Bitcoin (BTC) saw a sharp decline on April 12 and April 13 after a period of consolidation. This drop led to cryptocurrency liquidations totaling approximately $2.5 billion, primarily affecting long positions. The decline has particularly impacted short-term leveraged long positions that were relying on a continued rally before and after the Bitcoin halving event.
The fall in Bitcoin’s price has had a significant impact on altcoins, with some of the top 20 cryptocurrencies by market capitalization dropping by around 20%. Consequently, Bitcoin’s dominance in the market surged to 56.3% on April 12, reaching the highest level in three years.
Insights on daily crypto market data. Source: Coin360
Despite the unease among short-term traders due to Bitcoin’s decline, there’s a positive indication as the price has managed to stay above the critical $60,000 support level. This implies that the fall is a regular retracement within a bullish trend. While traders should remain cautious, there is no need for panic at this stage.
Key support levels must be maintained in Bitcoin to signal the start of a relief rally. Let’s analyze the top 5 cryptocurrencies showing strength in their charts and potentially leading the market towards recovery.
Bitcoin price assessment
Bitcoin has been displaying volatility within a range of $60,775 to $73,777 for several days, indicating uncertainty about the next market direction.
BTC/USDT daily chart. Source: TradingView
The BTC/USDT pair slipped below the 50-day simple moving average ($66,743) on April 13 and dropped below the $60,775 support level. However, the long lower shadow on the candlestick indicates buying interest near $60,775.
If there’s an upward correction, resistance could be encountered at the 20-day exponential moving average ($67,807). A failure to surpass this level may lead to another attempt by bears to push the pair below $60,775. On the contrary, a breakout above the 20-day EMA could pave the way for a rally towards $73,777.
BTC/USDT 4-hour chart. Source: TradingView
The downward-sloping 20-EMA and the RSI in the negative zone suggest bearish control. A rebound is likely to face selling pressure near the 20-EMA. If the price retreats from this level, bears might aim to breach the $60,775 support again, potentially targeting the 61.8% Fibonacci retracement level at $54,298.
Conversely, a move above the 20-EMA would signal a potential consolidation phase between $60,775 and $73,777. For an upward trend, bulls must break above $73,777 to set the stage for further gains towards $80,000 and eventually $84,000.
Binance Coin analysis
Binance Coin (BNB) has been trading within a wide range recently, reflecting uncertainty among market participants.
BNB/USDT daily chart. Source: TradingView
On April 13, the price tested the support level around $495 within the range but saw strong buying interest, as indicated by the long wick on the candlestick. Bulls are likely to attempt sustaining momentum towards the resistance at $635, which could face strong selling pressure.
Key support levels to monitor are $495 and $460. A pronounced defense of this support zone is expected, as a breach below it could lead to a downtrend towards $400.
BNB/USDT 4-hour chart. Source: TradingView
In the 4-hour chart, sellers pushed the price below the ascending triangle pattern’s uptrend line, invalidating the bullish setup. However, the price quickly rebounded from $508, indicating robust buying interest at lower levels. Resistance is anticipated near the uptrend line for any recovery attempt.
A sharp decline from the uptrend line would suggest a bearish transformation turning this level into resistance, potentially pushing the price towards $495. Conversely, a break above the uptrend line could set the stage for a rise towards $600 and then $635.
Analysis on Toncoin price
Toncoin (TON) has been exhibiting an upward trend within an ascending channel pattern, indicating a persistent buying interest among bulls.
TON/USDT daily chart. Source: TradingView
Despite breaching below the channel on April 12 and 13, strong buying activity near the support line is evident from the long shadows on the candlesticks. The failure to sustain lower levels may have attracted buyers seeking to push the price towards the resistance at $7.50.
Both moving averages are trending upwards, and with RSI in the positive region, the buyers appear to be in control. This positive view would be negated if the TON/USDT pair undergoes a sharp downturn, closing below the support line and potentially targeting the 50-day SMA ($4.28).
TON/USDT 4-hour chart. Source: TradingView
In the 4-hour chart, any recovery move may face selling pressure near the 20-EMA and the downtrend line. A failure to hold above $5.71 could drive the pair lower towards $5.
Conversely, if bulls manage to push the price above the downtrend line, an indication that…
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