Apr 24, 2023
Bitcoin Plunges 9%, Altcoins Follow Suit
This week, Bitcoin (BTC) is on track to end with a 9% decline, a sign that some traders may be taking profits out of fear of a downward trend resuming. Analysts forecast that Bitcoin will reach the $26,600–$25,000 zone, where buying interest is likely to pick up.
When an asset is emerging from a bear market, it typically tries to form higher lows on the way up. These levels act as strong supports during subsequent corrections. The current pullback could end up forming a higher floor for Bitcoin, which may act as a launch pad for the next rally.
Crypto market data daily view. Source: Coin360
If long-term investors believe that a bottom has been made, then panicking and selling on every corrective phase is not a good strategy. Rather, every dip could be an opportunity to build a portfolio.
The correction in Bitcoin has pulled several altcoins lower. However, some major cryptocurrencies are still standing strong on the charts. Let’s take a look at five cryptocurrencies that may outperform on the way up.
Bitcoin Price Analysis
Buyers are attempting to stop Bitcoin’s correction at the 50-day simple moving average (SMA) ($26,983), but the shallow bounce suggests that the bears are not giving up.
BTC/USDT daily chart. Source: TradingView
The 20-day exponential moving average (EMA) ($28,606) is beginning to turn down, and the relative strength index (RSI) is in the negative zone, signaling that bears have the edge. If the 50-day SMA is broken, the BTC/USDT pair could plunge to the breakout level of $25,250.
Buyers will have to push and sustain the price above the 20-day EMA to signal a comeback. That could attract buying and push the price toward the $31,000–$32,500 resistance zone.
BNB Price Analysis
BNB (BNB) is in the middle of a tough battle between the bulls and the bears. Sellers are active above $338, while the bulls are fiercely defending the 50-day SMA ($316).
BNB/USDT daily chart. Source: TradingView
The BNB/USDT pair bounced off the 50-day SMA on April 21, and the bulls are attempting to clear the hurdle at $338. If they succeed, it will enhance the prospects of a rally above $346. The pair may then soar toward $400. The gradually upsloping 20-day EMA ($325) and the RSI in the positive territory indicate that bulls have a slight edge.
If the bears want to prevent the up-move, they will have to yank the price back below the 50-day SMA. That could accelerate selling and sink the pair to $300 and thereafter toward $280.
Cardano Price Analysis
Cardano’s ADA (ADA) turned down and fell back below the neckline of the inverse head-and-shoulders (H&S) pattern on April 20. This indicates that the bears are trying to trap the aggressive bulls. A minor positive in favor of the buyers is that they are trying to guard the 50-day SMA ($0.37).
ADA/USDT daily chart. Source: TradingView
The 20-day EMA ($0.40) has turned down, and the RSI is just below the midpoint, indicating that sellers are trying to seize control. If the price plummets below the 50-day SMA, it will suggest that the bears are in the driver’s seat. The ADA/USDT pair could then collapse to $0.30.
Conversely, if buyers want to retain their supremacy, they will have to quickly thrust the price back above the neckline. If they manage to do that, the pair could witness solid buying. The pair may then surge to $0.46.
Monero Price Analysis
Monero (XMR) turned down from the neckline of the developing inverse H&S pattern, but the sharp recovery from lower levels indicates aggressive buying on dips.
XMR/USDT daily chart. Source: TradingView
Buyers have pushed the price back above the 20-day EMA ($157) and will again try to challenge the neckline. If this level is scaled, it will complete the bullish setup, clearing the path for a potential rise to $185 and thereafter to the pattern target of $199.
If the price turns down from the current level or the neckline, it will signal that bears are selling on rallies. A break and close below $149 will signal that bears have seized control. The XMR/USDT pair may then slump to $145 and later to $140.
Toncoin Price Analysis
Toncoin (TON) has formed a bearish descending triangle pattern, but a positive sign in favor of the buyers is that the price has been trading near the resistance line of the triangle for the past few days.
TON/USDT daily chart. Source: TradingView
The bulls will try to drive and sustain the price above the resistance line, which will invalidate the bearish setup. A breakdown of a negative pattern usually results in an up-move because aggressive traders who may have gone short in anticipation of a decline cover their positions. Additionally, bullish traders who have been sitting on the sidelines due to the negative setup jump in to buy. Above the resistance line, the TON/USDT pair could rally to $2.64 and thereafter to $2.90.
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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