litecoin

Bitcoin and select altcoins have fallen below their respective support levels, a worrying sign that the bulls could be losing their grip.

Bitcoin (BTC) and most major cryptocurrencies have pulled back from their recent local highs, signaling profit booking by traders. Is the current pullback a buying opportunity or has the trend turned lower? This is likely to be the question in every trader’s mind.

Bollinger Bands creator John Bollinger said in a recent tweet that Bitcoin had turned down from the upper Bollinger Band and reached the middle bank, near its breakout level. He said it was a “logical place” and advised traders to “pay attention.”

The correction could worry short-term crypto traders but for the long-term investors, who believe that a bottom is in, this could prove to be an opportunity to build their portfolio with cryptocurrencies of their choice. It is generally a good strategy to avoid buying on the way down and wait for the price to stop falling before resuming purchases.

What are the levels that may act as strong support? Let’s study the charts of the top-10 cryptocurrencies to find out.

Bitcoin price analysis

Bitcoin fell and closed below the 20-day exponential moving average ($28,869) on April 19. This was the first close below the 20-day EMA since March 13, indicating weakness.

Buyers tried to stage a recovery on April 20 but they could not overcome the barrier at the 20-day EMA. This suggests that the bears are trying to flip the level into resistance. The BTC/USDT pair may next slip to $26,500 and thereafter to the neckline of the inverse head and shoulders (H&S) pattern at $25,250.

If the price rebounds off $25,250, it will indicate that the neckline is acting as a higher floor. The bulls will then try to propel the price back above the 20-day EMA. If they manage to do that, the pair may rise to $32,400.

Ether price analysis

The bulls tried to maintain the price above the 20-day EMA ($1,942) on April 19 and 20 but the bears had other plans. They maintained their selling pressure and yanked Ether (ETH) below the 20-day EMA on April 21.

The first support on the downside is the 38.2% Fibonacci retracement level of $1,846. This level is likely to attract strong buying by the bulls. If the price turns up from this level, it improves the prospects for a rally to $2,200.

Contrary to this assumption, if the price continues lower and breaks below $1,846, the ETH/USDT pair could tumble to the 50% retracement level of $1,755 and thereafter to the 61.8% retracement level of 1,663.

BNB price analysis

BNB (BNB) rebounded off the $318 support on April 21 and rose above the 20-day EMA ($324). This suggests that the bulls are making a strong effort to arrest the decline at $318.

The flattish 20-day EMA and the relative strength index (RSI) just above the midpoint do not give a clear edge either to the bulls or the bears. If bulls thrust the price above the $338 to $350 resistance zone, the BNB/USDT pair may pick up momentum and soar toward $400.

On the contrary, if the price once again turns down and breaks below $318, it will suggest that the bears remain active at higher levels. The pair may then slump to the 200-day simple moving average ($295), which is an important level for the bulls to defend.

XRP price analysis

The bulls tried to start a recovery in XRP (XRP) and push the price above the 20-day EMA ($0.49) on April 19 and 20 but the bears were in no mood to relent.

The bulls tried to arrest the fall near the 50% Fibonacci retracement level of $0.47 but the bears maintained the selling pressure and pulled the price below it. The XRP/USDT pair may next drop to the 200-day SMA ($0.41).

It looks like the pair may trade inside a large range between $0.56 and $0.30 for a while longer. If the price rebounds off the 200-day SMA, the pair may trade in the upper half of the range while a break below it may keep the pair stuck in the lower half.

Cardano price analysis

The bears succeeded in pulling Cardano (ADA) back below the neckline of the inverse H&S pattern on April 20. This suggests that the bears are making a comeback.

If bears pin the price below the neckline, it will signal that the breakout on April 13 may have been a bull trap. That could lead to long liquidation, which may extend the decline to the 200-day SMA ($0.35). This level is likely to attract solid buying by the bulls.

The flattish 20-day EMA ($0.40) and the RSI near the center do not give a clear advantage either to the bulls or the bears. If bulls want to come out on top, they will have to kick and sustain the price above the neckline. The ADA/USDT pair may then rise to $0.46.

Dogecoin price analysis

Dogecoin (DOGE) witnessed hugely volatile moves on April 19 and 20. The bulls are trying to hold the 200-day SMA ($0.08) but are facing stiff resistance from the bears.

If the price turns down from the 20-day EMA ($0.09), it will suggest that the bears are selling on every minor rally. That will increase the risk of a collapse below the 200-day SMA. If that happens, the DOGE/USDT pair may dive to the crucial support at $0.07.

This negative view will be invalidated if the price turns up from the current level and soars above $0.10. That will indicate solid buying near the 200-day SMA. The pair may then reach $0.11 where the bulls may again face formidable resistance from the bears.

Polygon price analysis

The uncertainty of the symmetrical triangle pattern in Polygon (MATIC) resolved to the downside with the break below the support line on April 19.

The bulls are trying to protect the 200-day SMA ($1.01) but any recovery is likely to face stiff resistance at the 20-day EMA ($1.11). If the price turns down from the 20-day EMA, it will increase the possibility of a break below the 200-day SMA. That could intensify selling and sink the MATIC/USDT pair toward the pattern target of $0.74.

Contrary to this assumption, if bulls thrust the price above the 20-day EMA, it will suggest strong buying at lower levels. The pair may then rise to the resistance line of the triangle. A break and close above this level may turn the table in favor of the bulls.

Related: Warren Buffett was wrong about a 'rat poison' Bitcoin portfolio, data shows

Solana price analysis

Solana (SOL) has been stuck between the 20-day EMA ($22.61) and the 200-day SMA ($20.91) for the past two days.

Although the bears have yanked the price below the 20-day EMA, they have not yet been able to retest the 200-day SMA. This suggests a lack of aggressive selling at lower levels.

The 20-day EMA is flattening out and the RSI is just below the midpoint, indicating a range-bound action in the near term.

The SOL/USDT pair may swing inside the large range between $27.12 and $15.28 for some time. If the price slips below the 200-day SMA, the pair may drop to $18.70 but if the price turns up and rises above the 20-day EMA, the pair may surge to $27.12.

Polkadot price analysis

Polkadot (DOT) turned down sharply and plunged below the uptrend line on April 19. This indicates aggressive selling by the bears.

The bulls tried to push the price back above the 20-day EMA on April 20 but the long wick on the candlestick shows the bears protected the level successfully. That started a downward move toward the 200-day SMA ($5.93).

Buyers are expected to fiercely guard the zone between the 200-day SMA and $5.70 because if they fail to do that, the selling may intensify further and the DOT/USDT pair could dive to $5.15. This bearish view will invalidate in the near term if bulls push and sustain the price back above the uptrend line.

Litecoin price analysis

Litecoin (LTC) plunged below the 20-day EMA ($93) on April 19, indicating that the bullish momentum has weakened.

Buyers tried to push the price back above the 20-day EMA on April 20 but the bears did not relent. This suggests that the bears are trying to flip the 20-day EMA into resistance.

The sellers will next try to strengthen their position further by sinking the price below the strong support at $85. If they manage to do that, the LTC/USDT pair may reach the 200-day SMA ($78).

If bulls want to prevent this decline, they will have to quickly drive the price above the 20-day EMA and the overhead resistance of $96.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Bitcoin and select altcoins turned down sharply on April 19 but a minor positive is that the bulls are trying to defend their respective support levels.

Bitcoin (BTC) has been witnessing volatile moves in the past three days. The pick-up in volatility shows that the buyers and sellers are vying for supremacy. 

Bitcoin recovered sharply on April 18 but gave back all the gains on April 19. The latest sell-off may have been triggered by the high inflation figures in the United Kingdom and the regulatory uncertainty in the United States. Profit booking was not limited to Bitcoin as most major altcoins also turned lower.

While a deep correction is possible, Glassnode said in its analysis on April 17 that several on-chain indicators are pointing toward the end of the bear market. If that is the case, the dips may be viewed as a buying opportunity by long-term investors.

What are the important support levels that are likely to be guarded by the bulls? Let’s study the charts of the top-10 cryptocurrencies to find out.

Bitcoin price analysis

Bitcoin is witnessing a keen battle between the bulls and the bears at the 20-day exponential moving average ($29,092). The bears are trying to sink the price below the 20-day EMA while the bulls are attempting to start a strong rebound.

If the price snaps back from the 20-day EMA, it will suggest that the sentiment remains positive and that traders are viewing the dips as a buying opportunity.

The bulls will then make one more attempt to overcome the resistance zone between $31,000 to $32,000. If they succeed, it will indicate the resumption of the uptrend. The BTC/USDT pair may then soar to $40,000.

The bears are likely to have other plans. If they tug the price below the 20-day EMA, the selling could accelerate and the pair may slump to $27,800 and subsequently to $26,500.

Ether price analysis

The bulls tried to resume the uptrend in Ether (ETH) on April 18 but the bears remained sellers near the overhead resistance at $2,200.

The ETH/USDT pair has pulled back to the 20-day EMA ($1,949), which is just below the psychological support of $2,000. This is an important support for the bulls to defend because a break and close above it may tilt the advantage in favor of the sellers. The pair may first collapse to $1,800 and later to $1,700.

Instead, if the price rebounds off the 20-day EMA, it will suggest that the bulls are trying to flip the $2,000 level into support. If they can pull it off, the pair may rally to $2,200. A break and close above this level will clear the path for a potential rally to $3,000.

BNB price analysis

Buyers defended the $338 level on April 17 and 18 but failed to push the price above the $350 resistance. That may have emboldened the bears who pulled BNB (BNB) to the 20-day EMA ($325) on April 19.

This is an important level to keep an eye on because if it cracks, the selling could intensify and the BNB/USDT pair may nosedive to the 200-day simple moving average ($294). This level is likely to attract solid buying by the bulls.

Another possibility is that the price turns up quickly from the 20-day EMA. If that happens, it will suggest that the bulls are buying the pullbacks. They will then make another attempt to kick the price above $350. If they can pull it off, the pair may shoot up to $400.

XRP price analysis

XRP (XRP) rebounded off the 20-day EMA ($0.50) on April 18 but the bulls could not clear the overhead hurdle at the resistance line.

The price turned down sharply on April 19 and collapsed below the 20-day EMA ($0.50). However, the long tail on the candlestick shows that the buyers are trying to arrest the decline at the 50% Fibonacci retracement level of $0.47.

Any attempt to recover is likely to face strong selling in the zone between the resistance line and $0.58. On the downside, a break below $0.47 could drag the XRP/USDT pair down to the 200-day SMA ($0.41). The bulls are likely to aggressively buy the dips to this level.

Cardano price analysis

Cardano (ADA) is in a pullback, which has reached the breakout level of the neckline of the inverse H&S pattern.

If the price snaps back from the neckline, it will suggest that the bulls have flipped the level into support. That will enhance the prospects of a break above $0.46. The ADA/USDT pair may then start its northward march toward the pattern target of $0.60. The $0.52 level may act as a resistance but it is likely to be crossed.

Contrary to this assumption, if bears pull the price below the neckline, it will suggest that the breakout may have been a bull trap. The pair may then tumble to the 200-day SMA ($0.35) where the bulls may step in to arrest the decline.

Dogecoin price analysis

Dogecoin (DOGE) had been gradually moving higher but the bulls hit a wall near the 61.8% Fibonacci retracement level of $0.10.

The bears pulled the price below the 20-day EMA ($0.09) but they could not sustain the lower levels. The bulls bought the dip and started a recovery as seen from the long tail on the April 19 candlestick.

If buyers maintain the buying pressure and push the price above $0.10, the DOGE/USDT pair could reach the crucial resistance at $0.11. Alternatively, a break below the 200-day SMA ($0.08) may keep the pair range-bound between $0.11 and $0.07 for some time.

Polygon price analysis

After trading near the resistance line of the symmetrical triangle pattern for a few days, Polygon (MATIC) turned down and reached the support line.

The flattening 20-day EMA ($1.13) and the RSI below 50 indicate that the bulls may be losing their grip. If the price breaks below the support line, it will tilt the short-term advantage in favor of the bears. The MATIC/USDT pair may then collapse to the 200-day SMA ($1) where the buyers are likely to mount a strong defense.

The first sign of strength will be a break and close above the resistance line. That could open the doors for a potential rally to $1.30.

Related: Can Bitcoin reclaim $30K? Watch these BTC price levels next

Solana price analysis

The failure of the bulls to drive Solana (SOL) above the $27.12 resistance may have attracted short-term bulls to book profits.

The SOL/USDT pair slipped below the 20-day EMA ($22.82) on April 19 but the long tail on the candlestick suggests that the bulls are trying to protect the level. If the price turns up from the current level, the buyers will again try to kick the pair above $27.12 and commence the journey toward $39.

On the other hand, if the price breaks below the 200-day SMA ($21.02), it will signal that the pair may consolidate between $27.12 and $15.28 for a few days.

Polkadot price analysis

Polkadot (DOT) bounced off the 20-day EMA ($6.49) on April 18 but the bears continued to defend the 61.8% Fibonacci retracement level of $6.85.

Strong selling by the bears yanked the price below the 20-day EMA on April 19 but the bulls are attempting to guard the uptrend line. If the price turns up from the uptrend line, the buyers will again try to resume the up-move and propel the DOT/USDT pair to the neckline of the inverse H&S pattern.

On the contrary, if the uptrend line gives way, the bears will try to sink the pair to $5.70. This is an important level to keep an eye on because below it, the pair could drop to $5.15.

Litecoin price analysis

Litecoin (LTC) rose above the immediate resistance of $96 on April 14 and reached $103 on April 18 but the bulls could not sustain the higher levels.

Aggressive profit-booking by the bears pulled the price back below the support at $96. This suggests that the bulls may be rushing to the exit. The selling could accelerate further if the price dips and sustains below the 20-day EMA ($94). The LTC/USDT pair could then extend its decline to $85.

Conversely, if the price turns up from the current level, it will suggest that bulls continue to accumulate at lower levels. The bulls will then again try to push the price to the stiff overhead resistance at $106.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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