Bitcoin and most major cryptocurrencies are facing selling at higher levels, but there are no signs of panic selling at this time.
Bitcoin and altcoins have been volatile over the past two days as cryptocurrency markets accept the United States Securities and Exchange Commission (SEC) actions against two of the largest cryptocurrency exchanges, Binance and Coinbase.
After the initial knee-jerk reaction to the news and the subsequent rally, markets are likely to range-bound as traders reflect on the uncertainty surrounding demands. The initial response has been encouraging, as the markets have not crashed, indicating the growing maturity of the crypto space.
Glassnode data shows a decline of 12,600 Bitcoin (BTC) from the exchange balances on June 5 and 6, indicating that traders remained calm and did not panic as they had during the FTX episode in November.
What are the critical support levels to watch out for on the downside? Will the lower levels attract buyers? Let’s study the charts of the top 10 cryptocurrencies to find out.
Bitcoin Price Analysis
Bitcoin rallied from the vital support at $25,250 on June 6, indicating that the bulls are fiercely trying to protect the level. However, the rally faces selling near the moving averages.
The bears will make another attempt to push the price up to $25,250. This remains the key level to watch because a breakout and close below it can open the doors for a potential drop to $20,000. Such a deep drop can delay the start of the next leg of the upward move.
The bulls are expected to aggressively buy dips to the zone between $25,250 and the support line of the channel. On the upside, buyers will have to push the price above the resistance line of the channel to signal the end of the corrective phase. The BTC/USDT pair can rise to $31,000.
Ether Price Analysis
ether(ETH) fell below the resistance line of the falling wedge pattern on June 5, but the bears were unable to take advantage of the strength. This shows demand at lower levels.
The bulls pushed the price back above the moving averages on June 6, but were met with strong selling pressure from the bears. The sellers will try again to sink the price into the wedge. If they manage to do that, the ETH/USDT pair could extend the decline to the support line of the wedge.
Conversely, if the price bounces off the resistance line of the wedge, it will suggest that the bulls have shifted the line to support. Buyers will have to push the price above $1,928 to start the march north to $2,000 and $2,200 thereafter.
BNB Price Analysis
BNB (BNB) plunged sharply on June 5, pulling the price below the strong support of $280. There was a tame attempt to start a rally on June 6, but the bears did not allow the price to stay above the $280 range. $280.
Selling resumed on June 7 and the bears dragged the price below the crucial support at $265. This is a negative sign, as it suggests the start of a further move lower to $240 and then to the vital support of $220.
If the bulls want to turn back, they will have to push the price above the breakout level of $265. If they can pull it off, the BNB/USDT pair could pull back to $280 and then to the 20-day EMA of $299 .
XRP Price Analysis
On a bullish move, traders generally buy the dip to the 20-day EMA ($0.49), and they did so in XRP (XRP) on June 5 and 6, as seen on the long tail of the Japanese candlesticks.
However, the bears are not willing to give up easily. They continue to sell on rallies to the resistance zone between $0.56 and $0.59. If the price turns down sharply and breaks below the 20-day EMA, it will suggest that the bears want to keep the range between $0.30 and $0.56 intact.
In the meantime, buyers likely have other plans. They will try to clear the upper hurdle, and if they do, it signals the start of a new uptrend. The XRP/USDT pair could rally to $0.60 and then $0.80.
Cardano Price Analysis
Cardano (ADA) fell below the uptrend line of the ascending triangle pattern on June 5, invalidating the bullish setup.
The bulls bought the dip on June 5, but were unable to push the price back inside the channel. This suggests that the bears are trying to turn the uptrend line into resistance. The selling continued on June 7, with the bears pulling the price below $0.33. The ADA/USDT pair could turn down to the strong support of $0.30.
On the upside, the first sign of strength will be a close within the channel. Such a move will suggest that the break below the channel may have been a bear trap. The pair could attract strong buying above $0.39.
Dogecoin Price Analysis
Dogecoin (DOGE) broke below the immediate support at $0.07 on June 5, but rallied sharply from support near $0.06.
The bulls tried to push the price above the 20-day EMA ($0.07) on June 6, but the bears sold the rally. This indicates that the bears have not given up and continue to sell near strong resistance. The falling moving averages and the Relative Strength Index in the negative territory indicate that the bears have an advantage. The bears will try to sink the price below $0.06.
If the bulls want to turn back, they will have to push the price above the 20 day EMA. The DOGE/USDT pair could then attempt a rally to $0.08.
Polygon Price Analysis
Polygon (MATIC) fell below the $0.82 support on June 6, but the bulls aggressively bought the dip as seen on the long tail of the day’s candle.
The buyers tried to hold the price above the breakout level of $0.82, but the bears had other plans. They sold aggressively on June 7 and pushed the price below the June 6 low of $0.79. This suggests the resumption of the downtrend. The MATIC/USDT pair could drop to the strong support of $0.69 next.
If the bears want to avoid the dip, they will have to quickly push the price above $0.82. That can trap aggressive bears, resulting in a short squeeze, which could send the price back to $0.94.
Solana Price Analysis
sunny (SUN) rallied from the strong support of $18.70 on June 5-6, as seen on the long tail of the daily candlesticks, but the bulls were unable to clear the hurdle at the 20-day EMA ($20.50).
This indicates that the bears remain active at higher levels. If the price continues lower and falls below the support of $18.70, the SOL/USDT pair can start a move lower towards the next support at $15.28.
Alternatively, if the price bounces from the current level or $15.28, it will indicate that the demand is at lower levels. Then the bulls will try to push the price above $22.30. If successful, the pair can rally to $24 and then attempt a rally to $27.12.
Polkadot Price Analysis
Polkadot (DOT) crashed below the crucial support of $5.15 on June 5, but rallied sharply on June 6 and broke above the breakout level.
The bulls were unable to continue the rally on June 7 as the bears sold the minor rally. The sellers will try to further strengthen their position by pushing the price below $4.90. If they manage to do that, the DOT/USDT pair can plummet to $4.22.
On the upside, the first crucial resistance to watch is the 20-day EMA ($5.29). A rally above this level will be the first indication that selling pressure may be easing. The pair can pick up momentum above $5.56.
Litecoin Price Analysis
Litecoin (LTC) fell below the moving averages on June 5 and rallied sharply on June 6, but the bulls were unable to hold the price above the 20-day EMA ($90). This suggests that the bears are selling rallies.
The bears will try to drag the price to the uptrend line. This is an important level for the bulls to defend because a breakout and close below it will signal the beginning of a possible move lower. The LTC/USDT pair could drop to $75 first and then $65.
Conversely, if the price rises from the current level or the uptrend line, it will suggest that the pair may remain trapped inside the triangle for a while longer. The bulls will have to catapult the price above the triangle to start the next leg of the move higher.
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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 herein are solely those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.