Top 5 cryptocurrencies to watch this week: BTC, ETH, BNB, DOT, EOS
Historical trends serve as an indicator for traders to assess the possibilities for the future. April was the bullish month for Bitcoin (BTC), with an eight-month close in green and only two examples of negative returns.
Danny Scott, CEO of Bitcoin exchange CoinCorner, said that Bitcoin could rise to $83,000 if it mimics its average return of 51% in April, as it has done over the past 10 years.
This may be one of the reasons why miners have started maintaining their positions instead of selling at current levels. Lex Moskoviski, CIO of Moskoviski Capital, recently emphasized that miners accumulated 4,380 Bitcoins on April 2 and 4,494 Bitcoins on April 3.
While Bitcoin remains the undisputed leader, one positive thing is that some mainstream companies have begun to explore opportunities in different sectors of the crypto sector.
Shopify CEO Tobi Lutke stated that his company is exploring ways to integrate with decentralized finance. On April 3, Lutke tweeted to the DeFi community asking for ideas about the role the company could play in the area. If something concrete comes from this, it could provide a huge boost to the entire crypto ecosystem.
Let’s take a look at the charts of the top 5 cryptocurrencies that may outperform other major cryptocurrencies in the short term.
BTC / USDT
Bitcoin’s failure to climb above the $60,000 level repeatedly over the past few days could have attracted profit bookings from short-term traders. This resulted in a drop to the 20-day exponential moving average ($56,518) today.
The moderation of the slope of the moving averages and the failure of the relative strength index (RSI) to rise above the downtrend line indicate that the bears are aggressively defending the resistance zone of $60,000 to $61,825.84.
If the bulls can push the price above this zone, it could trap the bears, causing a possible short press. This can boost the momentum by launching the BTC/USDT pair towards the target target at $69,540 and then at $79,566.
On the other hand, if the bulls fail to break through the $60,000 hurdle again, the probability of a break below the 20-day EMA increases. The pair may then retest the 50-day simple moving average ($53,771). This is an important support to watch out for because a break below it will indicate a possible change in the short-term trend.
The 4-hour chart shows the formation of a possible reverse head and shoulder pattern that will complete in a breakout and close above $60,000. This bullish setup has a pattern target of $69,540.
However, the 20-EMA began to fall, showing that the bears were trying to gain the upper hand. If the price breaks below the 20-EMA, the pair could extend its decline to $54,700. A break below this level could open the doors for a decline to $50,460.02
ETH / USDT
The range-bound action on Ethereum (ETH) was resolved to the upside on April 2, with the price rising to an all-time high of $2,144.59. However, the bulls were unable to sustain the high levels as the price again fell below the breakout level of $2,040.77.
The bulls are currently trying to push the price above the general resistance zone of $2,040.77 to $2,144.59. If they succeed, the ETH/USDT pair can gain momentum and begin its journey towards $2,618.14.
The rising 20-day EMA ($1,849) and the RSI in the positive zone suggest that the bulls have the upper hand.
However, if the price falls from the overhead zone and breaks below the 20-day EMA, it will indicate that bullish momentum is weakening. A break below the 50-day SMA ($1,751) could limit the pair between $1,289 and $2,040.77.
The 4-hour chart shows that the pullback of the pair has found support at the 20-EMA, which indicates that the uptrend is solid. However, bears are unlikely to give up easily. They will try to stop the current rally again in the general resistance zone of $2,093.45 to $2,144.59.
If successful, the pair could fall back to 20-EMA. A break below this support will be the first indication that supply is exceeding demand.
On the contrary, if the bulls can sustain the recovery and catapult the price above the resistance zone, the uptrend may continue.
BNB / USDT
Binance Coin (BNB) hit an all-time high on April 2, but the bulls were unable to sustain higher levels and the price fell below $348.69. This suggests that the bears are trying to trap aggressive bulls.
However, the bulls did not allow the price to fall below the $315 support. This is a positive sign because it indicates that the bulls are accumulating with every small decline and are not waiting for a deeper correction to buy.
If the bulls can push the price above the all-time high of $356.98, the BNB/USDT pair can reach the next leg of the uptrend at $400 and then $430. The rising moving averages and the RSI near the overbought zone indicate that the path of least resistance is to the upside.
Conversely, if the price breaks below the current level or general resistance and breaks below $315, it will indicate that bullish momentum is weakening.
The 4-hour chart shows that the bears are aggressively defending the general resistance zone between $348.69 and $356.98. They had even pulled the price below the 20-EMA but were unable to break the $315 support.
The bulls will now make one more attempt to push the price above $356.98 and if they succeed, the pair could gain momentum.
On the other hand, even if the price falls from the general resistance zone but stays above $315, it will show strength. If the price falls and stays below $315, the bears can gain the upper hand in the short term.
DOT / USDT
Polkadot (DOT) broke above the downtrend line on April 2 and reached an all-time high of $46.80 on April 3. However, as seen from the long wick on the candlestick of the day, the higher levels have booked snow.
The bears could not take advantage of themselves as the bulls bought at lower levels and pushed the price above $42.28 today.
The 20-day EMA ($36.57) has emerged and the RSI has moved into the overbought zone, indicating that the bulls are in control.
If the bulls can push the price above $46.80, the DOT/USDT pair can continue its uptrend and rally to the target target at $53.50.
This positive view will become invalid if the price falls and falls below the moving averages.
Moving averages are rising and the RSI is in positive territory, which indicates that the short-term trend is on the rise. The strong recovery at the 20-EMA suggests that the bulls are aggressively accumulating in declines. This increases the likelihood of a break above $46.80.
However, if the price breaks below the current levels and falls below the 20-EMA, it will indicate that the supply has exceeded the demand. Such a move can push the price to 50-SMA. EOS / USDT
EOS broke above the general resistance of $5.60 on April 1 and closed at $6.25 on April 2, its highest close since June 29, 2019. This shows that the altcoin is once again arousing interest among investors.
The bears pulled the price back below the breakout level of $5.60 on April 3, but the positive sign is that the bulls did not allow the bears to assert their dominance. They pushed the price above $5.60 again.
If buyers can keep the price above $5.60 for three days, they will suggest the start of a new uptrend. The EOS/USDT pair may gain momentum after the bulls push the price above $6.50. If they can do so, the pair could rally to $7.64 and then to $8.69.
The 20-day EMA ($4.68) has started to rise and the RSI is in positive territory, which indicates that the bulls have the upper hand.