BTC is experiencing a fierce struggle between buyers and sellers near the $69,000 mark. An independent trader and analyst, Daan Crypto Trades, stated in a recent post that Bitcoin has been lingering around the 2021 cycle high for about four weeks. Historically, Bitcoin tends to consolidate for around 4-8 weeks near cycle highs before the price resumes its movement.
Though traders might be frustrated by the range-bound action, the shallow pullback is a promising sign. Checkmate, a lead on-chain analyst at Glassnode, mentioned in a recent post that during the previous bull market cycle between 2019 and the end of 2021, Bitcoin saw two corrections of more than 50%. However, the pullbacks in the current bull phase have been milder, with the most recent 20% drawdown in September last year.
Data from the crypto market depicted a daily view from Coin360. The noteworthy increase in buying interest in Bitcoin exchange-traded funds may have helped limit the downside during the current cycle. Another reason for the shallow pullback is the anticipation that Bitcoin could extend its bull market following the Bitcoin halving.
Will Bitcoin’s current consolidation result in a downturn or an upturn? Is the correction in select altcoins over? Let’s examine the charts of the top 10 cryptocurrencies to find out.
Bitcoin Price Analysis:
Bitcoin has formed a symmetrical triangle pattern, indicating a balance between buyers and sellers. This pattern typically acts as a continuation pattern but can also behave as a reversal setup.
The flat 20-day EMA ($67,750) and the RSI near the midpoint do not favor either the bulls or bears. A price drop and a break below the triangle would indicate the start of a deeper correction. Alternatively, if the price rises and breaks above the triangle, it would suggest that the bulls have absorbed the supply, increasing the likelihood of an uptrend.
Ether Price Analysis:
Ether has been trading below the 50-day SMA ($3,434) for the last three days, indicating a lack of aggressive demand at these levels. Moving averages are about to complete a bearish crossover, with the RSI in the negative zone, signaling advantage to sellers.
BNB Price Analysis:
BNB price action has formed a symmetrical triangle pattern, hinting at indecision between the bulls and the bears.
Solana Price Analysis:
Solana fell below the 20-day EMA ($181) on April 5, indicating profit-booking by short-term traders. The pair could drop to strong support at $162.
XRP Price Analysis:
XRP fell below the uptrend line on April 3, indicating selling on every minor rally. The downsloping 20-day EMA and the RSI in the negative territory indicate advantage to sellers.
Dogecoin Price Analysis:
Dogecoin broke below the 20-day EMA ($0.18) on April 3, indicating that the sellers have an advantage.
Cardano Price Analysis:
The bulls are struggling to defend the $0.57 level in Cardano, suggesting a lack of demand at current levels. If the price plummets below $0.57, it will complete a bearish head-and-shoulders pattern.
Avalanche Price Analysis:
Avalanche slipped below the 50-day SMA ($47) on April 3, indicating that the bears are in charge. The bulls must maintain the price above the downtrend line to suggest that the correction may be over.
Toncoin Price Analysis:
Toncoin’s bounce off the 20-day EMA ($4.73) on April 3 has reached the downtrend line, a crucial level to watch out for. If bulls thrust the price above the downtrend line, it will suggest that the correction may be over.
Shiba Inu Price Analysis:
The bulls are trying to push Shiba Inu back above the 20-day EMA ($0.000028), but the bears are not relenting. A break and close below the 50-day SMA ($0.000024) could accelerate selling and sink the SHIB/USDT pair to $0.000017.
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.