Last week, the S&P 500 Index experienced a 3.05% decline as hopes for interest rate cuts by the US Federal Reserve diminished due to high inflation readings. In contrast, Bitcoin (BTC) only saw a 1.1% decline, indicating its strength in the market.
Charles Edwards, the founder of Capriole Investments, stated in a recent post that the raw electricity cost per mined block for Bitcoin is $77,400. He further noted that Bitcoin’s price is consistently below its “electrical cost” for only a few days every four years, suggesting that Bitcoin is currently trading at a significant discount.
Bitcoin is expected to remain volatile in the coming days as bulls and bears compete for dominance. If Bitcoin continues to trade within a range, it may attract buyers towards certain altcoins that could resume their upward movement.
Let’s analyze the charts to identify the important resistance and support levels to watch for in Bitcoin and altcoins.
S&P 500 Index Price Analysis:
The S&P 500 Index has been undergoing a correction in recent days, indicating a rush of selling by the bulls.
The moving averages have formed a bearish crossover, and the relative strength index (RSI) is nearing the oversold zone, indicating that the bears are in control. There is a minor support level at 4,920, which could potentially lead to a rebound in the index.
If the price declines from the 20-day exponential moving average (5,104), it could drop further to the 38.2% Fibonacci retracement level of 4,821. However, if the price surpasses the 20-day EMA, it may rise to 5,225.
U.S. Dollar Index Price Analysis:
The U.S. Dollar Index (DXY) has turned upward from the moving averages and successfully breached the resistance level at 105 on April 10, forming an ascending triangle pattern.
The bulls have continued to push the price higher, surpassing the 106 resistance level with ease. This sets the stage for a potential rally towards 108, where the bears are expected to put up a strong defense. A sharp decline from 108 would indicate the bears’ determination to defend the level, 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 trap. The index could then descend towards the uptrend line.
Bitcoin Price Analysis:
Bears are attempting to halt Bitcoin’s recovery at the 20-day EMA ($65,858), but the bulls are showing resilience.
The flattening 20-day EMA and the RSI near the midpoint suggest that selling pressure is diminishing. If buyers manage to push the price above the 50-day simple moving average ($67,511), the BTC/USDT pair could attempt a rally towards $73,777.
To gain control, bears would need to quickly push the price below the $60,775 support level. If successful, the pair may experience a deeper correction towards the 61.8% Fibonacci retracement level of $54,298.
Ether Price Analysis:
Ether (ETH) has reached the 20-day EMA ($3,234), indicating an attempt by bulls to stage a comeback.
The flattening 20-day EMA and the RSI just below the midpoint suggest a balance between supply and demand. If the price declines from the 20-day EMA, the ETH/USDT pair could slide towards $3,056, a crucial support level that bulls must defend. A breakdown below this level could lead to a further drop to $2,850.
On the upside, a break above the 20-day EMA would strengthen buyers’ position. The pair could then rise towards the 50-day SMA ($3,481) and potentially reach $3,679. A break above this resistance level would indicate that the correction may be over.
BNB Price Analysis:
BNB has risen above the 20-day EMA ($568) on April 20, clearing the path for a potential rally towards the overhead resistance at $635.
A battle between bulls and bears is likely to take place near the $635 level. If bulls prevail, the BNB/USDT pair could continue its uptrend towards $692 and potentially reach the pattern target of $775.
However, a sharp decline from the overhead resistance would indicate the bears’ determination. This could keep the pair trading between $495 and $635 for an extended period.
Solana Price Analysis:
Solana (SOL) has reached the 20-day EMA ($156), where it may encounter strong resistance from bears.
If the price turns down from the moving averages, it suggests negative sentiment and selling pressure on rallies. The price could then drop towards the strong support level at $126, with a break below potentially leading to a fall to $100.
Conversely, if the price continues to rise and breaks above the moving averages, it would indicate a comeback by the bulls. The SOL/USDT pair could then attempt a rally towards the overhead resistance at $205.
XRP Price Analysis:
XRP’s recovery has reached the 20-day EMA ($0.54), indicating strong buying interest from bulls at lower levels.
The bears are likely to provide significant resistance at the 20-day EMA. If the price sharply declines from the current level, bears will attempt to push the price towards the $0.46 to $0.41 support zone.
Alternatively, if buyers manage to push the price above the 20-day EMA, it would suggest that the XRP/USDT pair may continue trading within the large range between $0.46 and $0.74 for an extended period.
Toncoin Price Analysis:
Toncoin (TON) has been trading near the support line of an ascending channel pattern for the past few days.
The lack of a strong rebound off the 20-day EMA ($6) suggests a lack of aggressive buying at current levels, increasing the risk of a break below the channel. If this occurs, selling pressure could accelerate, and the TON/USDT pair may drop towards the 50-day SMA ($4.90).
To prevent this decline, bulls must quickly push the price above $6.50. The pair could then attempt a rally towards $7.23 and potentially reach the resistance line.
Dogecoin Price Analysis:
Dogecoin has faced 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 level is critical for bears to defend, as a breakout would suggest the end of the downward move. The pair could then rally towards $0.21 and $0.23.
However, if the price sharply declines from the moving averages or the downtrend line, it would indicate that bears are still in control. Sellers may attempt to push the price down to $0.14 and $0.12.
Cardano Price Analysis:
Cardano has reached the 20-day EMA ($0.52), a crucial 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 may drop once again to $0.46. A strong bounce off this level would suggest that the corrective phase may be over, improving the chances of a break above the 20-day EMA. The pair could then climb towards $0.57 and $0.63.
On the contrary, a sharp decline below $0.46 would signal that bears are in control, potentially leading to a slump towards the crucial support level at $0.40.
Disclaimer: This article is for informational purposes only and does not constitute investment advice or recommendations. Every investment and trading decision carries risk, and readers should conduct their own research before making any decisions.