Lately, a great deal of attention has been focused on the correlation betwixt Bitcoin and the Southward&P 500, meaning crypto traders need to continue rail of the fundamentals of the equity markets. Global markets keep to exist negatively impacted by the coronavirus pandemic and co-ordinate to a report from the International Monetary Fund, the resulting lockdown in several countries will pb to ane of the worst contractions in 90 years.

According to the IMF, "even if the spread of the virus peaks in the second quarter for most countries in the world, and recedes in the second one-half of this year" the global economy will witness a iii% recession year-over-year.

As a comparison, the previous financial crisis in 2008 had clocked only a moderate 0.1% driblet in GDP growth yr-over-yr.

Daily cryptocurrency market performance. Source: Coin360

Daily cryptocurrency market performance. Source: Coin360

Usually, the expectation with such a negative forecast is a sharp fall in equity prices. However, the investors have already been expecting a sharp slowdown. Therefore, these stark warnings might only encounter a short-term knee-jerk reaction. The markets are likely to be more concerned well-nigh the rate of recovery after the slowdown ends. If the expectation is that the economy will leap dorsum speedily, the equity markets might not suspension below their recent lows.

Even if the high correlation between Bitcoin and the S&P 500 remains intact in the short-term, a sharp fall below $5,000 level looks unlikely. Equally the spread of the coronavirus slows down and the world tries to limp back to normalcy, Bitcoin is expected to chart its own course driven past its fundamentals.

Therefore, investors could cull to not to be likewise bogged down by the performance of equities markets and only use them as a reference.

Let's report the charts of Bitcoin and the major altcoins to determine the path of least resistance.

BTC/USD

The bears have non allowed Bitcoin (BTC) to rally to a higher place the 50-day simple moving average for the past few days. This is a negative sign as information technology shows that the bears are in command. They are currently attempting to sink the price beneath the twenty-solar day exponential moving boilerplate ($6,840).

BTC USD daily chart. Source: Tradingview

BTC USD daily nautical chart. Source: Tradingview

If the BTC/USD pair sustains beneath the 20-day EMA, it will betoken weakness. With the 50-day SMA sloping down and the relative forcefulness index gradually turning downward, the bears accept a slight advantage. The firsthand support is at $six,553.21 simply if this fails to concord, the decline can extend to $5,660.65.

Conversely, if the bulls buy the current dip, we anticipate another endeavour to scale the toll to a higher place the 50-twenty-four hour period SMA ($vii,033). If successful, a move to $7,454.17 and $8,000 is possible.

Nosotros conceptualize the pair to start a decisive move inside the side by side few days. For now, traders can protect their long positions with a stop loss of $5,600.

ETH/USD

Ether (ETH) continues to trade between both the moving averages, which are converging. This shows that volatility has dropped but this is unlikely to continue for long. We anticipate a sharp motion within the adjacent few days.

ETH USD daily chart. Source: Tradingview​​​​​​​

ETH USD daily chart. Source: Tradingview

If the bears sink the ETH/USD pair below $149, the follow-up selling can elevate the price to $135 and beneath it to $100. Therefore, the stop loss on the long positions can be kept at $135.

On the other manus, if the pair turns around from the current levels, the bulls will endeavour to propel the price above $176.103. If successful, an up move to $208.l and $250 is possible.

XRP/USD

The bulls are struggling to keep XRP higher up the 20-day EMA ($0.184), which is a negative sign. The 50-twenty-four hour period SMA ($0.188) continues to slope downward and the RSI is also gradually moving lower. This suggests that the bears are attempting to tilt the advantage in their favor.

XRP–USD daily chart. Source: Tradingview​​​​​​​

XRP–USD daily nautical chart. Source: Tradingview

A interruption beneath $0.175 will exist a negative sign as it will increase the possibility of a driblet to $0.15708. This is the critical level to watch out for because, below this level, a retest of the recent low at $0.114 is possible.

Conversely, if the XRP/USD pair turns effectually from the current levels or from 1 of the support levels and rallies above the recent swing high of $0.20570, a new uptrend is probable. Hence, the stop loss on the long positions tin be retained at $0.155.

BCH/USD

Bitcoin Cash (BCH) has been sustaining beneath the 20-twenty-four hour period EMA ($233.51) for the by two days, which is a negative sign. This shows that the bulls are not confident ownership even at these levels.

BCH–USD daily chart. Source: Tradingview​​​​​​​

BCH–USD daily chart. Source: Tradingview

The BCH/USD pair can now drop to $200 and if this level cracks, the decline tin extend to $166. With both the moving averages sloping down and the RSI in the negative territory, the advantage is with the bears.

Every bit the trend looks surly, we suggest traders close one-half of their long position at the electric current levels and keep the rest with the stops at $197.

Our bearish view will be negated if the pair turns around from the current levels and rises in a higher place the $250-$280.47 resistance zone. Such a move will open the gates for a rally to $350.

BSV/USD

The volatility in Bitcoin SV (BSV) has dropped sharply in the past few days. This shows that traders are non articulate well-nigh the adjacent motility, hence, they are not placing any big bets in either direction.

BSV–USD daily chart. Source: Tradingview​​​​​​​

BSV–USD daily chart. Source: Tradingview

However, this state of confusion is unlikely to remain for long. Within the adjacent few days, there could be a large thrust in either management that tin can result in a directional motility.

As the moving averages have completely flattened out and the RSI is also at the midpoint, it is difficult to predict the direction of the breakout.

If the bulls brand the first move, they tin can conduct the price to $227 and above it to $268.842, which is the 61.8% Fibonacci retracement of the contempo decline. Conversely, if the bears force a breakdown, a drib to $146.20 is possible. Therefore, the traders can maintain the stops on the long positions at $165.

LTC/USD

Litecoin (LTC) has been trading beneath the 20-24-hour interval EMA ($41.94) for the by two days. This is a negative sign equally information technology shows a lack of buyers even at these levels. The altcoin tin now drop to the next support at $35.8582.

LTC–USD daily chart. Source: Tradingview​​​​​​​

LTC–USD daily chart. Source: Tradingview

The 50-day SMA ($44.82) continues to slope down and the RSI is gradually dropping lower. This suggests that the bears have the upper hand. A interruption below $35.8582 will be a huge negative, hence, the traders tin can hold their long positions with stops at $35.

Earlier surrendering to the bears, the bulls might make i last try to defend the support at $35.8582. If successful, the LTC/USD pair is likely to remain range-bound between $35.8582-$43.67 for a few more days. The pair will selection upwardly momentum after information technology climbs above $47.6551.

EOS/USD

EOS has been trading close to the $two.4001 level for the by few days. The 20-day EMA ($2.47) has flattened out but the 50-day SMA ($two.65) continues to slope down. The RSI has dipped below the l levels, which shows that the bears might be at a slight advantage.

EOS–USD daily chart. Source: Tradingview​​​​​​​

EOS–USD daily chart. Source: Tradingview

A suspension below $2.4001 will signal that the bears accept fabricated their move and a driblet to $ii.0632 is likely. If this support besides cracks, a drop towards the contempo lows at $1.42 is possible. Hence, the traders tin retain the stops on the long positions at $two.

Conversely, if the EOS/USD pair bounces off the current levels or $2.0632, the bulls volition make some other attempt to button it higher up the contempo swing high of $2.8319. If successful, a new uptrend is likely.

BNB/USD

Binance Money (BNB) climbed higher up the 50-twenty-four hour period SMA ($fourteen.77) on April thirteen and followed it upwardly with a move in a higher place $15.49 on April 14. This should have cleared the path for a movement to $17.50 but the bears are not relenting.

BNB–USD daily chart. Source: Tradingview​​​​​​​

BNB–USD daily chart. Source: Tradingview

The BNB/USD pair has pulled back to the moving averages, which are on the verge of a bullish crossover. We anticipate this level to act every bit a stiff support. If the pair bounces off this support, it is likely to resume its journey towards $17.50.

If the momentum picks upwards and breaks above $17.l, the side by side target to watch out for on the upside is $21.fifty. The traders can trail the stops on the long positions to $13.

A bullish view volition be invalidated if the bears sink the cost below the breakout level of $13.65. Such a motility will signal that the markets take rejected the college levels and a drib to $11.2552 is likely.

XTZ/USD

The range continues to compress as Tezos (XTZ) is largely stuck between both the moving averages. This tight range trading could lead to a precipitous directional move within the next few days.

XTZ–USD daily chart. Source: Tradingview​​​​​​​

XTZ–USD daily chart. Source: Tradingview

A break below the 20-day EMA ($1.88) volition be a huge negative equally information technology tin drag the XTZ/USD pair to $one.65. If the downward momentum is strong, a drop to $1.4453 is also possible. Such a move will betoken that the breakout above $1.955 was a bull trap.

Contrary to our assumption, if the pair dips just beneath the 20-day EMA but then quickly reverses direction and rallies above the fifty-mean solar day SMA ($two.03)-$2.185 resistance zone, it volition signal an advantage to the bulls. For now, traders tin can retain their stops on any long positions at $1.40.

LINK/USD

Chainlink (LINK) has turned downwards from only above the 61.8% Fibonacci retracement level of the contempo drop. This shows that the bears are unlikely to surrender without a tough fight.

LINK–USD daily chart. Source: Tradingview​​​​​​​

LINK–USD daily chart. Source: Tradingview

The LINK/USD pair is likely to accept support at the moving averages, which are close to each other. If the pair rebounds off this back up, the bulls will make some other attempt to scale the cost above $iii.6412.

If successful, a rally to $iv.9762 is possible. The bears might pose another challenge at $4.2023 merely we expect this level to be crossed.

Contrary to our supposition, if the bears sink the pair below the moving averages, a drop to $2.50 and $2 is possible.

The views and opinions expressed here are solely those of the writer and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves chance. You should comport your own research when making a decision.

Market place data is provided by HitBTC exchange.