Bitcoin and select altcoins attempted a relief rally, but most breakouts are being capped-off well below the 20-day moving average.
The crypto markets have been in a strong bear phase for the past several months but JPMorgan Chase analysts expect that to change and they projected significant upside from the current levels. The analysts cited the rising share of all stablecoins in the total crypto market for their bullish outlook.
Unperturbed by the current fall, retail traders have been adding Bitcoin (BTC) to their portfolios. The number of wallet addresses holding one Bitcoin surged by 13,091 to a record high of 865,254. Similarly, the number of addresses holding about 0.1 Bitcoin has also witnessed a sharp rise in the past 10 days, according to data from Glassnode.
Bitcoin’s sharp recovery from the June 18 fall shows strong buying at lower levels and according to Whalemap, this has led to the formation of a new “whale level” which may act as a short-term support.
Could the recovery in Bitcoin and major altcoins continue in the near term? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin plunged below $20,000 on June 18 but made an equally sharp recovery on June 19, indicating aggressive buying at lower levels. If bulls sustain the price above $20,000, it could improve sentiment and attract more buyers.
The BTC/USDT pair could first rise to the 38.2% Fibonacci retracement level of $23,024 and then to the 20-day exponential moving average ($24,890). The bears are likely to defend this zone with all their might.
If the price turns down from this zone, the sellers will make another attempt to pull the pair below $20,000. A break and close below $17,622 could start the next leg of the downtrend.
Alternatively, if buyers push the price above the 20-day EMA, it will signal a potential change in trend. The pair could then rally to the 50-day simple moving average ($29,386) where the bears may mount a strong defense.
ETH/USDT
Ether (ETH) plummeted below the psychological level of $1,000 on June 18 which suggests that the downtrend remains intact. A minor positive is that the bulls purchased the dip as seen from the long tail on the day’s candlestick.
The buyers sustained the momentum on June 19 and pushed the price back above $1,000. The ETH/USDT pair could rise to $1,250 and later to the 20-day EMA ($1,429). This remains the critical resistance to watch out for.
If the price turns down from the current level or the 20-day EMA, it will suggest that the bears are active at higher levels. The sellers will then try to pull the pair to the June 18 intraday low of $881. A break and close below this level could signal the resumption of the downtrend.
BNB/USDT
Binance Coin (BNB) broke and closed below the strong support at $211 on June 18 but the bears could not build upon this advantage. This suggests that lower levels continue to attract buyers.
The bulls pushed the price back above the breakdown level of $211 on June 19. If buyers sustain this level, it will suggest that the breakdown on June 18 may have been a bear trap.
If bears rush to cover their positions, it could cause a short squeeze and push the BNB/USDT pair toward the 20-day EMA ($251). If bulls overcome this barrier, the pair could rise to the 50-day SMA ($297).
Contrary to this assumption, if the price turns down from the current level and breaks below $211, it will suggest that bears are selling on minor rallies. The bears will then try to sink the pair below $183 and resume the downtrend.
ADA/USDT
The bulls once again successfully defended the $0.44 to $0.40 zone on June 18. That started a recovery in Cardano (ADA) which has reached the 20-day EMA ($0.52).
If bulls drive the price above the moving averages, the ADA/USDT pair could rise to the overhead resistance zone between $0.70 and $0.74. The bears are likely to defend this zone with all their might.
If the price turns down from it, the pair could remain stuck in a wide range between $0.40 and $0.74 for a few days. The next trending move could begin after bulls push the price above $0.74 or bears pull the pair below $0.40.
XRP/USDT
Ripple (XRP) slipped below $0.29 on June 18 but the bears could not capitalize on the advantage. This suggests that selling dries up at lower levels.
The bulls may attempt to push the price to the overhead resistance zone between the 20-day EMA ($0.35) and the breakdown level of $0.38. The bears are likely to defend this zone aggressively but if bulls bulldoze their way through, the XRP/USDT pair could rally to the overhead resistance at $0.46.
This positive view could invalidate if the price turns down from the current level or the overhead zone. The bears will then make another attempt to sink and sustain the price below $0.29.
SOL/USDT
Solana (SOL) remains in a downtrend but the bulls are attempting to start a recovery. The price has reached the 20-day EMA ($36) which is an important level to keep an eye on.
The positive divergence on the relative strength index (RSI) indicates that the bearish momentum may be weakening. If buyers propel the price above the 20-day EMA, the SOL/USDT pair could rally to the 50-day SMA ($49). This level may again act as a resistance but if bulls clear this hurdle, the next stop could be $60.
On the contrary, if the price turns down from the current level, it will suggest that bears continue to defend the 20-day EMA with vigor. The bears will have to pull the pair below $25 to signal the start of the next leg of the downtrend.
DOGE/USDT
The bears pulled Dogecoin (DOGE) below the psychological support at $0.05 on June 18 but they could not sustain the lower levels. This suggests that bulls are buying on dips.
Buyers will try to push the price to the 20-day EMA ($0.07) which could act as a stiff barrier. If the price turns down from this level, it will suggest that bears remain in command. The sellers will then make one more attempt to sink and sustain the price below $0.05. If they succeed, the DOGE/USDT pair could drop to $0.04.
Conversely, a break and close above the 20-day EMA will be the first indication that the bulls are on a comeback. The pair could then rise to the 50-day SMA ($0.09) which may again act as a stiff resistance.
Related: Ethereum analyst warns of 'clean fakeout' despite 30% ETH price rebound
DOT/USDT
The bears tried to sink Polkadot (DOT) below the support at $6.36 on June 18 but the bulls held their ground. Strong buying at lower levels pushed the price back above the breakdown level of $7.30 on June 19.
The bulls will attempt to push the price above the 20-day EMA ($8.33). If they succeed, it will suggest the start of a sustained recovery. The DOT/USDT pair could then rise to the 50-day SMA ($10.06) and later to the overhead resistance at $12.44. The positive divergence on the RSI is also pointing toward a possible relief rally.
Contrary to this assumption, if the price turns down from the 20-day EMA, the bears will again try to sink the pair below $6.36 and resume the downtrend. The next support on the downside is $4.23.
LEO/USD
UNUS SED LEO (LEO) dipped below the support line of the descending channel on June 18 but the long tail on the day’s candlestick suggests aggressive buying at lower levels.
The bulls sustained their momentum and pushed the price above the moving averages on June 20. If the LEO/USD pair maintains above the moving averages, the next stop could be the resistance line of the channel. The buyers will have to push the price above this level to indicate the start of a new up-move.
Contrary to this assumption, if the price turns down from the resistance line, it will suggest that bears are defending the level aggressively. That could keep the pair stuck inside the channel for a few more days.
AVAX/USDT
Avalanche (AVAX) slipped below the support at $14.50 on June 18 but the bears could not sustain the lower levels. The bulls are attempting a rebound on June 20 which could reach the 20-day EMA ($20).
If the price turns down from the 20-day EMA, it will suggest that bears remain in control and they are selling on rallies. The bears will then make one more attempt to sink the price below $13.71 and resume the downtrend. The next support on the downside is $13.
Conversely, if bulls thrust the price above the 20-day EMA, it will suggest that the bears may be losing their grip. The AVAX/USDT pair could then attempt a rally to the 50-day SMA ($30) where the bears may again pose a challenge.
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.
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