Bitcoin price holding $27K could open buying opportunities in BNB, ADA, XMR and TON

Bitcoin (BTC) is on target to end the week with a sharp drop of around 9%. This suggests that some traders may book profits for fear of a resumption of the downtrend. Analysts expect Bitcoin to reach the $26,600 to $25,000 zone where buying interest may increase.

When an asset emerges from a bear market, it tries to form higher lows on the way up. These levels act as strong supports during subsequent corrections. The current pullback could end up forming a higher floor for Bitcoin, which could act as a launching pad for the next rally.

If long-term investors believe that a bottom has been reached, then panicking and selling at every corrective phase is not a good strategy. Each case can rather be an opportunity to build a portfolio.

The correction in Bitcoin has pulled several altcoins lower. Only a handful of major cryptocurrencies are holding out and looking strong on the charts. Let’s study the charts of five cryptocurrencies that could outperform on the way up.

Bitcoin price analysis

Buyers are trying to arrest Bitcoin’s correction at the 50-day simple moving average ($26,983), but the shallow bounce suggests the bears are not willing to let up.

The 20-day exponential moving average ($28,606) has started to decline and the relative strength index (RSI) is in the negative zone, signaling that bears have a slight edge. The sell-off could pick up further if the 50-day SMA breaks.

The BTC/USDT pair could then fall to the breakout level of $25,250. This is an important level to watch because if this support crumbles, the pair could plunge to $20,000.

Buyers need to push and sustain the price above the 20-day EMA to signal a comeback. It could attract buying and push the price towards the $31,000 to $32,500 resistance zone.

The pair returned $27,125 and reached the 20-EMA. This is the first hurdle the bulls must overcome to start a strong recovery. The pair may then reach the 50-SMA where the bears will again try to mount a strong defense.

If the price breaks down from the current level and falls below $27,125, it would indicate that sentiment remains negative and traders are selling on every minor rally. That will increase the likelihood of a drop to $26,500 and eventually to $25,250.

BNB price analysis

BNB (BNB) is witnessing a tough battle between the bulls and the bears. Sellers are active above $338 while the bulls are defending the 50-day SMA ($316).

The BNB/USDT pair bounced back from the 50-day SMA on April 21, and the bulls are attempting to clear the $338 barrier. If they succeed, it will improve the prospects for a rally above $346. The pair could then rise towards $400. The gradually rising 20-day EMA ($325) and the RSI in the positive territory indicate that bulls have a slight advantage.

If bears want to prevent the rally, they need to pull the price back below the 50-day SMA. That could accelerate the sell-off and lower the pair to $300 and then towards $280.

The 4-hour chart shows that the price bounced back from the support near $316 and has reached the 50-SMA. If bulls overcome this obstacle, the pair will try to rise to $338 and then to $346. A break above this level could witness an upturn in bullish momentum.

The first support to look at on the downside is the 20-EMA. If this support gives way, it would suggest that the pair could consolidate between $315 and $335 for a while. The advantage will tilt in favor of the bears if the $315 support gives way.

Cardano Price Analysis

Cardano (ADA) turned down and plunged back below the neck of the inverse H&S pattern on April 20. This indicates that the bears are trying to catch the aggressive bulls. A minor positive in favor of the buyers is that they are trying to protect the 50-day SMA ($0.37).

The 20-day EMA ($0.40) has turned down and the RSI is just below the midpoint, indicating that sellers are trying to take control. If the price dips below the 50-day SMA, it would indicate that the bears are in the driver’s seat. The ADA/USDT pair could then collapse to $0.30.

Conversely, if buyers want to maintain their superiority, they must quickly push the price back above the neckline. If they manage to do so, the pair could witness solid buying. The pair could then rise to $0.46.

The 4-hour chart shows that the bears pulled the price below the uptrend line and are trying to turn the level into resistance on a retest. The downward 20-EMA and RSI in the negative territory indicate that bears have the upper hand. If the price falls below $0.38, selling may intensify and the pair may plunge to $0.34.

This negative view will be invalidated in the short term if buyers drive the price back above the uptrend line. Such a move would suggest that the recent collapse may have been a bear trap. The recovery is likely to accelerate after buyers push the price above the 50-SMA.

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Monero Price Analysis

Monero (XMR) turned down from the neck of the developing inverse H&S pattern, but the strong rally from lower levels indicates aggressive buying on dips.

Buyers have pushed the price back above the 20-day EMA ($157) and will again try to challenge the drawdown. If this level scales, it will complete the bullish setup, clearing the way for a potential rally to $185 and then to the pattern target of $199.

If the price goes down from today’s level or neck, it will signal that bears are selling on a rally. A break and close below $149 would signal that bears have taken control. The XMR/USDT pair could then drop to $145 and later to $140.

The pair is trading within a descending channel pattern on the 4-hour chart. The snapback from the support line to the channel shows solid buying at lower levels. If buyers sustain the price above the 50-SMA, the pair may rally to the resistance line of the channel.

Conversely, if the price continues lower and slips below the 20-EMA, it would suggest that the pair may remain stuck inside the channel for a while longer. The bears will gain the upper hand on a break below the channel.

Toncoin Price Analysis

Toncoin (TON) has formed a bearish descending triangle pattern, but a positive sign in favor of the buyers is that the price has been trading near the resistance line of the triangle for the past few days.

The bulls will try to drive and sustain the price above the resistance line, which will invalidate the bearish setup. A breakdown of a negative pattern usually results in an up move as aggressive traders who may have gone short in anticipation of a decline cover their positions.

In addition, bullish traders who have been sitting on the sidelines due to the negative setup are jumping in to buy. Above the resistance line, the TON/USDT pair may rise to $2.64 and then to $2.90.

This bullish view will be invalidated in the short term if the price goes down and breaks below $2.20.

The 4-hour chart shows that the pair is rising within an ascending channel pattern. In the short term, the bears are trying to protect the $2.33 level, but the bulls continue to attack the level with force.

If the $2.33 level gives way, the pair could start its journey towards the resistance line of the channel near $2.45. Alternatively, if the price again declines from $2.33, the bears will try to lower the pair to the support line of the channel.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts and opinions expressed herein are those of the author alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.