- June 14, 2023
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
The entire crypto market awaits the result of todays Federal Reserve presser, and traders are hopeful that positive news will trigger a price breakout to the upside.
The United States equities markets rose after the consumer price index print on June 13 came in below expectations but Bitcoin (BTC) and the altcoins failed to recover. This suggests that cryptocurrency traders are focused on crypto-specific issues and are not buying on favorable macroeconomic news.
However, there is a ray of hope for the bulls because Bitcoin is still holding above the $25,000 support. MicroStrategy co-founder Michael Saylor said in a Bloomberg interview on June 13 that the regulatory crackdown by the Securities and Exchange Commission may be bullish for Bitcoin. Saylor expects Bitcoin’s dominance to hit 80% in the future as “mega institutional money” flows into crypto after the “confusion and anxiety” dies down.
Although Saylor’s views may sound comforting to the Bitcoin bulls, they should keep in mind that MicroStrategy has a large position in Bitcoin, hence his views may be biased.
Traders hate uncertainty and generally stay on the sidelines until clarity emerges. The same may happen with the cryptocurrency markets in the near term. A trending move is likely to begin only after investors sense some regulatory clarity. During uncertain phases, traders could consider reducing their position size to avoid getting whipsawed.
What are the levels that may act as a resistance in Bitcoin and the major altcoins? Let’s study the charts of the top-10 cryptocurrencies to find out.
Bitcoin price analysis
Bitcoin climbed close to the 20-day exponential moving average ($26,531) on June 13 but the long wick on the candlestick shows that the bears sold at higher levels.
The price has been stuck between the 20-day EMA and the crucial support at $25,250 for the past few days. This suggests that bulls are buying the dips but the bears are not willing to let go of their advantage.
The downsloping moving averages indicate that bears have the upper hand but the positive divergence on the relative strength index (RSI) indicates that the selling pressure may be reducing.
If buyers kick the price above the 20-day EMA, the BTC/USDT pair may rally to the resistance line of the descending channel. Buyers will have to overcome this roadblock to signal the start of a march to $31,000.
Instead, if the price turns down from the current level and breaks below $25,250, it will suggest that the bulls have given up. The pair may first slump to the support line of the channel and eventually to the psychologically important level of $20,000.
Ether price analysis
Ether’s (ETH) shallow bounce off the strong support at $1,700 indicates a lack of demand at higher levels. A tight consolidation near a support increases the risk of a breakdown.
Therefore, the buyers will have to quickly propel the price above the moving averages. If they manage to do that, the ETH/USDT pair could first rise to $1,928 and then make a dash toward the overhead resistance at $2,000.
Contrary to this assumption, if the price turns down from the current level or the moving averages, it will indicate that bears are selling on every minor rally. That could sink the pair below $1,700. There is a minor support at $1,600 but if that also fails to hold, the decline may extend to $1,352.
BNB price analysis
BNB (BNB) once again bounced off the strong support at $220 on June 12, indicating that the bulls are aggressively protecting the level.
The BNB/USDT pair has started a recovery which is likely to face stiff resistance at the 38.2% Fibonacci retracement at $252 and again at the breakdown level of $265. If the price turns down from either level, it will suggest that the bears are viewing the relief rallies as a selling opportunity. The pair could then once again slide to $220.
On the contrary, if the bulls push and sustain the price above the breakdown level of $265, it may trap the aggressive bears. There is a minor resistance at the 20-day EMA ($272) but it is likely to be crossed.
XRP price analysis
Buyers shoved XRP (XRP) above the overhead resistance at $0.56 on June 13 but they could not sustain the higher levels.
The XRP/USDT pair turned down sharply, forming a long wick on the day’s candlestick. The bears are trying to strengthen their position further by pulling the price below the 20-day EMA ($0.50). Below this level, the next important support to watch out for is the 50-day SMA ($0.47).
If this level gives way, the selling pressure could increase and the pair may nosedive to the next major support near $0.41. On the contrary, if the price bounces off the 50-day SMA, it will signal a range-bound action for a few days.
Cardano price analysis
Cardano’s (ADA) recovery halted near the breakdown level of $0.30, indicating that the bears are fiercely protecting the level.
If bulls fail to kick the price above $0.30, the ADA/USDT pair may turn down and slide to the support at $0.24. A strong rebound off this level may keep the pair range-bound between $0.24 and $0.30 for a few days.
If buyers push the price above $0.30, it will suggest that the decline may have ended in the near term. The pair could then rise to the 20-day EMA ($0.32) and subsequently to the 50-day SMA ($0.36).
Dogecoin price analysis
Dogecoin (DOGE) has been sustaining above the $0.06 level since June 11 but a minor negative is that the bulls have failed to start a meaningful bounce.
The failure to rise above the 20-day EMA ($0.07) may give rise to another round of selling by the bears. If the $0.06 support gives way, the DOGE/USDT pair could plunge to the vital support at $0.05. Buyers are expected to defend this level with vigor.
On the upside, the first sign of strength will be a break and close above the 20-day EMA. That will increase the possibility of a relief rally to $0.08 where the bulls may again face strong resistance by the bears.
Solana price analysis
Solana (SOL) has been witnessing a tough battle between the bulls and the bears near the crucial support at $15.28.
The bulls are struggling to sustain the price above $15.28 but a minor solace is that they have not allowed the SOL/USDT pair to remain below $15. The oversold levels on the RSI suggest that a relief rally is possible but the bulls will have to overcome the barrier at $16.20. If they manage to do that, the pair may start an up-move to the 20-day EMA ($18.16).
Conversely, if the price turns down from the current level, it will suggest that the bears remain in control. If the price slips below $15, the pair could retest the intraday low of $12.80 made on June 10.
Related: Bitcoin stays flat at $26K after PPL data as markets await Fed’s Powell
Polygon price analysis
Polygon (MATIC) nosedived below the support at $0.69 and hit the psychologically important level of $0.50 on June 10.
The bulls purchased the dip and are trying to start a recovery, which is likely to face stiff resistance at the breakdown level of $0.69. If the price turns down from this level, it will suggest that the bears have flipped the level into resistance. That could result in a retest of the support at $0.50.
Contrarily, if bulls thrust the price above $0.69, the MATIC/USDT pair may reach the 20-day EMA ($0.76). A break above this level will indicate that the bears are losing their grip. The pair may then attempt a rally to $1.
Litecoin price analysis
Litecoin (LTC) turned down from the moving averages and plummeted below the support line of the symmetrical triangle pattern on June 10, indicating that the bears overpowered the bulls.
The LTC/USDT pair is attempting a bounce off the horizontal support at $75 but the failure of the bulls to push the price back into the triangle suggests that the bears are selling on minor rallies. That increases the likelihood of a further fall below $75. The next major support on the downside is $65.
Alternatively, if the price turns up from the current level and re-enters the triangle, it will suggest that the recent breakdown may have been a bear trap. The positive momentum may pick up after the bulls push the price above $91.50.
Polkadot price analysis
Polkadot (DOT) rebounded off the strong support at $4.22 on June 10, indicating that the bulls are trying to arrest the decline.
The relief rally could reach the 20-day EMA ($4.98) where the bears are likely to sell aggressively. If the price turns down from this level, the DOT/USDT pair may retest the support at $4.22. A break below this level could start a move to $4 and later to $3.50.
On the contrary, if the bulls push the price above the 20-day EMA, it will suggest that the bears may be losing their grip. The pair could first rise to $5.15 and then to $5.56. Until buyers clear this hurdle, the sellers will remain in control.
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.
