bitcoin cash

Select altcoins are looking to capitalize on Bitcoin’s range-bound trading below the 20-day moving average.

Bitcoin (BTC) is attempting to stage a relief rally but analysts at JPMorgan Chase believe that the short-term setup looks challenging. However, the analysts also pointed out that the crypto markets had started a healing process.

A sign of this 'healing process' was seen when the crypto markets did not react negatively to the news that the United Kingdom’s Financial Conduct Authority banned Binance Markets Limited from undertaking “any regulated activity in the UK.”

When a market reacts negatively to bad news, it is a sign that weaker hands are panicking and dumping their positions. On the other hand, a muted reaction to negative news indicates that investors are not falling prey to FUD, which is a sign of strength.

The crypto sentiment may have received a boost due to the strong support for Bitcoin from Mexico’s third-richest man Ricardo Salinas Pliego. The billionaire tweeted that he recommended the use of Bitcoin and was also working with his bank to make it the first in Mexico to accept Bitcoin.

With the sentiment turning positive, can Bitcoin pull the crypto sector higher? Let’s study the charts of the top-10 cryptocurrencies to find out.

BTC/USDT

Bitcoin is again facing resistance at the 20-day exponential moving average ($35,252) but the positive sign is that the bulls have not given up much ground. The positive divergence on the relative strength index suggests that the bears may be losing their grip.

If buyers propel the price above the 20-day EMA, the BTC/USDT pair could rise to the 50-day simple moving average ($38,603). This level may act as a resistance but if the bulls can push the price above it, the pair may rise to $42,451.67.

The bears are likely to defend the $42,451.67 level aggressively. If the price turns down from this resistance, the pair could drop to the 20-day EMA. A strong bounce off this support will suggest that the sentiment has turned positive and that will increase the possibility of a break above $42,451.67.

Conversely, if the price turns down from the current level, the bears may pull the price to the $31,000 to $28,000 support zone. A break and close below this zone could intensify selling and clear the path for a decline to $20,000.

ETH/USDT

Ether (ETH) again bounced off the $1,728.74 support on June 26, indicating accumulation at that level. The bulls will now try to push the price above the 20-day EMA ($2,178). If they manage to do that, the biggest altcoin could rally to the downtrend line.

However, this is not going to be easy because the downsloping moving averages and the RSI in the negative territory suggest that bears are at an advantage. The failure to break and sustain the price above the 20-day EMA could attract another round of selling.

If bears sink the price below $1,728.74, the selling could pick up momentum as traders who may have purchased the recent dips could rush to the exit. The ETH/USDT pair could then start the next leg of the downtrend that may reach $1,536.92.

BNB/USDT

Binance Coin (BNB) turned down from just below the 20-day EMA ($320) on June 25 but the bears could not pull the price down to the critical support at $211.70. This suggests that bulls are trying to form a higher low at $264.26.

However, the downsloping moving averages and the RSI below 42 suggest that the bears have the upper hand. If the price turns down from the current level or the 20-day EMA, the bears will try to pull the price below $264.26. If they do that, the pair could drop to the critical support at $211.70.

A break and close below this support may start the next leg of the downtrend that could stretch to $126.75. On the other hand, if the bulls thrust the price above the 20-day EMA, the BNB/USDT pair could rise to the 50-day SMA ($383) and then to $433.

ADA/USDT

Cardano (ADA) has been trading between the 20-day EMA ($1.39) and $1.20 for the past four days. This suggests that the bulls are attempting to form a higher low at $1.20.

If the bulls can drive the price above the 20-day EMA, the ADA/USDT pair could rise to the 50-day SMA ($1.58). This level may act as a resistance but if the buyers can propel the price above it, the pair may rally to $1.94.

The 20-day EMA is flattening out and the RSI is above 45, suggesting that bulls have a good chance to make a comeback. This positive view will invalidate if the bears sink the price below $1.20. That could pull the price down to $1.

DOGE/USDT

Dogecoin (DOGE) could not rise above the 20-day EMA ($0.27) on June 25 but the positive sign is that the bulls have not given up much ground in the past two days. This suggests a lack of aggressive selling by the bears.

If the bulls do not allow the price to drop below $0.21, the possibility of the DOGE/USDT pair breaking above the 20-day EMA increases. The pair will again face stiff resistance at the neckline of the head and shoulder pattern.

A break above it will be the first indication that the correction may be over. On the contrary, if the price turns down from the current level and breaks below $0.21, a retest of $0.15 is likely. A break below this level could start the next leg of the downtrend to $0.10.

XRP/USDT

The bears do not seem to be willing to wait for XRP to reach the 20-day EMA ($0.74) before shorting. This suggests that the sentiment is bearish and traders expect further downside from the current levels.

If the bears sink the price below the psychological support at $0.50, the selling could intensify and the XRP/USDT pair could drop to the support line of the descending channel. This level may act as a support but the extent of the pullback will give clarity whether the correction is over or not.

Contrary to this assumption, if the bulls push the price above the $0.75 resistance, it will signal strong buying at lower levels. The pair could then move up to the 50-day SMA ($0.96) and then to $1.07.

DOT/USDT

Polkadot (DOT) is currently stuck in a tight range between $13 and $16.93. A tight consolidation near a critical support indicates weakness and it usually resolves in favor of the bears.

Both moving averages are sloping down and the RSI is in the negative zone, indicating that bears are in control. A break and close below $13 could open the doors for a further decline to $10 and then to $7.50.

On the other hand, if the bulls can push the price above the 20-day EMA ($18.72), it will suggest accumulation at lower levels. The DOT/USDT pair could then rally to the overhead resistance at $26.50.

UNI/USDT

Uniswap (UNI) has been trading in a tight range of $15.10 to $18.60 for the past few days. The bulls are currently trying to push the price above this range and the 20-day EMA ($19.86), but it is not going to be easy.

The downsloping moving averages and the RSI in the negative zone suggest that bears are in control. If the price turns down from the overhead resistance, the bears will try to sink the UNI/USDT pair below $15.

If that happens, the pair may challenge the critical support at $13. A break below this level could extend the downtrend to $10 and later to $7.

Alternatively, if the bulls propel and sustain the price above the 20-day EMA, the pair could rally to the 50-day SMA ($25.24). This level may act as a resistance but if the bulls can push the price above it, the rally may reach $30.

Related: Biggest ever mining difficulty drop: 5 things to watch in Bitcoin this week

BCH/USDT

The bulls are attempting to push Bitcoin Cash (BCH) to the breakdown level at $538.11. This is an important resistance to watch out for because the 20-day EMA ($543) is just above it. Therefore, the bears will try to defend the resistance aggressively.

The downsloping moving averages and the RSI below 43 indicate that bears have the upper hand. If the price turns down from the overhead resistance, the bears will once again try to pull the BCH/USDT pair to $370.

This is an important support and if the price rebounds off it, the pair may consolidate between $370 and $538.11 for a few days. Conversely, a break below $370 could start a decline to the next support at $300.

LTC/USDT

Litecoin (LTC) rebounded off the $118 support on June 26 but the bounce lacks strength. This suggests a lack of aggressive buying by the bulls at the current levels.

Both moving averages are sloping down and the RSI is in the negative zone, suggesting that bears have the upper hand. If the price turns down from the 20-day EMA ($148), the sellers will try to pull the price below the $118 to $104.92 support zone.

If they succeed, the LTC/USDT pair will complete a descending triangle pattern, which could result in a fall to $70. Contrary to this assumption, if the bulls can push the price above the downtrend line, the bearish setup will be invalidated. That could start an up-move to the 50-day SMA ($192) and later to $166.45.

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

Market data is provided by HitBTC exchange.

Sellers are jumping on top of every breakout from Bitcoin and altcoins, indicating that the bears are in no hurry to let go of their advantage.

Bitcoin (BTC) price remains jittery and throughout this week, every relief rally is being sold into. This is a classic bear market reaction and may not end in a hurry. However, the current price action should not worry investors because the longer the time spent in a bottoming formation, the stronger the base for the next leg of the up-move.

In a recent note to investors, JPMorgan said that Bitcoin’s fair value may remain between $23,000 and $35,000 over the medium term. The bank pointed out that outflows from crypto Bitcoin funds since the fall on May 19, show a lack of demand from institutional investors. Another reason that may be capping Bitcoin’s price is the massive unlocking of Bitcoin from the Grayscale Bitcoin Trust fund at the end of the six-month lock-up period.

None of the events of the past few days have changed the long-term view of Bitcoin. Jason Urban, the co-head of trading at Galaxy Digital said that Bitcoin may “see something north of $70,000 by the end of the year.”

Although not a game-changer, the Purpose Bitcoin exchange-traded fund has seen an average inflow of 86.15 Bitcoin between May 15 and June 24, according to Glassnode data. This has boosted the ETF’s assets under management to 21,114 BTC. This shows that smart investors are gradually chipping away instead of trying to time the bottom.

Let’s study the charts of the top-10 cryptocurrencies to determine the critical support levels that could be touched if the downtrend continues.

BTC/USDT

Bitcoin’s rebound off the $31,000 to $28,000 support zone has turned down from the 20-day exponential moving average ($35,788) today. The downsloping moving averages and the relative strength index (RSI) in the negative territory indicate an advantage to the bears.

The sellers will now make one more attempt to sink the price below the support zone. If they succeed, the BTC/USDT pair could start the next leg of the down move and plummet to $20,000.

However, the bulls will not give up easily. They are likely to defend the support zone aggressively. If the price rebounds off this zone once again, the bulls will try to push the price above the 20-day EMA.

If they manage to do that, the BTC/USDT pair could continue its consolidation between $28,000 and $42,451.67 for the next few days. A breakout and close above this range will be the first sign that the downtrend may have ended.

ETH/USDT

Ether’s (ETH) rebound off the $1,728.74 support fizzled out at $2,045 on June 23. This suggests a lack of buyers at higher levels. Both moving averages have turned down and the RSI is near the oversold zone, indicating that the path of least resistance is to the downside.

If the price turns down and breaks below the $1,728.74 support, the ETH/USDT pair could start the next leg of the downtrend. The pair could then drop to $1,536.92 and then $1,293.18. The deeper the fall, the longer it will take for the bulls to start the next leg of the uptrend.

Contrary to this assumption, if the price again rebounds off $1,728.74, it will suggest that the bulls are defending this level aggressively. A breakout and close above the 20-day EMA ($2,248) will be the first indication that a bottoming formation may have started.

BNB/USDT

Binance Coin’s (BNB) bounce off the $211.70 support is facing stiff resistance at the 20-day EMA ($332). This suggests that the sentiment remains negative and traders are selling on rallies.

The bears will now make one more attempt to sink the price below the $211.70 support. If they manage to do that, the BNB/USDT pair could start the next leg of the downtrend. The next support on the downside is $200 and then $126.75.

Alternatively, if the price rebounds off the $211.70 support, it will suggest strong accumulation by the bulls at this level. If the buyers propel the price above the 20-day EMA, the pair could rise to $433. A breakout and close above this resistance will be the first sign that the downtrend may be over.

ADA/USDT

Cardano (ADA) rebounded off the $1 support on June 22 but the bulls seem to have hit a wall at the 20-day EMA ($1.42). This suggests that the bears have not thrown in the towel yet and are trying to maintain the upper hand.

The sellers will now try to pull the price down to $1. This is an important support to watch out for because it has not been broken on a closing basis since Feb. 23. Therefore, a break below $1 may result in a long liquidation.

The ADA/USDT pair could then drop to $0.68 and if the selling intensifies, the decline could even extend to $0.40.

However, the bulls will have other plans. They will again try to defend the $1 support. If they succeed, the pair may break out of the 20-day EMA and rise to the 50-day simple moving average ($1.61).

DOGE/USDT

Dogecoin (DOGE) rebounded off the $0.15 support on June 22 and reached the 20-day EMA ($0.28) today. After the sharp relief rally of the past three days, the bears are likely to defend the zone between the 20-day EMA and the neckline aggressively.

If the price turns down from the overhead resistance zone, the bears will try to pull the price back to $0.15. A break and close below this level will suggest that traders sold their positions during the current rally. The DOGE/USDT pair could then drop to $0.10.

On the other hand, if the bulls defend the next drop to the $0.21 support, it will signal strength. A breakout and close above the neckline will be the first sign that the pair’s correction could be over and a bottoming formation may begin.

XRP/USDT

XRP’s rebound off the $0.50 support in the past few days could not even reach the breakdown level of $0.75. This suggests a lack of urgency among the traders to buy at these levels.

The bears may now sell aggressively and try to pull the price below the psychological level at $0.50. If they do that, the XRP/USDT pair could decline to the support line of the descending channel.

On the contrary, if the bulls buy the next dip to the $0.50 support, it will suggest accumulation at lower levels. The bulls will have to push and sustain the price above the 20-day EMA to suggest that the selling pressure is reducing.

DOT/USDT

Polkadot’s (DOT) rebound off $13 has been weak as the bulls have not even been able to push the price to the 20-day EMA ($20). This suggests that traders are in no great hurry to buy at the current levels.

The downsloping moving averages and the RSI below 36 indicate that bears have the upper hand. If bears pull the price below $13, the DOT/USDT pair may resume the downtrend and plummet to $10 and later to $7.50.

Conversely, if the price rebounds off $13 and rises above $17, the pair may rise to the 20-day EMA. A breakout and close above this resistance will open the doors for a move to $26.50. If the price turns down from this level, the pair may consolidate between $13 and $26.50 for the next few days.

UNI/USDT

Uniswap’s (UNI) rebound off $13 hit a wall at $18.60 on June 24. This suggests that demand dries up at higher levels. The downsloping moving averages and the RSI in the negative zone indicate that bears are in control.

The bears will now try to sink the price below the $13 support. If they manage to sustain the price below the support, the UNI/USDT pair could witness further selling. That may result in a decline to $10 and then to $7.

Alternatively, if the bulls again defend the $13 support, it will suggest accumulation at lower levels. The buyers will then try to drive the price above the 20-day EMA ($20). If they succeed, the pair could rally to the 50-day SMA ($26) and then to $30.

Related: Elon Musk agrees to speak with Twitter CEO Jack Dorsey at Bitcoin event

BCH/USDT

The bulls are struggling to thrust Bitcoin Cash (BCH) above the breakout level at $538.11, which suggests a lack of urgency among the bulls to accumulate at the current levels.

Both moving averages are sloping down and the RSI is near the oversold territory, suggesting that bears are in command. The sellers will now try to cement their advantage by sinking the price below the $370 support.

If they do that, the BCH/USDT pair could drop to the psychological support at $300 and then to $270. Contrary to this assumption, if the price again rebounds off $370, it will indicate strong buying at lower levels. The bulls will then attempt to push the price above the 20-day EMA ($565). If that happens, the pair may rally to the 50-day SMA ($782).

LTC/USDT

Litecoin’s (LTC) rebound off the $118 support lacks strength. This suggests that traders are not convinced that a bottom has been made. The downsloping moving averages and the RSI in the negative territory suggest that bears are in command.

If the price turns down from the current level and breaks below $118, the LTC/USDT pair could resume its downtrend. The next support on the downside is $100 and if this psychological level also cracks, the decline may extend to $70.

On the contrary, if the price rebounds off $118 once again, the bulls will again try to push the price to the downtrend line. A breakout and close above this resistance will suggest that the sellers are losing their grip. The pair could then rally to the 50-day SMA ($206).

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

Market data is provided by HitBTC exchange.

The swift rebound in Bitcoin and altcoins indicates strong accumulation occurring at lower levels.

Bitcoin (BTC) dropped below $30,000 on June 22, which may be a final sign of capitulation. Data from Skew suggests that if Bitcoin’s price does not recover sharply in the next few days, the decline in the current quarter could be the second-worst quarter since 2014.

Bull and bear phases are part and parcel of every asset class. All the legacy markets have witnessed several bear phases with massive drawdowns in the past. However, after the bear phase ends, a new bull market begins and long-term investors are usually rewarded with strong gains. The crypto markets are presently witnessing a similar bear market correction.

Every bear market is caused due to events that create fear and panic among market participants. However, unless the long-term fundamentals change, the smart investor should use the corrections to buy. Glassnode data suggests that long-term Bitcoin holders are using the current decline to accumulate Bitcoin.

It is impossible to time the bottom because it will be confirmed only in hindsight. Therefore, capitulations to strong support levels during panic selling may be viewed as buying opportunities.

Let’s study the charts of the top-10 cryptocurrencies to spot the critical support and resistance levels.

BTC/USDT

The long tail on Bitcoin’s June 22 candlestick shows strong buying in the $31,000 to $28,000 support zone. This was the fourth instance when buyers defended the support zone, hence this becomes an important area to watch out for.

The relative strength index (RSI) has formed a bullish divergence, which suggests the sellers may be losing their momentum.

If buyers drive the price above the 20-day exponential moving average ($36,260), the BTC/USDT pair could spend some more time between the $28,000 and $43,351.67 range. The longer the time spent inside this range, the stronger will be the eventual breakout from it.

Contrary to this assumption, if the price turns down from the 20-day EMA, it will indicate that bears are selling on relief rallies. A break below $28,000 may result in panic selling, dragging the price to $20,000.

ETH/USDT

Ether (ETH) broke below the triangle on June 18 and reached the critical support at $1,728.74 on June 22. The bulls purchased this dip and are attempting to stage a relief rally, which may hit a wall at the 20-day EMA ($2,325).

If the price turns down from the 20-day EMA, the bears will make one more attempt to sink the ETH/USDT pair below the $1,728.74 support. If they succeed, the pair could start the next leg of the down move that may reach $1,536.92 and then $1,293.18.

The downsloping moving averages and the RSI in the negative zone indicate that bears have the upper hand. Contrary to this assumption, if the bulls push the price above the 20-day EMA, the pair may rise to the 50-day simple moving average ($2,812).

BNB/USDT

Binance Coin (BNB) plunged below the $291.06 support on June 21 but the bears could not break the next support at $211.70. The long tail on the June 22 candlestick indicates strong buying at lower levels.

If the bulls push and sustain the price above $291.06, the BNB/USDT pair could rise to the downtrend line. The bears are likely to defend this resistance aggressively.

However, the RSI is forming a bullish divergence, suggesting the bearish momentum may be weakening. If the bulls can pierce the downtrend line, the pair could rally to $433.

Conversely, if the price turns down from the current level or the downtrend line, the bears will again try to pull the pair below the $211.70 support. If they manage to do that, the pair could slide to $200 and later to $126.75.

ADA/USDT

Cardano (ADA) dropped to the critical support at $1 on June 22 but the long tail on the day’s candlestick suggests that bulls are defending this level aggressively. However, repeated retests of a support level weaken it.

The downsloping 20-day EMA ($1.44) and the RSI in the negative zone suggest that bears have the upper hand. If the price turns down from the current level or the 20-day EMA, the sellers will again try to break the $1 support.

If they succeed, the ADA/USDT pair could witness long liquidation and a drop to $0.80 and then to $0.68 may be on the cards. Alternatively, if the bulls push the price above the moving averages, the pair may rally to $1.94.

XRP/USDT

XRP dived below the $0.75 to $0.65 support zone on June 20, indicating aggressive selling by traders. The break below the May 23 low at $0.65 has extended the lower highs and lower lows pattern for the coin.

The downsloping moving averages and the RSI in the negative zone suggest the path of least resistance is to the downside. If the price turns down from $0.75, it will suggest that bears have flipped this level into resistance. That could pull the price down to $0.40.

Contrary to this assumption, if the bulls propel and sustain the price above the 20-day EMA ($0.80), it will indicate accumulation at lower levels. The XRP/USDT pair could then rally to $1.07. A break above the descending channel will suggest that the downtrend is over.

DOGE/USDT

Dogecoin (DOGE) plunged sharply on June 21 and broke below the $0.21 support. The price has rebounded off the $0.16 support but the bulls have an uphill task ahead of them.

The downsloping 20-day EMA ($0.29) and the RSI in the negative zone suggest that bears have the upper hand. Any relief rally is likely to face stiff resistance at the 20-day EMA and then at the neckline of the head and shoulders pattern.

If the price turns down from either overhead resistance level, the DOGE/USDT pair could retest the $0.16 support. A breakdown and close below this level could attract further selling and the pair could decline to $0.10.

Alternatively, if bulls can drive and sustain the price above the neckline, it will suggest that the bearish setup did not find support at lower levels. That could open the doors for a rally to the 50-day SMA and then to $0.45.

DOT/USDT

The bulls are attempting to stall Polkadot’s (DOT) decline near the May 23 low at $13.63. However, the bulls are unlikely to have it easy as the relief rally could face selling near the 20-day EMA ($21).

Both moving averages are sloping down and the RSI is in the negative territory, suggesting the path of least resistance is to the downside. If the price turns down from the current level or the 20-day EMA, the bears will try to resume the downtrend.

A break below $13 could open the gates for a further fall to the psychological support at $10 and then to $7.50. This negative view will be nullified if the bulls push and sustain the price above the 20-day EMA.

UNI/USDT

Uniswap (UNI) declined close to the May 23 low at $13 but the long tail on the June 22 candlestick suggests that bulls are attempting to defend this level. The relief rally could now reach the 20-day EMA ($21.72).

The downsloping moving averages and the RSI below 39 suggest that bears have the upper hand. If the price turns down from the 20-day EMA, the sellers will make one more attempt to sink the UNI/USDT pair below the $13 support.

If they succeed, the pair could extend the decline to $10 and then to $7. On the contrary, if bulls push the price above the 20-day EMA, it will be the first signal that the downtrend could be over. The pair could then rally to the 50-day SMA ($27.59).

Related: Bitcoin holds $34K as Bloomberg likens $30K support to $4K in 2020 BTC price crash

BCH/USDT

Bitcoin Cash (BCH) fell to $387.61 on June 22 but the long tail on the day’s candlestick shows that the bulls are attempting to defend the $370 support. The altcoin could now rise to the breakdown level at $538.11.

The downsloping moving averages and the RSI near the oversold zone indicate that bears have the upper hand. If the price turns down from $538.11, the BCH/USDT pair could retest the support at $370.

A breakdown and close below this level could clear the path for a fall to $300 and then $270. Alternatively, if bulls propel the price above the 20-day EMA ($585), the pair could rise to the 50-day SMA ($822). Such a move will suggest that the pair may have hit a bottom.

LTC/USDT

Litecoin (LTC) broke below the May 23 low at $118.03 on June 22. However a minor positive is that the bulls purchased the dip and have pushed the price back above $118.03 today.

The LTC/USDT pair could now rise to the downtrend line. If the price turns down from this resistance, the bears will attempt to sink and sustain the pair below the $118.03 support. If they manage to do that, the descending triangle pattern will complete.

This bearish setup could attract further selling and may result in a further decline to $70. This negative view will be invalidated if the bulls drive the price above the downtrend line. That will indicate strong buying at lower levels and the pair may then rally to the 50-day SMA ($215).

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

Market data is provided by HitBTC exchange.

Bitcoin and altcoins are reaching critical support levels, but instead of buying the dip, traders are waiting to see if any bullish signals emerge.

In a bearish environment, traders latch on to every bit of negative news and make that a an excuse to sell. Bitcoin (BTC) dropped over $1,000 within a few minutes as news hit the stands that the third-largest Chinese bank, the Agricultural Bank of China, will not allow the use of its services for crypto transactions. 

Although the bank later deleted its anti-crypto statement, the damage was already done. Similarly, traders have latched on to the news that the Chinese crackdown on Bitcoin miners and this has resulted in the hash rate dropping to an 8-month low.

While this may be a negative in the short term, several analysts believe this is a positive development for the long term. “The ‘China-dominated’ Bitcoin mining era may be coming to an end,” said Alex Gladstein, chief strategy officer of the Human Rights Foundation. As mining activity shifts to other user-friendly jurisdictions, the network is likely to flourish.

Among all the bearish news and price action, MicroStrategy has disclosed the purchase of 13,005 Bitcoin at an average price of $37,617. This takes the firm’s total holding to 105,085 Bitcoin at an average price of just over $26,000 per Bitcoin.

Will MicroStrategy’s purchase attract other institutional investors and result in a relief rally? Let’s study the charts of the top-10 cryptocurrencies to find out.

BTC/USDT

Bitcoin completed the dreaded death cross on June 19 and this seems to have attracted further selling from the bears. The sellers have pulled the price down to the critical support at $31,000 today.

The bulls had successfully defended the $31,000 support on May 23 and again on June 8. Therefore, the level may again attract buying from the aggressive bulls. The relative strength index (RSI) is attempting to form a bullish divergence, which is another positive sign.

If the price rebounds off $31,000, the BTC/USDT pair will attempt to rise to $42,451.67. This could keep the pair range-bound between these two levels for a few more days.

On the upside, the rally is likely to face resistance at the 50-day simple moving average ($41,904). If the pair turns down from this resistance, the bears will again try to sink the price below $31,000.

If they succeed, the pair could decline to $28,000 and if this support also cracks, the next stop could be $20,000.

ETH/USDT

Ether (ETH) broke below the symmetrical triangle pattern on June 18. This indicated that the consolidation of the past few days has resolved in favor of the bears. Sustained selling has pulled the price down to the 200-day SMA ($1,870).

The bulls will try to defend the zone between the 200-day SMA and the May 23 low at $1,728.74. If the price rebounds off this zone, the bulls will again try to push the price back into the triangle. If they manage to do that, it will suggest that buyers are accumulating at lower levels.

However, the 50-day SMA ($2,869) has started to turn down and the RSI has dipped below 35, suggesting that bears are in command. If bears sink the price below the support zone, the ETH/USDT pair could drop to $1,536.92 and then to $1,293.18.

BNB/USDT

Binance Coin (BNB) broke below the uptrend line on June 18 and the bears are currently attempting to sink the price below the $291.06 support.

If they succeed, the BNB/USDT pair could challenge the 200-day SMA ($261). This is an important support to watch out for because the bulls had aggressively defended this support on May 21.

If the price rebounds off the 200-day SMA, the pair could rise to the downtrend line. A break above this resistance could clear the path for an up-move to $379.58 and then $433.

Contrary to this assumption, if the bears sink the price below the 200-day SMA, the pair could drop to $200 and then to $126.75.

Related: Classic bearish chart pattern forms for Bitcoin as BTC price tumbles to $32K

ADA/USDT

Cardano (ADA) has dropped below the critical support at $1.33 today. If bears sustain the price below this level, the altcoin could continue its decline and reach the next major support at $1.

The bulls are likely to defend the $1 support aggressively as the 200-day SMA ($0.98) is just below this level. If the price rebounds off this level, the ADA/USDT pair could rise to $1.33 where the bears may mount a stiff resistance.

If the price turns down from this level, it will suggest that the sentiment has turned negative and traders are selling on rallies. A break below the 200-day SMA could open the doors for a further fall to $0.80 and then $0.68.

This negative view will invalidate if the price turns up from the current level and rises above the 50-day SMA ($1.62).

XRP/USDT

XRP bounced off the 200-day SMA ($0.72) on June 20 but the bulls could not sustain the price above $0.75. Renewed selling has pulled the price back below the 200-day SMA today.

If bears sink the price below $0.65, the selling could intensify and the XRP/USDT pair may drop to the next support at $0.43. The downsloping 50-day SMA ($1.09) and the RSI near the oversold zone suggest that sellers are in command.

Conversely, if the price rebounds off $0.65, the buyers will make one more attempt to push and sustain the price above $0.75. If they manage to do that, it will suggest accumulation at lower levels. The pair may then rise to $0.93 and then to $1.07.

DOGE/USDT

Dogecoin (DOGE) broke below the neckline of a large head and shoulders pattern on June 18 and has continued lower. The bulls will now try to defend the $0.21 support aggressively.

If the price rebounds off $0.21, the bulls will attempt to push the price back above the neckline. If they succeed, it will indicate strong buying at lower levels. The DOGE/USDT pair may then rise to the 50-day SMA ($0.39).

Conversely, if bears sink the price below $0.21, the pair could drop to the 200-day SMA ($0.15). The bulls may again try to stall the decline at this level but if they fail, the pair may drop to the next major support at $0.10.

DOT/USDT

Polkadot (DOT) slipped below the support line of the triangle on June 20 but the bulls pushed the price back into the triangle. However, the sellers are in no mood to relent and they have again pulled the price below the support line today.

The downsloping 50-day SMA ($28.22) and the RSI in the negative zone suggest that bears have the upper hand. The DOT/USDT pair could now drop to the critical support at $15, which has not been breached on a closing basis since Jan. 16.

Therefore, the bulls will attempt to defend the $15 support aggressively. A strong rebound off this level could push the price to $20 and then to the downtrend line. A breakout and close above this resistance will be the first sign of strength.

Contrary to this assumption, if bears sink the price below $15, the pair could witness further selling and decline to the next major support at $7.50.

UNI/USDT

Uniswap (UNI) broke below the 200-day SMA ($22.20) on June 18. The failure of the bulls to defend this critical support indicated that supply exceeds demand. The buyers tried to stage a recovery on June 20 but failed to push the price above the 200-day SMA.

That resulted in renewed selling today. The downsloping 50-day SMA ($28.63) and the RSI near the oversold zone suggest that bears are in command. If the sellers sink the price below $16.49, the UNI/USDT pair could drop to the critical support at $13.04.

The bulls are likely to defend the $13.04 support aggressively. If the price rebounds off this level, the pair could consolidate between $13.04 and $21.50 for a few days. On the contrary, a break below $13.04 could pull the price down to $10.

BCH/USDT

Bitcoin Cash (BCH) has plunged below the $538.11 support, completing the descending triangle pattern. There is a minor support at $468.13 but if this support cracks, the selling could intensify further.

The 50-day SMA ($844) has been sloping down and the RSI is trading near the oversold territory, indicating advantage to the bears. If the sellers sink the price below $468.13, the BCH/USDT pair could slide to $400 and then $370.

This bearish view will invalidate if the price turns up and quickly rises above the 200-day SMA ($609). Such a move will suggest that the bulls aggressively bought at lower levels. The pair may then rise to the 50-day SMA.

LTC/USDT

Litecoin (LTC) broke below the support line on June 18, indicating a lack of urgency among the bulls to buy at that level. The failure to push the price back above the support line in the past two days has attracted further selling today.

The downsloping 50-day SMA ($222) and the RSI near the oversold territory indicate that bears are in control. The LTC/USDT pair could now retest the May 23 intraday low at $118.03. This level may act as a strong support but if the bears sink the price below it, the pair may drop to $100 and then to $70.

On the contrary, if the price rebounds off $118.03, the bulls will try to push the price to the downtrend line. A breakout and close above this level will be the first indication of strength. A trend change may be signaled after the bulls propel and sustain the price above the 50-day SMA.

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

Market data is provided by HitBTC exchange.

Traders expect further downside from Bitcoin and altcoins after BTC dropped below a key support level at $36,000.

The U.S. Federal Reserve updated their inflation expectations for this year from 2.4% in March to 3.4% in their latest meeting that concluded on June 16. To tame inflation, the Fed plans to undertake two rate hikes before the end of 2023.

This news has boosted the U.S. dollar index DXY to its best level since mid-April. Gold’s price, which generally has an inverse correlation with the dollar, has dropped to a 6-week low.

The U.S. equity markets have also not been spared. The Dow Jones Industrial Average index is on track for its worst weekly performance since January this year. This shows the short-term sentiment has turned bearish and traders are closing their positions to hoard cash.

This has also put brakes on Bitcoin’s (BTC) recovery. However, Pantera Capital chief executive Dan Morehead said in the monthly newsletter published on June 14 that Bitcoin has been “this “cheap” relative to its trend 20.3% of the past 11 years.”

Related: Joining the ranks: Bitcoin’s correlation with gold and stocks is growing

Santiment data shows that Bitcoin whales, holding between 100 and 10,000 Bitcoin, have been on a buying spree, lapping up about 90,000 Bitcoin in the past 25 days. They now hold about 48.7% of Bitcoin’s supply.

Can the buying from the whales arrest the decline in Bitcoin and will the buying in altcoins resume? Let’s study the charts of the top-10 cryptocurrencies to find out.

BTC/USDT

Bitcoin turned down from $41,330 on June 15 and the selling has dragged the price below the 20-day exponential moving average ($38,060) today. This suggests the short-term recovery may have ended and the bears will now try to sink the price to $34,600.36 and then $31,000.

The relative strength index (RSI) has turned down from the overhead resistance at 55 and dropped into the negative territory, indicating the bears have the upper hand.

However, if the BTC/USDT pair rebounds off the $31,000 support, it will suggest accumulation at lower levels. That may keep the pair range-bound between $31,000 and $42,451.67 for the next few days.

The bulls will have to push and sustain the price above $42,451.67 to indicate that the downtrend may have ended. On the other hand, a break below $31,000 will suggest the resumption of the next leg of the downtrend.

ETH/USDT

Ether (ETH) turned down from the 20-day EMA ($2,528) on June 15 and the bears have pulled the price below the support line of the symmetrical triangle today. This suggests that supply exceeds demand.

If the ETH/USDT pair breaks below $2,180, the next stop could be $2,079.94 and then $1,728.74. The downsloping 20-day EMA and the RSI in the negative zone suggest that the path of least resistance is to the downside.

This negative view will invalidate if the price rises from the current level or the support and breaks above the resistance line of the triangle. Such a move will suggest that bulls are back in command and a new uptrend is likely.

BNB/USDT

Binance Coin (BNB) has been trading below the 20-day EMA ($367) for the past few days. This suggests the sentiment remains negative and traders could be using the rallies to close their long positions.

The downsloping 20-day EMA and the RSI at 42 indicate the path of least resistance is to the downside. If bears sustain the price below the trendline, the selling may intensify and the BNB/USDT pair could drop to $257.40 and then $211.70.

On the other hand, if bears fail to sustain the price below the trendline, the bulls will again try to push the pair above the 20-day EMA. If they succeed, the pair could rally to the overhead resistance at $433.

A breakout and close above this resistance will suggest the correction is over and the pair may start its journey to the 61.8% Fibonacci retracement level at $508.38.

ADA/USDT

Cardano (ADA) turned down from the 50-day SMA ($1.62) on June 15, indicating that the bears are trying to dominate proceedings. The downsloping 20-day EMA and the RSI in the negative territory suggest advantage to the bears.

The sellers will now try to pull the price to the $1.33 support. A break and close below this level will clear the path for a further fall to the next critical support at $1.

On the contrary, if the price rebounds off $1.33, it will suggest that buyers are accumulating near this level. That could keep the ADA/USDT pair range-bound between $1.33 and $1.94 for the next few days.

The bulls will gain the upper hand after the price breaks and closes above $1.94. Such a move could push the pair to the all-time high at $2.47.

DOGE/USDT

Dogecoin (DOGE) has failed to rebound off the neckline of the head and shoulders pattern in the past two days, which suggests a lack of demand at current levels. The downsloping 20-day EMA ($0.33) and the RSI below 41 suggest that bears have the upper hand.

If the price sustains below the neckline, the DOGE/USDT pair could drop to $0.21. The bulls may defend this support aggressively but if this level cracks, the selling may intensify and the pair could decline to $0.10.

Contrary to this assumption, if the price rebounds off $0.21, the bulls will try to propel the price above the 20-day EMA. If they do that, the pair could rise to the 50-day simple moving average ($0.40) and then to $0.45.

XRP/USDT

XRP continues to trade below the 20-day EMA ($0.91), suggesting a lack of demand at higher levels. The bears will now try to pull the price below the critical support at $0.75 while the bulls will try to defend the support.

If the price rebounds off $0.75, the XRP/USDT pair could move up to the 20-day EMA. A breakout of this resistance could keep the pair range-bound between $0.75 and $1.07 for the next few days.

However, the downsloping moving averages and the RSI below 39 indicate advantage to the bears. If the pair slips below $0.75, the next stop is likely to be $0.65. If this support cracks, the selling may intensify and the pair could drop to $0.56 and then to $0.43.

DOT/USDT

Polkadot (DOT) turned down from the resistance line of the symmetrical triangle on June 15 and broke below the 20-day EMA ($23.57) on June 16. The altcoin has now dropped to the support line of the triangle.

If the price rebounds off the support line, the DOT/USDT pair may continue to consolidate inside the triangle for a few more days. However, the downsloping moving averages and the RSI in the negative territory suggest advantage to the bears.

If bears sink and sustain the price below the triangle, it will suggest the resumption of the downtrend. The first support on the downside is $15. A break below this level could open the doors for a further fall to $8.

The bulls will be back in the game after they push and sustain the price above the triangle. Such a move will signal that the correction may be over.

UNI/USDT

Uniswap (UNI) turned down from the 20-day EMA ($24.16) on June 15, indicating selling on rallies. The bulls defended the $21.50 support on June 17 but the failure of the buyers to build upon the recovery shows a lack of demand at higher levels.

If bears sink the price below $20, the selling may intensify and the UNI/USDT pair could drop to $16.49 and then to $13.04. Such a move will suggest that traders sold their positions in the recent recovery to $30.

On the contrary, if the pair rebounds off the $20 support, it will suggest that bulls are accumulating on dips. The buyers will then attempt to drive the price above the 20-day EMA. If they succeed, the pair may rise to $30.

LTC/USDT

The bulls attempted to defend the support line on June 17 but they could not push Litecoin’s (LTC) price above the 20-day EMA ($176). This suggests that bears are defending the 20-day EMA aggressively.

The downsloping moving averages and the RSI in the negative zone indicate advantage to the bears. If sellers sustain the price below the support line, the LTC/USDT pair could start its journey toward the May 23 low at $118.03. If this support also gives way, the selling may intensify and the pair may plummet to $70.

This negative view will invalidate if the price rebounds off the current level and rises above the 20-day EMA. Such a move will be the first sign of strength. The pair could then rally to the 50-day SMA ($230). A break above this level will suggest that the downtrend may be over.

BCH/USDT

Bitcoin Cash (BCH) turned down from the 20-day EMA ($648) on June 15, indicating that bears are selling on every minor rally. The price action of the past few days has formed a descending triangle pattern that will complete on a breakdown and close below $538.11.

The downsloping moving averages and the RSI below 39 suggest the path of least resistance is to the downside. If bears sink and sustain the price below $538.11, the BCH/USDT pair could resume its down move. The pair could then drop to $400 and later to $370.

Contrary to this assumption, if the price turns up from the current level or $538.11 and breaks above the 20-day EMA, it will suggest strong buying by the bulls. The pair could then rally to $800 and then to the 50-day SMA ($872).

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

Market data is provided by HitBTC exchange.

Bitcoin’s recent rejection at $41,000 could extend the current range-bound action for a few more days and altcoins are expected to follow suit.

Bitcoin’s price (BTC) turned down from just above the $41,000 mark on June 15, suggesting that traders are halting their purchases at higher levels. Traders seem to be hesitant to take large bets until the U.S. Federal Reserve releases its latest economic projections and the timeline of the proposed rate hikes today.

However, Jurrien Timmer, the director of global macro at Fidelity Investments believes that Bitcoin has bottomed out.

Another positive sign comes from a Q2 retail investment survey of high-frequency traders by the crypto firm Voyager Digital that shows 81% of the participants are confident about the future of cryptocurrency.

Another survey of 100 chief financial officers at hedge funds by Intertrust Global shows that about 98% of the respondents expect hedge funds to invest 7.2% of their assets in cryptocurrencies by 2026.

Related: Within five years, US hedge funds expect to hold 10.6% of assets in crypto

Given that there are large amounts of funds ready to flow into cryptocurrencies, another massive fall is unlikely. However, that does not mean a new bull market will start in a hurry. Most major cryptocurrencies may enter a bottoming formation before starting the next trending move.

Let’s analyze the charts of the top-10 cryptocurrencies to determine the critical levels to watch out for.

BTC/USDT

Bitcoin has been sustaining above the 20-day exponential moving average ($38,274) for the past three days but the bulls have not been able to thrust the price above the 200-day simple moving average ($42,678). This suggests a lack of demand at higher levels.

The flattish 20-day EMA and the relative strength index (RSI) near the midpoint suggest a balance between supply and demand. If bears pull the price below the 20-day EMA, the BTC/USDT pair could drop to $31,000 where buying may emerge.

A strong rebound off $31,000 will indicate that the pair may extend its consolidation for a few more days.

This neutral view will invalidate if the price rebounds off the current level and buyers drive the price above the 200-day SMA. Such a move will be the first sign that the correction may be over. If bulls sustain the price above the 200-day SMA for three days, the pair could rally to $51,483.

Alternatively, a break below $31,000 will suggest that bears have overpowered the bulls and the downtrend may resume.

ETH/USDT

Ether (ETH) has been trading inside a symmetrical triangle for the past few days, indicating indecision among the bulls and the bears. The bulls are buying near the support line of the triangle while the bears are selling near the resistance line.

A break above or below the triangle may result in a strong trending move but it is difficult to predict the direction of the breakout with certainty.

If bulls push and sustain the price above the resistance line of the triangle, it will indicate that the correction may be over. The ETH/USDT pair could then rally toward its pattern target at $3,684.

Conversely, if bears sink the price below the support line, the downtrend may resume. The bulls will try to stall the decline at the 200-day SMA ($1,831) but if this support also cracks, the next target objective is $1,347.

BNB/USDT

Binance Coin (BNB) has been stuck between the trendline and the 20-day EMA ($372) for the past few days. The gradually downsloping 20-day EMA and the RSI below 44 suggest that bears have the upper hand.

If bears sink the price below the trendline, the BNB/USDT pair could drop to the 200-day SMA ($253). A break and close below this support could intensify the selling, and the pair could extend the decline to $200.

On the contrary, if the bulls push the price above the 20-day EMA, the pair could challenge the overhead resistance at $433. A breakout and close above this level will complete a bullish ascending triangle pattern, which has a target objective at $609.

ADA/USDT

Cardano (ADA) has been trading between $1.33 and $94 for the past few days. The altcoin rebounded off the support on June 12 but the bulls are struggling to push the price above the 20-day EMA ($1.58).

The gradually downsloping 20-day EMA and the RSI just below the midpoint suggest a minor advantage to the bears. If the price turns down from the current level, the bears will again try to sink the ADA/USDT pair below $1.33.

If they succeed, the pair could drop to the next critical support at $1. The bulls are likely to defend this level aggressively. A strong rebound off this support will suggest that the pair may consolidate inside the large range of $1 and $1.94 for a few days.

Conversely, if buyers drive the price above the 20-day EMA, the pair could rally to $1.94. A breakout of this resistance will increase the possibility of the start of the next leg of the uptrend.

DOGE/USDT

Dogecoin (DOGE) has been trading below the 20-day EMA ($0.34) for the past few days but the bears have not been able to sink the price below the neckline of the head and shoulders pattern. This suggests a lack of sellers at lower levels.

However, the 20-day EMA is sloping down and the RSI is in the negative territory, indicating the path of least resistance is to the downside. The bears will make one more attempt to sink and sustain the price below the neckline.

If they succeed, the DOGE/USDT pair could start its downward journey to the critical support at $0.21 and then to the 200-day SMA ($0.14). This negative view will invalidate if the bulls push and sustain the price above the 20-day EMA.

XRP/USDT

XRP has been trading between $1.07 and $0.75 for the past few days. The failure of the bulls to push the price above the 20-day EMA ($0.93) in the past few days suggests a lack of demand at higher levels.

The bears will now try to pull the price down to the support at $0.75. The 200-day SMA ($0.72) is just below the support, hence the bulls are likely to defend this level aggressively.

However, if the selling intensifies and bears sink the price below the 200-day SMA, the XRP/USDT pair could start a deeper decline to $0.56.

On the other hand, if the bulls push the price above the 20-day EMA, the pair could rally to $1.07. A breakout and close above this resistance will indicate the downtrend may be over. The pair could then rally to the downtrend line.

DOT/USDT

Polkadot (DOT) rose to the resistance line of the symmetrical triangle on June 14 but the bulls could not thrust the price above it. This suggests that the bears have not given up yet and are selling on rallies to the resistance line.

If bears sink the price below the 20-day EMA ($23), the DOT/USDT pair could extend its stay inside the symmetrical triangle for a few more days. The flat moving averages and the RSI just below the midpoint also signals a few days of consolidation.

A breakout and close above the triangle will be the first indication that the correction may be over. The pair may then rally to $31.28 and then to the pattern target at $39.78. Conversely, if bears sink the price below the support line, the pair may start the next leg of the downtrend that may open the doors for a decline to $15.

UNI/USDT

Uniswap (UNI) turned down from the 20-day EMA ($24.79) on June 15, which suggests the sentiment remains negative and the bears are selling on rallies to overhead resistances.

The sellers will now try to pull the price below the 200-day SMA ($21.87). If they manage to do that, the UNI/USDT pair could drop to $16.49 and then $13.04 as traders who have purchased in the past few days may rush to the exit.

Alternatively, if the price rebounds off the 200-day SMA, the buyers will try to propel the price above the 20-day EMA. If they succeed, the pair may rally to $30.

If the price turns down from this level, the pair may remain range-bound between $21.50 and $30 for a few more days. A breakout and close above $30 will suggest that the correction may be over.

LTC/USDT

Litecoin (LTC) turned down from the 20-day EMA ($180) on June 15, which shows that bears are selling on rallies. The 20-day EMA continues to slope down and the RSI is in the negative territory, indicating an advantage to the bears.

The sellers will now try to sink the price below the support line. If they do that, the LTC/USDT pair could retest the May 23 low at $118.03. A break below this level could result in panic selling that may drag the price down to $70.

Contrary to this assumption, if the price rebounds off the support line, the bulls will again try to thrust the price above the moving averages. If they succeed, the pair could rise to $225. A break above this resistance could attract buyers.

BCH/USDT

The bulls could not propel Bitcoin Cash (BCH) above the downtrend line for the past two days, indicating that bears are defending the 20-day EMA ($662) aggressively.

The bears will now try to sustain the price below the 200-day SMA ($603) and challenge the $538.11 support. This is an important level to watch out for because if it cracks, the descending triangle will complete and the BCH/USDT pair could resume its down move.

The next support on the downside is at $400 and then $370. Conversely, if bulls thrust the price above the 20-day EMA, the pair could rise to $864.28 where the bears may again mount a stiff resistance.

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

Market data is provided by HitBTC exchange.