 20-day EMA ($317) on April 12 and 13. This indicates that the sentiment is turning positive and traders are buying the dips. The 20-day EMA has started to turn up and the RSI has jumped above 60, suggesting that the tide is turning in favor of the bulls. Buyers will try to solidify their position by catapulting the price above the $338 to $346 overhead zone. If they manage to do that, the BNB/USDT pair may pick up momentum and rally to $360 and subsequently to $400. On the contrary, if the price turns down from the overhead zone, it will suggest that the bears are active at higher levels. That may keep the pair stuck between the 20-day EMA and $346 for some time.
Buyers successfully protected the 38.2% Fibonacci retracement level of $0.49. That attracted further buying in XRP (XRP), which pushed the price toward the overhead resistance zone of $0.56 to $0.58. The upsloping 20-day EMA ($0.49) and the RSI in the positive zone indicate that bulls have a slight edge. If buyers kick the price above $0.58, the XRP/USDT pair may start an up-move that could reach $0.65 and then $0.80. Contrarily, if the price turns down from the overhead zone, it will suggest that the pair may consolidate between $0.49 and $0.58 for a few days. The trend will favor the bears if they yank the price below $0.49.
Cardano (ADA) soared above the neckline of the inverse H&S pattern on April 13, completing the reversal setup. Usually, after the breakout from a pattern, the price turns down and retests the breakout level. In this case, the ADA/USDT pair may dip to the neckline. If the price rebounds off this level, it will suggest that the bulls have flipped the level into support. That may start an up-move toward the pattern target of $0.60. Contrary to this assumption, if the price turns down sharply and breaks below $0.37, it will suggest that the breakout above the neckline was a fake out. The pair may then plunge to $0.30.
Dogecoin (DOGE) bounced off the moving averages on April 12 as seen from the long tail on the day’s candlestick. The bulls tried to drive the DOGE/USDT pair above the 38.2% Fibonacci retracement level of $0.09 but the bears did not budge. This suggests that the sentiment remains negative and traders are selling on rallies. Buyers will have to push and sustain the price above $0.09 to indicate that the selling pressure may be reducing. The pair may then ascend to the 61.8% retracement level of $0.10. Usually, a break and close above this level results in a 100% retracement. If that happens, the pair may soar to $0.11.
Polygon (MATIC) slipped below the support line of the symmetrical triangle pattern on April 12 but the long tail on the candlestick shows that the bulls aggressively bought at lower levels. The MATIC/USDT pair turned up and broke above the 20-day EMA ($1.11) on April 13. That may have trapped the aggressive bears, resulting in a short squeeze. The pair reached the resistance line of the triangle on April 14 where the bears are posing a strong challenge. If…