Bitcoin price is poised for an explosive move as ADA, XLM, AAVE and CFX turn bullish

The long weekend hasn’t produced any fireworks in the Bitcoin (BTC) price, which continues to trade within an increasingly narrow range. Bitcoin is on course to form a third consecutive Doji candlestick pattern on the weekly chart. This suggests that the Bitcoin bulls and bears are not clear on the next directional movement.

It’s not just Bitcoin that’s stuck in a range. On April 7, Jurrien Timmer, director of global macro at asset manager Fidelity Investments, tweeted that the S&P 500 index had been stuck within a range for the past nine months and that a breakout was coming “sooner or later.”

Bitcoin’s failure to break above the $30,000 level has attracted profit booking in several altcoins, but a few have witnessed shallow pullbacks. This indicates that traders are holding their positions and expecting a move higher.

Let’s study the charts of selected altcoins that could emerge and start an uptrend if Bitcoin breaks out to the upside. What are the resistance levels above which these five cryptocurrencies turn bullish?

Bitcoin price analysis

Bitcoin has been trading within a tight range for the past two days, indicating indecision among the bulls and bears. Typically, tight areas are followed by an expansion in volatility.

The 20-day exponential moving average ($27,500) is flattening and the relative strength index (RSI) has gradually slipped towards the middle. This indicates a balance between supply and demand.

If the price falls below the 20-day EMA, more short-term stop losses could be triggered and the BTC/USDT pair could dive to the $25,250 breakout level.

Conversely, if the price rebounds off the 20-day EMA with strength, it would indicate that sentiment remains positive and traders are buying the dips. A rally above $29,200 could raise the prospect of a rally to $30,000 and then to $32,500.

The 20-EMA is flattening out on the 4-hour chart and the RSI is just below the midpoint. This gives no clear advantage to either the bulls or the bears. This uncertainty is unlikely to continue for long, and a directional movement may soon begin. However, it is difficult to predict the direction of the outbreak.

Therefore, it is better to wait until the breakout occurs before establishing directional bets. The important level to watch on the upside is $29,200 and on the downside is $26,500. A break at either level can start a short-term trend move.

Cardano Price Analysis

The bulls are not allowing Cardano (ADA) to fall below the 20-day EMA ($0.37), indicating demand at lower levels.

The uptrending 20-day EMA and RSI in the positive range suggest that the path of least resistance is up. The ADA/USDT pair may first rise to the neck of the inverse Head and Shoulders (H&S) pattern. A break and close above this resistance would signal a potential trend change. The pair can then rally towards the pattern target of $0.60.

If bears want to prevent the rally, they need to quickly move the price back below the 20-day EMA. The pair could then fall to the 200-day simple moving average ($0.35) and later to $0.30.

The 4-hour chart shows that the bulls have pushed the price above the 20-EMA and will next try to overcome the barrier at the downtrend line. If they do, it would indicate that the withdrawal may be over. The pair can then climb to the neck where the bears are expected to mount a strong defense.

Conversely, if the price faces rejection at the downtrend line, it would indicate that bears are active at higher levels. The selloff could accelerate below $0.37 and the pair could plunge to the 200-SMA.

Stellar Price Analysis

Stellar (XLM) declined from the overhead resistance at $0.12 and the price is approaching the 20-day EMA ($0.10). The bulls are likely to buy dips to the 20-day EMA.

If the price pulls back from the 20-day EMA, the bulls will again try to clear the hurdle. If successful, the XLM/USDT pair will complete a bullish rounding bottom pattern. It may signal the start of a new up move. The pair may first rise to $0.15 and then march towards the pattern target of $0.17.

Contrary to this assumption, if the price goes down and breaks below the 20-day EMA, it would indicate that bulls are losing their grip. The pair could then fall to the 200-day SMA ($0.09). This is a make-or-break level for the bulls because if it cracks, the pair could plunge to $0.07.

The 4-hour chart shows the pair correcting within a falling wedge pattern. The price has jumped off the support line and the bulls will next try to drive the pair above the wedge. If they manage to do so, the pair could rise to $0.11 and then to $0.12.

On the other hand, if the price goes down and plunges below the support line, it will indicate that selling has intensified. There is a small support at $0.10, but if it cracks, the decline could extend to the 200-SMA.

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Aave price analysis

Aave (AAVE) has broken down from the overhead resistance at $82, indicating that the bears are protecting this level hard. They have pulled the price below the immediate support at the 20-day EMA ($75).

The AAVE/USDT pair may next slide to the 200-day SMA ($73), which is close to the uptrend line. Buyers are likely to defend this level vigorously. If the price retraces from the uptrend line and breaks above the 20-day EMA, the pair could reach $82.

If bulls overcome this barrier, the pair will complete an ascending triangle pattern. This setup has a target of $100. This bullish view will be invalidated if the price continues lower and breaks below the uptrend line. The pair may then slide to $68 and later to $64.

The bears have pulled the price to the 200-SMA on the 4-hour chart. The 20-EMA has started to turn down and the RSI is in negative territory, indicating that bears have the upper hand.

If the 200-SMA gives way, the pair may fall further to the uptrend line. This is an important level for the bulls to defend because a break below it will further strengthen the bears.

On the upside, a break above the 20-EMA would be the first sign of the bulls making a comeback. The pair could then rise to the overhead resistance at $82.

CFX Price Analysis

Conflux (CFX) has been in a corrective phase for the past few days, but a minor positive is that the bulls are trying to defend the 20-day EMA ($0.36).

If the price pulls back from the current level, the CFX/USDT pair may reach the downtrend line. This is an important level for the bears to guard because a break above it could open the doors for a possible rally to $0.44 and then $0.49.

Conversely, if the price plunges and stays below the 20-day EMA, it would indicate that the bulls may rush to the exit. That could attract further selling, pulling the price towards the next support at $0.30. The bulls are expected to buy dips to this level.

The 4-hour chart shows that the bears are trying to keep the price below the 20-EMA. It could pull the pair to the 200-SMA, which is likely to act as an important support.

If the price pulls back from this level, the bulls will again try to drive the price to the downtrend line. This is the key level to watch because a break above it will signal that bulls are back in play.

On the downside, a break and close below the $0.30 support could attract further selling, pushing the price down to $0.25.

The views, thoughts and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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.