Follow Sam Stovall, investment strategist at CFRA, April was the best performing month of the year. If history repeats itself and the strong correlation between the US stock market and Bitcoin If it continues, that could bode well for the crypto market in the near-term.
Another psychological boost could be 19 million Bitcoins was in circulation on April 1st. For 2 million BTC the rest, the crypto market will have to wait a long time because Bitcoin is finally expected to be mined in 2140. This could shift the focus towards only a small amount Bitcoin It is mined and its growing demand can lead to scarcity and push the price higher.
Can Bitcoin hold above key support and if so, altcoin Will the recovery continue? Let's study the charts of the top 5 cryptocurrencies that can extend their recovery in the short term.
BTC technical analysis
Bitcoin is seeing a stiff skirmish between the bulls and the bears near the critical level of $ 45,400. The bears have managed to pull and sustain the price below this level but the bulls are still holding their ground. This shows that the bulls are attempting to turn this level into support.
BTC chart/USDT Daily | Source: TradingView
The 20-day EMA ($ 44.333) spiked and the relative strength index (RSI) is in the positive territory suggesting the path of least resistance is to the upside. The key level to watch on the upside is the 200-day SMA at $ 48.276.
If the bulls push the price above this barrier, the BTC/ USDT capable of gaining momentum. The rally may encounter minor resistance at the psychological level of $ 50,000 but if this level is conquered, the next stop could be $ 52,000.
Contrary to this assumption, if the price turns down from the current levels or overhead resistance, the bears will again attempt to drag the pair below the $ 45,400 and the 20-day EMA. If that happens, the pair can drop to the 50-day SMA at $ 41.615.
BTC chart/USDT 4 o'clock | Source: TradingView
The 4-hour chart shows that the price has corrected since touching the resistance line of the ascending channel. The bulls' recovery efforts are facing stiff resistance at the short-term downtrend line. If the bulls push and sustain the price above this line, the pair can rise to the resistance line of the channel.
A breakout and close above the channel can signal the continuation of the uptrend. Alternatively, if the price turns down from the downtrend line, the bears will attempt to push the pair down to $ 44,000. If this level is conquered, the drop can extend to $ 42,594.
VET Technical Analysis
VeChain (VET) surged past the $ 0.07 resistance on March 27 but the bears prevented a rebound at the 200-day SMA of $ 0.09. A minor positive is that the bulls have not allowed the price to slide below the breakout at $ 0.07.
If the price turns up from the current levels, the bulls will make one more move to clear the overhead barrier at the 200-day SMA. If they manage to do that, it will suggest a change in trend. After that, the VET/USDT pair can rise to $ 0.10 and higher to $ 0.13.
The 20-day EMA ($ 0.06) is sloping up and the RSI is in the positive zone suggesting an advantage for the buyers. This bullish view will be invalidated if the price turns down and breaks below the 20-day EMA. Such a move can drag the pair down to the 50-day SMA at $ 0.05.
VET/USDT 4-hour chart | Source: TradingView
The 20 EMA has flattened out and the RSI is near the midpoint on the 4-hour chart, suggesting a balance between supply and demand. If the price breaks out above $ 0.08, the bulls will attempt to push the pair to $ 0.09. If they do, the pair can extend the upward move.
Conversely, if the price turns down and breaks below the 50 SMA, the pair can drop to the critical level of $ 0.07. If the bulls turn this level into support, the pair will again attempt to rally to $ 0.09. If the support at $ 0.07 is broken, the bears could get back in the game.
THETA . technical analysis
Theta Network (THETA) has been range-bound from $ 2.50 to $ 4.40 for the past few weeks. The bulls tried to push the price above the resistance of the range but failed. This shows that the bears continue to defend this level aggressively.
THETA/USDT Daily Chart | Source: TradingView
If the price does not break below $ 3.80, it shows that traders are not closing their positions in a hurry as they expect the upward momentum to continue. The 20-day EMA ($ 3.54) sloping up and the RSI near the overbought zone suggest that the path of least resistance is to the upside.
If buyers push the price above the overhead resistance zone between $ 4.40 and 200-day SMA at $ 4.77, that will signal the start of an uptrend. After that, the THETA/USDT pair can pick up momentum and rally to $ 6.00.
Contrary to this assumption, if the price slips below the 20-day EMA, the next stop could be the 50-day SMA at $ 3.17. Such a move would suggest that the pair is likely to remain range-bound for a few more days.
THETA/USDT 4-hour chart | Source: TradingView
The 4-hour chart shows that the bears have consistently thwarted the bulls' attempt to push the price above the $ 4.40 resistance level. The 20 EMA has flattened out and the RSI is near the midpoint, showing a balance between supply and demand.
If the price slips below the 50 SMA, the short-term advantage could be in favor of the sellers. Then the price can drop to $ 3.50. On the other hand, the bulls will prevail if the price breaks out and sustains above the resistance.
AAVE technical analysis
Aave (AAVE) broke above the downtrend line on March 29, indicating a potential change in trend. The bears have managed to halt a bounce at the 200-day EMA at $ 226, but the bulls have not given up much ground.
Chart AAVE/USDT Daily | Source: TradingView
Buying activity resumed on April 1, and the AAVE/USDT pair broke out above the 200-day SMA. If the price sustains above the 200-day SMA, it will signal the start of a new up move.
If the bulls push the price above $ 262, the rally can extend to the psychological level at $ 300. The bears can create a strong resistance at this level, but if the bulls break through this barrier , the gain can reach $ 350.
This bullish view will be invalidated in the short term if the price turns down and plummets below the 200-day SMA. The bears can then drag the price to the 20-day EMA at $ 187.
AAVE/USDT 4-hour chart | Source: TradingView
The 4-hour chart shows that the bulls are buying on a drop to the 20 EMA. If the bulls push the price above $ 261.20, the uptrend is likely to resume. This rally could encounter resistance between $ 283 and $ 300.
The RSI is showing signs of creating a bearish divergence, suggesting that the bullish momentum may be waning. If the price turns down and breaks below the 20 EMA, it will show that the short-term bulls are taking profits. That could cause the pair to drop to the 50 SMA.
RUNE . technical analysis
THORChain (RUNE) has been trading inside a large descending triangle pattern for several months. The strong bounce over the past few days has pushed the price to the downtrend line of the triangle, where the bears are creating a stiff resistance.
Chart RUNE/USDT Daily | Source: TradingView
If the price turns down from the current levels, the RUNE/USDT pair can drop to the 20-day EMA at $ 9.75. This is an important level to watch out for because if the price recovers from the 20-day EMA, it shows that sentiment is still positive and traders are buying on the downside.
That could raise the prospect of a breakout above the downtrend line. If it happens, the bearish triangle setup will be invalidated, which could be a bullish sign. After that, the pair can rise to $ 17.
This bullish view will be invalidated in the short term if the price turns down and breaks below the 20-day EMA. That can drag the pair down to the 200-day SMA at $ 7.88.
RUNE/USDT 4-hour chart | Source: TradingView
The 4-hour chart shows that the pair is facing stiff resistance near $ 13. One minor positive is that the bulls did not allow the price to drop and sustain below $ 11. Hence, this becomes the level. importance to keep an eye on.
If the price breaks below this support, the pair can drop to the next major support at $ 10. Conversely, if the price recovers from $ 11, buyers will again attempt to resume the uptrend by bring the pair above the resistance level.