Corrections during a bull phase are usually a bullish sign as they reduce the frothy excitement and allow stronger hands to enter the markets. Bitcoin’s recent correction from its all-time high of $ 64,849.27 doesn’t seem to have scared novice beginners, however.
Data from DappRadar shows that decentralized exchange volume has increased over the past week as traders may have left profitable Bitcoin positions to buy altcoins at their current lows.
Another sign of interest in altcoins is the persistently high volume in Dogecoin (DOGE), which, according to CoinMarketCap, remains the fourth largest traded cryptocurrency by volume after Bitcoin, Ether (ETH) and XRP.
Bitcoin’s recent decline saw the sale of small to medium-sized whales, placing $ 100,000 to $ 1 million worth of bitcoin on the exchanges. A positive sign, however, is that the larger whales have continued to accumulate during this period.
While the long-term bullish history remains intact, another downside could be seen in the short-term. Generally, a correction doesn’t end until retail crowd throws in the towel and a state of fear hits the markets.
In such an uncertain atmosphere, let’s take a look at the top 5 cryptocurrencies that are likely to outperform the other major cryptocurrencies in the short term.
BTC / USDT
The bulls are keen to push the price back above the psychological level of $ 50,000, but face strong resistance from the bears for any small increase. This shows that the bears are trying to hold onto their advantage and extend the decline to the next critical support at $ 43,006.
The 20-day exponential moving average ($ 55,671) is falling and the relative strength index (RSI) is close to the oversold territory, suggesting the bears have the upper hand.
The BTC / USDT pair had formed an inside-day candlestick pattern on April 24th and today, indicating indecision between bulls and bears. If the downside uncertainty clears, selling could intensify and open the gates for a decline to $ 43,006.
On the other hand, if the bulls can push the price above $ 52,129, the pair could see a relief rally that is likely to face resistance at the 20-day EMA. If the price deviates from this resistance, the possibility of a break below $ 47.459 increases.
This negative view will be invalidated if the bulls push and hold the price above the 50-day simple moving average ($ 56,870).
The 4-hour graph shows that the bears sold to the 20-EMA on relief rallies. With both the moving averages falling and the RSI trading in the negative zone, the advantage lies with the bears.
If the bears cut the price below $ 48,664.67, the pair could drop to $ 47,459. A break below this support could continue the downward move.
Conversely, a break above the 20-EMA is the first sign that the sell has dried up and the bulls have a chance to extend the relief rally to the 50-SMA.
ETH / USDT
The bulls have again defended the 20-day EMA ($ 2,235), indicating that the trend remains strong and buyers are rallying on dips. Ether will now attempt to hit the overhead resistance zone of $ 2,545 to $ 2,645.
A breakout of the overhead zone could signal the start of the next segment of the uptrend, which could extend to $ 2,745 and then to $ 3,000. The gradually rising moving averages and the RSI above 57 suggest that the path of least resistance is up.
Contrary to this assumption, the bears will try again to move the ETH / USDT pair below the moving averages if the price deviates from the overhead resistance. If successful, the pair may start a deeper correction to $ 1,542.
The 4 hour chart shows that the couple has formed a head and shoulders pattern that is completed with a break and closes below the neckline. Such a move could bring the price down to the model target of $ 1,600.
On the other hand, if the bulls can push the price above $ 2,375, the pair could retest the all-time high at $ 2,645. Such a move invalidates the pattern and the pair is likely to gain momentum on a break above $ 2,645.
BNB / USDT
Binance Coin (BNB) is currently consolidating in an upward trend. The bulls buy the dips for the $ 480 support while the bears are defending the overhead resistance zone of $ 600 to $ 638.57. A range-tied action after a strong uptrend shows that traders are in no hurry to book profits.
Both moving averages are rising and the RSI above 56 suggests that the bulls have the upper hand. If buyers can push the price above $ 530, the BNB / USDT pair could begin its journey to the range resistance at $ 600. The bears are likely to regain stiff resistance between $ 600 and $ 638.57.
If the price drops in this zone, the area-based promotion can continue for a few more days. On the contrary, if the bulls push the price above $ 638.57, the pair could begin its journey to $ 720 and then to $ 832.
That positive view will be invalidated if the bears sink and hold the price below $ 480. If so, sales may intensify and the pair may plunge to the 50-day SMA ($ 368).
The 4 hour chart shows that the price is tucked into a large symmetrical triangle. Despite the price bouncing off the triangle’s support line, the bears are trying to stem the relief rally on the moving averages.
When this happens and the price deviates from current levels, the bears will see an opportunity and try to bring the price below the triangle. If successful, the pair could start a deeper correction to $ 348.
Alternatively, if the bulls push price above the moving averages, the pair could rise to the resistance line of the triangle. A breakout of the triangle can signal the resumption of the uptrend.
XMR / USDT
Monero (XMR) is on a strong uptrend and repeated attempts by the bears to initiate a correction have failed as the bulls aggressively bought the dips near the USD 288.60 support.
The bulls have successfully defended the 20-day EMA ($ 335) and both moving averages are rising, suggesting buyers have the upper hand. However, the RSI is showing the first signs of negative divergence, suggesting that momentum may be weakening.
If the price deviates from current levels and falls below the 20-day EMA, it is suggested that a possible correction to start at $ 288.60 is suggested. On the flip side, the XMR / USDT pair could rise to $ 498 if the bulls push the price above $ 424.55.
The 4-hour chart shows that volatility has increased over the past few days. The bears have repeatedly broken the 50-SMA, but the bulls have aggressively bought the dip and pushed the price back above the 20-EMA.
If the pair bounces off current levels and rises above $ 405.40, a retest of $ 424.55 is possible. A breakout of this resistance could begin the next leg of the uptrend. Conversely, a drop to $ 288.60 is likely if the bears cut the price below the moving average.
Cake / USDT
PancakeSwap (CAKE) has seen strong resistance near the $ 28 level for the past few days. The bears attempted to break the price below the 20-day EMA ($ 24) on April 23, but the bulls aggressively bought the decline, suggesting sentiment remains positive.
The momentum has increased over the past two days and the CAKE / USDT pair hit a new all-time high today. The rising moving averages and the RSI near the overbought zone suggest that the path of least resistance is up.
If the bulls keep the price above $ 30, the pair could rise to $ 34.50. This bullish view will be invalidated if the bears sink and hold the price below the 20-day EMA. Such a move will be a significant event as the price has not been below the 20-day EMA since March 24th.
VORTECS ™ data from Cointelegraph Markets Pro showed an optimistic outlook for CAKE on April 23 as the rally began.
The VORTECS ™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points such as market sentiment, trading volume, recent price movements and Twitter activity.
As can be seen in the table above, the VORTECS ™ Score for CAKE turned green on April 23rd when the price was $ 25.24.
From then on, the VORTECS ™ Score remained consistently in the green and CAKE rose to a high of USD 31.12 on April 25, an increase of 23% in about two days.
The 4 hour diagram shows the formation of an inverted head and shoulders pattern. This bullish setup has a model target of $ 34.70. The 20 EMA has started to emerge and the RSI has surged above 65, indicating that the bulls have the upper hand.
In the event of a correction, the bulls will attempt to flip the section of the pattern for support. If they do, the uptrend could resume. Conversely, a break below $ 27.50 can detract from the advantage in favor of the bears and signal a sell at higher levels
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