Bitcoin’s recent recovery and the stellar success of altcoins indicate that bulls believe BTC will retest its all-time peak.
Goldman Sachs has announced plans to enable its wealth management clients to invest in cryptocurrencies and other digital assets, following in the footsteps of Morgan Stanley. Mary Rich, the global head of digital assets for Goldman Sachs’ private wealth management group, said in an interview with CNBC that the launch could happen in the second quarter of 2021.
The adoption of bitcoin by two of the world’s most prestigious investment banks is likely to push other banks to follow suit sooner rather than later. The influx of new capital from these legacy institutions’ clients could drive up demand and prices even higher.
Kraken CEO Jesse Powell told Bloomberg that one Bitcoin, which currently buys a Tesla Model 3, will buy a Lamborghini by the end of the year and a Bugatti by 2023 in response to a question about Bitcoin’s (BTC) potential value.
Another optimistic voice was Galaxy Digital CEO Mike Novogratz, who said in a CNBC interview that Bitcoin “is on an inevitable road to have the same market cap and then a higher market cap than gold.”
However, not everyone is a Bitcoin believer. Bitcoin was “really, very close to maybe an intermediate-term top here,” according to Boris Schlossberg, managing director of FX strategy at BK Asset Management, who told CNBC.
Let’s have a look at the charts of the top ten cryptocurrencies and see what the latest pattern is and where the direction of least resistance is.
Since breaking out of the descending channel on March 29, Bitcoin has remained above it, which is a positive sign. The bears, on the other hand, haven’t given up yet and are defending the $60,000 mark with vigour.
The price had dropped from $59,789 today, but the bulls bought the dip and did not allow the BTC/USDT pair to re-enter the channel, which is a positive sign. The bulls will try once more to break through the all-time high of $61,825.84.
If they succeed, the pair could restart its uptrend and head north toward the first goal of $69,279, followed by $79,566. The bulls seem to have the upper hand, based on the upsloping moving averages.
However, for the past few days, the relative strength index (RSI) has been exhibiting a negative divergence. If the indicator sharply descends from the downtrend line, it suggests that a new uptrend may have to wait a few days.
If the price falls below the moving averages, the bullish view would be invalidated. If the RSI rises above the downtrend line, however, it indicates that momentum has increased, increasing the chances of a rally.
Ether (ETH) has been hammering on the symmetrical triangle’s resistance axis. A close consolidation near a resistance heightens the chances of a break above it. The 20-day exponential moving average ($1,743) has turned up, and the RSI is optimistic, suggesting that the bulls have the upper hand.
The ETH/USDT pair could retest the all-time high if buyers can push the price above the triangle. If the bulls overcome this stumbling block, the pair which resume its rally toward the trend goal of $2,618.14.
The bears, on the other hand, are unlikely to give up easily. At $2,040.77, they’ll put up a strong fight. If the price drops below this overhead resistance but does not re-enter the triangle, it means bulls are buying on dips. If this occurs, the pair has a fair chance of breaking through $2,040.77.
If, on the other hand, the bulls are unable to hold the price above the triangle, traders could be squaring up their positions at higher levels. This could keep the pair in its current range for a few more days. If the price falls below the trendline, this is the first indication of weakness.
Binance Coin (BNB) bulls are attempting to drive the stock beyond $315. The long tail on the candlestick indicates the bulls are buying on any small dip, despite the price turning down from overhead resistance today.
The RSI is in positive territory, and both moving averages are sloping up, indicating that the direction of least resistance is to the upside. The BNB/USDT pair could rally to $348.69 if bulls can push the price above $315.
A break and close above the all-time high could signify the start of the uptrend’s next leg, which could carry it to $430. If the price declines from its current level and falls below the 20-day EMA ($265), this bullish view would be invalidated.
For the past few days, Cardano (ADA) has been trading above the 20-day EMA ($1.16), but bulls have been unable to drive the stock above $1.30. This indicates that there is a shortage of demand at higher levels.
The 20-day EMA has flattened out, and the RSI is just above the midpoint, implying that supply and demand are in balance. The bears are now attempting to push the price below the moving averages.
If they do so, the ADA/USDT pair can fall to the $1.03 support level. If this support is broken, it will signal the start of a deeper correction to $0.80.
The pair could rally to $1.48 if the market bounces off the 20-day EMA and the bulls drive the price above $1.30.
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Polkadot (DOT) has broken above the moving averages today after a brief pause near the 20-day EMA ($34.35). This demonstrates a high degree of demand. Bulls are now attempting to drive the market beyond the downtrend line.
The DOT/USDT pair could retest the all-time high of $42.28 if they succeed. If the momentum can break through this resistance, the pair will begin the next leg of the uptrend, which could take it to $53.50.
If the price falls below the downtrend line, however, it suggests that bears are involved at higher levels. This could keep the pair in its current range for a few more days. The bulls have a slight advantage due to flat moving averages and an RSI above 58.
From near the $0.60 overhead resistance, XRP has turned down once more. The bulls, however, have purchased the dip to the 20-day EMA ($0.51), as shown by the long tail on today’s candlestick.
The positive RSI and rising moving averages indicate that the direction of least resistance is to the upside. The bulls will almost certainly try again to drive the price beyond $0.60.
A rally to $0.65 is feasible if they succeed. This level may act as a stumbling block, but if the bulls can push the price above it, the XRP/USDT pair may gain traction. If the price falls below the moving averages, this bullish view would be invalidated.
Uniswap’s (UNI) recovery from the 50-day simple moving average ($27.26) on March 26 has failed to clear the 20-day exponential moving average ($29.12). This suggests a change in sentiment from buying on falls to selling on rallies.
If the bears manage to push the price below the $25.50 support level, the UNI/USDT pair may enter a corrective process, with the price falling to $20 and then $18.
The 20-day EMA is slightly downsloping, and the RSI is just below the midpoint, suggesting a slight bearish advantage.
If the price rises above the 20-day EMA and turns up from its current stage, this bearish view would be invalidated. A step like this might hold the pair within the range for a few more days.
THETA dropped from $13.95 on March 29, suggesting that the bears are defending the $14 to $14.96 resistance zone vigorously. The bears will now try to push the altcoin down to the 20-day exponential moving average ($10.27).
Bulls usually buy dips to the 20-day EMA in an uptrend because it provides a favorable risk-to-reward ratio. As a consequence, if the THETA/USDT pair bounces back strongly from this help, it suggests that sentiment is still bullish and traders are buying on dips.
For a few more days, the pair could remain range-bound between $10.35 and $14. On the other hand, if the bears manage to drive the price below the 20-day EMA, it might signal a shift in sentiment. The pair will then drop to $8.88, which is the 50% Fibonacci retracement mark.
The relief rally in Litecoin (LTC) seems to have hit a wall at the 50-day SMA ($196), as the bulls have been unable to keep the price above it. The bears will now try to pull the price down to the triangle’s trendline.
If the price bounces off the trendline, it means the bulls are still buying on dips. For a few more days, the LTC/USDT pair could be stuck within the triangle.
The flat moving averages and RSI near the midpoint indicate that supply and demand are in equilibrium.
After the price breaks above or below the triangle, this neutral view would be invalidated. This could indicate the start of a trending movement.
On March 29 and 30, Chainlink (LINK) broke above the 20-day EMA ($27.79), but was unable to climb above the 50-day SMA ($29). Despite the fact that the price fell today, the bulls took advantage of the drop, as shown by the long tail on the candlestick.
The bulls through now attempt to drive the price above the 50-day SMA once more. If they succeed, the LINK/USDT pair could grow to $32 in value. A break above this resistance would give the bulls the upper hand.
On the other hand, if the price falls below the 50-day SMA once more, a drop to $24 is possible. This is a crucial support to watch because if it breaks, the pair will form a descending triangle pattern, which may indicate a trend reversal. A change like this could pave the way for a drop to $14.
The author’s views and opinions are entirely his or her own and do not necessarily reflect those of Cointelegraph. Any investment and trading decision entails some degree of risk. When making a decision, you should do your own research.