Sellers are jumping on every breakout of Bitcoin and altcoins, indicating that the bears are in no rush to let go of their lead.
The price of Bitcoin (BTC) remains nervous and during this week, all relief rallies are being sold. This is a classic bear market reaction and it may not end in a hurry. However, the current price action should not worry investors because the more time you spend in a bottom formation, the stronger the foundation for the next stage of the upward movement.
In a recent note to investors, JPMorgan said that the fair value of Bitcoin can remain between $ 23,000 and $ 35,000 in the medium term. The bank noted that the outflows of crypto Bitcoin funds since the fall of May 19 show a lack of demand from institutional investors. Another reason that may be limiting the price of Bitcoin is the massive unlocking of Bitcoin from the grayscale Bitcoin trust fund at the end of the six-month lockdown period.
Daily performance of the cryptocurrency market. Source: Coin360
None of the events of the past few days have changed the long-term view of Bitcoin. Jason Urban, Galaxy Digital’s co-chief operating officer, said that Bitcoin can " see something over $ 70,000 by the end of the year ".
Although not a game changer, exchange-traded fund Purpose Bitcoin has seen an average entry of 86.15 Bitcoin between May 15 and June 24, according to data from Glassnode. This has propelled ETF assets under management to 21,114 BTC. This shows that smart investors are cutting back rather than 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 bounce from the $ 31,000 to $ 28,000 support zone has narrowed from the 20-day exponential moving average ($ 35,788) today. The descending moving averages and the Relative Strength Index (RSI) in the negative territory indicate an advantage for the bears.
BTC / USDT daily chart. Source: TradingView
Sellers will now make one more attempt to sink the price below the support zone. If successful, the BTC / USDT pair could begin the next stage of the downward movement 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 bounces off this zone once again, the bulls will try to push the price above the 20-day EMA.
If they manage to do so, the BTC / USDT pair could continue its consolidation between $ 28,000 and $ 42,451.67 for the next few days. A breakout and a close above this range will be the first sign that the downtrend may be over.
ETH / USDT
Ether (ETH) rebound from the $ 1,728.74 support faded at $ 2,045 on June 23. This suggests a lack of buyers at higher levels. Both the moving averages are down and the RSI is close to the oversold zone, indicating that the path of least resistance is to the downside.
ETH / USDT daily chart. Source: TradingView
If the price turns down and breaks below the $ 1,728.74 support, the ETH / USDT pair could start the next stage of the downtrend. The pair could then fall to $ 1,536.92 and then to $ 1,293.18. The deeper the dip, the longer it will take for the bulls to start the next stage of the uptrend.
Contrary to this assumption, if the price bounces back to $ 1,728.74, it will suggest that the bulls are defending this level aggressively. A breakout and close above the 20-day EMA ($ 2248) will be the first indication that a bottom formation may have started.
BNB / USDT
Binance Coin (BNB) bounce off the $ 211.70 support is facing stiff resistance at the 20-day EMA ($ 332). This suggests that sentiment remains negative and traders are selling on rallies.
BNB / USDT daily chart. Source: TradingView
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 stage of the downtrend. The next support on the downside is $ 200 and then $ 126.75.
Alternatively, if the price bounces off the $ 211.70 support, it will suggest a strong build-up from the bulls at this level. If buyers push the price above the 20-day EMA, the pair could rally to $ 433. A breakout and close above this resistance will be the first sign that the downtrend might be over.
ADA / USDT
Cardano (ADA) rallied from the $ 1 support on June 22, but the bulls appear to have hit a wall at the 20-day EMA ($ 1.42). This suggests that the bears have not yet thrown in the towel and are trying to keep the upper hand.
ADA / USDT daily chart. Source: TradingView
Sellers will try to lower the price to $ 1. This is an important support to watch out for because it hasn’t broken at the close since Feb 23. Therefore, a breakout below $ 1 can result in a long sell-off.
The ADA / USDT pair could fall to $ 0.68 and if the sell intensifies, the decline could even extend to $ 0.40.
However, the bulls will have other plans. They will try again to defend the $ 1 support. If successful, the pair can break out of the 20-day EMA and move up to the 50-day simple moving average ($ 1.61).
DOGE / USDT
Dogecoin (DOGE) rallied from the $ 0.15 support on June 22 and reached the 20-day EMA ($ 0.28) today. After the strong relief rally of the past three days, the bears are likely to aggressively defend the zone between the 20-day EMA and the neckline.
DOGE / USDT daily chart. Source: TradingView
If the price turns down from the upper resistance zone, the bears will try to lower the price to $ 0.15. A breakout and close below this level will suggest that traders sold their positions during the current rally. The DOGE / USDT pair could 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 may be over and a bottom formation may begin.
XRP / USDT
XRP’s bounce from the $ 0.50 support in the past few days was unable to even reach the breakout level of $ 0.75. This suggests a lack of urgency among traders to buy at these levels.
XRP / USDT daily chart. Source: TradingView
The bears can now sell aggressively and attempt to bring the price below the psychological level of $ 0.50. If they do, the XRP / USDT pair could move down to the support line of the descending channel.
Conversely, 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 hold the price above the 20-day EMA to suggest that the selling pressure is easing.
DOT / USDT
The $ 13 Polkadot (DOT) bounce 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 not in a great rush to buy at current levels.
DOT / USDT daily chart. Source: TradingView
The falling moving averages and the RSI below 36 indicate that the bears have the upper hand. If the bears slide the price below $ 13, the DOT / USDT pair may resume the downtrend and plummet to $ 10 and then $ 7.50.
Conversely, if the price bounces off $ 13 and rises above $ 17, the pair can move up 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 falls from this level, the pair can consolidate between $ 13 and $ 26.50 over the next few days.
UNI / USDT
Uniswap’s (UNI) rebound of $ 13 hit a wall at $ 18.60 on June 24. This suggests that demand dries up at higher levels. The falling moving averages and the RSI in the negative zone indicate that the bears are in control.
UNI / USDT daily chart. Source: TradingView
The bears will now attempt to sink the price below the $ 13 support. If they manage to hold the price below the support, the UNI / USDT pair could witness further selling. That can result in a decrease to $ 10 and then to $ 7.
Alternatively, if the bulls defend the $ 13 support again, it will suggest accumulation at lower levels. Then the buyers will try to push the price above the 20-day EMA ($ 20). If they are successful, the pair could rally to the 50-day SMA ($ 26) and then to $ 30.
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BCH / USDT
The bulls are struggling to push Bitcoin Cash (BCH) above the breakout level at $ 538.11, suggesting a lack of urgency among the bulls to build up to current levels.
BCH / USDT daily chart. Source: TradingView
Both the moving averages are declining and the RSI is close to the oversold territory, which suggests that the bears are in command. Sellers will now try to consolidate their lead by sinking the price below the $ 370 support.
If they do, the BCH / USDT pair could fall to psychological support at $ 300 and then to $ 270. Contrary to this assumption, if the price bounces back to $ 370, it will indicate a strong buy at lower levels. Then the bulls will try to push the price above the 20-day EMA ($ 565). If that happens, the pair can move up to the 50-day Simple Moving Average (SMA) ($ 782).
LTC / USDT
Litecoin (LTC) bounce from the $ 118 support lacks strength. This suggests that traders are not convinced that the bottom has been reached. The descending moving averages and the RSI in negative territory suggest that bears are in command.
LTC / USDT daily chart. Source: TradingView
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 at $ 100 and if this psychological level also breaks down, the drop can extend to $ 70.
Conversely, if the price bounces 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 sellers are losing control. The pair could then move up to the 50-day Simple Moving Average (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 trade movement involves risk. You should do your own research when making a decision.
Market data is provided by the HitBTC exchange.
The entry Price Analysis 25/6: BTC, ETH, BNB, ADA, DOGE, XRP, DOT, UNI, BCH, LTC was published first in Bitcoin, Cryptocurrency and Blockchain News.