Just Bitcoin or Diversify? 5 cryptocurrencies to watch in the next few days
Risky assets extend the rise marginally in April. The S&P 500 rose around 1.5% in April, while Bitcoin (BTC) is on track to end the month up more than 4%. Can the rally continue in May, or is it time for a pullback?
The recovery could face headwinds if the banking problems in the US escalate further. JPMorgan Asset Management’s chief investment officer Bob Michele said in an interview with Bloomberg that the turmoil at First Republic Bank is unlikely to be limited to just the bank, and could cause a domino effect.
If that happens, the US stock markets may witness a correction. However, it is difficult to predict how Bitcoin will react to such a crisis, because in recent days the BTC price has risen while older banking problems deepened. However, 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 over the next few days.
Bitcoin price analysis
After two days of low volatility trading in Bitcoin, the bulls look to assert their supremacy on April 30.
The 20-day exponential moving average ($28,783) has started to turn up gradually and the relative strength index (RSI) is in the positive zone, indicating that the path of least resistance is going up.
If bulls kick Bitcoin’s price above $30,000, the BTC/USDT pair could climb to the overhead resistance zone of $31,000 to $32,400. Buyers may face formidable resistance in this zone, but if it is crossed, the pair could rise towards $40,000.
The 50-day simple moving average ($28,026) is the key support to watch. If the BTC price collapses below this level, the bears will sense an opportunity and try to lower the pair to $25,250.
The bears tried to move the pair below the 20-EMA, but the bulls held their ground. This may have attracted further buying and the bulls will next attempt to drive the price above $30,000. If they succeed, Bitcoin could rise to $30,500, or even $31,000.
Conversely, if the price goes down and breaks below the 20-EMA, it would indicate that bears are selling near overhead resistance levels. The pair can then slide to the 50-SMA.
The bulls will try to protect this level, but if bears overpower them, the next stop will likely be $27,000. Buyers will likely defend the zone between $27,000 and $25,250 with all their might.
Solana price analysis
The bulls did not allow Solana (SOL) to break back below the downtrend line during the last leg of the correction, indicating demand at lower levels.
Buyers will next attempt to drive the price to the overhead resistance at $27.12. This remains the key resistance to watch for in the near term because if bulls throw the price above it, the SOL/USDT pair could accelerate towards $39.
This bullish view may be invalidated in the short term if the price goes down and breaks below the moving averages. The pair could then plunge to the crucial support at $18.70. If the price pulls back from this level, it would signal that the pair could fluctuate within the large range between $18.70 and $27.12 for some time.
The moving averages on the 4-hour chart have started to rally and the RSI is in the positive territory, indicating that buyers are in control. The bears are trying to stop the recovery at $24, but if bulls overcome this barrier, the pair could gain momentum and rise towards $25.50.
If the bears want to prevent the rally, they need to quickly pull the price back below the 20-EMA. The 50-SMA will be the support level to watch here if the price starts to slide.
Cosmos price analysis
The long tail on Cosmos’ (ATOM) April 26 candlestick shows that the bulls are fiercely defending support at $10.20.
Buyers have pushed the price above the moving averages and will try to reach the downtrend line. This is an important level to keep an eye on because a break and close above it would open the doors for a potential rally to $13.50 and then to $15.50.
On the other hand, if the ATOM/USDT pair reverses direction from the downtrend line, it would suggest that bears are trying to form a descending triangle pattern. A decline below the moving averages would open the door for a possible retest of $10.20.
The 20-EMA on the 4-hour chart has turned up and the RSI is near the overbought zone, indicating that bulls are in control. There is a small hurdle at $12.13, but it is likely to be crossed. The ATOM price may then rise to test the downtrend line.
Instead, if the price goes down from $12.13, the bears will again try to lower the pair below the 20-EMA. If they succeed, it will indicate that the buyers may lose their grip. The pair then risks sliding to the 50-SMA.
Related: “Good Luck Bears” — Bitcoin Traders Watch Closely As April Closes With BTC Price At $29K
Internet Computer price analysis
Internet Computer (ICP) dipped below the 50-day SMA ($5.38) on April 26, but that turned out to be a bear trap. The rate turned around on 27 April and started a strong recovery.
The 20-day EMA ($5.74) has started to rally and the RSI has jumped into positive territory, indicating that bulls have a slight advantage. If the price does not give up much ground from the current level or rebounds from the 20-day EMA, it will indicate that the bulls are buying the dips.
That will raise the prospect of a rally to the downtrend line where the bears will once again mount a strong defense. On the downside, a break below the 50-day SMA would tip the advantage in favor of the bears.
The 4-hour chart shows that the ICP/USDT pair is in a corrective phase. The first support is at the 20-EMA, which is near the 38.2% Fibonacci retracement level at $6.14. If the price bounces off this support, the pair could rise to $7.23 and eventually to $7.70.
Contrary to this assumption, if the price continues lower and breaks below the 20-EMA, it will suggest that the short-term bulls may book profits. It could pull the price to the 50-SMA, which is near the 61.8% retracement level at $5.72.
Hedera price analysis
The bears repeatedly tried to push Hedera (HBAR) below $0.06, but the bulls held their ground. The failure to break the support attracted buyers who will try to push the price above the downtrend line.
The 20-day EMA ($0.06) is flattening and the RSI has climbed above its midpoint, indicating that selling pressure is easing. If buyers push the price above the resistance line, the bullish momentum could pick up and the HBAR/USDT pair could rise to the $0.08 overhead resistance.
Conversely, if the price goes down from the current level or the resistance line, it will suggest that the bears remain active at higher levels. That increases the possibility of a break below $0.06.
The 4-hour chart shows that the bulls turned the moving averages into support and have launched an up move that is likely to reach the resistance line. This level is expected to act as a strong resistance, but on the downside, if the pair pulls back from the 20-EMA, it will suggest a change in sentiment from selling on the rally to buying on the fall.
The pair can then break above the resistance line and start its journey to $0.07 and then to $0.08. If the bears want to gain the upper hand, they need to quickly pull the HBAR price below the moving average.
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.
