Bitcoin (BTC) is currently stuck in a trading range between support and resistance levels. The cryptocurrency has been gradually declining towards its support level after failing to break out of the resistance. This indicates that the bears may try to bring Bitcoin below the range and take control.
Bitcoin whales, who are large holders of the cryptocurrency, seem to have become cautious after BTC fell below its support near $64,500 on June 21. Data from Santiment shows that Bitcoin whales completed 9,923 transactions exceeding $100,000 during the two days on June 22 and 23. This is a significant decrease from the 17,091 transactions in the two days prior.
Bitcoin’s weakness may have kept short-term traders interested, but long-term investors see the dip as an opportunity to buy. Following the footsteps of MicroStrategy, Tokyo-based investment and consulting firm Metaplanet has announced plans to issue one billion yen ($6.26 million) worth of bonds to raise funds for buying Bitcoin.
The question now is whether Bitcoin will drop below the psychological support at $60,000, which could put pressure on other cryptocurrencies. Let’s analyze the charts to find out.
Turning to the S&P 500 Index, it is currently in an uptrend. The price recently broke above 5,500, but profit booking was seen at higher levels. During strong upward moves, corrections usually do not last more than three days. The 20-day exponential moving average (EMA) at 5,387 is an important level to watch. If the price bounces from the current level or the 20-day EMA, it would indicate that the bulls are still in control. A break above 5,505 could propel the index to 5,600 and eventually towards 6,000. On the other hand, if the bears manage to drag the price below the 20-day EMA, the index could fall to the 50-day simple moving average (SMA) at 5,237.
Moving on to the U.S. Dollar Index (DXY), it bounced off the 50-day SMA at 105.19 on June 20 and rose above the overhead resistance at 105.74 on June 21. However, sustaining the breakout has been challenging for the bulls. The price has now fallen back below 105.74 on June 24. If buyers can hold the price above the current level, it would improve the chances of a rise above 106. This could initiate a rally to 106.50 and later to the channel’s resistance line. Conversely, if the price continues to decline and breaks below the support line, the index may fall to strong support at 104, where buyers are likely to step in.
Now let’s analyze the price of Bitcoin. The cryptocurrency turned down from the breakdown level of $64,602 on June 23, indicating that the bears are trying to turn that level into resistance. The moving averages have also formed a bearish crossover, and the RSI is in oversold territory, suggesting that the bears are firmly in control. Bitcoin’s price could drop to solid support at $60,000, where strong buying by the bulls is expected. However, any relief rally is likely to face selling pressure at the 20-day EMA at $65,687. If the price turns down from the 20-day EMA, the possibility of a drop to $56,552 will increase. The first sign of strength would be a break and close above the moving averages, which could lead to a rally towards $70,000 and subsequently $72,000.
Moving on to Ether (ETH), the cryptocurrency recently broke below the 50-day SMA at $3,475 on June 23, indicating a downside resolution. The downsloping 20-day EMA at $3,528 and the RSI near 35 suggest that the bears are in control. They will likely try to push the price to the psychological support at $3,000 and then to $2,850. Buyers are expected to aggressively buy in the $3,000 to $2,850 zone. On the upside, a break and close above the 20-day EMA would suggest that the bears are losing their grip. This could trigger an upward move towards $3,730.
Next, let’s analyze BNB. The price of Binance Coin (BNB) has been declining towards immediate support at $560, indicating the bears’ dominance. If the price bounces off $560 with strength, it would indicate that the bulls are defending the level. The BNB/USDT pair may then recover to the 20-day EMA at $602, which is expected to act as a strong resistance. If the price turns down from the 20-day EMA, it would increase the likelihood of a break below $560. The pair may then slump towards $536. To suggest that the selling pressure is weakening, buyers will have to push the price above the moving averages. A break and close above $635 could lead to a bullish momentum.
Moving on to Solana (SOL), the bulls have been unable to push the price back into the descending channel pattern in recent days. This indicates that the bears have turned the support line into resistance. The bears increased selling pressure on June 23 and are attempting to sink the SOL/USDT pair to the critical support at $116. This level is likely to attract strong buying by the bulls, but any recovery is expected to face resistance at the 20-day EMA at $144. If the price turns down from the 20-day EMA, the bears may make another attempt to push the price below $116. If they succeed, the pair could drop to $100. On the upside, buyers will have to drive the price above the 50-day SMA at $156 to clear the path for a rally to $189.
Turning to XRP, the cryptocurrency has been oscillating between the critical support at $0.46 and the 50-day SMA at $0.51 for several days. The downsloping 20-day EMA at $0.49 and the negative RSI suggest that the bears have the upper hand. If the $0.46 support level breaks, the XRP/USDT pair could drop to the next significant support at $0.41. Buyers are expected to aggressively defend the zone between $0.41 and $0.46. On the upside, a break and close above the 50-day SMA would be a sign of strength. The pair may then attempt a rally to $0.57.
Next, let’s analyze Toncoin (TON). The price of Toncoin turned down from the overhead resistance at $7.67 on June 24, indicating strong defense by the bears. The $6.60 support level is crucial on the downside. A break and close below it would complete a bearish head-and-shoulders pattern and could lead to a decline to $6 and subsequently $5.50. On the other hand, if the price bounces off the 50-day SMA, it would indicate that the bulls are buying on dips. This could keep the TON/USDT pair range-bound between the 50-day SMA and $7.67 for some time. A break and close above $7.67 would open the door for a retest of $8.29.
Moving on to Dogecoin (DOGE), the failure of the bulls to initiate a strong rebound off the $0.12 support has encouraged the bears to increase selling pressure. If the price remains below $0.12, it would indicate that the bears have the upper hand. This could lead to a slide towards the psychological support at $0.10. The bulls will try to prevent further decline at this level, but if the bears prevail, the next stop could be $0.08. This negative view would be invalidated if the price turns up from the current level and breaks above the 20-day EMA at $0.13. This could start a rally towards the 50-day SMA at $0.15, keeping the DOGE/USDT pair within the $0.12 to $0.18 range.
Lastly, let’s analyze Cardano (ADA). The cryptocurrency is currently forming a range between $0.35 and $0.40, with buying at lower levels and selling on rallies. The downsloping 20-day EMA at $0.41 and the RSI near oversold territory suggest that the bears are in control. If the $0.35 level breaks, selling pressure could increase, and the ADA/USDT pair may drop to $0.30. To prevent further downside, bulls will have to push the price above the moving averages. A break above the moving averages would indicate that the breakdown has been rejected by the markets. The pair may then climb towards $0.49.
Note: This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making a decision.