Bitcoin and most altcoins could be gearing up for a couple of days of range-bound activity as bulls buy on dips and bears market on rallies.
Bitcoin’s (BTC) collapse to rise above the critical $40,000 to $42,000 resistance zone is currently keeping crypto traders on tenterhooks. Some analysts view the sharp rally from $31,000 degree as a sign of accumulation at lower rates while some consider the failure to cross above the overhead resistance indicates that Bitcoin remains not out of the woods yet.
JPMorgan’s cryptocurrency market analysts, led by global market strategist Nikolaos Panigirtzoglou, pointed out that following the recent collapse, the Bitcoin futures market has changed from contango into backwardation for the first time since 2018. The analysts consider this is a warning of a potential bear market, similar to the one seen in 2018.
Daily cryptocurrency marketplace performance.
While Bitcoin’s price remains subdued, one of the fundamental reasons to own Bitcoin received a shot in the arm when the U.S. inflation numbers rose to their greatest levels since 2008. If inflation remains high, institutional investors might look at investing in Bitcoin to hedge their portfolios.
Connected: Bitcoin traders attention’crucial’ $38K level as BTC price action consolidates higherWhat are the levels that may imply the downtrend could be finished? Let us examine the graphs of the top-10 cryptocurrencies to discover.
Bitcoin turned down from the resistance line on June 10 however, the bears have never been able to sustain the price down below the 20-day exponential moving average ($36,604). This implies that buyers are trying to defend the 20-day EMA. If buyers propel the price above the resistance line, then it will nullify the growing bearish descending triangle pattern. The failure of a bearish setup is a bullish signal as it traps several aggressive bears that are forced to close their short positions, resulting in a short squeeze.
That could result in a rally to $42,451.67 and after that into the 50-day simple moving average ($45,271). Contrary to the assumption, in case the price turns down from $42,451.67, the BTC/USDT pair could adjust to $31,000 and consolidate within this massive range for a couple of days.
The trend will change in favor of the bears if the pair turns down from the present level and breaks below the $31,000 to $28,000 support zone.
Ether (ETH) rose above the 20-day EMA ($2,581) on June 9 but the bulls could not build upon this strength. The price again turned down on June 10, implying that bears are available on every minor rally. If bears sink and maintain the price below the triangle, the ETH/USDT pair could witness revived selling that could pull the price down to $2,079 and after that to $1,728.74.
However, the 20-day EMA has flattened out along with the relative strength index (RSI) was accepting aid near 40, indicating a range-bound activity in the short term.
In the event the price turns out in the present level, the pair may proceed up to the 20-day EMA and then extend its stay inside the triangle for a couple more days. A close and breakout above the 50-day SMA ($2,929) would indicate the downtrend could be finished.
Binance Coin (BNB) rose above the 20-day EMA ($358) on June 9 but the bulls could not sustain the breakout. The bears pulled the price back below the 20-day EMA on June 10. However, the positive thing is that the bulls successfully held on to the trendline support. The bulls will try to propel the price above $378.77. If they manage to do that, the BNB/USDT pair could rally into the rigid overhead resistance at $433. A breakout and close above this resistance could push the price to the 50-day SMA ($478).
A close and breakout above this level will indicate the downtrend could be finished. This optimistic view will probably be negated if the price turns down from the present levels or the overhead resistance and plummets below the trendline. That could pull the price down to $291.06 and after that to $211.70.
Cardano (ADA) turned down from the 20-day EMA ($1.61) on June 10, suggesting the opinion remains negative. The bears will try to sink and maintain the price below the trendline support.
ADA/USDT daily chart.
If they succeed, the growing ascending triangle pattern will invalidate. This could result in a fall to $1.24 and after that into the crucial support at $1. A strong rebound off $1 could keep the ADA/USDT pair range-bound for a couple of days.
Alternatively, if the price rebounds off the present level and breaks above $1.63, the pair could muster to $1.94. A close and breakout above this resistance will indicate that bulls are back in control. That could result in a retest of the all-time large at $2.47.
Dogecoin’s (DOGE) bounce off the neckline of the head and shoulders pattern turned down from the 20-day EMA ($0.34) on June 10, indicating that bears are available on every minor relief rally.
DOGE/USDT daily chart.
If bears sink the price below the neckline, then it will complete the bearish head and shoulders pattern that could result in a fall to $0.21. The bulls are likely to defend this support aggressively. In the event the price rebounds strongly off this level, the DOGE/USDT could retest the neckline. In the event the price turns down in the resistance, the prospect of a break below $0.21 increases. That could result in a fall to $0.10.
This negative view will invalidate whether the price rebounds off the present level and rises above the averages. That could open the gates for a rally to $0.47.
XRP turned down from the 20-day EMA ($0.93) on June 10 but the positive sign is that the bulls haven’t given up much earth. This implies that bulls are buying on every small dip. The 20-day EMA is flattening out and the RSI is hoping to sustain above 40, indicating the selling pressure is reducing. If buyers thrust the price above the 20-day EMA, the XRP/USDT pair could muster to $1.10. A break above this resistance could challenge the 50-day SMA ($1.20). This view will invalidate whether the price fails to break above the 20-day EMA. Such a move will imply that bears aren’t willing to relent. That could result in a fall to the $0.75 to $0.65 support zone.
The bulls attempted to push Polkadot (DOT) back into the ascending channel on June 10 but failed. This shows that bears are available at higher levels. The bears will try to sink the price below $19.60. If they manage to do that, the DOT/USDT pair could start its decline to $17.50 and after that to the critical support zone at $15 to $13.63. A bounce off this zone could continue to keep the pair range-bound for a couple more days.
Contrary to the assumption, in case the price bounces off the present level and rises above the 20-day EMA ($22.81), a retest of $26.50 is potential. A breakout and close above this overhead resistance could result in a rally for $31.28.
The bulls attempted to propel Uniswap (UNI) above the 20-day EMA ($25.58) on June 9 and 10 but failed. This reveals the bears haven’t thrown in the towel yet. The sellers will try to sink the price below the $21.50 to $20.46 support zone. If they succeed, it will imply that supply exceeds demand and the UNI/USDT pair could be on its way to $16.49 and then $13.04.
To the contrary, if the price rebounds off $21.50, the pair may again attempt to rise above the 20-day EMA. If that happens, a move to $30 is likely. If the couple turns down from this resistance, the range-bound activity can persist for a couple more days.The bulls will need to push and maintain the price above $30 to indicate the end of the downtrend.
Litecoin (LTC) was trading close to the 20-day EMA ($176) to the past couple of days however, the bulls have never been able to push the price above it. This implies that bears are defending the 20-day EMA aggressively. The price action of the past few days has shaped a symmetrical triangle, indicating indecision among the bulls and the bears. If buyers push the price above the resistance line of the triangle, the LTC/USDT pair could rally into the 50-day SMA ($241). The 20-day EMA is flattening out and the RSI is trying to sustain above 40, indicating the selling pressure is reducing.
This optimistic view will invalidate whether the price turns down from the present level or the overhead resistance and breaks below the triangle. That could sink the pair to $118.03 and then to $100.
The bulls are buying the dip below $616.04 however, the bears are defending the 20-day EMA ($667).BCH/USDT daily chart.
The 20-day EMA is flattening out however, the RSI is at the negative territory, indicating the bulls are trying to make a comeback. A close and breakout above the downtrend line will signify that demand exceeds supply. That might result in a rally into the 50-day SMA ($905).
Conversely, if the price turns down from the present level or the downtrend line, it will imply that bears are available on every minor rally. A break below $542.63 will open up the gates for a further fall to $468.13.
The views and opinions expressed here are only those of the writer and don’t necessarily reflect the views of CoinNewsDaily.
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