Bitcoin price turns $28K to support, opening the door for ETH, MATIC, HBAR and EOS to breakout
The market witnessed a major banking crisis in March as Silicon Valley Bank and Signature Bank failed and Silvergate Bank entered liquidation as the result of dire financial distress. In Europe, the government brokered a forced takeover of Credit Suisse by UBS. Still, the United States equities markets and the European stock markets closed the month on a positive note.
The cryptocurrency market was also shaken by volatility, but Bitcoin (BTC) gained about 23% in March. Going forward, the picture looks encouraging for Bitcoin bulls in April and data from Coinglass suggests that the month has largely favored the buyers.
Although altcoins reacted positively to Bitcoin’s rise, the rally has not been equal across the board. This suggests that market participants have been selective in their purchases. As a result, traders might focus on the movers rather than the laggards.
Let’s study the charts of five cryptocurrencies that look positive in the near term. If they break above their resistance levels, they may offer short-term trading opportunities.
Bitcoin price analysis
Bitcoin is facing stiff resistance at the $29,000 level but the bulls have not allowed the price to lose ground. This suggests that the bulls are being patient as they anticipate a move higher.
The 20-day exponential moving average ($27,012) is trending up and the relative strength index (RSI) is above 61, indicating that the buyers are in control. The bullish momentum is likely to pick up after buyers overcome the obstacle at $29,200. That could start a rally to $30,000 and subsequently to $32,500.
Conversely, if the price turns down sharply from the current level, it will suggest that the short-term traders are selling. The BTC/USDT pair may slump to the 20-day EMA, which is an important level to keep an eye on.
If this support gives way, the pair could slide to the breakout level of $25,250. This is a make-or-break level for the pair because if it collapses, the selling could intensify and the decline could extend to the 200-day simple moving average ($20,424).
Buyers pushed the price above the overhead resistance at $28,868 but could not sustain the higher levels. This suggests that bears are trying to keep the price below $28,868. If bears sustain the price below the 20-EMA, the pair may start its fall toward $27,500 and then to $26,500.
On the upside, a break and close above $28,868 will indicate that the bulls have overpowered the bears. That could signal the start of the next leg of the up-move. The target objective from the break above the $26,500 to $28,868 range is $31,236.
Ether price analysis
Ether (ETH) turned down from the overhead resistance of $1,857 on April 1 but the bulls are not giving up much ground. This suggests that the buyers are not rushing to the exit.
The upsloping 20-day EMA ($1,748) and the RSI in the positive area suggest that the path of least resistance is to the upside. If bulls drive the price above $1,857, the ETH/USDT pair may make a dash to the psychologically important level of $2,000.
The bears are likely to mount a strong defense at this level but if bulls overcome this barrier, the next stop could be $2,200. This positive view will invalidate in the near term if the price plunges below the 20-day EMA and the horizontal support at $1,680.
The 4-hour chart shows that the pair turned down from the overhead resistance of $1,857 and the bears pulled the price below the 20-EMA. This suggests that the short-term bulls may be closing their positions. The pair could next fall to $1,743 and thereafter to $1,680.
Contrarily, if the price turns up and rises back above the 20-EMA, it will suggest that the break may have been a bear trap. A strong bounce off the current level could enhance the prospects of a rally above the overhead resistance.
Polygon price analysis
Polygon (MATIC) has been trading near the 20-day EMA ($1.11) for the past few days. Generally, a tight consolidation near an overhead resistance resolves to the upside.
If buyers thrust the price above the 20-day EMA, the MATIC/USDT pair will attempt a rally to $1.25 and thereafter to $1.30. The bears are expected to guard this zone vigorously because if they fail, the pair could soar to $1.57.
Alternatively, if the price turns down from the current level and breaks below $1.05, it will suggest that the bears are back in the driver’s seat. The pair may then fall to the 200-day SMA ($0.97), which is an important level to watch out for. If this support cracks, the pair may plummet toward $0.69.
The bears are trying to sustain the price below the 20-EMA. If they succeed, the pair could skid to $1.05 and then to $1.02. This is an important zone for the bulls to defend because if it gives way, the pair may continue its downward move to $0.94.
On the other hand, if the price turns up from the current level, it will suggest that every minor dip is being purchased. That will increase the likelihood of a break above the minor resistance at $1.15. The pair may then ascend to $1.25.
Related: Bitcoin copying ‘familiar’ price trend in 2023, two more metrics show
Hedera price analysis
Buyers foiled several attempts by the bears to sink and sustain Hedera (HBAR) below the 200-day SMA ($0.06) between March 9 to 28.
The 20-day EMA ($0.06) has started to turn up and the RSI is in the positive territory, indicating that buyers have the upper hand. The HBAR/USDT pair is likely to continue its northward march to the $0.10 to $0.11 resistance zone. Sellers are likely to defend this zone with all their might but if buyers bulldoze their way through, the pair may start a new uptrend.
Contrary to this assumption, if the price turns down and breaks below the 20-day EMA, it will suggest that bears are selling on relief rallies. The pair may then retest the crucial support at the 200-day SMA. A break below this level will open the doors for a possible drop to $0.04.
The bulls started a strong recovery from the support near $0.06 but the relief rally is facing strong resistance in the zone between the 50% Fibonacci retracement level of $0.07 and the 61.8% retracement level of $0.08.
On the downside, the bulls are trying to defend the support at the 20-EMA. If the price rebounds off it, the pair may rally to $0.09 and then to $0.10. Conversely, if the price plummets below the 20-EMA, it will suggest that bears are still in the game. The pair could then descend to the support near $0.06.
EOS price analysis
EOS (EOS) is trying to complete a bullish cup and handle formation. Buyers pushed the price above the 20-day EMA ($1.15) on March 29, starting a comeback.
The 20-day EMA has started to turn up gradually and the RSI is in the positive territory, indicating a minor advantage to the bulls. The ETH/USDT pair is likely to rise to the overhead resistance zone between $1.26 and $1.34.
Sellers are likely to defend this zone aggressively but if bulls overpower the bears, the pair may start a new uptrend. The pattern target of the reversal setup is $1.74.
On the contrary, if the price turns down from the overhead zone, it will indicate that bears are selling on rallies. The pair could then slide to the 20-day EMA and later to the 200-day SMA ($1.05). A break below this level will suggest that the bears are back in command.
The 4-hour chart shows that the bears are protecting the $1.22 level with vigor but a minor positive is that the bulls have not allowed the price to dip below the 20-EMA. This shows strong demand at lower levels.
The upsloping 20-EMA and the RSI in the positive territory indicate that bulls have a slight edge. If buyers propel the price above $1.22, the pair could rise to $1.26 and thereafter to $1.34.
Contrarily, if the price slumps below the 20-EMA, it will suggest that short-term traders may be booking profits. The pair could then drop to $1.14 and later to $1.06.
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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.
