In April, risky assets showed marginal gains with the S&P 500 Index rising around 1.5% and Bitcoin gaining over 4%. While the recovery in these assets may continue into May, there are concerns that the United States banking sector could face further turmoil, which could lead to a correction in the equity markets. JPMorgan Asset Management’s CIO, Bob Michele, stated that the current woes at First Republic Bank could cause a domino effect. It is difficult to predict how Bitcoin will react to such a crisis given its recent performance, but it could face a correction sooner or later.

Cryptocurrency Performance

In the short term, Bitcoin and select altcoins are showing strength. Here are the charts of five cryptocurrencies that may outperform over the next few days:

Bitcoin (BTC): The bulls are trying to assert their supremacy as the 20-day exponential moving average has started to turn up, indicating that the path of least resistance is to the upside. If the price rises above $30,000, it may climb to the overhead resistance zone of $31,000 to $32,400. The 50-day simple moving average is an important support level to watch, and a collapse below it could lead to a drop in the pair to $25,250.

Solana (SOL): The downtrend line was not broken during the most recent leg of the correction, indicating demand at lower levels. If the price rises above the key resistance at $27.12, the SOL/USDT pair may accelerate towards $39. However, if the price breaks below the moving averages, the pair could plummet to the crucial support at $18.70.

Cosmos (ATOM): The bulls are fiercely defending the support at $10.20, and buyers have pushed the price above the moving averages. If the downtrend line is broken, the pair may rally to $13.50 and then to $15.50. However, if the price reverses direction from the downtrend line, it will suggest that bears are trying to form a descending triangle pattern.

Internet Computer (ICP): The price turned up on April 27 and started a strong recovery, with the 20-day EMA turning up and the RSI climbing into positive territory. If the price rebounds off the 20-day EMA, it will suggest that the bulls are buying the dips, and a rally to the downtrend line could follow. A break below the 50-day SMA, on the other hand, could tilt the advantage in favor of the bears.

Hedera (HBAR): The bulls held their ground at the support level of $0.06, and if the price rises above the resistance line, the bullish momentum may pick up, and the HBAR/USDT pair could rally to the overhead resistance at $0.08. However, if the bears remain active at higher levels, a break below $0.06 is possible.

Overall, while risky assets have shown marginal gains, the banking sector’s woes could hinder further progress. Cryptocurrencies, particularly Bitcoin and select altcoins, are showing strength in the short term, but the market remains unpredictable as always.

Analysis

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