Less than three months ago, the cryptocurrency market reached a market capitalization of $1 trillion for the first time. This growth figure shows that investors are very optimistic about the potential of the sector and those who are delaying their investment decisions may need to step in at a much higher level.
Cathie Wood, founder and CEO of Ark Invest, is known for her ability to identify disruptive technologies, and her company is helping bitcoin (BTC) do just that. Yassine Elmandjra, a crypto asset analyst at Ark, said bitcoin is 100 times better than gold, so he believes bitcoin will grow 10 times from its current $1 trillion market cap to match gold’s $10 trillion market cap.
Daily indicators for the crypto-currency market. Source : coin360
For bitcoin to continue its journey north, institutions need to keep pumping money into it. The Bitcoin ETF, Canada’s first authorized bitcoin exchange traded fund (ETF), was launched two months ago and currently holds 16,462 BTC.
If the bitcoin ETF gets regulatory approval in the US, it could attract huge investments, making it difficult for the targeted bitcoin ETF.
The history of crypto goes beyond bitcoin. Data from business intelligence firm CB Insights showed that tech startups focused on crypto and blockchain received $2.6 billion in funding in the first quarter of 2021. This is far more than the total funding of $2.3 billion. The total value of investment in the sector in 2020 is estimated at $1.5 billion, indicating growing interest in the sector.
The question most investors are asking is whether the cryptocurrency market can maintain its current momentum or not. Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin rallied today to its 20-day exponential moving average ($56,750), suggesting that sentiment remains positive and that bulls are buying on any slight downward movement.
Daily chartBTC/USDT. Source: TradingView
Buyers will now try to push the price above the upper $60,000 resistance zone at $61,825.84. If successful, this could open the door to an increase to $69,540 and then to $79,566.
However, it is unlikely that the Bears will give up so easily. They will once again try to block the rally into the resistance zone. When this happens, the likelihood of a break below the 20-day MAE increases.
This could lead to a decline to the critical support at the 50-day simple moving average ($53,978). If the bears break below the 50-day MA, the pair could slip to the next support at $50,460.02.
The ether (ETH) reached its highest level on the 2nd. April a new all-time high of $2,144.59. However, the bulls were unable to continue the move as the bears sold aggressively and pushed the price higher on the 3rd. April below the breakout level at $2,040.77.
Daily ChartETH/USDT. Source: TradingView
Since then, the bulls and bears have battled it out to $2,040.77. While the bulls try to turn this level into support, the bears try to pull price below this level and trap the bulls.
The rise in the 20-day EMA ($1,872) and the relative strength index (RSI) above 65 show that the bulls have taken the lead. If buyers manage to push the price above $2,144.59, the ETH/USDT pair could embark on the next phase of the uptrend, which could reach $2,618.14.
Contrary to this assumption, the pair could fall on the 20 EMA if the bears pull the price below $1,977. A break below this level would mean that the bullish momentum has weakened and could lead to a fall back to the trend line.
Binance Coin (BNB) broke above the general resistance area of $348.69 to $356.98 today and reached a new all-time high. Whenever an asset class hits a new all-time high, it is a sign of strength because it shows that traders are buying at higher levels because they expect the recovery to continue.
Daily chart NBB/USDT. Source: TradingView
Both moving averages are showing an upward slope and the RSI has entered overbought territory, suggesting that the path of least resistance is upward. The NBB/USDT pair can now rebound to its $400 target and then $430.
This positive outlook will be negated when the price reverses and breaks below the 20-day EMA ($297). Such a move would mean traders are aggressively booking profits at higher levels and supply is outpacing demand.
This could push the price toward the 50-day SMA ($258), and a crack below that support could extend the decline to $220.
The Bears have him at third. April is trying to trap the bulls, as evidenced by the long wick of the daily candle. However, the Bulls were not willing to give up their lead and pressed Polkadot (DOT) on a fourth down. April back above $42.28.
DOT/USDT Daily Chart. Source: TradingView
A fierce battle between the bulls and the bears is taking place at the $42.28 level. Buyers are looking to turn this level into support and start the next leg of the uptrend, which could reach $53.50.
The rising 20-day EMA ($37.30) and the RSI in overbought territory suggest that the path of least resistance is up.
This upside vision will falter if the bears manage to push the price below $40. If this happens, ADA/USDT could fall towards the moving averages and a break below the 50-day SMA ($35.34) could trigger a deeper correction towards $26.50.
Cardano (ADA) has been trading near its 20-day EMA ($1.17) for a few days. The attempts by the police on the 2nd and 3rd. April to start an uptrend found no buyers at higher levels, as evidenced by the candlesticks’ long wick.
Daily chartADA/USDT. Source: TradingView
Normally any period of low volatility is accompanied by a sharp increase in volatility, but it is difficult to predict the direction of the break. Therefore, it is better to wait for a breakout before starting to trade.
If the bulls can break through $1.30 and hold, the ADA/USDT pair could challenge heavy resistance at $1.48. This will be the third attempt to break through upper resistance, so the chances of a breakout above that are high. The next target is $2.
But if indecision turns to the downside, the bears will try to push the price below $1.03 and initiate a deeper correction to $0.80 and then $0.70.
Today XRP broke above the hard upper resistance of $0.65, completing an inverse head and shoulders pattern. Altgoin gained momentum and overcame minor resistance at $0.75 and $0.78.
Daily chart XRP/USDT. Source: TradingView
The abrupt pace of the recovery suggests that some bears may have been overwhelmed, resulting in a massive compression of short positions. This opens the door for a rally towards the $1.11 price target.
The rising 20-day EMA ($0.57) and RSI above 80 suggest that the bulls are back in action.
Still, the XRP/USDT pair may not quite reach the target, as short-term traders may take profits after today’s strong rally. This could push the price towards the $0.75-$0.65 support zone.
The strength of the rebound from this support area will help to understand the next phase of the rally.
Uniswap (UNI) climbed above the 20-day EMA ($29.52) on April 2. but the bears didn’t let the price get away. They sold at higher levels and drove the price down on the 3rd. Back in April on the 20-day EMA.
daily chart UNI/USDT. Source: TradingView
One positive sign is that the bulls have managed to break through the 20-day EMA in the last three days. If the bulls manage to push the price above $32.50, the UNI/USDT pair could reach the $35.20 to $36.80 resistance zone.
A flat 20-day EMA and an RSI below 56 do not indicate strong momentum in favor of the bulls. That way a couple can stay in range for a few more days. The next trend movement could begin at a break above $36.80 or below $25.52.
Litecoin (LTC) made a breakthrough on the 3rd. April the resistance line of the symmetrical triangle, but the bulls were unable to hold higher levels. Altgoin quickly reversed direction and came back into the triangle.
Daily chartLTC/USDT. Source: TradingView
However, one positive sign is that buyers have not allowed price to break below the moving averages. This shows that the bulls are on the low. They will again try to push and keep the price above the triangle.
If they do, the LTC/USDT pair could reach $230 and then $246.96. Above this level the pair could reach the pattern’s target at $307.42.
Conversely, the probability of a break below the moving averages increases as the price moves down from the resistance line. If this happens the pair may drop all the way down to the triangle support line.
Chainlink (LINK) broke at 2. April above resistance at $32, but the bulls failed to build on that breakout and the bears brought price down on the 3rd. April, back in the field. This suggests that the bears are aggressively defending upper resistance at $32.
Daily chartLINK/USDT. Source: TradingView
A strong rebound in the 20-day EMA ($29) on the 4th. April, however, shows the bulls buying the dips. The bulls will now try to push the price above the upper resistance zone of $32 to $33.17.
If successful, the LINK/USDT pair could retest the all-time high at $36.93. If this point is also captured, the rally could go to $40.
Conversely, if price breaks back from the upper resistance zone and dips below the moving averages, this would indicate that rangebound action could continue for a few more days.
THETA has been stuck in a range of $10.35 to $14 for the last few days. The bears are trying to drive the price towards range support, but the bulls have not allowed the altcoin to drop below $11.20.
Daily chartTHETA/USDT. Source: TradingView
The 20-day EMA ($10.81) is gradually stabilizing and the RSI has dropped below 61, indicating the possibility of action in the coming days.
Contrary to this assumption, the THETA/USDT pair could rise to $14 if the bulls manage to push the price above $12.58. A breakout of this resistance will be the first sign that the bulls have the upper hand.
However, if the pair pulls back from its current level and drops below $11.20, a drop to $10.35 is possible. A break below this support could strengthen sales.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Cointelegraph. Every investment and every stage of trading involves risk. You should do your own research before making a decision.
Market data is provided by the HitBTC exchange.
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