Historical trends act as an indicator for traders to assess the possibilities for the future. April has been a bullish month for Bitcoin (BTC) with eight monthly green closes and only two instances of negative returns.
Danny Scott, the CEO of Bitcoin exchange CoinCorner, said that Bitcoin could go as high as $ 83,000 if it emulates its April average return of 51% as it has done for the past 10 years.
This could be one of the reasons that miners have started to hold their positions instead of selling at current levels. Lex Moskoviski, the CIO of Moskoviski Capital, recently highlighted that miners had accumulated 4,380 Bitcoin on April 2 and 4,494 Bitcoin on April 3.
Daily view of crypto market data. Source: Moneda360
While Bitcoin remains the undisputed leader, the positive is that some major companies have started exploring opportunities in different sectors of the cryptocurrency sector.
Shopify CEO Tobi Lutke indicated that his company was exploring ways to integrate with decentralized finance. On April 3, Lutke tweeted a question to the DeFi community asking for ideas on what role the company could play in the space. If something concrete comes out of this, it could give the entire crypto ecosystem a huge boost.
Let’s study the charts of the top 5 cryptocurrencies that can outperform the other top cryptocurrencies in the short term.
BTC / USDT
Bitcoin’s repeated failure to break above the $ 60,000 level in recent days could have attracted short-term traders’ profit booking. That resulted in a drop to the 20-day exponential moving average ($ 56,518) today.
BTC / USDT daily chart. Source: TradingView
The moderation of the slope of the moving averages and the fact that the Relative Strength Index (RSI) does not rise above the downtrend line shows that bears are aggressively defending the $ 60,000 to $ 61,825.84 resistance zone. .
If the bulls can push the price above this zone, they could trap the bears, resulting in a possible short contraction. That could fuel momentum, launching the BTC / USDT pair towards the target target at $ 69,540 and then $ 79,566.
On the other hand, if the bulls again fail to clear the hurdle at $ 60,000, then the possibility of a break below the 20-day EMA increases. The pair could then retest the 50-day simple moving average ($ 53,771). This is important support to watch out for because a break below will indicate a possible short-term trend reversal.
BTC / USDT 4-hour chart. Source: TradingView
The 4-hour chart shows the formation of a possible inverted head and shoulders pattern that will complete on a breakout and close above $ 60,000. This bullish setup has a pattern target of $ 69,540.
However, the 20-EMA has started to turn down, indicating that the bears are trying to gain the upper hand. If the price turns down from the 20-EMA, the pair could extend its decline to $ 54,700. A break below this level could open the doors for a drop to $ 50,460.02.
ETH / USDT
The limited-range stock in Ether (ETH) resolved to the upside on April 2 and the price rose to a new all-time high of $ 2,144.59. However, the bulls were unable to sustain the higher levels as the price fell back below the breakout level at $ 2,040.77.
ETH / USDT daily chart. Source: TradingView
Currently, the bulls are attempting to push the price above the overhead resistance zone of $ 2,040.77 to $ 2,144.59. If they are successful, the ETH / USDT pair could pick up momentum and start its journey at $ 2,618.14.
The rising 20-day EMA ($ 1,849) and the RSI in the positive zone indicate that the bulls have the upper hand.
However, if the price turns down from the upper zone and falls below the 20-day EMA, it will suggest that the bullish momentum has weakened. A break below the 50-day Simple Moving Average (SMA) ($ 1,751) could keep the pair in the range between $ 1,289 and $ 2,040.77.
ETH / USDT 4-hour chart. Source: TradingView
The 4-hour chart shows that the retracement in the pair has found support at the 20-EMA, which suggests that the uptrend is intact. However, bears are unlikely to give up easily. They will again try to stop the current rally at the upper resistance zone of $ 2,093.45 to $ 2,144.59.
If they are successful, the pair may fall back to the 20-EMA. A break below this support will be the first indication that supply exceeds demand.
Conversely, if the bulls can sustain the rebound and catapult the price above the resistance zone, the uptrend can resume.
BNB / USDT
Binance Coin (BNB) hit a new all-time high on April 2, but the bulls were unable to sustain the higher levels and the price fell back below $ 348.69. This suggests that the bears tried to catch the aggressive bulls.
BNB / USDT daily chart. Source: TradingView
However, the bulls did not allow the price to break below the $ 315 support. This is a positive sign as it indicates that the bulls are racking up on each minor dip and are not waiting for a deeper correction to buy.
If the bulls can push the price above the all-time high at $ 356.98, the BNB / USDT pair could start the next stage of the uptrend which can hit $ 400 and then $ 430. The ascending moving averages and RSI close from overbought territory suggest that the path of least resistance is to the upside.
Conversely, if the price turns down from the current level or overhead resistance and slides below $ 315, it will suggest that the bullish momentum is weakening.
BNB / USDT 4-hour chart. Source: TradingView
The 4-hour chart shows that the bears are aggressively defending the upper resistance zone between $ 348.69 and $ 356.98. They had even dropped the price below the 20-EMA, but were unable to break the $ 315 support.
The bulls will now make one more attempt to push the price above $ 356.98 and if successful, the pair could pick up momentum.
On the other hand, even if the price turns down from the upper resistance zone but sustains above $ 315, it will indicate strength. The bears could gain the upper hand in the short term if the price breaks down and sustains below $ 315.
DOT / USDT
Polkadot (DOT) broke above the downtrend line on April 2 and hit a new all-time high at $ 46.80 on April 3. However, the higher levels attracted profit booking as seen from the long wick on the candle for the day.
DOT / USDT daily chart. Source: TradingView
The bears were unable to take advantage of their advantage as the bulls bought at lower levels and pushed the price above $ 42.28 today.
The 20-day EMA ($ 36.57) has appeared and the RSI has risen to the overbought zone, indicating that the bulls are in control.
If the bulls can now carry the price above $ 46.80, the DOT / USDT pair could resume the uptrend and climb the target target at $ 53.50.
This positive view will be invalidated if the price turns down and breaks below the moving averages.
DOT / USDT 4-hour chart. Source: TradingView
The moving averages are rising and the RSI is in the positive zone, indicating that the short-term trend is bullish. The strong bounce from the 20-EMA indicates that the bulls are aggressively piling on the dips. This increases the possibility of a breakout above $ 46.80.
However, if the price drops from current levels and breaks below the 20-EMA, it will suggest that supply exceeds demand. Such a move could lower the price to the 50-SMA.
EOS / USDT
EOS broke the overhead resistance of $ 5.60 on April 1 and closed at $ 6.25 on April 2, its highest close since June 29, 2019. This shows that the altcoin is generating interest once again among investors.
EOS / USDT daily chart. Source: TradingView
The bears dragged the price below the $ 5.60 breakout level on April 3, but the positive sign is that the bulls have not allowed the bears to assert their dominance. They have pushed the price back above $ 5.60.
If buyers can hold the price above $ 5.60 for three days, it will suggest the start of a new uptrend. The EOS / USDT pair is likely to pick up momentum after the bulls propel the price above $ 6.50. If they can do that, the pair could rally to $ 7.64 and then $ 8.69.
The 20-day EMA ($ 4.68) has started to appear and the RSI is in positive territory, indicating that the bulls have the upper hand.
EOS / USDT 4-hour chart. Source: TradingView
The 4-hour chart shows that the bears tried to catch the bulls when they pulled the price below the 20-EMA and $ 5.40. However, the buyers did not give up and successfully defended the $ 5.20 level.
This shows that the bulls are buying on dips. The 20-EMA has started to appear and the RSI is in the positive zone, which suggests an advantage for the bulls. If they can hold the price above $ 5.60, the chance of a $ 6.48 breakout increases.
Contrary to this assumption, if the price turns down and breaks below $ 5.20, it will suggest that the breakout above $ 5.60 was a bullish trap.
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.
The entry Top 5 cryptocurrencies to watch out for this week: BTC, ETH, BNB, DOT, EOS was published first in Bitcoin, Crypto and Blockchain News.