Risky assets continue slightly higher in April. The S&P 500 Index is up about 1.5% in April, while Bitcoin (BTC) is on track to end the month up more than 4%. Could Rally Continue In May Or Is It Time For A Pullback?
The recovery could face headwinds if banking problems continue to escalate in the United States. JPMorgan Asset Management chief investment officer Bob Michele said in an interview with Bloomberg that the turmoil at First Republic Bank is unlikely to be just bank-bound and could have a domino effect.
Daily crypto market data view. Source: Coin360
In that case, US stock markets could see a correction. However, it is difficult to predict how Bitcoin will respond to such a crisis as BTC price has risen in recent days while legacy banks’ problems have worsened. But in the event of a major upheaval in the US banking sector, it is possible that Bitcoin will also face a correction sooner or later.
In the short term, Bitcoin and selected altcoins are showing strength. Let’s study the charts of five cryptocurrencies that could outperform in the next few days.
Bitcoin price analysis
After two days of little volatile bitcoin trading, the bulls are attempting to assert their supremacy on April 30th.
BTC/USDT daily chart. Source: TradingView
The 20-day exponential moving average ($28,783) has started to gradually turn up and the Relative Strength Index (RSI) is in the positive territory, indicating that the path of least resistance is to the upside leads.
If bulls propel Bitcoin’s price above $30,000, the BTC/USDT pair could scale the $31,000-$32,400 overhead resistance zone. Buyers might face formidable resistance in this zone, but if breached, the pair can rally towards $40,000.
The 50-day simple moving average ($28,026) is the key support to watch. If BTC price falls below this level, the bears will see an opportunity and attempt to sink the pair to $25,250.
BTC/USDT 4 hour chart. Source: TradingView
The bears attempted to pull the pair below the 20-EMA but the bulls held their ground. This may have attracted more buying and the bulls will next try to push the price above $30,000. If they succeed, Bitcoin can surge to $30,500 or even $31,000.
Conversely, if the price turns down and breaks below the 20-EMA, it suggests bears are selling near overhead resistance levels. The pair could then slide to the 50-SMA.
The bulls will try to protect this level, but if the bears get the better of them, the next stop is likely to be $27,000. Buyers are likely to defend the zone between $27,000 and $25,250 with all their might.
Solana price analysis
The bulls have not allowed Solana (SOL) to break below the downtrend line during the recent leg of the correction, indicating demand at lower levels.
SOL/USDT daily chart. Source: TradingView
The buyers will next try to push the price up to the overhead resistance at $27.12. This remains the key resistance to watch out for in the short-term as if bulls catapult the price above it, the SOL/USDT pair could accelerate towards $39.
This optimistic view could be invalidated in the short term if the price turns down and breaks below the moving averages. The pair could then drop to the key support at $18.70. If the price bounces off this level, it will signal that the pair could oscillate in the major range of $18.70 – $27.12 for some time.
SOL/USDT 4 hour chart. Source: TradingView
The 4-hour chart’s moving averages have started to turn up and the RSI is floating in positive territory, indicating that the buyers are in control. The bears are attempting to halt the rally at $24, but if the bulls clear this barrier, the pair could gain momentum and rally towards $25.50.
If the bears want to avoid the rally, they need to pull the price back below the 20-EMA quickly. The 50-SMA will be the support level to watch here as the price starts falling.
Cosmos price analysis
The long tail of the April 26 Cosmos (ATOM) candle shows the bulls are fiercely defending the $10.20 support.
ATOM/USDT daily chart. Source: TradingView
Buyers have pushed the price above the moving averages and will try to reach the downtrend line. This is an important level to watch as a break and close above it will open the doors for a potential rally to $13.50 and then $15.50.
On the other hand, when the ATOM/USDT pair reverses direction from the downtrend line, it indicates that the bears are attempting to form a descending triangle pattern. A drop below the moving averages will open the doors for a possible retest of $10.20.
ATOM/USDT 4 hour chart. Source: TradingView
The 20-EMA on the 4-hour chart is rising and the RSI is floating near the overbought territory, indicating that the bulls are in control. There is a small hurdle at $12.13 but it is likely to be breached. ATOM price may then rise to test the downtrend line.
If the price turns down from $12.13 instead, the bears will make another attempt to sink the pair below the 20-EMA. If they succeed, it suggests buyers may be losing their footing. The pair then risks a dip to the 50-SMA.
Related: “Good luck bears” – Bitcoin traders are closely watching the April close with BTC priced at $29,000
Internet computer price analysis
Internet Computer (ICP) slipped below the 50-day SMA ($5.38) on April 26, but that proved a bear trap. The price turned higher on April 27 and started a strong recovery.
ICP/USDT daily chart. Source: TradingView
The 20-day EMA ($5.74) has started to turn up and the RSI has jumped into positive territory, suggesting that bulls have a slight advantage. If the price does not lose much ground from the current level or recovers from the 20-day EMA, it will indicate that the bulls are buying the dips.
This will improve the prospects for a rally to the downtrend line where the bears will rebuild strong defenses. On the downside, a break below the 50-day SMA will tip the advantage in bears’ favor.
ICP/USDT 4 hour chart. Source: TradingView
The 4-hour chart shows that the ICP/USDT pair is in a corrective phase. Initial support is at the 20-EMA, which is close to the 38.2% Fibonacci retracement level of $6.14. If the price bounces off this support, the pair could rally to $7.23 and eventually $7.70.
Contrary to this notion, if the price continues lower and breaks below the 20-EMA, it suggests that the short-term bulls could book gains. That could pull the price to the 50-SMA, which is near the $5.72 61.8% retracement level.
Ivy price analysis
The bears repeatedly attempted to sink Hedera (HBAR) below $0.06 but the bulls held their ground. Failure to break the support attracted buyers who will attempt to push the price above the downtrend line.
HBAR/USDT daily chart. Source: TradingView
The 20-day EMA ($0.06) is flattening out and the RSI has climbed above the midpoint, suggesting that selling pressure is easing. If buyers propel the price above the resistance line, bullish momentum could increase and the HBAR/USDT pair could rally to the overhead resistance at $0.08.
Conversely, if the price turns down from the current levels or the resistance line, it suggests that the bears remain active at higher levels. That increases the possibility of a break below $0.06.
HBAR/USDT 4 hour chart. Source: TradingView
The 4-hour chart shows that the bulls have flipped the moving averages for support and started an upward move that is likely to hit the resistance line. This level is expected to act as strong resistance, but on the downside, if the pair recovers from the 20-EMA, it will indicate a switch in sentiment from selling on rallies to buying on dips.
The pair could then break above the resistance line and start its journey to $0.07 and then $0.08. If the bears want to gain the upper hand, they need to pull the HBAR price below the moving averages quickly.
This article does not contain any investment advice or recommendation. Every investment and trading move involves risk and readers should do their own research when making a decision.
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