Bitcoin (BTC) experienced a significant drop on April 12 and 13, resulting in cryptocurrency liquidations worth around $2.5 billion. This fall has negatively impacted short-term leveraged long positions that were anticipating a rally leading up to and following the Bitcoin halving. The fall in Bitcoin has also had a severe impact on altcoins, with some of the top 20 cryptocurrencies by market capitalization falling approximately 20%. As a result, Bitcoin’s market cap dominance reached its highest level in three years, at 56.3% on April 12.
Despite the concerns among short-term traders, it is worth noting that the price of Bitcoin has not yet broken below the crucial $60,000 support level. This suggests that the fall is simply a normal pullback within a bullish phase. While traders should exercise caution, there is no need for panic at this time.
To determine the support levels necessary for a relief rally to begin, let’s analyze the top five cryptocurrencies that appear strong on the charts and have the potential to lead the recovery.
Bitcoin Price Analysis:
Bitcoin has been experiencing volatility within a range of $60,775 and $73,777 for several days, indicating uncertainty about its next directional move. On April 13, the BTC/USDT pair slipped below the 50-day simple moving average ($66,743) and dropped below the $60,775 support level. However, the long tail on the candlestick demonstrates that bulls are defending the $60,775 level. Any attempt at recovery is likely to encounter selling pressure at the 20-day exponential moving average ($67,807). If the price turns downward from this resistance, bears may attempt to push the pair below $60,775. Alternatively, a break above the 20-day EMA would pave the way for a rally to $73,777.
Binance Coin Price Analysis:
Binance Coin’s price has formed a large range in recent days, indicating uncertainty between bulls and bears. On April 13, the price dropped near the support of the range at $495, but aggressive buying at lower levels was evident from the long tail on the candlestick. Bulls will attempt to sustain the momentum and push the BNB/USDT pair towards the overhead resistance at $635. However, sellers are likely to defend this level vigorously. On the downside, crucial support levels to watch are $495 and $460, as buyers are expected to fiercely defend these levels. A break below these supports could initiate a downtrend towards $400.
Toncoin Price Analysis:
Toncoin has been rising within an ascending channel pattern, indicating continued buying by bulls. Although the bears briefly pulled the price below the channel on April 12 and 13, strong buying near the support line is evident from the long tail on the candlesticks. The failure to sustain lower levels may have attracted buyers who are attempting to push the price towards the resistance line near $7.50. Both moving averages are sloping up, and the RSI is in the positive zone, indicating an advantage for buyers. However, if the TON/USDT pair turns sharply downward and closes below the support line, it could result in a descent towards the 50-day SMA ($4.28).
VeChain Price Analysis:
VeChain has been consolidating within a large range between $0.036 and $0.051, indicating a balance between supply and demand. Buyers typically enter at the support of the range and sell near the overhead resistance. The long tail on the April 13 candlestick shows that bulls are attempting to protect the $0.036 support. If the price continues to rise and breaks above the moving averages, it would suggest that the range-bound action may persist for a few more days. Conversely, a sharp downturn and a break below $0.035 would indicate that bears are trying to gain control, potentially leading to a downtrend towards the major support at $0.025.
Bitget Token Price Analysis:
Bitget Token has experienced a pullback within a strong uptrend, indicating profit-taking by short-term traders. Although the bears managed to bring the price below the 20-day EMA on April 13, they are struggling to push the BGB/USDT pair to the 50-day SMA. This suggests that bulls continue to buy the dips. If buyers can push the price back above the 20-day EMA, it may trap aggressive bears and lead to a rally towards the stiff overhead resistance at $1.38. On the other hand, a downturn from the current level or the 20-day EMA could prompt bears to attempt another push below the $1.20 to $1.38 range, potentially leading to a downward move.
Please note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment or trading decisions.