Price analysis 4/7: SPX, DXY, BTC, ETH, XRP, BNB, SOL, DOGE, ADA, LEO

Bitcoin (BTC) has rapidly rebounded and is trading close to the $78,000 threshold. The leading cryptocurrency by market value dropped beneath the crucial support level of $80,000 when the US stock futures opened sharply down on April 6. The trend of selling persisted on April 7, causing Bitcoin to reach a new yearly low at $74,508, but the lower prices drew significant buying interest from bulls.

The negative macroeconomic scenario lowered the Fear & Greed Index of US stock markets to just 4/100. Typically, such periods of panic selling create a bottom as the weaker investors and those using leverage exit the market. Following this, a recovery is often swift.

However, it is wise to remain cautious and avoid over-leveraging trades in the short term as volatility is likely to stay elevated. Even Strategy, the world’s largest publicly traded corporate holder of Bitcoin, halted its Bitcoin purchases last week.

Can Bitcoin maintain this recovery, or will higher levels entice sellers? And how are the altcoins positioned? Let’s delve into the charts to uncover the answer.

S&P 500 Index Analysis

The S&P 500 Index (SPX) gapped down on April 7 for the third consecutive trading day, signaling significant anxiety among traders.

The index dropped below 4,950 but is finding support near the 61.8% Fibonacci retracement level at 4,884. Buyers managed to push the price up to 5,246, but the selling began once again at these elevated levels, as indicated by the long wick on the candlestick. Should the price decline and break below 4,835, it could further slide to 4,700.

The relative strength index (RSI) has dipped deeply into oversold conditions, indicating a potential relief rally could occur soon. However, buyers are expected to encounter formidable resistance at 5,400 and again at the 20-day exponential moving average (5,558).

US Dollar Index Analysis

The US Dollar Index (DXY) broke below the 103.37 support on April 3 and is close to a crucial support level at 101.

The strong bounce off the 101 support suggests that buyers are starting to show interest at lower levels. Sellers will attempt to hinder the relief rally at the 20-day EMA (103.95). If the price declines from this point, bears will once again try to pull it back to 101.

Conversely, a break and close above the 20-day EMA opens the door to the broader range of 101 to 108. The index might then rise towards the 50-day simple moving average (105.62), which could serve as an obstacle.

Bitcoin Price Analysis

Bitcoin dropped below the $76,606 support level on April 7, but the long wick on the candlestick illustrates buying pressure around $73,777.

The positive divergence in the RSI indicates that bearish momentum is waning, though this should not be acted upon without a clear bullish price confirmation. A break and close above the resistance line could indicate that the corrective phase is coming to an end. The BTC/USDT pair could ascend to $89,000, followed by a rally to $95,000.

If the price declines again from the resistance line, it may suggest that bears are still in control. Sellers will then aim to push the pair below $73,777. If successful, it could lead to a steep fall to $67,000.

Ether Price Analysis

Ether (ETH) resumed its downward trend on April 6 after the price slipped beneath the $1,754 support level. The failure to initiate a rebound from $1,550 indicates weak demand from bulls.

Recent selling has pushed the RSI into oversold territory, signaling a potential relief rally could be imminent. If the price rises from its current position, the ETH/USDT pair may reach $1,754. If it turns lower again from this level, it indicates resistance on rallies, which increases the chances of a decline to $1,350, then $1,150.

For buyers to show strength, they must lift and hold the price above the 20-day EMA ($1,853) to signal an end to the downtrend.

XRP Price Analysis

XRP (XRP) retraced from the 20-day EMA ($2.16) on April 6 and closed below the $2 support, completing a head-and-shoulders pattern.

The downward trend continued on April 7, driving the price below immediate support at $1.77. Buyers are likely to attempt a recovery but will face considerable selling pressure at $2. Should the XRP/USDT pair retest $2 and decline from it, this will confirm that bears have turned this level into resistance, with the potential for a drop to $1.27.

The first sign of strength would be a decisive break and close above the $2.20 level, indicating that the market has rejected the breakdown.

BNB Price Analysis

BNB (BNB) sharply declined from the 20-day EMA ($597) on April 6 and fell below the 61.8% Fibonacci level at $559.

The BNB/USDT pair rebounded from the $520 support, but any recovery is expected to face resistance at the moving averages. If the price declines from current levels or the 20-day EMA, it raises the risk of further decline to $500 and then to $460.

Bulls need to push and hold the price above the downtrend line for a sign of recovery. If successful, the pair could possibly rise to $644 and then to $686, indicating that it might remain trapped in a wider range between $460 and $745 for a while longer.

Solana Price Analysis

Solana (SOL) fell through the $120 to $110 support area on April 6, signaling a continuation of the downtrend.

The SOL/USDT pair bounced back from $95, but bears are likely to present strong resistance between the $110 and $120 range. A sharp decline from this overhead zone could lead the pair down to $80.

Bulls have limited time to act. They must push the price above the 20-day EMA ($124) soon to prevent further declines. If they succeed, the pair may then move up to the 50-day simple moving average ($137).

Related: Was Bitcoin’s drop to $75K the bottom? — Indications suggest BTC may continue decoupling from stocks

Dogecoin Price Analysis

The inability of bulls to elevate Dogecoin (DOGE) above the 20-day EMA ($0.17) led to another wave of selling on April 6.

The DOGE/USDT pair dipped below the crucial support level of $0.14, but the long wick on the candlestick indicates strong buying at lower prices. It is essential for buyers to defend the $0.14 support level aggressively because a failure to do so could see the pair fall to $0.10.

The 20-day EMA stands as a vital resistance zone. A decisive break and close above this will suggest that bearish momentum is fading. The pair might then ascend to the 50-day simple moving average ($0.19).

Cardano Price Analysis

Cardano (ADA) declined and fell below the $0.58 support on April 6, indicating that bears still control the market.

The ADA/USDT pair touched near the significant support level at $0.50, where buyers then intervened, initiating a recovery likely to face resistance at $0.58 and again at the 20-day EMA ($0.67). Should the price retreat from these moving averages and break below $0.50, it could signal the onset of another wave down towards $0.40.

Buyers will need to push and maintain the pair above the 50-day SMA ($0.73) to indicate that bears are beginning to lose control.

UNUS SED LEO Analysis

UNUS SED LEO (LEO) declined from the 50-day SMA ($9.63) on April 4 and fell below the uptrend line of the ascending triangle, negating the bullish outlook.

This breakdown is a negative sign. The moving averages are starting to trend downward, and the RSI is edging towards oversold territory, indicating that bears hold the advantage. Minor support lies at $8.84; however, if this level is breached, the LEO/USD pair could decline to $8.30.

To prevent further downside, buyers will face a challenging task; they need to push the price above $9.90 for market control.

This article does not offer investment advice or recommendations. Every investment and trading decision carries risks, and readers should conduct their own research before making choices.