Risky assets saw minor upticks in April with the S&P 500 Index rising around 1.5% and Bitcoin (BTC) potentially ending the month with gains of more than 4%. However, concerns over the US banking sector have the potential to cause a correction in both markets. JPMorgan Asset Management’s chief investment officer Bob Michele told Bloomberg that the ongoing turmoil at First Republic Bank is unlikely to be limited to the bank alone and could cause a domino effect. If this occurs, it could trigger a correction in US equity markets that has the potential to affect Bitcoin’s price. Still, BTC and select altcoins have been displaying strength in the short-term. Here is a look at the charts of five cryptocurrencies that could outperform over the next few days.
After two days of low-volatile trading, Bitcoin bulls appear to be taking control. The 20-day exponential moving average ($28,783) is gradually turning upward, and the relative strength index (RSI) is in the positive zone. If prices can move above $30,000, the BTC/USDT pair may climb to an overhead resistance zone of $31,000 to $32,400. However, if prices fall below the 50-day simple moving average ($28,026), bears will likely try to sink the pair to $25,250.
The Solana (SOL) bulls have fiercely defended the support level of $10.20, pushing prices above the moving averages. They will now try to reach overhead resistance at $27.12. Resistance at this level is crucial in the near-term as a break above it would open the path to a potential rally towards $39. Meanwhile, a turn down from the downtrend line could indicate that bears are forming a descending triangle pattern, and prices could slump to $18.70.
If the bull trend continues for Cosmos (ATOM), prices could reach overhead resistance at the downtrend line, opening potential rallies towards $13.50 and then $15.50 if prices break and close above it. Conversely, if the price reverses direction from the downtrend line, it could suggest that bears are trying to form a descending triangle pattern, and prices could plummet to a possible $10.20.
Internet Computer (ICP) slipped below its 50-day SMA on 26 April, but this turned out to be a bear trap as the price started a strong recovery on 27 April. If the price does not give up much ground from the current level or rebounds off the 20-day EMA, it would indicate that bulls are buying the dips, increasing the prospects of a rally to the downtrend line. If the price collapses below the 50-day SMA, however, the advantage would shift in favour of bears.
Despite attempts by bears to sink Hedera (HBAR) below $0.06, the bulls held their ground. If the price breaks above resistance levels, the HBAR/USDT pair could rally to the overhead resistance at $0.08. However, a turn down from current levels or resistance at the line would suggest bears remain active at high levels, possibly increasing the chances of a break below $0.06.
In conclusion, while risky assets have extended their uptrend in April, they are vulnerable to potential corrections sparked by any major upheavals in the US banking sector. Nevertheless, short-term indicators suggest that Bitcoin and select altcoins are showing signs of strength. As with all investment decisions, it is essential to conduct thorough research and make informed choices. This content does not contain investment advice or recommendations.