Total cryptocurrency market capitalization reached the all-important $ 2 trillion milestone on April 5. As cryptocurrencies increase in value, they are likely to attract more investment from institutional investors because they can no longer afford to neglect them.
Less than three months ago, the crypto market had reached $ 1 trillion in market capitalization for the first time. This growth rate shows that investors are highly optimistic about the potential of the sector and those who delay their investment decisions may have to enter at much higher levels.
Ark Invest Founder and CEO Cathie Wood is known for identifying disruptive technologies and the company backs Bitcoin (BTC) to do just that. Yassine Elmandjra, a cryptoassets analyst at Ark, said that Bitcoin was “100 times better” than gold, so he believes that Bitcoin will multiply tenfold from the current market capitalization of $ 1 trillion to match the market capitalization of $ 10 trillion of the gold.
Daily performance of the cryptocurrency market. Source: Coin360
For Bitcoin to continue its journey north, institutions will need to continue pumping money into it. Purpose Bitcoin ETF, the first licensed Bitcoin exchange-traded fund (ETF) launched two months ago and currently owns 16,462 BTC.
If a Bitcoin ETF gets approval from regulators in the United States, it could attract large investments, dwarfing the entries in the Purpose Bitcoin ETF.
The history of cryptocurrencies has expanded beyond Bitcoin. Data from business analytics firm CB Insights showed that startups focused on blockchain and crypto technology received $ 2.6 billion in funding in the first quarter of 2021. This is well above the total funding of $ 2.3 billion received in 2020, indicating growing interest in the sector.
So the question on the minds of most investors is whether or not the crypto market will be able to maintain its current momentum. Let’s take a look at the charts of the top 10 cryptocurrencies to find out.
BTC / USDT
Bitcoin has bounced off the 20-day exponential moving average ($ 56,750) today, suggesting that sentiment remains positive and bulls are buying on every minor drop.
BTC / USDT daily chart. Source: TradingView
Buyers will now try to push the price above the $ 60,000 overhead resistance zone to $ 61,825.84. If they are successful, it could open the doors for a rally to $ 69,540 and then $ 79,566.
However, bears are unlikely to give up easily. Once again they will try to stop the rally in the resistance zone. If that happens, the chance of a breakout below the 20-day EMA increases.
That could result in a drop from the critical support at the 50-day simple moving average ($ 53,978). If the bears sink the price below the 50-day SMA, the pair could fall to the next support at $ 50,460.02.
ETH / USDT
Ether (ETH) hit a new all-time high at $ 2,144.59 on April 2. However, the bulls were unable to take advantage of this move as the bears aggressively sold and pushed the price below the breakout level at $ 2,040.77 on April 3.
ETH / USDT daily chart. Source: TradingView
Since then, both the bulls and bears have been fighting near $ 2,040.77. While the bulls try to turn this level into support, the bears try to bring the price below it and catch the bulls.
The rise of the 20-day EMA ($ 1,872) and the Relative Strength Index (RSI) above 65 suggest that the bulls have the upper hand. If the buyers manage to push the price above $ 2,144.59, the ETH / USDT pair could start the next stage of the uptrend which can hit $ 2,618.14.
Contrary to this assumption, if the bears lower the price below $ 1,977, the pair could fall to the 20-day EMA. A break below this level would suggest that the bullish momentum has weakened and could result in a decline from the trend line.
BNB / USDT
Binance Coin (BNB) cleared the overhead resistance zone of $ 348.69 to $ 356.98 today and hit a new all-time high. Every time an asset class hits a new all-time high, it is a sign of strength because it shows that traders are buying at higher levels as they expect the rally to spread further.
BNB / USDT daily chart. Source: TradingView
Both moving averages are sloping up and the RSI has risen to the overbought territory, indicating that the path of least resistance is to the upside. The BNB / USDT pair could now hit its target target at $ 400 and then $ 430.
This positive view will be invalidated if the price reverses direction and breaks below the 20-day EMA ($ 297). Such a move would suggest that traders are aggressively booking profits at higher levels and supply is exceeding demand.
That could bring the price down to the 50-day SMA ($ 258) and a crack below this support may extend the slide to $ 220.
DOT / USDT
The bears tried to catch the bulls on April 3, as seen from the long wick on the day’s candle. However, the bulls were not ready to give up their lead and again pushed Polkadot (DOT) above $ 42.28 on April 4.
DOT / USDT daily chart. Source: TradingView
There is a tough fight between the bulls and the bears near the $ 42.28 level. Buyers are trying to shift this level to support and launch the next stage of the uptrend, which could hit $ 53.50.
The rising 20-day EMA ($ 37.30) and the RSI near the overbought territory suggest that the path of least resistance is to the upside.
This bullish view will be invalidated if the bears can pull the price below $ 40. If that happens, the ADA / USDT pair could fall to the moving averages and a break below the 50-day SMA ($ 35.34). it could initiate a deeper correction to $ 26.50.
ADA / USDT
Cardano (ADA) has been trading near the 20-day EMA ($ 1.17) for the past few days. Attempts by the bulls to initiate an up move on April 2-3 found no buyers at higher levels, as seen in the long wick of the candles.
ADA / USDT daily chart. Source: TradingView
Typically, each phase of low volatility is followed by a sharp rise in volatility, but it is difficult to predict the direction of the breakout. Therefore, it is better to wait for the breakout to occur before starting any trade.
If the bulls can push and hold the price above $ 1.30, the ADA / USDT pair can challenge the strong resistance at $ 1.48. This will be the third attempt to remove the overhead resistance, so the chance of a breakout above it is high. The next goal is $ 2.
On the other hand, if the indecision resolves to the downside, the bears will attempt to sink the price below $ 1.03 and begin a deeper correction to $ 0.80 and then $ 0.70.
XRP / USDT
XRP broke above stiff resistance above $ 0.65 today, completing a reverse head and shoulders pattern. The altcoin picked up momentum and cleared the minor resistance at $ 0.75 and $ 0.78.
XRP / USDT daily chart. Source: TradingView
The strong pace of the rally suggests that several bears may have been caught off guard, resulting in a massive contraction. This opens up the possibility of a rally towards the pattern’s target at $ 1.11.
The rise of the 20-day EMA ($ 0.57) and the RSI above 80 suggest that the bulls are in command again.
However, the XRP / USDT pair may not hit the target target on a straight leg as short-term traders may post gains after today’s strong rally. That can drive the price to the $ 0.75 to $ 0.65 support zone.
The strength of the rebound in this support zone will give a better idea of the next stage of the rally.
UNI / USDT
Uniswap (UNI) rose above the 20-day EMA ($ 29.52) on April 2, but the bears did not allow the price to escape. They sold at higher levels and lowered the price to the 20-day EMA on April 3.
UNI / USDT daily chart. Source: TradingView
The positive sign is that the bulls have successfully held the 20-day EMA for the past three days. If the bulls can carry the price above $ 32.50, the UNI / USDT pair could rally to the $ 35.20 to $ 36.80 resistance zone.
The 20-day flat EMA and the RSI below 56 suggest a lack of strong momentum in favor of the bulls. This could keep the pair in range for a few more days. The next trend move could start with a break above $ 36.80 or a break below $ 25.52.
LTC / USDT
Litecoin (LTC) had broken out of the resistance line of the symmetrical triangle on April 3, but the bulls were unable to sustain the higher levels. The altcoin quickly reversed direction and fell back into the triangle.
LTC / USDT daily chart. Source: TradingView
However, the positive sign is that the buyers did not allow the price to break below the moving averages. This shows that the bulls are building on dips. They will try again to push and hold the price above the triangle.
If they are successful, the LTC / USDT pair could rally to $ 230 and then $ 246.96. Above this level, the pair could climb to the target of the pattern at $ 307.42.
On the contrary, if the price goes back down from the resistance line, then the possibility of a break below the moving averages increases. If that happens, the pair could fall to the triangle support line.
LINK / USDT
Chainlink (LINK) broke above the $ 32 resistance on April 2, but the bulls were unable to take advantage of this breakout and the bears moved the price back into the range on April 3. This suggests that the bears are aggressively defending the overhead resistance at $ 32.
LINK / USDT daily chart. Source: TradingView
However, the strong bounce from the 20-day EMA ($ 29) on April 4 shows that the bulls are buying the dips. The bulls will now attempt to push the price above the $ 32 overhead resistance zone to $ 33.17.
If they can achieve that, the LINK / USDT pair can retest the all-time high at $ 36.93. If this level is also conquered, the rally can extend to $ 40.
Conversely, if the price turns back down from the upper resistance zone and plummets below the moving averages, it will suggest that the range-bound action may continue for a few more days.
THETA / USDT
THETA has been stuck within the $ 10.35 to $ 14 range for the past few days. The bears are trying to sink the price to the support of the range, but the bulls have not allowed the altcoin to drop below $ 11.20.
THETA / USDT daily chart. Source: TradingView
The 20-day EMA ($ 10.81) is gradually flattening out and the RSI has dipped below 61, pointing to possible in-range action in the coming days.
Contrary to this assumption, if the bulls can carry the price above $ 12.58, the THETA / USDT pair could rally to $ 14. A breakout of this resistance will be the first sign that the bulls have the upper hand.
However, if the pair turns down from the current level and falls below $ 11.20, a drop to $ 10.35 is possible. A break below this support could intensify selling.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trade movement involves risk. You should do your own research when making a decision.
Market data is provided by the HitBTC exchange.