Stock markets are showing strength, and the selling pressure in the cryptocurrency market has taken a pause. Is this a sign that Bitcoin and altcoins are about to change course?
Bitcoin (BTC) is holding well above the crucial support of $25,250, indicating that market participants have turned their backs on the news of the United States Securities and Exchange Commission (SEC) lawsuits against Binance and Coinbase. When markets do not stay lower for long after negative news, it is a sign that traders are looking to buy cheap rather than panic and dump their positions.
ARK Invest CEO Cathie Wood has been buying cryptocurrency-related stocks ever since the SEC launched its recent regulatory action against Binance and Coinbase. First, Wood bought $21 million worth of Coinbase shares on June 6, and then she bought $19.9 million of Block Inc. shares on June 7-8.
The resilience of the cryptocurrency sector is supported by a risk sentiment. US equity markets are on a roll and the S&P 500 exceeded 4,300 points on June 9, the first time it had done so since August 2022.
Can the bulls sustain the rally in the cryptocurrency markets or will the higher levels attract the sellers in droves? Let’s study the charts of the top 10 cryptocurrencies to find out.
Bitcoin Price Analysis
Bitcoin turned down from the moving averages on June 7, but one small silver lining is that the bulls did not let the price fall below $26,125. This suggests that the lower levels are attracting buyers.
The bulls will try again to push the price above the 20-day exponential moving average ($26,924). If they do, it will suggest that the selling pressure is easing.
The BTC/USDT pair could then rally to the 50-day SMA ($27,536) and later to the resistance line of the descending channel. The bears are expected to defend this level fiercely.
Another possibility is that the price drops from the current level. In that case, the bears will try to reinforce their position by dragging the price down to $25,250. Buyers are likely to protect this level to the best of their ability.
Ethereum Price Analysis
Bulls have managed to hold Ether (ETH) above the resistance line of the falling wedge pattern, indicating demand at lower levels.
The 20-day EMA ($1,854) has flattened out and the RSI is close to the midpoint, indicating a balance between supply and demand. This balance will tip in favor of the bears sinking the price to $1,778. Then, the ETH/USDT pair could drop as low as $1,740, and subsequently as low as the support line of the wedge pattern.
Conversely, if the buyers push the price above $1,927, the bulls will gain the upper hand. The pair is likely to rally as high as $2,000 first and then dash towards the next major resistance at $2,200.
BNB Price Analysis
BNB (BNB) fell below the important support of $265 on June 7. On June 8, the bulls tried to breakout again, but held their ground.
The RSI in the oversold zone indicates that selling may have been overdone in the short term. This could lead to a relief rally that is likely to be faced with selling at $265 and $280 again. If the price turns down from either level, it indicates that sentiment remains negative and traders are selling. in rallies.
To the downside, if the shorts sink the price below the $253 intraday low set on June 7, the BNB/USDT pair could extend its decline to $240 and below to $220.
XRP Price Analysis
XRP (XRP) continues to rise. The bears tried to initiate a correction but were unable to push the price to the 20-day EMA ($0.50) on June 7, indicating that the bulls are holding strong.
The rise of the 20 day EMA and the RSI in positive territory indicate that the bulls are in command. The buyers will try to push the price above the $0.56-$0.58 area. If they succeed, the XRP/USDT pair could start a new uptrend. The pair could first rally to $0.60 and then $0.80.
If the bears want to initiate a pullback, they will have to drag the price below the 20-day EMA, which could attract profit-taking from short-term traders and the pair could drop to the 50-day simple moving candle ( USD 0.47) and, later, up to USD 0.42.
Cardano Price Analysis
The bulls tried to initiate a relief rally on June 8, but the long wick of the day’s candle shows that the bears are still shorting Cardano (ADA) at higher levels.
Although the downside moving averages indicate advantage for sellers, the RSI in oversold territory suggests that a relief rally may be just around the corner. The ADA/USDT pair can bounce off the solid support at $0.30.
The first resistance to watch is the 20-day EMA ($0.35). A break and close above this resistance will indicate that selling pressure may be easing.
Alternatively, if the price continues to fall and breaks below $0.30, it will clear the way for a potential decline to $0.24.
Dogecoin Price Analysis
Dogecoin (DOGE) remains below the breakout level of $0.07, but the bulls have not allowed the bears to sink the price to the next support near $0.06.
Any recovery from the current level is likely to face selling near the 20-day EMA ($0.07) as seen on the long wick of the June 9 candle.
If the price declines and continues to decline, this will suggest that the bears are selling near resistance levels. The DOGE/USDT pair could fall towards the support near $0.06.
If the bulls want to avoid the dip, they will have to quickly push the price above the 20 day EMA. This move will suggest the start of a stronger recovery. So, the pair could try a rally to $0.08.
Solana Price Analysis
sunny (SUN) fell below the $18.70 support on June 8, but the long tail of the candlestick shows that the bulls are trying to protect the level.
The 20-day EMA ($20.15) has turned lower and the RSI is below 39, indicating that it is going to be difficult for the bulls to start a solid bounce from the current levels. If the price breaks and sustains below $18.70, the SOL/USDT pair could drop as low as $17, and then to the vital support of $15.28.
Contrary to this assumption, if the price bounces from the current level, the pair could reach the moving averages. A break and close above the 50-day SMA ($20.92) will signal the start of a stronger relief rally towards $24.
Polygon Price Analysis
Polygon (MATIC) continues to slide towards its crucial support of $0.69, indicating that the bears are firmly in control.
The bulls are expected to defend the $0.69 level vigorously, otherwise the selling pressure could intensify and the MATIC/USDT pair could crash to the next major support at $0.50.
On relief rallies, the breakout level of $0.82 is likely to act as a major hurdle. If the bulls clear this hurdle, the pair could move as high as $0.94. The bears are likely to sell hard at this level.
Litecoin Price Analysis
Bulls repeatedly bought the dip below the 50-day EMA ($88) on June 7-9, signaling strong demand at lower levels. However, the bears have not given up and continue to sell Litecoin (LTC) near the 20-day EMA ($90).
If the price turns down from the current level, the bulls will try to push the LTC/USDT pair towards the uptrend line, which is likely to attract several buyers. If the price bounces off the uptrend line, it will suggest that the pair may extend its stay inside the triangle for a few more days.
To the upside, buyers will have to push the price above the 20-day EMA ($90) to open the doors for a possible rally to the resistance line of the triangle.
The next trend is likely to start after price breaks above or below the triangle. Until then, the range-bound move is likely to continue.
Polkadot Price Analysis
Polkadot (DOT) remains below the breakout level of $5.15, but one small advantage for the bulls is that they have not allowed the bears to sink the price below the immediate support of $4.90.
If the price rises from the current level, it will suggest buying on dips. The bulls will try again to push the price above the 20-day EMA ($5.24). If they do, the DOT/USDT pair could recapture the $5.56 level.
Conversely, if the price turns back from $5.15 or the 20-day EMA, it will indicate that the shorts continue to sell on minor rallies. This will increase the possibility of a drop below $4.90. The next major support on the downside lies further down at $4.22.
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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.