The entire cryptocurrency market awaits the outcome of today’s press release from the Federal Reserve, with many confident that positive news will trigger a price rally.
US stock markets rallied after the June 13 Consumer Price Index came in below expectations, but Bitcoin (BTC) and altcoins failed to recover. This suggests that a portion of the trades are focused on cryptocurrency-specific issues and are not buying on favorable macroeconomic news.
However, there is a glimmer of hope for the bulls as Bitcoin is still holding above the $25,000 support. MicroStrategy co-founder Michael Saylor said in an interview with Bloomberg on June 13 that the regulatory crackdown by the Securities and Exchange Commission may be positive for Bitcoin. Saylor expects Bitcoin’s dominance to reach 80% in the future as “institutional mega-money” flows into cryptocurrencies after the “confusion and anxiety” dissipates.
Although Saylor’s views may sound comforting to some Bitcoin bulls, they should keep in mind that MicroStrategy has a large position in Bitcoin, so his views may be skewed.
Traders hate uncertainty and tend to stay on the sidelines until clarity emerges. The same can happen in the short term with the cryptocurrency markets. A trending move is only likely to start when investors see some regulatory clarity. During periods of uncertainty, traders may consider reducing the size of their positions to avoid being affected.
What are the levels that can act as resistance in Bitcoin and the main altcoins? Let’s study the charts of the top 10 cryptocurrencies to find out.
Bitcoin Price Analysis
Bitcoin rallied near the 20-day exponential moving average ($26,531) on June 13, but the long wick of the candlestick shows that the bears sold at the higher levels.
Over the past few days, the price has been stuck between the 20-day EMA and the crucial support of $25,250. This suggests that the bulls are buying cheap, but the bears are not willing to let their advantage slip away.
The bearish moving averages indicate that bears have the upper hand, but the positive divergence in the RSI indicates that selling pressure may be easing.
If the buyers push the price above the 20-day EMA, the BTC/USDT pair could rally to the resistance line of the descending channel. Buyers will have to clear this hurdle to signal the start of a move towards $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 could drop to the support line of the channel first, and eventually to the psychologically important $20,000 level.
Ether Price Analysis
The shallow bounce of Ether (ETH) from the strong support of $1,700 indicates a lack of demand at higher levels. A tight consolidation near support increases the risk of a breakout.
Therefore, the buyers will have to quickly push the price above the moving averages. If they do, the ETH/USDT pair could first rally as high as $1,928 and then dash towards the overhead resistance of $2,000.
Contrary to this assumption, if the price turns down from the current level or the moving averages, it will indicate that the bears are selling every small rally. This could sink the pair below $1,700. There is a bit of support at $1,600, but if that doesn’t hold either, the fall could extend to $1,352.
BNB Price Analysis
BNB (BNB) bounced off the strong support of $220 again on June 12, indicating that the bulls are aggressively protecting the level.
The BNB/USDT pair has started a rally that is likely to face stiff resistance at the 38.2% Fibonacci retracement at $252 and again at the breakout level of $265. If the pair pulls back from either of these two levels , the bears will see the rally as a selling opportunity. The pair could drop back down to $220.
Conversely, if the bulls push and hold the price above the breakout level of $265, it could trap the more aggressive bears. There is minor resistance at the 20-day EMA ($272), but it is likely to be crossed.
XRP Price Analysis
Buyers pushed XRP (XRP) above the overhead resistance of $0.56 on June 13, but failed to hold the higher levels.
The XRP/USDT pair turned down sharply, forming a long wick on the daily candle. The bears are trying to further strengthen their position by pulling the price below the 20-day EMA ($0.50). Below this level, the next major support to watch is the 50-day SMA ($0.47).
If this level gives way, the selling pressure could build and the pair could plummet to the next major support near $0.41. Conversely, if the price bounces off the 50-day SMA, it will signal a range-bound stock for a few days.
ADA Price Analysis
The Cardano recovery (ADA) stopped out near the breakout level of $0.30, indicating that the bears are fiercely protecting the level.
If the bulls fail to push the price above $0.30, the ADA/USDT pair could turn lower and slide towards the $0.24 support. A strong bounce from this level can keep the pair range-bound between $0.24 and $0.30 for a few days.
If the buyers push the price above $0.30, it will suggest that the decline may be over in the short term. Then, the pair could rally as high as the 20-day EMA ($0.32) and, subsequently, as high as the 50-day SMA ($0.36).
DOGE Price Analysis
Dogecoin (DOGE) has held above the $0.06 level since June 11, but one small negative is that the bulls have failed to initiate a meaningful bounce.
A failure to break above the 20-day EMA ($0.07) could lead to another round of selling by the bears. If the $0.06 support gives way, the DOGE/USDT pair could drop to the vital support of $0.05. Buyers are expected to defend this level vigorously.
To the upside, the first sign of strength will be a breakout and close above the 20 day EMA. This will increase the possibility of a relief rally to $0.08, where the bulls could again face stiff resistance from the bears.
SOL Price Analysis
sunny (SUN) has witnessed a tough battle between bulls and bears near the crucial support of $15.28.
The bulls are struggling to hold the price above $15.28, but one small consolation is that they have not allowed the SOL/USDT pair to sustain below $15. Oversold levels on the RSI suggest a rally is possible of relief, but the bears will have to break above the $16.20 barrier. If they do, the pair could start a move higher towards the 20-day EMA ($18.16).
Conversely, if the price turns down from the current level, it will suggest that the bears are in control. If the trade falls below $15, the pair could retest the $12.80 low reached on June 10.
MATIC Price Analysis
Polygon (MATIC) fell below the $0.69 support and reached the psychologically important $0.50 level on June 10.
The bulls bought the dip and are trying to start a rally, which is likely to face stiff resistance at the breakout level of $0.69. If the price turns down from this level, the bears will have turned the level into resistance. This could cause the $0.50 support to be retested.
Conversely, if the bulls push the price above $0.69, the MATIC/USDT pair could reach the 20-day EMA ($0.76). A break above this level would indicate that the bears are losing their grip. So, the pair could attempt a rally towards $1.
LTC Price Analysis
Litecoin (LTC) turned down from the moving averages and plunged below the support line of the symmetrical triangle pattern on June 10, indicating that the bears dominated the bulls.
The LTC/USDT pair is attempting to 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 minor rallies. This increases the probability that the price will continue to fall below $75. The next support on the downside lies at $65.
On the other hand, if the price rises from the current level and re-enters the triangle, it will suggest that the recent breakout may have been a bear trap. If the bulls push the price above $91.50, the trend will be up.
Polkadot Price Analysis
Polkadot (DOT) bounced from the strong support of $4.22 on June 10, indicating that the bulls are trying to stop the slide.
The relief rally could reach towards the 20-day EMA ($4.98), where bears are likely to sell aggressively. If the price turns down from this level, the DOT/USDT pair could retest the support at $4.22. A break below this level could start a move to $4, and $3.50 thereafter.
Conversely, 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 rally as high as $5.15 and then as high as $5.56. Until buyers overcome this hurdle, sellers will stay in command.
This article does not contain investment advice or recommendations. All investing and trading involves risk, so readers should do their own research before making a decision.
This article is for general informational purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts and opinions expressed herein are solely those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.