With Bitcoin’s (BTC) halving less than 23 days away, traders would like to go into the event with strong bullish sentiment but this is yet to be determined. If Bitcoin is able to breakout and sustain above its overhead resistance, it is likely to pull the crypto markets higher. The first sign of strength would be if the total market capitalization can sustain above the $211 billion mark.
Although Bitcoin is the leader, there are a few altcoins that are showing promise and could outperform the largest cryptocurrency next week. Here are the top 5 cryptocurrencies that could offer short-term trading opportunities in the next few days.
ETH/USD
After repeatedly facing resistance at $176.103 (shown via ellipses on the chart), Ether (ETH) broke out of the overhead resistance on April 18 with strength. This is a positive sign as it shows that the bulls are keen to buy at every higher level.
ETH-USD daily chart. Source: Tradingview
Both the 10-day EMA ($169) and the 20-day SMA ($158) are sloping up and the RSI has been trading in positive territory for the past few days. This suggests that the bulls have the upper hand.
The previous resistance of $176.103 is now likely to act as a strong support. If this level holds, the ETH/USD pair is likely to scale above $189.402, which is just above the 61.8% Fibonacci retracement level of the fall from $251.781-$87.131.
ETH-USD 4-hour chart. Source: Tradingview
Currently, the ETH/USD pair is attempting to bounce off the 20-SMA. If successful, the bulls will again attempt to push the price above $189.402. Traders can buy on a 4-hourly close (UTC time) above $189.402 and keep the stop loss below the 20-SMA.
On the upside, the first target objective is a rally to $208.665. As the price nears the target objective, traders can either book partial profits or trail the stop loss below the 10-EMA. The bullish view will be invalidated if the bears sink the price below the critical support zone of $176-$168.
XTZ/USD
Tezos (XTZ) rallied on April 18 and scaled above the minor resistance at $2.1819. This is a positive sign as it shows demand at higher levels. The bears are attempting to stall the pullback close to $2.4072688, which is the 61.8% Fibonacci retracement level of the most recent fall.
XTZ-USD daily chart. Source: Tradingview
However, the positive thing is that the bulls have not given up much ground. The previous resistance of $2.1819 is now likely to act as a strong support. Both the moving averages are sloping up and the RSI has been trading in the positive territory for the past few days, which shows that the bulls are in command.
The XTZ/USD pair has repeatedly taken support on the 20-day SMA ($1.92) in the past few days (marked via ellipse on the chart), which shows that the bulls are keen to buy on dips. The short-term uptrend is likely to pick up momentum above $2.40726880.
XTZ-USD 4-hour chart. Source: Tradingview
Currently, the bulls are attempting to provide support at the 20-SMA. If the altcoin bounces off this support and scales above $2.40726880, a rally to $2.55 and above it to $2.70 will be on the cards.
Therefore, traders can buy at $2.41 and trail the stop loss below the 20-SMA. As the price nears the first target, partial profits can be booked and the stops on the rest of the position can be trailed just below the 10-EMA.
If the bears sink the price below the immediate support at $2.1819, it will indicate profit booking and shorting at higher levels.
LINK/USD
Chainlink (LINK) scaled above the 61.8% Fibonacci retracement level of $3.5948 on April 18, which is a bullish sign. Usually, when the relief rally climbs above the 61.8% retracement, it is an indication that the downtrend is over.
However, the bears are unlikely to give up without a fight. They are currently attempting to sink the LINK/USD pair back below $3.5948. If successful, the pair might dip to the 10-day EMA ($3.36), which is likely to act as a support.
Since March 31, the bears have not been able to sustain the price below the 10-day EMA, which is a positive sign. This shows that the bulls are keen to buy on dips to this level. With both moving averages sloping up and the RSI trading in the positive territory, the advantage is with the bulls.
