According to CoinShares, institutional inflow into crypto products was $ 4.5 billion in the first quarter, 11% more than in the fourth quarter of 2020. This shows that institutional interest is increasing, but growth has slowed from the previous quarter to the 240 % recorded in the fourth quarter of 2020.
If the price of bitcoin rises, more funds will be needed to maintain the level. If institutional inflows don’t accelerate over the next few days, Bitcoin (BTC) and other altcoins could see a significant correction.
The next correction could test the determination of institutional investors, and while those investors have deep pockets, some may have jumped into crypto just for quick speculative gains. There is always the possibility that investors will lose their positions if Bitcoin starts a correction.
While this may accelerate the decline, lower levels should attract investors who may have missed the bus earlier. If this assumption is correct, volatility across the market may remain high for the next few days.
Let’s analyze the charts of the top 10 cryptocurrencies to see if a possible correction is also projected.
BTC / USDT
Bitcoin’s failure to break the stiff overhead resistance zone at $ 60,000 to $ 61,825.84 appears to have attracted profit booking from short-term momentum traders. That brought the price back below the 20-day exponential moving average ($ 56,863) today.
If price is below the 20-day EMA, the bears may sense an opening and are likely to question critical support at the 50-day simple moving average ($ 54,333). If that support breaks and the bears manage to keep the price below the 50-day SMA, sales could intensify.
Next downside support is $ 50,460. If those levels also decline, the BTC / USDT pair could drop to $ 43,006.77. The flattening moving averages and the relative strength index (RSI) falling below 52 suggest that the bulls may be losing their hold.
Contrary to this assumption, the bulls will make another attempt to push the pair to a new all-time high if the price rebounds from the 50-day SMA. If successful, the pair could begin their journey to the next destination at $ 69,540 and then $ 79,566.
ETH / USDT
Ether (ETH) hit a new all-time high on April 2, but was unable to take off and continue its climb. This showed hesitation among the bulls and although they managed to push the price down to a new all-time high of $ 2,150 on April 6, the rally has since stalled.
This may have frustrated momentum traders, who appear to have lost their positions today, causing the 20-day EMA ($ 1,904) to fall. If the ETH / USDT pair rebounds strongly from the 20-day EMA, it will indicate lower demand.
The bulls will then make another attempt to push the price above $ 2,150. If successful, the pair could begin their journey to the next destination at $ 2,618.14.
This positive view will be invalidated if the bears sink and hold the price below the 20-day EMA. Such a move suggests a possible change in sentiment that could push the price onto the trendline.
BNB / USDT
Binance Coin (BNB) is in a strong upward trend. The bears attempted to pull the price back below the breakout level of $ 348.69 today, but the long tail on the candlestick shows that the bulls aggressively bought that dip.
The rising moving averages and the RSI near the overbought zone suggest that the bulls are in command. If buyers can convert $ 348.69 into the support, the BNB / USDT pair could begin the next segment of the uptrend, which could rise to $ 500 and then to $ 530.
Conversely, if the price falls below $ 348.69, it suggests that higher levels are attracting profit bookings from traders. The bullish momentum could weaken if the bears cut the price below the 20-day EMA ($ 314).
XRP / USDT
XRP’s breakout above $ 0.65 on April 5 completed an inverted head and shoulders pattern that had a target of $ 1.11. The altcoin hit this target on April 6 when it hit an intraday high of $ 1.11.
Traders following technical analysis appear to have posted profits near the target, resulting in a sharp decline today.
The bulls are trying to stop the correction near the 50% Fibonacci retracement level at $ 0.84 as seen from the long tail on the candlestick. If buyers can sustain the rally, this will indicate accumulation at lower levels and keep prospects for a break above $ 1.11.
On the other hand, if the XRP / USDT pair breaks below $ 0.84, the correction could deepen to the Fibonacci retracement level of 61.8% at $ 0.77. Such a deep correction can delay the start of the next segment of the uptrend.
ADA / USDT
Cardano (ADA) attempted an uptrend on April 6, but the long wick on the day’s candlestick indicates a lack of demand at higher levels. The bears took the opportunity today and are trying to bring the price down to $ 1.03.
The bulls are likely to aggressively defend the USD 1.03 support. If the price rebounds strongly from these levels, the bulls will attempt to push the price above the moving averages. If they can, the ADA / USDT pair could be stuck in range for a few more days.
The flat 10-day EMA ($ 1.18) and the RSI near the midpoint suggest a balance between supply and demand.
This neutral view will be invalidated when the $ 1.03 support shows cracks. In such a case, the pair could begin its journey towards support at $ 0.80 and then at $ 0.70.
DOT / USDT
The bulls’ failure to push the price above the all-time high at $ 146.80 on April 5th and 6th could have sparked profit bookings among short-term traders. That could have brought Polkadot (DOT) back below the breakout level at $ 42.28 today.
The bulls are currently trying to defend the 20-day EMA ($ 38). If they can make a strong recovery from this support, it indicates accumulation at lower levels. Buyers can then make one more attempt to hit the all-time high. If successful, the DOT / USDT pair could rise to $ 53.50.
On the contrary, a weak rebound indicates weakness and a lack of urgency among traders to buy aggressively. This gives the bears an opportunity to drag the price below the moving averages. If so, the pair could drop to $ 26.50.
UNI / USDT
Uniswap (UNI) attempted to break above the USD 32.50 resistance but failed. This shows a lack of buyers at higher levels. The bears are now trying to lower the pair below the $ 27.97 to $ 25.50 support zone.
If successful, the UNI / USDT pair could begin its journey to the next support at $ 22 and then at $ 18.
However, the flat 20-day EMA ($ 29.59) and the RSI near the midpoint suggest a balance between supply and demand. If the bulls can defend the support zone, the pair will likely extend their range by a few days.
LTC / USDT
Litecoin (LTC) broke above the resistance line of the symmetrical triangle on April 5th, followed by another uptrend on April 6th, bringing the price to the stiff resistance at USD 246.96.
The bulls’ failure to break the $ 246.96 hurdle could have resulted in profit booking by short-term traders and selling by aggressive bears. That brought the price down to the triangle’s breakout level today.
If the LTC / USDT pair aggressively rebounds from these levels, it suggests that the bulls are piling up on dips. Buyers will then make one more attempt to climb the wall at $ 246.96. If they manage to do that, the pair could start their journey at $ 307.42.
On the contrary, if the bears cut the price below the moving averages, the pair could fall to the support line of the triangle.
LINK / USDT
Chainlink (LINK) crossed the USD 32 resistance on April 5 and followed it with another uptrend on April 6, but the bulls failed to challenge the all-time high at USD 36.93. This suggests that the bears have not given up and are active at higher levels.
The LINK / USDT pair fell back below the USD 32 level today. The bulls are trying to defend the 20-day EMA ($ 29.85). If they manage to do this and push the price back above USD 32 within the next few days, it will indicate accumulation at lower levels.
The bulls could then try again to push the price above $ 36.93. Conversely, if the bears pull the price below the moving average, it suggests that the recent breakout above $ 32 was a bull trap. The pair could then fall to $ 24.
THETA / USDT
After trading in a tight range for the past few days, THETA rose sharply today, trying to break out of the overhead resistance of $ 14-14.96. However, the bears thwarted this attempt, as the long wick in today’s candle holder shows.
If successful, the THETA / USDT pair could begin the next leg of the uptrend, targeting a target of $ 17.65 and then $ 22.50. The 20-day EMA ($ 11.13) has re-emerged and the RSI has surged above 68, suggesting that momentum is favoring the bulls.
However, the bears are unlikely to give up easily. They will try to stop the uptrend in the overhead resistance zone. If they can do that, the couple could extend their stay within the area by a few days.
The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph. Every investment and trading step is associated with risks. You should do your own research when making a decision.
Market data is provided by HitBTC Exchange.