Top 5 cryptocurrencies to watch this week: BTC, NEAR, FTT, ETC, XMR
Bitcoin (BTC) dropped from a high of $47,200 on April 5 to a low of $42,107 on April 8, indicating possible selling by short-term traders who may have preferred to lock in their profits. However, the price action is still stuck in a tight range during the weekend, indicating that supply and demand are in balance.
Although the Crypto Fear & Greed Index is in the fear zone, Bitcoin whales on crypto exchange Bitfinex remained unfazed and continued to purchase BTC.
Interestingly, one large investor continued to buy $1 million of Bitcoin every day, without attempting to time the market, using the strategy of dollar-cost averaging.
Another whale that utilized the dip to add more Bitcoin to its existing stockpile was Terra. This week, the wallet associated with the Luna Foundation Guard added 4,130 Bitcoin, taking its total holding to 39,897.98 BTC.
Could Bitcoin bounce back sharply due to whale buying? Will select altcoins also turn higher in the short term? Let’s study the charts of the top-5 cryptocurrencies that may outperform if the sentiment improves.
Bitcoin bounced off the support at $42,594 on April 7 but the bulls could not clear the barrier at the 20-day EMA ($43,922) on April 8. This may have attracted selling by traders, which pulled the price below the $42,594 support.
A minor positive is that the bulls are attempting to defend the 50-day simple moving average ($42,620). If bulls push and sustain the price above the 20-day exponential moving average ($43,923), it will increase the possibility of range-bound action in the short term. The BTC/USDT pair may then oscillate between the 50-day SMA and the 200-day SMA ($48,219) for a few days.
On the contrary, a weak bounce off the 50-day SMA will suggest a lack of aggressive
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