April was a month to forget for equity and cryptocurrency investors. Bitcoin (BTC) fell 17% in April, posting its worst performance ever for the month of April. The Nasdaq Composite also fell 13.3% in April, posting its worst monthly performance since October 2008.
On a positive note for crypto investors, however, Bitcoin is still trading above its year-to-date low of $33,000. By comparison, the Nasdaq 100 has hit a new 2022 low, while the S&P 500 is very close to a new yearly low. This suggests that Bitcoin managed to avoid a selloff. This suggests demand at lower levels.
In addition to Bitcoin, Ether (ETH) was also able to stay well above its year-to-date low. According to cryptocurrency outlet Jarvis Labs, ether whales and retail investors are buying at the lower levels.
After April’s poor performance, could bitcoin stage a strong rally and take altcoins with it? To do this, let’s take a look at the top 5 cryptocurrencies that could experience very good performance very soon.
BTC/USDT
Bitcoin slipped to the rising channel support on April 30. Today’s recovery from this level suggests that the bulls are strongly defending this level.
The 20-day EMA at $39,956 is falling, giving the sellers an edge. However, the RSI is in positive territory, signaling that the negative momentum may be weakening.
If the rally continues, the bulls will attempt to drive the price above the 20-day EMA. If they pass, it will indicate to buy at support. The pair could then move the 50-day SMA to $41.954.
On the other hand, a weak rally would indicate a lack of aggressive buyers near support. If the price declines from current levels or the 20-day EMA and breaks below the channel, BTC/USDT could drop to $34,322 and then retest critical support at $32,917.
The 4-hour chart shows the price falling in a falling wedge pattern. The RSI is in positive territory, suggesting that the bearish momentum may be weakening.
If the price breaks above the wedge resistance, the pair could gain momentum and rally towards $41,000. This level could again act as a resistance. However, if the bulls can move it, the next target could be $43,000.
However, if the price declines from the 20-day EMA and breaks below the wedge, selling could increase further.
LUNA/USDT
Terra LUNA has been consolidating in an uptrend for the past few days. The price recovered from the strong support at $75 today. This signals that the bulls are aggressively defending this level.
LUNA/USDT may now rally to the 20-day EMA at $88. This level could become a resistance where the bears could stop the rise. If the price turns lower from the 20-day EMA, the possibility of a break below the $75 support increases.
In this case, the pair would complete a bearish head and shoulders pattern, signaling a possible trend reversal.
However, if the bulls can move the price above the 20-day EMA, the pair could revisit the psychological resistance at $100. They need to break this resistance to signal that the correction may be over.
The price recovered from the strong support at $75 and the bulls are now trying to push the pair above the 20-day EMA. If they are successful, it would signal that the selling pressure is decreasing. A breakout and close above the 50-day SMA could indicate that the pair could stay in a range between $100 and $75 for some time.
However, if the price declines from the current levels or the 20-day EMA, it will signal that the bears are selling any rally, no matter how small. This could lead to a retest of the strong support at $75.
NEAR/USDT
The bulls failed to move the near protocol (NEAR) above $18. Therefore, there has been a sharp drop in recent days. On April 30, the price slipped to psychological support at $10, but today’s strong rally indicates aggressive buyers.
If the buyers push the price above the 200-day SMA at $11.94, it will signal that the pullback to $10 may have been a bear trap. NEAR/USDT could then rally to the 20-day EMA at $13.86, where the bears could make another attempt to stop the rally.
Bulls need to raise this resistance to signal the end of the correction. This could lead to a rally towards $18.
However, if the price declines from the 200-day SMA, the chances of a drop below $10 increase. If that happens, the pair could drop to $9.30 and then to $8.
On the rally, the price jumped above the 20-day EMA, which is an early sign of strength. If the buyers can hold the price above the 20-day EMA, the pair could rally to the 50-day SMA. A breakout and close above this level could signal that the short-term downtrend is over.
However, if the bulls fail to hold the price above the 20-day EMA, this would indicate that the bears are selling on rallies. The bears will then make another attempt to break the pair below the strong support at $10 and resume the decline.
In this context: ApeCoin (APE) falls 40% in three days: despite the sale of land in Metaverse
VET/USDT
VeChain (VET) has consolidated in a significant range between $0.043 and $0.083 in recent days. The price has reached the bottom of the range, which has already served as strong support three times.
The rebound from $0.043 indicates that the buyers are fiercely defending this level. If the bears can sustain the momentum and push the price above the 20-day EMA at $0.055, VET/USDT could stay within the range for a few more days.
However, if the price is falling from the current levels or the 20-day EMA, it will indicate that the demand is decreasing at the higher levels. The bears will then attempt to sink the pair below that range. If successful, the pair could continue its downtrend and drop to $0.034.
The price has bounced off the strong support at $0.043 and the bulls will now try to push the pair above the 20-day EMA. If they succeed, it could signal that the bears are losing their grip. The pair could then move towards the 50-day SMA. A break and close above this level would allow a rally to $0.065.
However, if the price declines from the 20-day EMA, it will signal that the bears are selling rallies towards key resistances. The bears will then attempt to drop the pair below the strong support at $0.043 and resume the decline.
GMT/USDT
STEPN (GMT) is in an uptrend and is currently correcting. On the positive side, the bulls prevented a drop below the 20-day EMA at $3.13. This suggests that sentiment remains positive and bulls are buying on the dips.
The buyers will now attempt to push the price above the immediate resistance at $4.17. If they clear this hurdle, GMT/USDT could resume its uptrend. The pair could then rally to the psychologically important $5 level.
The 20-day EMA is sloping, signaling that the buyers have an edge. On the other hand, the RSI is in negative territory, suggesting that the bullish momentum may be weakening.
If the price declines and falls below the 20-day EMA, the selling may intensify. The pair could then drop to the 50-day SMA at $2.08.
The bears attempted to hold the price below the 50-day SMA. However, this was not successful. This indicates strong demand at the lower levels. If the bulls can raise the price above the 20-day EMA, it could signal that the selling pressure is easing. The pair could then retest its all-time high of $4.17.
However, if the price is falling from the 20-day EMA, it will signal that the bears are activating at the higher levels. The sellers will then try again to drop the pair below the 50-day EMA. If successful, the pair could drop to strong support at $3.
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