The price of Bitcoin (BTC) closed the month down 1.98% which, according to Bybit data, was its first negative close in April since 2015.
In the same month, the price of Ether (ETH) soared more than 44% to hit a new all-time high near $ 3,000. This wide divergence between the top two cryptocurrencies shows that the markets have matured and Bitcoin’s underperformance is not affecting altcoins as much as it has in the past.
Ether’s uptrend has attracted heavy buying from traders. Bybit data suggests that Ether futures open interest rose to $ 8.5 billion on April 29, up 52% from the previous month. This rise has been supported by professional traders who appear to have taken a more optimistic view on Ether than retail investors, as highlighted by Cointelegraph contributor Marcel Pechman.
Daily view of crypto market data. Source: Coin360
The strong performance of the cryptocurrency sector continues to attract a wide range of investors. According to the Financial Times, venture capital firm Andreessen Horowitz plans to take advantage of this growing demand by raising between $ 800 million and $ 1 billion for another fund. The flow of money in various crypto projects shows that investors are optimistic in the long term.
T. Rowe Price CEO William Stromberg said in an interview with the Baltimore Business Journal that the crypto space is still in its infancy and that it could “take years to really develop.”
With Ether leading the charge for altcoin, let’s take a look at the top 5 cryptocurrencies that may remain bullish in the near term.
BTC / USDT
Bitcoin spiked above its moving averages on April 30, but the bulls have been unable to take advantage of this strength. The May 1 Doji candlestick pattern and the dip below the 50-day simple moving average ($ 56,833) today suggest that the bears are selling higher and have not given up.
BTC / USDT daily chart. Source: TradingView
If sellers drop the price below the 20-day exponential moving average ($ 55,723), the BTC / USDT pair could drop to $ 52,323.21 and then $ 50,460. The flat moving averages and the Relative Strength Index (RSI) near the midpoint suggest a balance between supply and demand. This could keep the pair in range for a few more days.
This view will be invalidated if the pair bounces off the 20-day EMA and rises above $ 58,469.09. Such a move will suggest that the bulls are buying on every minor drop. The pair could then rally to $ 61,825.85, where the bulls are likely to face stiff resistance again from the bears.
Although it is too early to confirm, the pair appear to be making the right shoulder of a possible head and shoulders formation. This configuration will be completed in a break below the neckline. Until then, traders can be vigilant, but should not be too quick to anticipate a breakdown.
BTC / USDT 4-hour chart. Source: TradingView
The 4-hour chart shows that the bulls pushed the price above the $ 57,500 resistance but were unable to sustain it. The bears lowered the price below the level and are trying to break the 20-EMA support. If that happens, the pair may fall to the 50-SMA.
A strong bounce from this support could encourage the bulls to make one more attempt to clear the hurdle at $ 57,500. If they are successful, the pair could start their journey at $ 61,825.84. Conversely, if the bears drop the price below the 50-SMA, the possibility of a drop to $ 50,460 increases.
SOL / USDT
Solana (SOL) broke above the $ 48.64 resistance on May 1 and hit a new all-time high at $ 49.99 today. However, the psychological level of $ 50 is acting as a resistance and the bears have pushed the price down below $ 48.64 today.
SOL / USDT daily chart. Source: TradingView
If the bears hold the price below $ 48.64 for two days, the SOL / USDT pair could fall to the support at $ 40.51. A strong bounce from this support will suggest that the bulls are building on dips. The bulls will make one more attempt to clear the $ 50 resistance.
If they are successful, the pair can begin the next stage of the uptrend which could hit $ 56.77 and then $ 68.05. The ascending moving averages and the RSI near the overbought territory indicate that the path of least resistance is to the upside.
This positive view will be invalidated if the price breaks below the 20-day EMA ($ 38). If that happens, the pair could correct the 50-day SMA ($ 26).
SOL / USDT 4-hour chart. Source: TradingView
The 4-hour chart shows that the bulls are trying to defend the 20-EMA. If they can push the price above the overhead resistance zone of $ 48.64 to $ 49.99, the momentum is likely to rebound. The gradual rise of the 20-EMA and the RSI in positive territory suggest that the bulls have a minor advantage.
Contrary to this assumption, if the price turns down from the overhead resistance once again, it will increase the prospects for a break below the moving averages. The bears can lower the price to $ 40.51. A strong bounce off this support could keep the pair in range for a few days.
HT / USDT
Huobi Token (HT) broke through resistance at $ 26.89 on May 1 and hit a new all-time high at $ 29.54 today. However, the bears are trying to pull the price below the breakout level and catch the aggressive bulls.
HT / USDT daily chart. Source: TradingView
If the price falls and sustains below $ 26.89 for three days, the HT / USDT pair could gradually drop to $ 22. A strong bounce from this support could keep the pair in range for a few days.
Conversely, if the bulls defend the $ 26.89 support or don’t give up much ground below $ 25, they will suggest strong buying on every minor drop. A break above $ 29.54 could resume the uptrend with the next target at $ 36.54.
The 20-day EMA ($ 20.54) has appeared and the RSI is in the overbought zone, indicating that the bulls are in control.
HT / USDT 4-hour chart. Source: TradingView
The bulls and bears are fighting for supremacy near the $ 26.89 level. Although the bears had pushed the price back down to $ 26.10, they were unable to sustain the lower levels. This suggests that the bulls are buying on dips.
The rising moving averages and the RSI near the overbought zone suggest that the bulls have the upper hand. However, the bulls find it difficult to push the price to $ 29.54. This could result in high volatility in the short term.
A break below $ 26 could bring the price down to the 20-EMA. If the price bounces off this level strongly, the bulls will make one more attempt to resume the uptrend. Alternatively, a break below the 20-EMA could signal the start of a deeper correction.
ETC / USDT
The bears are trying to stop the upward movement of Ethereum Classic (ETC) in the upper resistance zone of $ 38 to $ 41.61. However, the long tail of the candle today suggests that traders are buying at lower levels.
ETC / USDT daily chart. Source: TradingView
The rising 20-day EMA ($ 28.74) and the RSI in the overbought zone indicate an advantage for the bulls. If buyers push the price above the upper zone, the ETC / USDT pair could resume the uptrend and rise to $ 53.21.
Contrary to this assumption, if the price turns down from the upper zone, the bears will try to sink the pair to the 20-day EMA. A break below this support will indicate that the bullish momentum has weakened and the pair could drop to $ 22.20.
ETC / USDT 4-hour chart. Source: TradingView
The 20-EMA is rising and the RSI is in the overbought zone, which suggests that the bulls are in control. However, bears won’t throw in the towel easily. They will try to stop the upward movement in the aerial zone.
A break below the 20-EMA will be the first sign that bullish momentum may be weakening. That could bring the price down to 50-SMA. Such a move could keep the pair stuck in range for a few days.
AAVE / USDT
The bulls pushed AAVE above the $ 489 resistance today. However, they have been unable to sustain buying at higher levels and the bears have pushed the price back into the $ 480 to $ 280 range today. This suggests that the bears are trying to catch aggressive bulls that may have bought the breakout of the range.
AAVE / USDT daily chart. Source: TradingView
If the price falls below the 20-day EMA ($ 415), it will suggest that the bulls are not buying on the dips. That could bring the price down to the 50-day SMA ($ 383) and extend the AAVE / USDT pair’s stay in range for a few more days.
Conversely, if the pair bounces off the 20-day EMA, it will indicate accumulation at lower levels. The bulls will make one more attempt to push the price to $ 581.67. A breakout of this level could start the journey north at $ 698.
VORTECS ™ data from Cointelegraph Markets Pro shows that the uptrend in AAVE has continued since April 25, barring a couple of momentary dips to 63.
The VORTECS ™ score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements, and trading activity. Twitter
VORTECS ™ score (green) vs. AAVE price. Source: Cointelegraph Markets Pro
As seen in the chart above, the VORTECS ™ score for AAVE has been consistently in the green since April 25, when the price was at $ 351.40.
The strong VORTECS ™ score could have prevented traders from posting profits early and leaving profits on the table. AAVE is up to $ 509.83 today, posting a 45% gain in just over a week.
AAVE / USDT 4-hour chart. Source: TradingView
The 4-hour chart shows that the bulls bought the dip to the 20-EMA and are again trying to push the price above the $ 489 to $ 512 resistance zone. The ascending moving averages and the RSI above 63 suggest that the path of least resistance is to the upside.
This bullish view will weaken if the bears pull the price below the 20-EMA. That could suggest that supply exceeds demand. The pair can then fall to the 50-SMA. If this support holds, the pair can consolidate between $ 420 and $ 489 for a few days before starting the next trend move.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and business move involves risk, you should do your own research when making a decision.