Bitcoin (BTC) has been engaged in a fierce battle between buyers and sellers around the $69,000 level. According to independent trader and analyst Daan Crypto Trades, Bitcoin has been hovering near its 2021 cycle high for about four weeks. Historically, Bitcoin tends to consolidate for 4-8 weeks near cycle highs before resuming its upward movement.
While the range-bound action may frustrate traders, the shallow pullback is seen as a positive sign. Glassnode’s pseudonymous lead on-chain analyst, Checkmate, noted that during the previous bull market cycle from 2019 to the end of 2021, Bitcoin experienced two corrections of over 50%. However, the current bull phase has seen milder pullbacks, with the last 20% drawdown occurring in September last year.
The strong buying interest in spot Bitcoin exchange-traded funds (ETFs) may have limited the downside during the current cycle. Additionally, the expectation that Bitcoin could continue its bull market after the Bitcoin halving could be another reason for the shallow pullback.
The question remains whether Bitcoin’s current consolidation will result in a downside or upside breakout. Furthermore, has the correction in select altcoins come to an end? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin Price Analysis:
Bitcoin has formed a symmetrical triangle pattern, indicating a balance between buyers and sellers. While the symmetrical triangle is typically a continuation pattern, it can also act as a reversal setup in some cases.
The 20-day exponential moving average (EMA) and the relative strength index (RSI) near the midpoint do not provide a clear advantage for either the bulls or bears. A downside breakout from the triangle could suggest the start of a deeper correction, with potential support levels at $60,000 and the 61.8% Fibonacci retracement level of $54,298. On the other hand, an upside breakout would suggest that the bulls have absorbed the supply, increasing the likelihood of an uptrend continuation towards $73,777 and eventually $80,000.
Ether Price Analysis:
Ether (ETH) has been trading below the 50-day simple moving average (SMA) for the past three days, indicating a lack of strong demand at these levels.
The moving averages are on the verge of completing a bearish crossover, and the RSI in the negative zone indicates an advantage for sellers. Strong support can be found at $3,056, but a breakdown could lead to a decline towards $2,700. Conversely, a rebound from the $3,056 level could indicate aggressive buying on dips, with a consolidation range between $3,056 and $3,678. A breakout above $3,678 would signal the return of bulls.
BNB Price Analysis:
BNB’s price action in recent days has formed a symmetrical triangle pattern, indicating indecision between buyers and sellers.
It is difficult to predict the direction of the breakout from a triangle pattern, so it is best to wait for the breakout to occur before taking large positions. A bounce off the 20-day EMA and an upside breakout could signal a resumption of the uptrend, with potential targets at $692 and the pattern target of $795. Conversely, a breakdown below the triangle would favor the bears, with potential downside targets at $460 and the pattern target of $395.
Solana Price Analysis:
Solana (SOL) fell below the 20-day EMA on April 5, signaling profit-taking by short-term traders.
The SOL/USDT pair could drop to strong support at $162. A strong rebound from this level, followed by a move above the 20-day EMA, would suggest a range-bound consolidation between $162 and $205. However, a bearish double-top pattern could form if the price continues lower and breaks below $162, potentially leading to a further decline towards $126.
XRP Price Analysis:
XRP fell below the uptrend line on April 3, and attempts to rally have been met with selling pressure.
The downsloping 20-day EMA and the RSI in negative territory indicate an advantage for sellers. A breakdown below $0.56 could lead to a decline towards $0.52 and $0.48. To regain the upper hand, bulls will need to push the price back above the 20-day EMA, potentially paving the way for a rally towards $0.69 and $0.74.
Dogecoin Price Analysis:
Dogecoin broke below the 20-day EMA on April 3, and attempts to reclaim the level have been unsuccessful.
The sellers will aim to push the price towards the 50-day SMA. A break below this level could open the doors for a further decline towards $0.12. To regain control, bulls need to propel the price above $0.19, potentially leading to a climb towards the $0.23 overhead resistance.
Cardano Price Analysis:
Cardano is struggling to defend the $0.57 level, suggesting a lack of demand at current levels.
A breakdown below $0.57 could complete a bearish head-and-shoulders pattern, with a target objective of $0.33. Strong support can be found at $0.46, where bulls may attempt to halt the fall. On the other hand, a rebound from $0.57 would signal buying interest at lower levels, with a potential rally towards $0.68.
Avalanche Price Analysis:
Avalanche slipped below the 50-day SMA on April 3, indicating bearish control.
The bears successfully prevented a recovery above the 50-day SMA on April 4, increasing the likelihood of a drop towards $42. Bulls are likely to defend this support level, but any recovery could face selling pressure at the moving averages. To suggest that the correction may be over, buyers need to push and maintain the price above the downtrend line, potentially leading to a rally towards $60 and $65.
Toncoin Price Analysis:
Toncoin’s bounce off the 20-day EMA on April 3 has reached the downtrend line, a crucial level to monitor.
A breakout above the downtrend line would suggest that the correction may be over, with a potential retest of the $5.69 resistance. Bears are expected to defend this level, but a breakthrough could fuel a rally towards $7.09. On the other hand, a sharp rejection from $5.69 would indicate bearish activity at higher levels, potentially keeping the pair range-bound between $5.69 and $4.72.
Shiba Inu Price Analysis:
Bulls are attempting to push Shiba Inu back above the 20-day EMA, but the bears are resisting.
The flat 20-day EMA and the RSI near the midpoint do not provide a clear advantage for either side. A breakdown and close below the 50-day SMA could accelerate selling pressure and push the pair towards $0.000017. On the upside, bulls need to drive and sustain the price above the downtrend line to suggest the end of the correction, with potential targets at $0.000033 and $0.000039.
It’s important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment or trading decisions.