Technical Analysis for April 8: SPX, DXY, BTC, ETH, XRP, BNB, SOL, DOGE, ADA, LEO

Bitcoin (BTC) has just recorded an impressive recovery and is currently fluctuating around the $78,000 mark. Previously, the largest cryptocurrency by market capitalization had experienced a significant sell-off, breaching the psychological support level of $80,000 after the US futures stock market plummeted on April 6. The downtrend continued into April 7, pushing the price of Bitcoin down to its lowest level since the beginning of this year at $74,508. However, buying interest quickly increased at lower price levels, setting the stage for the current recovery.

Macroeconomic pressure has also caused the Fear & Greed Index of the US stock market to drop to an extreme level – only 4/100. Such panic phases are often a signal that the market is approaching the bottom, when most investors are psychologically weak and leveraged positions are forced to withdraw. After this layer of investors is eliminated, the market usually rebounds very quickly.

Nevertheless, caution is still necessary at this time. Limiting the use of excessive leverage in the short term is a wise strategy, as volatility remains high. Even Strategy – the company of Michael Saylor and also the organization that holds the most Bitcoin among listed companies – has temporarily halted purchasing activities last week.

Can Bitcoin maintain this recovery momentum, or will the high price levels continue to attract profit-taking selling? And where do altcoins stand in the current picture? Let's analyze the charts to gain deeper insights.

Technical Analysis of SPX

The S&P 500 (SPX) index fell sharply during trading on April 7, marking the third consecutive decline, indicating panic among investors.

Daily SPX Chart | Source: TradingViewThe index has fallen below the 4,950 level but is finding support near the Fibonacci retracement level of 61.8% at 4,884. Buyers pushed the price up to 5,246, however, selling pressure at the high price area is evident, as shown by the long upper shadow of the candle. If the price turns around and breaks below the 4,835 threshold, the downtrend could extend to 4,700.

The Relative Strength Index (RSI) has dropped deeply into the oversold territory, indicating the possibility of a technical rebound in the short term. Buyers will face significant resistance at the level of 5,400 and then at the 20-day Exponential Moving Average (EMA) at 5,558.

Technical Analysis of DXY

The US Dollar Index (DXY) has broken support at 103.37 on April 3 and is approaching the important support level at 101.

DXY Daily Chart | Source: TradingViewThe strong recovery from the support zone of 101 indicates that the low price is attracting buying power. The bears will try to halt the recovery at the 20-day EMA (103.95). If the price turns down from the 20 EMA, they will continue their efforts to pull the price back to 101.

Conversely, if the price breaks above and closes above the EMA 20 line, a significant trading range from 101 to 108 will be activated. At that point, the index could rise to the simple moving average (SMA) of 50 days at 105.62 – where it may act as a barrier.

Technical Analysis of BTC

Bitcoin dropped below the support of $76,606 on April 7, but the long candle wick indicates buying pressure around the $73,777 area.

Daily BTC/USDT Chart | Source: TradingViewThe bullish divergence on the RSI indicator indicates that the downtrend is weakening; however, this is not yet a signal to act unless confirmed by price action. A breakout and close above the resistance line would suggest that the correction phase may have ended. The BTC/USDT pair could rise to $89,000 and then to $95,000.

On the contrary, if the price reverses from the resistance line, it indicates that the bears still control the market. At that point, sellers will continue to attempt to push the price down below $73,777. If successful, the pair could drop sharply to the $67,000 region.

Technical Analysis of ETH

Ether (ETH) continued its downward trend on April 6 after the price broke below the support level of $1,754. The failure to bounce back from the $1,550 level indicates that the buying pressure from the bulls is very weak.

ETH/USDT daily chart | Source: TradingViewThe selling pressure has pulled the RSI into the oversold zone, indicating that a technical rebound may soon occur. If the price rebounds from the current level, the ETH/USDT pair could recover to $1,754. If the price is rejected here, it reflects the prevailing selling trend during the rebound, increasing the likelihood of ETH dropping to $1,350, and then to $1,150.

Buyers will need to push the price above and maintain it above the 20-day EMA ($1.853) to indicate that the downtrend may be coming to an end.

Technical Analysis of XRP

XRP has reversed and declined from the 20-day EMA ($2.16) on April 6, closing below the support level of $2, completing the head and shoulders pattern.

XRP/USDT Daily Chart | Source: TradingViewSelling pressure continued on April 7, pulling the price below the nearest support level at $1.77. Buyers may attempt to initiate a bounce, but are likely to face strong selling pressure around the $2 zone. If the XRP/USDT pair turns down from the $2 level, it indicates that the bears have turned this support level into resistance. In that case, the likelihood of a deeper drop to $1.27 will increase.

The first sign of strength will be when the price breaks above and closes over the $2.20 level – this will indicate that the market has rejected the previous bearish breakout.

Technical Analysis of BNB

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

Daily BNB/USDT Chart | Source: TradingViewThe BNB/USDT pair has bounced from the support area of $520, but the expected recovery is likely to encounter selling pressure at the moving averages. If the price reverses from the current area or from the 20-day EMA, the risk of a further decline to $500 and then to $460 will increase.

The bulls need to push the price above and maintain it above the downtrend line to signal a recovery. At that point, the pair could rise to $644 and then $686. This indicates that the pair may continue to fluctuate within a wide range from $460 to $745 for some time.

Technical Analysis of SOL

Solana (SOL) has fallen below the support zone of $120-$110 on April 6, indicating that the downtrend has returned.

Daily SOL/USDT chart | Source: TradingViewThe SOL/USDT pair has recovered from the $95 level, but in the rebound, bears are expected to create strong resistance in the range of $110 to $120. If the price sharply reverses from the upper resistance area, this currency pair could drop to the $80 level.

Time is running out for the bulls. If they want to bounce back, they need to quickly push the price above the 20-day EMA ($124). At that time, the pair can rise to the 50-day SMA ($137).

Technical Analysis of DOGE

The inability of bulls to push Dogecoin (DOGE) above the 20-day EMA ($0.17) has attracted a new wave of selling on April 6.

Daily DOGE/USDT Chart | Source: TradingViewThe DOGE/USDT pair has dropped below the important support level of $0.14, but the long candle wicks indicate strong buying pressure at lower price levels. Bulls are expected to make an effort to defend the $0.14 level because if they fail, the pair may continue to drop to $0.10.

The 20-day EMA is an important resistance level to watch above. If the price breaks and closes above the 20-day EMA, it indicates that the bearish momentum is weakening. At that point, the currency pair could rise to the 50-day SMA ($0.19).

Technical Analysis of ADA

Cardano (ADA) has reversed and broken the support level of $0.58 on April 6, indicating that the bears are still in control of the market.

Daily ADA/USDT Chart | Source: TradingViewThe ADA/USDT pair has fallen close to a significant support level at $0.50, where the bulls have stepped in. This move marks the beginning of a recovery, however, the upward momentum is expected to face selling pressure at $0.58 and then at the 20-day EMA $0,67(. If the price turns down from the moving averages and breaks below the $0.50 level, it would signal a further decline towards $0.40.

The bulls will have to push and maintain the price above the 50-day SMA )$0.73( to show that the bears are gradually losing control.

LEO Technical Analysis

UNUS SED LEO )LEO( has reversed and decreased from the 50-day SMA )$9,63( on April 4 and closed below the support line of the ascending triangle pattern.

![])https://img.gateio.im/social/moments-1f0180785caf5f3ff7b91eda9ca3088d(Daily chart of LEO/USDT | Source: TradingViewThis has invalidated the bullish pattern, which is a negative signal. The moving averages have started to turn downwards and the RSI indicator is near the oversold zone, indicating that the bears are in control. There is a small support level at $8.84, but if this level is breached, the LEO/USD pair could plunge to $8.30.

The bulls will face a tough test if they want to stop the downtrend. They need to push the price above $9.90 to regain control.

You can check the coin price here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct thorough research before making any decisions. We are not responsible for your investment decisions.

• A whale urgently sent 14 million dollars worth of ETH to avoid the liquidation of 340 million dollars.
• Bitcoin is facing the largest "discount" in the uptrend cycle.

SN_Nour

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