If Bitcoin price rises above USD 30,000, several altcoins such as SOL, ATOM, ICP, and HBAR are well positioned to rally. Risk assets slightly extended their uptrend in April. The S&P 500 index was up about 1.5% in April, while the price of bitcoin
BTC is on track to end the month with gains of more than 4%. Could the rally continue in May or is it time for a pullback?
The recovery could face headwinds if U.S. banking problems worsen. JPMorgan Asset Management chief investment officer Bob Michele said in an interview with Bloomberg that the turmoil at First Republic Bank is unlikely to be limited to just that bank, and could cause a domino effect.
If that happens, U.S. equity markets could suffer a correction. However, it is difficult to predict how Bitcoin will react to such a crisis because, in recent days, the price of BTC rose as traditional banking problems worsened. But in the event of a major upheaval in the U.S. banking sector, it is possible that Bitcoin will also face a correction sooner or later.
In the short term, bitcoin and some altcoins are showing strength. There are five cryptocurrencies that could outperform in the coming days.
Bitcoin Price Analysis
After two days of low volatility in Bitcoin, the bulls are trying to impose their supremacy on April 30th, which can be seen in a daily chart for the BTC/USDT pair published by TradingView.
The 20-day exponential moving average (USD 28,783) has started to turn upwards gradually and the relative strength index (RSI) is in the positive zone, indicating that the path of least resistance is to the upside.
If the bulls take the bitcoin price above USD 30,000, the BTC/USDT pair can move up to the resistance zone above USD 31,000 to USD 32,400. Buyers may face significant resistance in this zone, but if it is crossed, the pair can soar toward USD 40,000.
The 50-day simple moving average (USD 28,026) is an important support to watch. If the BTC price breaks below this level, bearish traders will sense an opportunity and try to push the pair down to USD 25,250, as observed in a 4-hour chart for the BTC/USDT pair posted by TradingView.
The bearish tried to push the pair below 20-EMA, but the bulls held firm. This may have attracted more buying and the bulls will then try to push the price above $30,000.
If the bulls take the bitcoin price above USD 30,000, the BTC/USDT pair may rise to the resistance zone above USD 31,000 up to USD 32,400. Buyers may face significant resistance in this zone, but if it is crossed, the pair may soar toward USD 40,000.
Equally, if the price goes down and breaks below the 20-EMA, the bearish will be selling near resistance levels. Then the pair could drop to the 50-SMA. The bulls will try to protect this level, but if the bearish break above it, the next stop is likely to be USD 27,000. Buyers are likely to defend the area between USD 27,000 and USD 25,250 with all their might.
By Marina Meza
