Bitcoin (BTC) price ended the month at 1.98%, which was the first negative close in April since 2015, according to Bybit data.
In the same month, the Ether (ETH) price rose more than 44%, hitting a new all-time high of nearly $ 3,000. This large divergence between the two main cryptocurrencies shows that the markets have matured and that Bitcoin’s underperformance is not affecting altcoins as much as it has in the past.
Ether’s bullish trend has led to strong buys from traders. Data from Bybit suggests that open interest on Ether futures rose to $ 8.5 billion on April 29, up 52% from the previous month. This rise was supported by professional traders who seem to have a more optimistic view of Ether than retail investors, as highlighted by Cointelegraph contributor Marcel Pechman.
The strong performance of the crypto sector continues to attract a wide range of investors. According to the Financial Times, VC firm Andreessen Horowitz plans to capitalize on this growing demand by raising between $ 800 million and $ 1 billion for another fund. The flow of money to various crypto projects shows that investors are optimistic for the long term.
William Stromberg, CEO of T. Rowe Price, said in an interview with the Baltimore Business Journal that the crypto space is still in its infancy and it may be “years before it truly unfolds.”
With Ether leading the way, let’s take a look at the top 5 cryptocurrencies that can remain bullish in the short term.
BTC / USDT
Bitcoin rose above its moving averages on April 30, but the bulls have not been able to build on this strength. The Doji candlestick pattern on May 1 and its drop below the 50-day simple moving average ($ 56,833) today suggests that the bears are selling at higher levels and have not given up.
If sellers pull back the price below the 20-day exponential moving average ($ 55,723), the BTC / USDT pair could drop to $ 52,323.21 and then to $ 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 couple on the range for a few more days.
This view becomes invalid if the pair bounces back from the 20-day EMA and climbs above $ 58,469.09. Such a move suggests that the bulls are buying with every little dip. The pair could then move towards $ 61,825.85, where the bulls are likely to face solid resistance from the bears again.
While it’s too early to confirm this, the pair appears to be making the right shoulder of a possible topping head and shoulders. This arrangement is completed at a break below the neckline. Until then, traders can be vigilant but shouldn’t jump too hard in anticipation of a breakdown.
The 4-hour chart shows the bulls moved the price above USD 57,500 but failed to sustain it. The bears pulled the price back below the level and are trying to break the 20-EMA support. If that happens, the pair could drop to the 50-SMA.
A strong rebound from this support could encourage the bulls to make another attempt to clear the $ 57,500 hurdle. If they succeed, the pair can start their journey to $ 61,825.84. Conversely, if the bears drop the price below the 50 SMA, the odds of a decline to $ 50,460 increase.
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 USD 50 psychological level is acting as a resistance and the bears have pulled the price back below USD 48.64 today.
If the bears hold the price below USD 48.64 for two days, the SOL / USDT pair could drop to USD 40.51. A strong rebound from this support would suggest that the bulls are accumulating on dips. The bulls will then make another attempt to clear the USD 50 resistance.
If they succeed, the pair can start the next leg of the uptrend, which can reach $ 56.77 and then $ 68.05. The rising moving averages and the RSI near the overbought zone indicate that the path of least resistance is up.
This positive opinion will be invalidated if the price falls below the 20-day EMA ($ 38). When that happens, the pair can correct to the 50-day SMA ($ 26).
The 4-hour chart shows the bulls trying to defend the 20-EMA. If they can push the price above $ 48.64 to $ 49.99 overhead resistance zone, momentum is likely to pick up. The gradually rising 20-EMA and the RSI in the positive area suggest that the bulls have a small advantage.
Contrary to this assumption, if the price drops below the overhead resistance again, the likelihood of a break below the moving averages will increase. The bears can then bring the price down to $ 40.51. A strong rebound in this support could keep the pair range-bound for a few days.
HT / USDT
Huobi Token (HT) rose above the resistance at $ 26.89 on May 1, hitting a new all-time high at $ 29.54 today. However, the bears are trying to pull the price back below the breakout level and trap the aggressive bulls.
If the price falls and stays below USD 26.89 for three days, the HT / USDT pair could gradually decline to USD 22. A strong rebound from this support could keep the pair range bound for a few days.
Conversely, if the bulls are defending the USD 26.89 support or not giving up much ground below USD 25, it will suggest a strong buy with every small dip. A break above USD 29.54 could resume the uptrend with the next target of USD 36.54.
The 20-day EMA ($ 20.54) has surfaced and the RSI is in the overbought zone, signaling that the bulls are in control.
The Bulls and Bears compete for supremacy in the neighborhood of $ 26.89. Although the bears pulled the price back to USD 26.10, they were unable to sustain the lower levels. This suggests that bulls are buying on dips.
The rising moving averages and the overbought zone RSI suggest the bulls are predominant. However, the bulls are finding it difficult to push the price towards $ 29.54. This could result in high volatility in the short term.
A break of less than $ 26 could bring the price down to the 20-EMA. If the price bounces strongly from this level, the bulls will make another 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 looking to slow the Ethereum Classic (ETC) rise in the resistance zone from USD 38 to USD 41.61. However, the long tail on today’s candlestick suggests that traders are buying at lower levels.
The rising 20-day EMA ($ 28.74) and the overbought zone RSI point to an advantage for the bulls. If buyers drive price above the overhead zone, the ETC / USDT pair could resume its upward trend and move towards USD 53.21.
Contrary to this assumption, if the price moves down from the overhead zone, the bears will try to sink the pair towards the 20-day EMA. A break below this support will indicate that bullish momentum has weakened and the pair could then fall as low as $ 22.20.
The 20-EMA is rising and the RSI is in the overbought zone, suggesting the bulls are in control. However, the bears won’t toss the towel easily. They will try to block the upward movement in the overhead 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 the 50-SMA. Such a move could keep the couple within reach for a few days.
AAVE / USDT
The bulls pushed AAVE above the USD 489 resistance today. However, they have failed to sustain the purchases at higher levels and the bears have pulled the price back to the $ 480 to $ 280 range today, suggesting that the bears are trying to catch the aggressive bulls that may have triggered the breakout. bought the range.
If the price falls below the 20-day EMA ($ 415), it will suggest that bulls aren’t buying on dips. That could drop the price to the 50-day SMA ($ 383) and extend the AAVE / USDT pair’s stay in range for a few more days.
On the contrary, if the pair bounces off the 20-day EMA, it will indicate accumulation at lower levels. The bulls will then make another attempt to push the price towards $ 581.67. An escape of this level could start the journey north to $ 698.
VORTECS ™ data from Cointelegraph Markets Pro shows that the bullish trend in AAVE has continued from April 25, with a few temporary declines to 63.
Exclusive to Cointelegraph, the VORTECS ™ Score 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 Twitter activity.
As can be seen in the chart above, the VORTECS ™ score for AAVE has consistently remained in the green since April 25, when the price was $ 351.40.
The strong VORTECS ™ score could have deterred traders from booking profits early and leaving profits on the table. AAVE is up to $ 509.83 today, up 45% in just over a week.
The 4-hour chart shows that the bulls bought the dip to the 20 EMA and are once again trying to move the price above the USD 489 resistance zone to USD 512. The rising moving averages and the RSI above 63 suggest the path of least resistance is upward.
This optimistic view will weaken if the bears pull the price below the 20-EMA. This could indicate that the supply is greater than the demand. The pair could then drop to the 50-SMA. If this support continues, the pair could consolidate between USD 420 and USD 489 for a few days before embarking on the next trending 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 trade move carries risks, you should do your own research when making a decision.