Bitcoin has reclaimed the $26,000 level, but will large cap altcoins follow BTC's rebound?
Bitcoin (BTC) is witnessing a tough battle between buyers and sellers near the $25,000 mark. A minor cause of worry for the bulls is that even the news of BlackRock having filed an application for a Bitcoin spot exchange-traded fund could not boost prices higher. This suggests that investors remain cautious due to the regulatory overhang.
However, this does not mean that professional investors have abandoned plans to invest in cryptocurrencies. The Laser Digital Investor Survey of institutional investors conducted in April shows that 90% of the respondents were ready to consider putting money into crypto if the asset was backed by a “large traditional financial institution.” Another positive was that 82% of the investors polled were positive on crypto’s prospects over the next 12 months.
Glassnode co-founders Yann Allemann and Jan Happel said in a tweet on June 15 that a traditional technical analysis indicator and two on-chain indicators for Bitcoin were looking similar to how they did in Q3 2020, just before Bitcoin soared above its 2017 high of $20,000.
Could Bitcoin and the altcoins start a recovery from the current levels? Let’s study the charts of the top-10 cryptocurrencies to find out.
Bitcoin price analysis
Bitcoin plunged below the crucial support at $25,250 on June 14, indicating aggressive selling by the bears.
Although the bulls managed to push the price back above $25,250 on June 15, they will have to overcome the obstacle at the 20-day exponential moving average ($26,320) to start a meaningful bounce. The BTC/USDT pair could then attempt a rally to the 50-day simple moving average ($27,210) and subsequently to the resistance line of the descending channel.
Contrary to this assumption, if the price turns down from the 20-day EMA, the bears will again attempt to sink the pair to the support line of the channel. The bulls are expected to defend this level with all their might because a break below it may clear the path for a crash to the psychologically critical level of $20,000.
Ether price analysis
Ether (ETH) slipped below the $1,700 level on June 14, indicating that the failure to start a strong rebound may have intensified selling by the bears.
The bulls are trying to push the price back above $1,700 but the bears are expected to protect the level with vigor. If the price turns down from $1,700, the possibility of a break below $1,600 increases. If that happens, the ETH/USDT pair may tumble to the next major support at $1,352.
Alternatively, if the pair rises above $1,700, it will suggest strong demand at lower levels. The pair may then rise to the 20-day EMA ($1,779) where the bears will try to halt the recovery. If they fail in their endeavor, the prospects of a rally to $1,928 and thereafter to $2,000 increase.
BNB price analysis
BNB’s (BNB) rebound fizzled out at the 38.2% Fibonacci retracement level of $252.50 on June 14, indicating that bears continue to sell on minor rallies.
The real test will be at the $220 level. If bears succeed in pulling the price below it, the BNB/USDT pair could start the next leg of the downtrend. The pair could then collapse to the crucial support at $183.
Another possibility is that the bulls buy the dips to the $220 support. In that case, the pair may swing between $252 and $220 for some time. If buyers drive the price above $252, the pair may rise to $265 where the bears are again expected to mount a strong defense.
XRP price analysis
The failure to sustain XRP (XRP) above the overhead resistance at $0.56 on June 13 may have tempted several short-term traders to book profits.
The price fell below the 50-day SMA ($0.47) on June 14 and 15 but did not close below the level. Buyers could not capitalize on this window of opportunity and push the price higher. That may have accelerated selling on June 16. If the price sustains below the 50-day SMA, the XRP/USDT pair could dive to $0.41.
If bulls want to make a comeback, they will have to quickly push the price back above the 20-day EMA. The pair may then make one more attempt to rise above the overhead resistance at $0.56.
Cardano price analysis
Cardano (ADA) turned down on June 14 but the bears are finding it difficult to sink the price to the next support at $0.24.
This suggests that buyers are attempting to stall the decline near $0.24. The oversold levels on the RSI indicate the possibility of a short-term consolidation or a relief rally in the next few days. The ADA/USDT pair may oscillate between $0.24 and $0.30 for some time.
If buyers want to start a sustained relief rally, they will have to overcome the obstacle at the 20-day EMA ($0.31). The pair could then climb to the 50-day SMA ($0.35). Contrarily, if the price breaks below $0.24, the pair may slump to $0.22 and then to $0.20.
Dogecoin price analysis
The bears made an attempt to resume the decline by pulling Dogecoin (DOGE) below the strong support at $0.06 but the bulls purchased the drop as seen from the long tail on the candlestick.
Buyers will try to start a relief rally that could reach the 20-day EMA ($0.07). This remains a formidable hurdle for the bulls to cross because the bears have repeatedly stopped recovery attempts at this level since April 20.
On the downside, the $0.06 level is an important support for the bulls to defend because if it gives way, the DOGE/USDT pair could plummet to the next support at $0.05. Conversely, a break above the 20-day EMA may result in a move higher to $0.08.
Solana price analysis
The failure of the bulls to push and sustain Solana (SOL) above the breakdown level of $15.28 attracted a fresh bout of selling on June 14.
The bears tried to sink the price to the June 10 intraday low of $12.80 but the bulls purchased the dip near $14. This suggests that the buyers have not given up and are accumulating on dips.
Buyers will have to push and sustain the price above $16 to suggest the start of a stronger recovery toward the 20-day EMA ($17.52). This remains the key level to watch out for because a break above it could result in a retest of the breakdown level at $18.70.
The bears will have to yank the price below $12.80 to start the next leg of the downward move to $10.
Related: Bitcoin price eases downside as traders demand $24.5K support holds
Polygon price analysis
Polygon (MATIC) turned down from the breakdown level of $0.69 on June 13, indicating that the bears are trying to flip the level into resistance.
Although the downsloping moving averages indicate advantage to bears, the oversold levels on the RSI suggest a minor consolidation is possible. The MATIC/USDT pair may stay between $0.69 and $0.50 for some time.
Buyers will have to kick the price above the 20-day EMA ($0.73) to indicate that the lower levels have been rejected. That could start a relief rally toward $1. This view will invalidate if the price continues lower and plunges below $0.50. That could open the doors for a fall to $0.44 and then to $0.32.
Litecoin price analysis
The $75 support cracked on June 14, indicating that the bears are trying to sink Litecoin (LTC) to the next support at $65.
A minor positive in favor of the bulls is that they did not allow the price to sustain below the $75 level. This indicates that lower levels are attracting buyers. The bulls need to drive the price above the 20-day EMA ($83) else, the LTC/USDT pair may witness another round of aggressive selling.
If the price turns down and breaks below $75, the possibility of a drop to $65 increases. This level may again attract buyers but if they fail to defend the level, the pair could slide to $61.
Polkadot price analysis
Polkadot (DOT) turned down from the 20-day EMA ($4.86) on June 14, indicating that the sentiment remains negative and bears are selling on rallies.
The RSI has dipped back into the oversold territory, indicating that a minor consolidation or a relief rally is possible. If the price turns up from the current level, the DOT/USDT pair could again rise to the 20-day EMA. This remains the key level to watch out for on the upside because a break above it could push the pair to $5.15.
The bears are likely to have other plans. They will try to strengthen their position further by pulling the price below the $4.22 support. If they manage to do that, the pair may slide to $4 and later to $3.50.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
from Cointelegraph.com News Rakesh Upadhyay
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