Bitcoin (BTC) has experienced a decline of approximately 12% in April, making it the worst-performing month since November 2022, according to data from CoinGlass. This downward trend may continue into May, as the month has historically produced negative monthly closes for the past three years.
The recent uncertainty surrounding Bitcoin’s price has resulted in net outflows from spot Bitcoin exchange-traded funds for three consecutive days starting from April 24, according to data from Farside Investors. This suggests that traders are exercising caution and waiting for Bitcoin to show signs of an upward movement before reentering the market.
While Bitcoin is searching for direction, certain alternative cryptocurrencies, known as altcoins, may start to gain momentum. Analysts from crypto analytics platform Santiment have noted that gas fees on the Ethereum network have fallen to a six-month low, indicating a lack of demand and strain on the network. This could potentially signal a market bottom, which may lead to a turnaround in Ether (ETH) and related altcoins sooner than anticipated.
Let’s take a look at the important support levels to watch out for in Bitcoin and altcoins by analyzing the charts.
S&P 500 Index:
The S&P 500 Index has been trading below the moving averages in recent days, but the bears have been unable to take advantage of this situation. This suggests that there is strong buying interest at lower levels. The index has reached a crucial level at the moving averages, which will be heavily defended by the bears. If the price manages to rise above the moving averages, we could see a rally to 5,200 and potentially even to the all-time high at 5,265. On the other hand, a sharp downturn from the moving averages would indicate that the bears are trying to take control, potentially leading to a drop to 4,990 and then 4,953. Breaking below this support could result in a further decline to the 38.2% Fibonacci retracement level at 4,821.
U.S. Dollar Index:
The U.S. Dollar Index (DXY) has been following an ascending channel pattern, suggesting an upward trend. However, the price recently turned down from the resistance line of the channel, falling to the 20-day exponential moving average ($105). Although there was a rebound from this level on April 26, the bulls were unable to sustain the higher levels, indicating selling pressure during relief rallies. If the 20-day EMA is breached, it could favor the bears in the short term, potentially leading to continued sideways trading within the channel. The index may then slide to the 50-day simple moving average (104) and eventually to the support line.
Bitcoin:
Bitcoin’s price has been gradually declining towards a critical support level at $59,600, where the bulls are expected to put up a strong defense. If the price bounces sharply from this level, it would indicate that the bulls are not willing to give up without a fight. In this case, the BTC/USDT pair could rise to the 20-day EMA ($64,897) and later to the 50-day SMA ($67,091). Breaking above this level would clear the path for a possible retest of $73,777. However, if the price continues to decline and breaks below $59,600, it could accelerate selling pressure and push the pair towards the 61.8% Fibonacci retracement level at $54,298.
Ether:
Ether rose above the 20-day EMA ($3,214) on April 27 but faced resistance at the 50-day SMA ($3,397). This rejection from the 50-day SMA suggests that bears are selling on minor relief rallies. The ETH/USDT pair could drop to $3,056, and a strong rebound from this level would indicate that bulls are attempting to establish $3,056 as a support level. If successful, the bulls may make another attempt to push the price above the 50-day SMA. However, if the price breaks below $3,056, it would suggest that bears remain in control, potentially leading to a decline towards the pivotal support at $2,850.
BNB:
BNB has reached the moving averages, an important support level that the bulls need to defend in order to maintain their advantage. If the price falls below the moving averages, it would indicate that bears are fiercely defending the overhead resistance at $635. In this scenario, the BNB/USDT pair could decline to the strong support at $495. On the other hand, if the price rebounds from the moving averages, it would suggest a positive sentiment and buying on dips, increasing the likelihood of a rally above $635. The pair may then climb towards $692.
Solana:
Solana has been declining and is on track to reach a crucial support level at $126, which is expected to be heavily defended by buyers. If the price rebounds strongly from $126, it would indicate strong buying interest at lower levels. The SOL/USDT pair could then reach the 20-day EMA ($149). However, a rejection from the 20-day EMA would increase the chances of a breakdown below $126. Conversely, if the price breaks above the 20-day EMA, it would suggest that the pair may continue trading within the $126 to $162 range for some time. The next significant move could occur on a break above $162 or below $126.
XRP:
XRP slipped below the uptrend line on April 27, indicating that bears are strengthening their position. The downsloping 20-day EMA ($0.53) and the negative RSI suggest that bears have the upper hand. The XRP/USDT pair could decline to the strong support zone between $0.46 and $0.41. Buyers are expected to defend this zone vigorously, as a break below it could push the pair towards $0.35. On the upside, a break above the 20-day EMA would suggest that bulls are attempting a comeback. Further strength would be gained with a break and close above the 50-day SMA ($0.58).
Toncoin:
Toncoin bounced off the 50-day SMA ($5.27) on April 27, but the relief rally failed to reach the 20-day EMA ($5.70). This indicates that every minor rally is being sold into. If the price continues to decline and breaks below the 50-day SMA, it would signal the start of the next leg of the downtrend. The TON/USDT pair could then drop to $4.7 and subsequently to $4.50. However, the bulls are likely to attempt a push above the 20-day EMA to signal a comeback. If successful, the pair may rise to the channel’s support line, where bears are expected to mount a strong defense. Breaking into the channel would suggest that the correction may have ended.
Dogecoin:
Dogecoin slipped below the symmetrical triangle pattern on April 27, indicating that bears have the upper hand. The DOGE/USDT pair could decline to the strong support at $0.12, where buyers are likely to step in. However, if there is a weak bounce off $0.12, it would increase the likelihood of a breakdown. In that case, the pair may slump to $0.08. On the upside, the zone between the 20-day EMA ($0.16) and the downtrend line will likely act as a significant hurdle. Overcoming this obstacle would signal a potential end to the downtrend.
Cardano:
Cardano slipped below the crucial support level of $0.46, indicating that bears are maintaining their pressure. The downsloping moving averages and the negative RSI suggest a downside bias. If the price sustains below $0.46, the ADA/USDT pair could drop to $0.40. This negative view would be invalidated if the price turns up and breaks above $0.52, potentially propelling it to the 50-day SMA ($0.58), where bears may pose a strong challenge.
Please note that this article does not provide investment advice or recommendations. It is important to conduct your own research and make informed decisions when investing in cryptocurrencies.