Price analysis 4/21: BTC, ETH, BNB, XRP, ADA, DOGE, MATIC, SOL, DOT, LTC
Bitcoin (BTC) and most major cryptocurrencies have pulled back from their recent local highs, signaling profit booking by traders. Is the current pullback a buying opportunity or has the trend turned lower? This is likely to be the question in every trader’s mind.
Bollinger Bands creator John Bollinger said in a recent tweet that Bitcoin had turned down from the upper Bollinger Band and reached the middle bank, near its breakout level. He said it was a “logical place” and advised traders to “pay attention.”
The correction could worry short-term crypto traders but for the long-term investors, who believe that a bottom is in, this could prove to be an opportunity to build their portfolio with cryptocurrencies of their choice. It is generally a good strategy to avoid buying on the way down and wait for the price to stop falling before resuming purchases.
What are the levels that may act as strong support? Let’s study the charts of the top-10 cryptocurrencies to find out.
Bitcoin fell and closed below the 20-day exponential moving average ($28,869) on April 19. This was the first close below the 20-day EMA since March 13, indicating weakness.
Buyers tried to stage a recovery on April 20 but they could not overcome the barrier at the 20-day EMA. This suggests that the bears are trying to flip the level into resistance. The BTC/USDT pair may next slip to $26,500 and thereafter to the neckline of the inverse head and shoulders (H&S) pattern at $25,250.
If the price rebounds off $25,250, it will indicate that the neckline is acting as a higher floor. The bulls will then try to propel the price back above the 20-day EMA. If they manage to do that, the pair may rise to $32,400.
The bulls tried to maintain the price above the 20-day EMA
Read more on cointelegraph.com
