Last week, the S&P 500 Index experienced a significant decline of 3.05% as hopes for interest rate cuts by the US Federal Reserve diminished due to high inflation readings. In contrast, Bitcoin only declined by 1.1%, indicating its strength in the market.
Charles Edwards, the founder of Capriole Investments, highlighted in a recent post that the raw electricity cost per mined block for Bitcoin is $77,400. He further explained that Bitcoin’s price typically remains below the “electrical cost” for only a few days every four years, suggesting that Bitcoin is currently trading at a deep discount.
Bitcoin is expected to remain volatile in the coming days as bulls and bears continue to battle for dominance. If Bitcoin remains range-bound, it may attract buyers towards select altcoins that are poised for an upward move.
Now, let’s analyze the charts to identify the key resistance and support levels for Bitcoin and altcoins.
S&P 500 Index Price Analysis:
The S&P 500 Index has been undergoing a correction in recent days, indicating that bulls are exiting the market. The moving averages have formed a bearish crossover, and the relative strength index (RSI) is near the oversold zone, indicating that bears are currently in control. However, there is a minor support level at 4,920, which could lead to a potential rebound.
If the price fails to break above the 20-day exponential moving average (5,104), there is a possibility of a drop to the 38.2% Fibonacci retracement level of 4,821. This negative outlook will be invalidated if the price rises above the 20-day EMA, potentially leading to a rise to 5,225.
U.S. Dollar Index Price Analysis:
The U.S. Dollar Index has shown a positive trend, surpassing the 105 resistance level on April 10 and completing an ascending triangle pattern. The bulls have continued to push the price higher, reaching the 106 resistance level. A rally to 108 is expected, where the bears are likely to defend the level. A sharp decline from 108 would indicate strong bearish sentiment, potentially leading to a drop to 105.
The first sign of weakness would be a break below the breakout level of 105, suggesting that the breakout may have been a bull trap. In this case, the index could descend to the uptrend line.
Bitcoin Price Analysis:
Bitcoin’s recovery is facing resistance at the 20-day EMA ($65,858), but the bulls are not giving up easily. The flattening 20-day EMA and the RSI near the midpoint indicate a reduction in selling pressure. If buyers push the price above the 50-day simple moving average ($67,511), the BTC/USDT pair could attempt a rally to $73,777.
However, if the bears manage to push the price below the $60,775 support, they could take control and initiate a deeper correction to the 61.8% Fibonacci retracement level of $54,298.
Ether Price Analysis:
Ether has reached the 20-day EMA ($3,234), suggesting a potential comeback by the bulls. The 20-day EMA is flattening out, and the RSI is just below the midpoint, indicating a balance between supply and demand. If the price fails to break above the 20-day EMA, the ETH/USDT pair could drop to $3,056, a crucial support level. A break below this level could lead to a further decline to $2,850.
On the upside, a break above the 20-day EMA would strengthen the buyers, potentially pushing the pair to the 50-day SMA ($3,481) and later to $3,679. A break above this resistance level would suggest the end of the correction.
BNB Price Analysis:
BNB rose above the 20-day EMA ($568) on April 20, opening the possibility for a rally to the overhead resistance at $635. A tough battle between bulls and bears is expected at this level. If the bulls prevail, the BNB/USDT pair could continue its uptrend to $692 and eventually reach the pattern target of $775.
However, if the price sharply declines from the overhead resistance, it indicates that bears are not giving up easily. This could result in the pair trading between $495 and $635 for a longer period.
Solana Price Analysis:
Solana has reached the 20-day EMA ($156), where it is likely to face strong resistance from bears. If the price turns down from the moving averages, it suggests negative sentiment and selling pressure. The price could then decline to the strong support level at $126. A break below this level could lead to a fall to $100.
On the other hand, if the price continues to rise and breaks above the moving averages, it indicates a comeback by the bulls. The SOL/USDT pair would then attempt a rally to the overhead resistance of $205.
XRP Price Analysis:
XRP’s recovery has reached the 20-day EMA ($0.54), indicating strong buying interest at lower levels. Bears are likely to put up a strong resistance at the 20-day EMA. If the price sharply declines from this level, bears will attempt to push the price to the $0.46 to $0.41 support zone.
If buyers manage to push the price above the 20-day EMA, it suggests that the XRP/USDT pair may continue to trade within the range of $0.46 to $0.74 for some time.
Toncoin Price Analysis:
Toncoin has been trading near the support line of an ascending channel pattern. The failure of bulls to start a strong rebound off the 20-day EMA ($6) suggests a lack of aggressive buying at current levels. This increases the risk of a break below the channel, potentially leading to a down move to the 50-day SMA ($4.90).
To prevent this decline, bulls need to quickly push the price above $6.50. If successful, the pair may attempt a rally to $7.23 and later to the resistance line.
Dogecoin Price Analysis:
Dogecoin has been facing resistance at the 20-day EMA ($0.16), but the bulls have managed to hold their ground. The DOGE/USDT pair is likely to rise above the moving averages and reach the downtrend line. This is a critical level for bears to defend, as a break above it would indicate the end of the downward move. The pair could then rally to $0.21 and subsequently to $0.23.
However, if the price sharply declines from the moving averages or the downtrend line, it suggests that bears are still in control. Sellers will attempt to push the price down to $0.14 and then to $0.12.
Cardano Price Analysis:
Cardano has reached the 20-day EMA ($0.52), an important level to watch. Bears are likely to defend this level vigorously. If the price turns down from the 20-day EMA, the ADA/USDT pair could drop to $0.46. A strong bounce off this level would suggest the end of the corrective phase and increase the chances of a break above the 20-day EMA. The pair could then climb to $0.57 and later to $0.63.
On the contrary, if the price sharply declines and breaks below $0.46, it indicates that bears are still in control. The pair may then slump to the crucial support at $0.40.
Disclaimer: This article does not provide investment advice or recommendations. Investing in cryptocurrencies involves risk, and readers should conduct their own research before making any investment decisions.