Crypto price analysis

Price analysis 4/19: BTC, ETH, BNB, XRP, DOGE, ADA, DOT, LTC, BCH, UNI
After the initial oversold bounce, traders are struggling to sustain the momentum of the relief rally in Bitcoin and most altcoins, a signal that selling could intensify at higher levels.
During strong uptrends, the best practice is to buy on significant dips as profits are produced when the price quickly rebounds from oversold conditions. This appears to be what happened on April 18 as traders jumped at the opportunity to buy Bitcoin and altcoins at lower levels.

However, no market can keep going up in a straight line and periodic corrections and phases of consolidation are needed as they drive away the speculators who only jump in and use high leverage when they sense an opportunity to get rich quickly.

The sharp rise in Dogecoin’s (DOGE) price and the huge addition of subscribers in Dogecoin and other cryptocurrency subreddits last week indicate that there is an influx of novice traders who are dreaming of making easy riches.This class of trader is usually the last to enter an uptrend and the irrational buying typically results in a spike, which culminates in a short-term top as smart money view this as a signal to book profits. The inexperienced trader continues to buy on the way down and as the losses mount, they eventually panic sell the entire position right at the bottom.

On the other hand, the experienced long-term investors wait patiently until the excesses are cleared from the system and then start buying. Traders should be on the lookout for the right opportunity to enter rather than get sucked into trades due to FOMO.

Let’s study the charts of the top-10 cryptocurrencies to identify the critical support and resistance levels, which may signal the start of the next trending move.

BTC/USDT
Bitcoin’s (BTC) strong recovery from $50,447.50 on April 18 shows traders are aggressively buying the dips. However, the failure of the bulls to sustain the price above the 50-day simple moving average ($56,486) today suggests that there is hesitation to buy at higher levels.

The 20-day exponential moving average ($58,775) is turning down and the relative strength index (RSI) is in the negative territory, indicating the bears are trying to make a comeback. The longer the price trades below the moving averages, the greater the possibility of a retest of $50,460.

If the price rebounds off the $50,460 support, the BTC/USDT pair could remain range-bound for a few days. On the other hand, if the bears sink the price below $50,460, the selling could intensify as the bulls who purchased the dip on April 18 may be forced to cover their positions. The pair could then drop to $43,006.77.

Conversely, the first sign of strength will be a break above the 20-day EMA. Such a move will enhance the prospects for a retest of the all-time high at $64,849.27.

ETH/USDT
Ether (ETH) plunged close to the 50-day SMA ($1,899) on April 18 but the bulls purchased the dip aggressively, resulting in a recovery that pushed the price back above the 20-day EMA ($2,154).

However, the bulls are struggling to build upon the recovery today as the bears are again trying to sink the price below the 20-day EMA. If they manage to do that, the ETH/USDT pair could slide to $2,040.77 and then to the 50-day SMA. A break below the 50-day SMA could intensify selling that could result in a fall to $1,542.

Contrary to this assumption, if the pair rebounds off the current levels, it will suggest strong buying on dips. The bulls will then try to push the price to the all-time high at $2,545.84. A break above this resistance could start the next leg of the up-move.

BNB/USDT
In strong uptrends, the bulls generally buy the dips to the 20-day EMA ($454) and that is what happened on April 18. Binance Coin (BNB) bounced off the 20-day EMA and the bulls attempted to build on the recovery today.