Hong Kong Tech Company Meitu revealed on April 8 that he had added $ 10 million worth of Bitcoin (BTC) to his holdings which were purchased at an average price of $ 57,000 per coin. After the last purchase, Meitu’s total cryptocurrency portfolio consists of $ 49.5 million in Bitcoin and $ 50.5 million in Ether (ETH). This acquisition shows that institutional investors are confident that Bitcoin’s rally is still in its early stages.
Tom Jessop, head of the cryptocurrency division of Fidelity, believes that Bitcoin reached a tipping point and that financial companies will continue to adopt cryptocurrencies aggressively for years to come. Jessop believes that massive monetary stimulus from governments and central banks has accelerated institutional adoption and this is a trend that could extend for at least another year.
It is not just institutional investors who are rushing towards cryptocurrencies. Data shows that the number of retail investors trading cryptocurrencies has also increased. Popular trading app Robinhood reported on April 8 that cryptocurrency trading on its platform increased to 9.5 million users in the first quarter of 2021, a six-fold increase over the fourth quarter of 2020.
While the adoption of cryptocurrencies is on the rise, some financial companies are still taking an anti-crypto approach. Apparently, HSBC has blacklisted MicroStrategy shares and will not allow clients of its HSBC InvestDirect platform to purchase such shares.
Will Bitcoin and major altcoins be able to extend their uptrend and attract more buyers or will they enter a corrective phase? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
BTC / USDT
The bears were unable to take advantage of Bitcoin’s breakout below the 20-day exponential moving average ($ 57,043) on April 7. Its failure to break the support of the 50-day SMA ($ 54,572) could have attracted buying from the more aggressive bulls, resulting in the bounce on April 8.
However, today’s Doji candle suggests that the bulls are struggling to maintain momentum at higher levels.
The BTC / USDT pair formed an inverse head and shoulders pattern that will be completed with a breakout and close above $ 60,000. This bullish setup is targeting $ 69,540. If the bulls sustain momentum and clear that hurdle, the uptrend may hit the next target at $ 79.566.
Contrary to this idea, if the price turns down from the current level, the bears will once again attempt to break the critical support at the 50-day SMA. If successful, selling could intensify as short-term traders may rush to close their positions. That could take the pair to $ 50,460.02 and then to $ 43,006.77.
ETH / USDT
Ether (ETH) slump on April 7 was stopped at the 20-day EMA ($ 1,933), showing that the bulls are accumulating on the dips. The price rallied sharply on April 8 and rose above the resistance at $ 2,040.77.
The bulls will now make one more attempt to break above the all-time high of $ 2,150. If they manage to do that, the ETH / USDT pair could resume its upward trend towards the next target at $ 2,618.14.
However, the bears are likely to have other plans. They will try to bring the price below the 20-day EMA. If that happens, several bulls can be caught. That could intensify selling, causing a drop to the trend line. A break below this support will suggest a trend reversal.
Binance Coin (BNB) continues on a solid upward trend. The bulls converted the $ 348.69 level to support on April 7 and followed with a breakout to a new all-time high on April 8. This shows a strong appetite from the bulls.
The ascending moving averages and the RSI above 75 indicate that the bulls are in command. The next target on the upside is the $ 500- $ 530 zone where the bears can mount strong resistance.
In any correction, the first support to watch out for is the 20-day EMA ($ 334). A strong bounce off this support will suggest that sentiment remains bullish and traders are buying dips.
However, if the BNB / USDT pair falls below the 20-day EMA, it will suggest that the bullish momentum is weakening.
XRP / USDT
XRP made successive intraday candlestick formations on April 7 and 8. The current price action points to another intraday candlestick pattern today. The drop in daily volatility shows that the altcoin is still taking in recent gains.
The narrowing of the intraday range usually ends with a strong breakout. If the uncertainty is resolved to the upside and the bulls carry the price above $ 1.11, the XRP / USDT pair could start the next stage of the rally that could take it to $ 1.34 and then $ 1.66.
Alternatively, if the indecision is resolved to the downside, it will suggest that the supply exceeds the demand and the traders have abandoned their positions. If that happens, the pair could drop to the 20-day EMA ($ 0.72). A break below this level could cause the price to drop to $ 0.65.
ADA / USDT
Cardano (ADA) fell below the 20-day EMA ($ 1.18) on April 7, but the bulls did not allow the price to fall below the 50-day SMA ($ 1.16). This shows that the bulls are aggressively defending the moving averages.
Buyers will try to push the price above $ 1.33. If they manage to do that, the ADA / USDT pair could rally to $ 1.48. This is an important level to watch out for because the pair has pulled back from it on two previous occasions.
If the price reverts back from the $ 1.48 level, it will suggest that the range-bound action may continue for a few more days. On the other hand, if the bulls can carry the price above $ 1.48, the pair could resume the uptrend towards the next target at $ 2.
A break below the moving averages will be the first sign of weakness and that could result in a drop to the support at $ 1.02. If this level breaks down, the bears could start a deeper correction towards $ 0.80.
DOT / USDT
Polkadot (DOT) bounced from the 20-day EMA ($ 38.68) on April 7, indicating that dips are being bought. The bulls will now attempt to push the price above the overhead resistance at $ 42.28.
If they are successful, the DOT / USDT pair will retest the all-time high at $ 46.80. A breakout and close above this level could initiate the next leg of the rally which has its first target set at $ 53.50 and the next at $ 57.
The 20-day EMA gradually rising and the RSI in positive territory suggest that the bulls have the upper hand.
However, if the price falls from the current level and breaks below the moving averages, it will indicate that traders are closing their positions on rallies. That could result in a drop to $ 32.50 and then to $ 26.50.
UNI / USDT
The bulls successfully held the support at $ 27.97 on April 7, which is a positive sign as it shows accumulation on declines. Uniswap (UNI) rallied above the 20-day EMA ($ 29.65) on April 8 and buyers will now try to push the price above $ 32.50.
If they are successful, the UNI / USDT pair could move up to the upper resistance zone between $ 35.20 and $ 36.80. The bears are likely to defend this zone aggressively. If the price falls from this resistance, the pair can extend its stay in the range for a few more days.
Contrary to this assumption, if the price turns down from the current level, the bears will make one more attempt to sink the price below the $ 27.97 to $ 25.50 support zone. If they get their way, the pair could begin a deeper correction at $ 20.74.
Litecoin (LTC) successfully completed the retest of the symmetric triangle breakout level on April 7. This was followed by a bounce on April 8, but the bulls are struggling to pick up momentum.
This shows hesitation to buy at the higher levels. If the bulls fail to clear the hurdle at 246.96 in the coming days, the possibility of a break below the 20-day EMA ($ 207) increases. In such a case, the LTC / USDT pair could fall to the support line.
Contrary to this assumption, if the bulls maintain momentum and carry the price above $ 246.96, the pair could begin the next leg of the uptrend that can carry the price to $ 307.42. The 20-day EMA gradually rising and the RSI above 59 suggest a small advantage for the bulls.
LINK / USDT
Chainlink’s (LINK) sharp reversal on April 7 failed to break below the 20-day EMA ($ 30.29). This shows that the sentiment remains positive and that the bulls are buying the dips. The April 8 bounce pushed the price above the $ 32 resistance, but the bulls are struggling to take advantage of this force today.
If the price goes down and breaks below the moving averages, it will suggest that supply exceeds demand at higher levels. That could sink the price to the critical support of $ 24.
On the other hand, if the bulls defend the 20-day EMA again, the LINK / USDT pair could rise to the all-time high at $ 36.93. A breakout and close above this resistance will suggest that the bulls have absorbed the supply and that may signal the start of the next stage of the uptrend.
However, if the price turns back down from $ 36.93, the pair could extend its stay within the range for a few more days.
After spending April 7th fluctuating in a wide range, THETA formed an intraday candlestick pattern on April 8th and has followed it with another today. This shows indecision between the bulls and the bears about the next trend move. While the bears defend the overhead resistance, the bulls buy on every small drop.
The 20-day EMA ($ 11.33) rising and the RSI above 62 suggest a small advantage for the bulls. Buyers will have to clear the hurdle at $ 14 to signal the start of the next stage of the uptrend. If they manage to do that, the THETA / USDT pair could rally to $ 17.65 and then $ 22.50.
Conversely, if the bears sink the price below the 20-day EMA, it will be the first sign of a possible change in sentiment. It will suggest that the bulls are no longer buying the dips to the 20-day EMA. The next critical support to watch out for will be $ 10.35. If this level is missed, a deeper correction towards the 50-day SMA may begin.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Each investment and commercial movement involves risks, you must do your own research when making a decision.
Market data is provided by the exchange HitBTC.