U.S. stock markets tumbled on June 10 after the CPI report showed that inflation rose 8.6% year-over-year, the highest increase since 1981. The latest data show that talk of a peak in inflation was premature, and according to Bloomberg, investors are setting key interest rates at 3% by the end of the year.
Continuing its close correlation with the S&P 500, Bitcoin (BTC) dipped below $30,000 on June 10. . However, Lee appears to have softened his expectations, saying that Bitcoin could “stay the same throughout the year and possibly rise.”
Among the constant stream of negative news was a ray of hope from the news that Bloomberg had expanded its coverage of cryptocurrencies data on its Bloomberg Terminal to 50 cryptoassets. Bloomberg Cryptocurrency Product Manager Alex Wenham expressed positive sentiment, saying that institutional interest in digital assets continues to grow.
Now that Bitcoin is once again trading near swing lows, is a capitulation level crisis a threat? Let’s examine the charts of the top 10 cryptocurrencies to find out.
The bulls tried to push the price above the 20-day exponential moving average ($30,365) on June 9, but the bears did not give up. The selling continued on June 10 and the bears pulled the price below the ascending triangle trend line.
The 20-day EMA has begun to gradually turn down, and the Relative Strength Index (RSI) is in negative territory, which indicates the advantage of sellers.
If the price holds below the trend line, this will invalidate the bullish setup. This could take the BTC/USDT pair down to $28,630, which could be strong support, but if that level breaks, the fall could extend to $26,700.
Alternatively, if the price bounces off $28,630 and rises above the 20-day EMA, a move higher could reach $32,659.
Strong selling on June 10 sent Ether (ETH) below critical support at $1,700. If the price holds below this support, the pair may resume the downtrend.
The ETH/USDT pair could drop to $1,500 initially, and if that level also gives way, the next stop could be vital support at $1,300. Bulls are expected to defend this level with all their might.
Contrary to this assumption, if the bears fail to keep the price below $1,700, it will mean accumulation at lower levels. The first sign of strength will be a break and close above the 20-day EMA. This could open the door to a possible uptick to $2,159.
Indicators are giving mixed signals as descending moving averages are favoring sellers, but a positive divergence on the RSI suggests a relief rally may be around the corner.
Binance Coin (BNB) has been trading below the symmetrical triangle support line for the past three days, but the bears have failed to gain a foothold on the breakout. This suggests that sales are drying up at lower levels.
Buyers will try to bring the price back into the triangle. If this happens, aggressive bears that may have gone short on a break below the support line could be trapped. This can lead to short positions being covered, which will push the price above the triangle resistance line. Such a move would mean that the bears could lose their grip.
Contrary to this assumption, if the price continues to fall below the current level and falls below $273, it will increase the likelihood of a break below the critical $260 support. The pair could then begin a decline towards the vital support of $211.
The bulls pushed Cardano (ADA) above the 50-day SMA ($0.64) on June 8 and 9 but failed to hold on to higher levels. This may have encouraged short-term traders to take profits.
The bears are trying to keep the price below the 20-day EMA ($0.58). If they manage to do so, ADA/USDT could drop to the next support at $0.53. If that level also gives way, the decline could extend to $0.44.
Alternatively, if the price rebounds from the current level, it would mean that sentiment has turned positive and bulls are buying dips. The bulls will then make another attempt to overcome the overhead at the 50-day SMA. If they succeed, the pair could rise to the $0.74 breakout level, which could again act as resistance.
Ripple (XRP) has been trading close to the downtrend line for the past two days. The failure to push the price above the upper resistance level could attract short-term traders to take profits.
The XRP/USDT pair dropped to strong support at $0.38, where buyers may try to stop the decline. If the price bounces off the support and rises above the downtrend line, the pair could rise to $0.46.
Conversely, if the bears dip and keep the price below $0.38, this will complete the bearish descending triangle pattern. This could boost sales and bring the price down to $0.33. A break below this support could signal a resumption of the downtrend.
Solana (SOL) has been trading between the 20-day EMA ($44) and $37 for the past few days. Buyers tried to push the price above the 20-day EMA on June 9, but the bears held their ground.
A positive divergence on the RSI indicates a marginal buying advantage, while descending moving averages indicate that the bears have the upper hand. This uncertainty is unlikely to last long. If the bears take the price below $35, the SOL/USDT pair may resume the downtrend. The next stop on the downside could be $30.
Contrary to this assumption, if the bulls push the price above the 20-day EMA, the pair could rise to $50 and then to the upper resistance at $60.
Bulls struggled to keep Dogecoin (DOGE) above $0.08 on June 8 and 9. This could trigger further selling and support collapsed on June 10th.
The bears will try to use their advantage and try to bring the price down to the vital support of $0.07. A break and close below this level can signal the start of the next leg of a downtrend.
This negative view may not be valid in the short term if the price rises and exceeds the 20-day EMA ($0.08). This could attract buying from aggressive bulls that could push the DOGE/USDT pair to $0.10.
Ethereum sees new yearly lows against Bitcoin as bulls neglect successful ‘merger’ rehearsal
The bulls tried to bring Polkadot (DOT) back into the symmetrical triangle on June 9, but the bears defended this level aggressively. This suggests that the bears have turned the support line into resistance.
The bears will try to push the price below the immediate support at $8.56. If they succeed, DOT/USDT could drop to the critical $7.30 level. The bears will have to pull the price below this support to indicate a resumption of the downtrend.
This bearish view could be invalidated if the price rebounds from $8.56 and rises above the resistance line. If this happens, the pair could attract buyers who could then try to push the price up to $11 and then to $12.50.
Avalanche (AVAX) has formed a Doji candlestick pattern over the past two days, which indicates the indecision of the bulls and bears. This uncertainty resolved to the downside on June 10, and the bears are trying to pull the price up to the strong support at $21.
The price is stuck between the 20-day EMA ($27) and $21. This narrow range trading is likely to be resolved by range expansion in the next few days. While a positive divergence on the RSI indicates a marginal advantage for buyers, the downward moving averages suggest that the bears have the upper hand.
If the range expands to the lower boundary and the price falls below $21, this will indicate a resumption of the downtrend. The AVAX/USDT pair may fall to $18. Alternatively, if the price explodes above the 20-day EMA, this could clear the way for a possible move up to $33 and then to $37.
The Shiba Inu (SHIB) has been trading near strong support at $0.000010 since June 7th. Although the bulls defended the support, they failed to get a strong rebound from it.
This increases the likelihood of a break below the strong support at $0.000010. If this happens, the SHIB/USDT pair will complete the formation of a bearish descending triangle. The pair could then fall to an intraday low on May 12 of $0.000009. If this support also breaks, the next stop could be $0.000006.
To counter this bearish sentiment, buyers will have to push the price above the downtrend line. This could clear the way for a possible upside to $0.000014.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cryptooshala. Every investment and trading move involves risk. You should do your own research when making a decision.
Market data provided HitBTC exchange.
Credit : cointelegraph.com