The bullish corrections are usually bullish because they reduce floundering tension and allow stronger hands to enter the markets. However, Bitcoin (BTC) recent full-time correction of $ 64,849.27 doesn’t seem to scare beginners.
DappRadar data shows that decentralized currency volumes rose in the past week as traders may have left lucrative bitcoin positions to buy altcoins at their current lows.
Another sign of interest in altcoins is the consistently large amounts of Dogecoin (DOGE), which remains the fourth largest cryptocurrency in circulation after Bitcoin, Ether (ETH) and XRP, according to CoinMarketCap.
Daily view of cryptocurrency market data. Source: Coin360
The last bitcoin decline saw the sale of small and medium whales, which sank between $ 100,000 and $ 1 million in bitcoin on exchanges. However, this is a positive sign that large whales continued to congregate during this period.
While the long-term bullish history remains unchanged, some downsides may emerge in the near term. Generally, the correction does not end until the retailer gives up and the market is dominated by fear.
In such an ambiguous atmosphere, let’s take a look at five cryptocurrencies that could outperform the other major cryptocurrencies in the short term.
BTC / USDT
The bulls are struggling to push the price back above the $ 50,000 psychological level, but with every small advance they face strong downside resistance. This indicates that the bears are trying to maintain their advantage and continue declining until the next critical support level at $ 43.006.
Daily chart BTC / USDT. Source: TradingView
The 20-day exponential moving average ($ 55,671) is sloping and the Relative Strength Index (RSI) is close to oversold territory, indicating a bear advantage.
The BTC / USDT pair formed a candlestick pattern on April 24th and today, indicating bulls and bears hesitation. If the uncertainty resolves the downside, sales could rise, opening the door to a drop to $ 43,006.
On the other hand, if the bulls manage to push the price above $ 52,129, the pair may see a relief encounter that is likely to encounter resistance in the 20 day moving average. If the price falls from this resistance, the probability of a breakout increases to less than $ 47,459.
This negative view will be invalidated if the bulls push the price and hold it above the 50-day SMA ($ 56,870).
4 hour chart BTC / USDT. Source: TradingView
The 4-hour chart shows that the bears were sold off in relief meetings ahead of the 20-EMA. With both the moving slopes and the RSI trading in negative territory, bears have an advantage.
If the bears dip below $ 48,664.67, the pair might drop to $ 47,459. Interruption during this support may result in resumption of departure.
On the contrary, a break above the 20-EMA will be the first indication that the sell-off has dried up and that buyers have a chance to extend the rally to the 50-SMA.
ETH / USDT
Bulls defended the 20-day moving average ($ 2,235) again, indicating that the trend is still strong and that buyers are piling up on dips. Ether will now attempt to build up in its upper resistance area from $ 2,545 to $ 2,645.
ETH / USDT daily chart. Source: TradingView
A breakout into the upper region could signal the start of the next phase of the uptrend, which could continue until $ 2,745 then $ 3,000. The gradually rising moving averages and the RSI above 57 indicate that the path of least resistance is heading higher.
Contrary to this assumption, bears will once again attempt to push the ETH / USDT pair below the moving average if price falls from general resistance. If successful, the pair may start a deeper correction to $ 1542.
The 4 hour chart shows that the pair has formed a head and shoulder pattern that ends with a break and closed below the neck. Such a move could push the price towards the $ 1600 target pattern.
On the other hand, if the bulls manage to push the price above $ 2,375, the pair could test at $ 2,645 all the time. Such a move would nullify the pattern and the pair is likely to accelerate a breakout above $ 2,645.
BNB / USDT
Binance Coin (BNB) is currently consolidating in an uptrend. The bulls are buying the dips for support of $ 480, while the bulls are protecting the bullish resistance zone between $ 600 and $ 638.57. A range that follows a strong uptrend indicates that traders are not in a hurry to take profits.