Some major cryptocurrencies have been getting huge demands at their low levels and this could result in an uptrend movement in the next few days.
The past few days have made it obvious that cryptocurrency has begun to dissociate itself from other investment assets. The crash in the price of US crude oil futures affected the equity market but had no impact whatsoever on the crypto market.
According to a report posted on Bloomberg, Bitcoin is ready for a major bull run this year. The stimulus provided by the governments of several nations to boost the economy during this COVID-19 crisis will have a huge impact on both crypto and gold. Bitcoin will eventually be recognized as digital gold.
With the Bitcoin Halving event fast approaching, let's examine the charts to see if the crypto space has begun preparations for a massive bull run.
BTC has been stuck between the range of $6471.71 and $7454.17 for some days. RSI has been within the range of 50 and the 20-day EMA at $6931 is levelled, an indication that the bears and the bulls are at equilibrium.
Source: Tradingview
If the bulls can struggle to move BTC/USD over the symmetrical triangle which is forming in the range, then the bulls have most likely defeated the bears and an uptrend is expected.
If BTC goes ahead to break the $7454.17 resistance, then it might go further to $8000. At this point, the bulls have a better chance of breaking the support and then moving on to $9000.
However, if the bears succeed in pulling BTC/USD under the symmetrical triangle, it will be a big negative. BTC could fall to $6471.71 and if this support doesn't hold, BTC might end up falling to $5600. We advise traders to move their stop-loss upward to $6200.
On the 20th of April, ETH gave a positive sign as the bulls kept buying the dip at $162.60 (the 20-day EMA). Presently, ETH is trading in an uptrend channel.
Source: Tradingview
The RSI is positive and the 20-day EMA at $165.23 is moving upwards. This indicates that the bulls are stronger than the bears.
If ETH manages to go above $176.103, it might move further to the resistance line of the uptrend channel. At this level, ETH might face some more resistance but if successfully overcome, ETH might rally to $250.
However, if the bears succeed in pulling ETH below the support at $148, a bigger correction should be expected. We advise traders to retain stop-loss at $145 on long positions.
Note: This post is culled from an original article by cointelegraph
