According to CoinShares, the cryptocurrency corporation reached $ 4.5 billion in the first quarter, up 11% from the fourth quarter of 2020. This shows that institutional interest is increasing, but the quarter-to-quarter growth slowed from the 240% recorded in the fourth quarter of the year. 2020.
As the bitcoin price rises, more funds are needed to maintain the level. Thus, if the institutional flow does not increase in the next few days, Bitcoin (BTC) and other digital currencies could see a major correction.
The next correction could test the decision about institutional investors, and while these investors have large pockets, some of them may have thrown themselves into cryptocurrencies only for quick speculative gains. There is always the possibility that investors would drop their positions if Bitcoin began to correct.
While this may accelerate the decline, lower levels are likely to attract investors who may have missed the bus in the past. If this assumption is correct, volatility in the entire market may remain high in the coming days.
Let’s analyze the charts of 10 cryptocurrencies to see if they are expecting a potential correction.
BTC / USDT
Bitcoin’s failure to cross the difficult upper resistance zone between $ 60K and $ 61,825.84 appears to have attracted profits from traders in the short term. This brought the price back below the 20-day exponential moving average ($ 56,863) today.
If the price remains below the 20 day moving average, the bears may feel open and likely to challenge the crucial support of the 50 day SMA ($ 54,333). If this support breaks and the bears manage to keep the price below the 50 day simple moving average, the selling could rise.
Next support on the downside is $ 50,460. If this level recedes as well, the BTC / USDT pair might fall as low as $ 43,006.77. Flat Moving Averages and Relative Strength Index (RSI) falling below 52 indicate that bulls may lose control.
Contrary to this assumption, the bulls will try to push the pair to an all-new high if the price breaks through the 50-day moving average. If successful, the pair can start on the way to the next target – $ 69,540, followed by $ 79,566.
ETH / USDT
Ether (ETH) broke a new all-time high on April 2, but failed to take off and continue rising. This showed reluctance among the bulls, and while they were able to push the price towards the new full price of $ 2,150 on April 6, the rally has since stalled.
This might upset impulsive traders who appear to have abandoned their positions today, leading to a drop to the 20-day moving average ($ 1,904). If the ETH / USDT pair bounces sharply from the 20-day EMA, this would indicate demand at lower levels.
The Bulls will then make another attempt to push the prize up above $ 2,150. If they succeed, the pair can start on the way to the next target – $ 2,618.14.
This positive outlook will be invalid if the bears drop and keep the price below the 20 day EMA. Such a move will signal a potential change in sentiment and may pull the price back to the trend line.
BNB / USDT
Binance coin (BNB) is in a strong bullish trend. The bears were trying to bring the price back below the flashing level of $ 348.69 today, but the long tail on the candle shows that the bulls were aggressively buying the lower.
The higher moving averages and the RSI indicator near the overbought zone indicate that the bulls are doing well in the market. If the buyers manage to turn the $ 348.69 into support, the BNB / USDT pair can start the next trend stage, which could push it to $ 500 then $ 530.
On the other hand, if the price drops below $ 348.69, this means that higher levels are attracting profits from traders. The bullish momentum may weaken if the bears push the price below the 20-day moving average ($ 314).
XRP / USDT
The $ 0.65 XRP explosion on April 5 completed the head and shoulders reversal pattern, reaching $ 1.11. Altcoin hit this target on April 6 when it peaked at $ 1.11.
It appears that traders who follow the technical analysis have posted gains close to the target, triggering a sharp pullback today.
The bulls are trying to stop the correction near the 50% Fibonacci retracement level at $ 0.84 which can be seen from the long tail of the candle. If the buyers are able to maintain profitability this will provide savings at lower levels and perseverance.