Hong Kong tech company Meitu revealed on April 8 that it had added $ 10 million in Bitcoin (BTC) to its holdings that were purchased at an average rate of $ 57,000 per coin. After the last purchase, Meitu’s total cryptocurrency portfolio consists of $ 49.5 million in Bitcoin and $ 50.5 million in Ether (ETH). This acquisition shows that institutional investors are confident that Bitcoin’s rally is still in its early stages.
Tom Jessop, head of Fidelity’s cryptocurrency division, believes that Bitcoin has reached a tipping point and that traditional finance companies will continue to aggressively embrace cryptocurrencies for years to come. Jessop believes that massive monetary stimulus from governments and central banks has accelerated institutional adoption and this is a trend that could continue for at least another year.
Daily performance of the cryptocurrency market. Source: Coin360
It is not just institutional investors who are rushing towards cryptocurrencies. Data shows that the number of retail investors trading cryptocurrencies has also increased. Popular trading app Robinhood reported on April 8 that cryptocurrency trading on its platform increased to 9.5 million users in the first quarter of 2021, a six-fold increase over the fourth quarter of 2020.
While crypto adoption is on the rise, some legacy financial firms are still taking an anti-crypto approach. HSBC has reportedly blacklisted MicroStrategy shares and will not allow clients of its HSBC InvestDirect platform to buy shares in the company.
Will Bitcoin and major altcoins extend their uptrend and attract more buyers or enter a corrective phase? Let’s take a look at the charts of the top 10 cryptocurrencies to find out.
BTC / USDT
The bears were unable to capitalize on Bitcoin’s breakout below the 20-day exponential moving average ($ 57,043) on April 7. Its failure to break the support of the 50-day simple moving average ($ 54,572) could have attracted buying from the aggressive bulls, resulting in the bounce on April 8.
BTC / USDT daily chart. Source: TradingView
However, today’s Doji candle suggests that the bulls are struggling to maintain momentum at higher levels.
The BTC / USDT pair has formed an inverse head and shoulders pattern that will complete on a breakout and close above $ 60,000. This bullish setup has a target of $ 69,540. If the bulls maintain momentum and break through this hurdle, the uptrend may hit the next target at $ 79,566.
Contrary to this assumption, if the price turns down from the current level, the bears will once again attempt to break the critical support at the 50-day SMA. If successful, the sell-off could intensify as short-term traders may rush to exit. That could take the pair to $ 50,460.02 and then to $ 43,006.77.
ETH / USDT
Ether (ETH )’s slide on April 7 was halted at the 20-day EMA ($ 1,933), showing that the bulls are building on declines. The price rallied sharply on April 8 and rose above resistance at $ 2,040.77.
ETH / USDT daily chart. Source: TradingView
The bulls will now make one more attempt to scale above the all-time high of $ 2,150. If they manage to do that, the ETH / USDT pair could resume its uptrend and march towards the next target at $ 2,618.14.
However, the bears likely have other plans. They will try to bring the price below the 20-day EMA. If that happens, multiple aggressive bulls can get caught. That could intensify selling, leading to a drop in the trend line. A break below this support will suggest a trend reversal.
BNB / USDT
Binance Coin (BNB) continues in a strong uptrend. The bulls turned the $ 348.69 level to support on April 7 and followed with a breakout to a new all-time high on April 8. This shows a strong appetite from the bulls.
BNB / USDT daily chart. Source: TradingView
The ascending moving averages and the Relative Strength Index (RSI) above 75 indicate that the bulls are in command. The next target on the upside is the $ 500- $ 530 zone where the bears can mount strong resistance.
In any correction, the first support to watch out for is the 20-day EMA ($ 334). A strong bounce from this support will suggest that sentiment remains bullish and traders are buying on dips.
However, if the BNB / USDT pair falls below the 20-day EMA, it will suggest that the bullish momentum is weakening.
XRP / USDT
XRP made successive inner day candlestick formations on April 7 and 8. The current price action points to another internal day candlestick pattern today. The drop in daily volatility shows that the altcoin is still taking in recent gains.
XRP / USDT daily chart. Source: TradingView
This tightening of the intraday range usually ends with a strong breakout. If the uncertainty is resolved to the upside and the bulls carry the price above $ 1.11, the XRP / USDT pair could start the next stage of the rally that could take it to $ 1.34 and then $ 1.66.
Alternatively, if the indecision is resolved to the downside, it will suggest that supply exceeds demand and traders have abandoned their positions. If that happens, the pair could fall to the 20-day EMA ($ 0.72). A break below this level could send the price down to $ 0.65.
ADA / USDT
Cardano (ADA) fell below the 20-day EMA ($ 1.18) on April 7, but the bulls did not allow the price to fall below the 50-day SMA ($ 1.16). This shows that the bulls are aggressively defending the moving averages.
ADA / USDT daily chart. Source: TradingView
Buyers will try to raise the price above $ 1.33. If they manage to do that, the ADA / USDT pair could rally to $ 1.48. This is an important level to keep in mind because the couple has come back from him on two previous occasions.
If the price reverts from $ 1.48 again, it will suggest that the range-bound action may continue for a few more days. On the other hand, if the bulls can carry the price above $ 1.48, the pair could resume the uptrend towards the next target at $ 2.
A break below the moving averages will be the first sign of weakness and that could result in a drop to the $ 1.02 support. If this level breaks down, the bears could start a deeper correction to $ 0.80.
DOT / USDT
Polkadot (DOT) bounced off the 20-day EMA ($ 38.68) on April 7, indicating that it is buying on dips. The bulls will now attempt to push the price above the resistance above $ 42.28.
DOT / USDT daily chart. Source: TradingView
If they are successful, the DOT / USDT pair will retest the all-time high at $ 46.80. A breakout and close above this level could initiate the next leg of the rally which has a target of $ 53.50 and then $ 57.
The gradually rising 20-day EMA and the RSI in positive territory suggest that the bulls have the upper hand.
However, if the price drops from the current level and breaks below the moving averages, it will indicate that traders are closing their positions in rallies. That could result in a drop to $ 32.50 and then to $ 26.50.
UNI / USDT
The bulls successfully held the $ 27.97 support on April 7, which is a positive sign as it shows accumulation on declines. Uniswap (UNI) rallied above the 20-day EMA ($ 29.65) on April 8 and buyers will now try to push the price above $ 32.50.
UNI / USDT daily chart. Source: TradingView
If they are successful, the UNI / USDT pair could rise to the upper resistance zone of $ 35.20 to $ 36.80. The bears are likely to defend this zone aggressively. If the price falls from this resistance, the pair can extend its stay in the range for a few more days.
Contrary to this assumption, if the price turns down from the current level, the bears will make one more attempt to pull the price below the $ 27.97 to $ 25.50 support zone. If they manage to do that, the pair could begin a deeper correction at $ 20.74.
LTC / USDT
Litecoin (LTC) successfully completed the retest of the symmetric triangle breakout level on April 7. This was followed by a bounce on April 8, but the bulls are struggling to gain momentum.
LTC / USDT daily chart. Source: TradingView
This shows hesitation to buy at higher levels. If the bulls do not break above the $ 246.96 hurdle in the next few days, the possibility of a break below the 20-day EMA ($ 207) increases. In such a case, the LTC / USDT pair could fall to the support line.
Contrary to this assumption, if the bulls maintain momentum and push the price above $ 246.96, the pair could start the next leg of the uptrend which can hit $ 307.42. The gradually rising 20-day EMA and the RSI above 59 suggest a small upside for the bulls.
LINK / USDT
The strong Chainlink (LINK) reversal on April 7 was unable to break below the 20-day EMA ($ 30.29). This shows that sentiment remains positive and that the bulls are buying on dips. The April 8 bounce rose above the $ 32 resistance, but the bulls are struggling to take advantage of this force today.
LINK / USDT daily chart. Source: TradingView
If the price goes down and breaks below the moving averages, it will suggest that supply exceeds demand at higher levels. That could bring the price down to the critical support of $ 24.
On the other hand, if the bulls defend the 20-day EMA again, the LINK / USDT pair could rise to the all-time high at $ 36.93. A breakout and close above this resistance will suggest that the bulls have absorbed the supply and that may signal the start of the next stage of the uptrend.
However, if the price falls below $ 36.93 again, the pair could extend its stay within the range for a few more days.
THETA / USDT
After the large range day on April 7, THETA made an internal day candlestick pattern on April 8 and has followed it with another today. This shows indecision between the bulls and the bears about the next directional move. While the bears defend the upper resistance, the bulls buy on every minor drop.
THETA / USDT daily chart. Source: TradingView
The rising 20-day EMA ($ 11.33) and the RSI above 62 suggest a small upside for the bulls. Buyers will have to overcome the hurdle at $ 14 to signal the start of the next stage of the uptrend. If they manage to do that, the THETA / USDT pair could rally to $ 17.65 and then $ 22.50.
Conversely, if the bears sink the price below the 20-day EMA, it will be the first sign of a possible change in sentiment. It will suggest that the bulls are no longer buying the dips of the 20-day EMA. The next critical support to watch out for will be $ 10.35. If this level is removed, a deeper correction of the 50-day SMA may begin.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trade movement involves risk. You should do your own research when making a decision.
Market data is provided by the HitBTC exchange.