When the bitcoin price fell below $ 50,000, mainstream media emphasized that online sales could have come from reports that the Biden administration had proposed raising the capital gains tax to 39.6% from the current 20% for people earning more than 1%. million dollars. Dollars annually.

In other news, an apparent fraud by Thodex owner Farouk Fatih Ozer should be noted, which affected about 391,000 users of the Turkish cryptocurrency exchange. It is rumored that the owner may have fled the country with nearly $ 2 billion in cryptoassets.

Daily performance in the cryptocurrency market. Source: Coin360
US equities were also sold on April 22 as investors worried about tax hikes, but today the S&P 500 has rebounded sharply, indicating that market participants ignored the news.

After the fall, investors have the next big question: will the correction deepen or now is the best time to open new deals.

Let’s analyze the charts of the top 10 cryptocurrencies to identify critical support and resistance levels that will signal the beginning of a trend move.

BTC / USDT
The 50-day SMA ($ 56,793) turned into resistance and the bulls failed to push the price and hold it above April 19 and April 20. This could lead to short-term profits for traders, which led to the withdrawal of Bitcoin. (BTC) is below the $ 50,000 psychological mark today.

BTC / USDT daily chart. Source: TradingView
The moving averages have completed their bearish crossover and the Relative Strength Index (RSI) is approaching a sellable level, indicating a possible shift in sentiment. This is the first time the RSI has dipped below 40 since its launch in October 2020.

If the bears manage to keep the price below $ 50,460, the BTC / USDT pair could continue to fall to the next critical level of $ 43,006.77 as buyers are likely to aggressively intervene. The degree of the rebound from this level will allow a better understanding of whether the correction has been completed or not.

These negative outlooks become invalid if the price bounces out of the current level and rises above the moving average. The next phase of the trend may begin after the bulls push the price above $ 64,849.27.

ETH / USDT
On April 22, ether broke the $ 2,545.84 mark, reaching a new high of $ 2,645. However, the long wick of daylight shows that bulls can now withstand the flash. This could have cornered aggressive traders who may have been sidelined from their positions today.

ETH / USDT daily chart. Source: TradingView
The sale continues, and today the ETH / USDT rate fell to $ 2102.24. The long tail of today’s candle, however, indicates that the bulls bought strong on the dip around $ 2040.77. This indicates that sentiment remains positive and buyers are building low.

The acid test for bulls in the resistance zone will be between $ 2,500 and $ 2,645. If the price falls from this level again, the pair could consolidate between $ 2,500 and $ 2040.77 for several days.

On the other hand, a break above $ 2,645 could lead to a resumption of the trend, which could reach $ 2,745 and then up to $ 3,000. This positive view will change if the bears push the price below $ 1,900.

BNB / USDT
Binance Coin (BNB) fell from $ 600 to $ 638.56 in the April 21 resistance zone, indicating bearish activity at higher levels. Sellers pushed the price below the 20-day exponential moving average ($ 479) today, but failed to hold the lows.

The long tail in today’s candlestick indicates that the bulls continue to buy on the dip to the 20-day moving average. Buyers will now try to push the price towards $ 600 again and challenge the upper resistance area.

If they manage to push the price above $ 638.56, the BNB / USDT pair could start the next phase of the uptrend, which could reach $ 832.

However, if the price breaks out of the upper resistance zone, the pair may remain in a certain range for several days. If the price falls and continues to move below the 20-day EMA, this will be the first sign of weakness. Such a move could lead to a drop to the 50-day simple moving average ($ 357).

XRP / USDT
The failure of the bulls to bounce off the 20-day moving average ($ 1.22) on April 21 indicates a shortage of buyers at higher levels.

Source: CoinTelegraph

LEAVE A REPLY