Bitcoin (BTC) is currently in a consolidation phase as the bulls and bears battle it out. However, historical data from Coinglass shows that the 14th week of the year has typically seen a decline in Bitcoin prices by an average of 8.33%. Traders are closely watching the performance of spot Bitcoin-exchange traded funds, which have been a major driver of price. In March, trading volume for these funds surged from $42.2 billion to $111 billion, according to Bloomberg ETF analyst Eric Balchunas.
As the Bitcoin halving approaches, uncertainty in the market increases. Independent analyst Rekt Capital believes that the current pullback is a normal pre-halving retrace, similar to the 38% drop in 2016 and 20% drop in 2020. So, what are the important levels to watch in Bitcoin and altcoins? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin:
The failure of the bulls to push the price above $71,770 has led to a drop below the 20-day exponential moving average ($67,646). The 20-day EMA has flattened out and the relative strength index (RSI) is near the midpoint, indicating a balance between supply and demand. If the price falls below the 50-day simple moving average ($63,098), it could open the door for a drop to $59,000 and the 61.8% Fibonacci retracement level of $54,298. On the other hand, a rise above the 20-day EMA would suggest a range-bound action with resistance at $71,770 and $73,777, and a potential uptrend to $80,000.
Ether:
Ether (ETH) fell below the 50-day SMA ($3,414), indicating a potential retest of the March 20 low of $3,056. The 20-day EMA ($3,493) is turning down and the RSI is just below the midpoint, showing that bears have the upper hand. A break below $3,056 could lead to a further decline to $2,700. On the other hand, a rise above the moving averages would suggest a range-bound action between $3,056 and $3,679, with a potential rise to $4,100.
BNB:
BNB slipped below the 20-day EMA ($561), indicating weakening bullish momentum. The 20-day EMA is flattening out and the RSI is just above the midpoint, suggesting range-bound action in the near term. A rise from the current level could push the price to the downtrend line, while a drop below $535 could lead to a further decline to $495 and potentially $460.
Solana:
Solana fell to the 20-day EMA ($181), but a sharp rebound on April 3 indicates positive sentiment and buying on dips. The bulls will aim to overcome the barrier at $205 to signal the start of the next leg of the uptrend. If successful, the pair could rally to $243 and later to $260. However, a turn down from $205 would indicate strong bearish defense and could lead to a drop below the 20-day EMA, with potential support at the 50-day SMA ($150).
XRP:
XRP remains stuck in a large range between $0.46 and $0.74. The price fell below the uptrend line, suggesting bearish control. A relief rally may face resistance at the 20-day EMA ($0.61), and a turn down from this level could lead to a drop below $0.56 and further decline to $0.52. On the other hand, a rise above the 20-day EMA would indicate solid buying at lower levels and could lead to a rise to $0.69 and $0.74.
Cardano:
Cardano has reached a strong support level at $0.57, which is expected to be defended by buyers. A rebound from this level could face selling at the 20-day EMA ($0.64). If the price turns lower from the 20-day EMA, it could lead to a drop below $0.57 and complete a bearish head-and-shoulders pattern, potentially falling to the critical support at $0.46. However, a break above the 20-day EMA would suggest consolidation between $0.57 and $0.68, with a rise above $0.68 indicating the end of the corrective phase.
Dogecoin:
Dogecoin sharply turned down and fell below the breakout level of $0.19, signaling profit booking. The price slipped below the 20-day EMA ($0.18), but solid buying at lower levels suggests a potential end to the correction. A rise above $0.20 would indicate the correction is over and the bulls will aim to challenge the resistance at $0.23. However, a sustained move below the 20-day EMA would suggest every minor rally is being sold into, potentially leading to a drop to the 50-day SMA ($0.14).
Avalanche:
Avalanche failed to rise above the downtrend line and dropped below the breakout level of $50. The selling continued, pushing the price below the 50-day SMA ($47). Buyers are defending the 50-day SMA, but a turn down from the 20-day EMA could lead to a retest of the crucial support at $42. A break and close above the downtrend line would invalidate the bearish view.
Shiba Inu:
Shiba Inu fell below the 20-day EMA ($0.000028), indicating bearish activity. The pair could drop to the 50-day SMA ($0.000023), which is expected to act as a strong support. A rebound from this level could lead to a push towards $0.000033 and potentially $0.000039. However, a drop below the 50-day SMA would suggest a deeper correction towards $0.000017.
Toncoin:
Toncoin reached the 20-day EMA ($4.63), an important level to watch. A rebound from this level would suggest continued buying at lower levels and a range-bound action between the 20-day EMA and $5.69. On the other hand, a drop below the 20-day EMA would suggest profit booking by bulls, potentially leading to a decline to the 61.8% Fibonacci retracement level of $4.22.
Please note that this article does not provide investment advice or recommendations. Readers should conduct their own research and make their own decisions.
Bitcoin, Ethereum, Binance Coin, Solana, Ripple, Cardano, Dogecoin, Avalanche, Shiba Inu, and TON: In-depth examination of their prices on April 3rd