Bitcoin (BTC) continues to have a tough fight around the $20,000 psychological level as bulls and bears try to assert their dominance. Trading firm QCP Capital said in its latest market report that funding rates in the derivatives markets have been stable and bearish conditions are fading.

- Advertisement -

Another silver lining for bitcoin bulls is that bitcoin miners may capitulate as the recent price decline has made some mining machines unprofitable. Data from Arcane Research shows that publicly traded bitcoin mining companies that only sold 30% of their mining from January to April this year dumped 100% of their bitcoin mining in May. Some analysts believe that the miners’ failure was a bullish signal.

Daily indicators of the cryptocurrency market. Source: Coin360
- Advertisement -

However, one metric suggests that Bitcoin may not have bottomed out. Historically, bitcoin signals the day when less than 50% of bitcoin addresses remain profitable. Glassnode data as of June 20th shows 56.2% of bitcoin addresses are in profit, raising fears of another drop.

- Advertisement -

Can Bitcoin and altcoins recover, or will the bears lower the price? Let’s examine the charts of the top 10 cryptocurrencies to find out.

Bitcoin/US dollar

The bulls are trying to start a bitcoin recovery, but the long wick on the June 21 candle suggests that the bears are reluctant to give up their edge.

BTC/USDT daily chart. Source: Trading View

A minor upside is that the bulls are buying on the dip to $20,000 on June 22nd. If the price rebounds from the current level, buyers will try to push the BTC/USDT pair above $22,000. This could open the doors for a possible rally towards the 20-day exponential moving average ($24,076).

This level is likely to act as tough resistance, but if the bulls break through this barrier, the next stop could be the 50-day simple moving average ($28,678).

This bullish view could be refuted if the price turns down and drops below $19,600. This could improve the prospects for a retest of the June 18 intraday low at $17,622.

ETH/USDT

Ethereum (ETH) bounce off the June 18 intraday low of $881 is down from $1,194 on June 21, suggesting that the bears have not given up yet and continue to sell on the rally.

Daily ETH/USDT chart. Source: Trading View

If the bulls do not give up their positions from the current level, the ETH/USDT pair may again try to rise to the 20-day EMA ($1368). This is an important level to keep an eye on because bears usually defend the 20-day EMA during a downtrend.

If the price deviates down from the 20-day EMA, the bears will again try to pull the pair up to $1,000 and then to $881. A break below this level could signal a resumption of the downtrend. On the other hand, if the bulls push the price above the 20-day EMA, the pair could rise to $1,700.

BNB/USDT

Binance Coin (BNB) has been holding above the critical support of $211 since June 19, but the bulls are struggling to push the price higher. The long wick on the June 21 candle suggests that the bears continue to sell on the rally.

BNB/USDT daily chart. Source: Trading View

If the bears take the price below $211, BNB/USDT could drop to $200 and then to the June 18 intraday low of $183. This is an important level to look out for because if the price drops below it, the pair could drop to $150.

Conversely, if the price rebounds from $211 or $200, it would mean that the bulls are continuing to buy dips. The bulls will then make another attempt to overcome the overhead at the 20-day EMA. If they succeed, it would mean that a break below $211 could be a bear trap.

ADA/USDT

The bounce of Cardano (ADA) from the $0.44 to $0.40 support zone ended near the 20-day EMA ($0.51) on June 21st. This suggests that the bears continue to aggressively defend the level.

Daily ADA/USDT chart. Source: Trading View

Now the sellers will try to lower the price below the support zone. If they manage to do this, it will mark the beginning of the next leg of the downtrend. The ADA/USDT pair could then fall to $0.33 and then to $0.30.

Alternatively, if the price rebounds from the support zone again, it would mean that the bulls continue to accumulate on the dips. Then the buyers will make another attempt to push the pair above the moving averages and start rising to $0.70.

XRP/USDT

Ripple (XRP) has fluctuated between $0.28 and $0.35 for the past few days. This indicates a state of balance between bulls and bears.

Daily XRP/USDT chart. Source: Trading View

The longer the time is inside the range, the stronger the breakdown from it will be. If the price continues to decline and breaks through the range support at $0.28, this could signal a resumption of the downtrend.

The RSI is showing a positive divergence, indicating a possible weakening of the bearish momentum. If the bulls push the price above $0.35, this will mean the beginning of a new upward movement. The XRP/USDT pair could then rise to the 50-day SMA ($0.41) and then to $0.45.

SOL/USDT

Solana’s (SOL) recovery rose above the 20-day EMA ($36) on June 21, but the long wick on the daily candle shows bears selling at higher levels.

SOL/USDT daily chart. Source: Trading View

The price remains below the 20-day EMA on June 22, but the bulls have not given up. This suggests that buyers are expecting a break above the 20-day EMA. If that happens, the SOL/USDT could rally to the 50-day SMA ($47), where the bears could get back on the defensive.

Conversely, if the price fails to rise above the 20-day EMA, short-term traders may be attracted to profit-taking. This could push the pair to $30 and then to $27.

DOGE/USDT

Dogecoin (DOGE) began a recovery on June 19 and hit the 20-day EMA ($0.06) on June 21. Although the bulls pushed the price above the 20-day EMA, they were unable to hold onto the higher levels.

Daily DOGE/USDT chart. Source: Trading View

This may have attracted profit taking by short-term bulls and selling by aggressive bears. Sellers will now look to take the DOGE/USDT pair below $0.06 and challenge the vital support at $0.05.

Alternatively, if the price rebounds from $0.06, it would mean that the sentiment has changed from selling on the ups to buying on the downs. This could increase the likelihood of a breakout of the 20-day EMA. If this happens, the pair could rise to the 50-day SMA ($0.08).

Bitcoin Price Drops Below $20K as Whales Send 50K BTC to Exchanges

POINT/USDT

Polkadot (DOT) deviated from the 20-day EMA ($8.20) on June 21, suggesting that the bears continue to aggressively defend the level. Sellers will now try to push the price below the nearest support at $7.30.

DOT/USDT daily chart. Source: Trading View

If they succeed, DOT/USDT could drop to critical support at $6.36. This is an important level to keep an eye on because a break below it could start the next leg of the downtrend to $4.23.

Conversely, if the price rebounds from $7.30, it would indicate that the bulls are trying to form a higher low. This could improve the prospects for a break above the 20-day EMA. The pair could then rise to the 50-day SMA ($9.78). If this level is also crossed, the next stop could be $12.44.

Lev/US dollar

The bulls pushed UNUS SED LEO (LEO) above the descending channel resistance line on June 22, but the long wick on the daily candle suggests that the bears are selling at higher levels.

LEO/USD daily chart. Source: Trading View

The 20-day EMA ($5.29) has started to turn higher and the RSI is near the overbought zone, indicating that the bulls have taken the upper hand. If the price holds above the channel, this could open the doors for a possible move up to $6.50.

Conversely, if the price fails to hold above the channel, traders may take profits and this could lead the LEO/USD pair to a 20-day EMA. Such a move would mean the pair could be stuck inside the channel for a few more days.

SHIB/USDT

Failure to push the Shiba Inu (SHIB) below $0.000007 could encourage short sellers to take profits and aggressive bulls to start buying. This could lead to a sharp rally on June 21st.

Daily SHIB/USDT chart. Source: Trading View

Traders pushed the price above the 20-day EMA ($0.000010) but failed to clear the hurdle at the 50-day SMA ($0.000012). This suggests that the bears are aggressively defending the level.

Sellers are trying to bring the price back below the 20-day EMA. If they manage to do so, it would mean that the recent recovery could have been a bear market rally. SHIB/USDT could then fall to $0.000007.

The 20-day EMA is flattening and the RSI is close to its midpoint, indicating that the movement will be range-limited in the short term. The bulls will have to push and hold the price above the 50-day SMA to signal a potential trend reversal.

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.