April has been an unforgettable month for stocks, Bitcoin and altcoin investors. Bitcoin (BTC) fell 17 percent in April, recording its worst performance ever. Similarly, the Nasdaq composite index fell 13.3 percent in April, displaying its worst monthly performance since October 2008.
Can Bitcoin put an end to the downturn and boost altcoin projects?
The upside for crypto investors, however, is that Bitcoin is still above its annual low near $33,000. By contrast, the Nasdaq 100 hits a new low in 2022, while the S&P 500 is just one step away from hitting a one-year low. This shows that Bitcoin has managed to avoid a major sell-off, which indicates demand at lower levels. However, the leading altcoin Ethereum (ETH) has managed to stay well above its yearly low. Can Bitcoin recover from the slump of April and push altcoin projects higher with a strong recovery? As Kriptokoin.com, we are transferring 4 altcoins and Bitcoin to watch this week.
Bitcoin dropped to the support line of the ascending channel on April 30, but its recovery today shows that the bulls are defending the level with all their might. While the falling 20-day exponential moving average ($39,956) provides an advantage for sellers, the positive divergence in the relative strength index (RSI) indicates that the negative momentum may weaken. If the recovery continues, the bulls will attempt to push the price above the 20-day EMA. If successful, they will accumulate near the support line. The pair could then rise to the 50-day simple moving average ($41,954). Conversely, a weak rebound will signal an aggressive lack of buying near the support line. If the price breaks from the current level or the 20-day EMA and breaks below the channel, the BTC/USDT pair could drop to $34,322 and then retest the critical support at $32,917.
4 Looking at the hourly chart, it shows that the price is falling within a descending wedge pattern. The RSI indicator has formed a positive divergence, showing that the bearish momentum may be weakening. If the price rallies above the resistance line of the wedge, the pair could gain momentum and climb towards $41,000. This level could act as a resistance again, but if the bulls clear this hurdle, the next stop could be $43,000. Conversely, if the price breaks from the 20-EMA and breaks below the wedge, selling could gain momentum.
Here are the 4 altcoins to watch this week
Terra (LUNA) has been consolidating in an uptrend for the past few days. The price recovered from the strong support at $75 today, showing that the bulls are defending this level aggressively. The Luna/USDT pair can now attempt a rally to the 20-day EMA ($88). This level could act as a hurdle where bears can try to stop the up move. If the price declines from the 20-day EMA, it increases the likelihood of a break below the $75 support. If this happens, the pair will complete the “shoulder to head” pattern, which indicates a potential trend reversal. Conversely, if the bulls push the price above the 20-day EMA, the pair could rise again to the psychological resistance of $100. Buyers will have to unblock this to indicate that the fix may be over. Looking at the
4 Hourly chart, the price recovered from the strong support at $75 and the bulls will now attempt to push the pair above the 20-EMA. A break and close above the 50-SMA could indicate that the pair may remain in the $100 to $75 range for a while. Contrary to this assumption, if the price drops sharply from the current level or the 20-EMA, it will indicate that the bears are selling on every minor rally. This could cause a retest of strong support at $75.
(Near Protocol) NEAR
The failure of the bulls to push Near Protocol (NEAR) above $18 has caused a sharp drop over the past few days. The price dropped to the psychological support at $10 on April 30, but today the strong recovery points to aggressive buying by the bulls. If buyers push the price above the 200-day SMA ($11.94), it will suggest a drop to $10 could be a bear trap. The NEAR/USDT pair could then rise to the 20-day EMA ($13.86), where the bears could try to stop the recovery again. The bulls will have to clear this hurdle to signal that the corrective phase may be over. This could start a rally towards the strong overhead resistance at $18. Contrary to this assumption, if the price breaks from the 200-day SMA, the probability of a drop below $10 increases. If this happens, the pair may correct its price to $9.30 and then to $8
Looking at the 4-Hour chart, the bounce is above the 20-EMA, the first sign of strength. If the buyers hold the price above the 20-EMA, the pair could rise to the 50-SMA. A break and close above this level will indicate that the short-term downtrend may be coming to an end. Conversely, if the bulls fail to sustain the price above the 20-EMA, it will indicate that the bears continue to sell on rallies. The bears will then make another attempt to push the pair below the strong $10 support and continue the decline.
VeChain (VET) has been consolidating in a wide range of $0.043 to $0.083 for the past few days. The price has reached the support of the range, which has served as a strong floor in the previous three cases. A bounce from the $0.043 support today shows buyers strongly defending the level. If the buying momentum continues and the price climbs above the 20-day EMA ($0.055), it will suggest that the VET/USDT pair could stay in the range for a few more days. Alternatively, if the price drops from the current level or the 20-day EMA, it will indicate that demand is decreasing at higher levels. The bears will then try to push the pair below the range. If they manage to do so, the pair could resume its downtrend and drop as low as $0.034. Looking at the
4 Hourly chart, the price recovered from the strong support at $0.043 and the bulls will now attempt to push the pair above the 20-EMA. If they are successful, it will suggest that the bears may be losing their grip. The pair could then rise to the 50-SMA. A break and close above this level could clear the way for a possible rally to $0.065. Conversely, if the price drops from the 20-EMA, it will indicate that the bears have been sold on rallies to strong resistance levels. The bears will then try to push the pair below the strong support at $0.043 and extend the decline.
Looking at the daily chart, STEPN (GMT) is correcting its uptrend. A positive point is that the bulls did not allow the price to drop below the 20-day EMA ($3.13). This shows that sentiment remains positive and the bulls are buying on the dips. Buyers will now try to push the price towards the overhead resistance at $4.17. If the buyers break this hurdle, the GMT/USDT pair could resume its uptrend. The pair could then attempt a rally to the $5 psychological level. The rising 20-day EMA signals an advantage to buyers, but the RSI is forming a negative divergence suggesting that the bullish momentum may be weakening. If the price drops and dips below the 20-day EMA, selling could intensify. The pair could later decline to the 50-day SMA ($2.08).
4 Looking at the hourly chart, the bears tried to keep the price below the 50-SMA but failed. This indicates strong demand at lower levels. If the bulls push the price above the 20-EMA, it will indicate that selling pressure may be easing. The pair could later retest its all-time high at $4.17. Conversely, if the price drops from the 20-EMA, it will indicate that the bears are active at higher levels. Sellers will then try to push the pair back below the 50-SMA. If they do, the pair could slide to the strong support at $3.