After nine consecutive weeks of red weekly candles, Bitcoin (BTC) printed a green weekly candle on June 5th. Buyers maintained their momentum ahead of this week with a strong weekly open that propelled the price of BTC to $31,800.
Going forward, traders can keep a close eye on the May Consumer Price Index (CPI) data due on June 10. Depending on the numbers, this could keep volatility elevated as investors digest the report and speculate on the next possible move. US Federal Reserve System.
Analysts are divided on the next direction for Bitcoin. While some believe that the bottom has already been reached, others expect another fall. For analyst Bob Lucas, the price action in the summer may remain uninteresting, and he expects a new cycle to begin at the end of the year.
Will the bulls be able to hold on to higher levels or will the bears sell aggressively and pull the price down? Let’s examine the charts of the top 10 cryptocurrencies to find out.
After two days of a small range on June 4 and 5, the range widened on June 6 and Bitcoin soared above the 20-day exponential moving average ($30,510). The bulls are trying to push the price towards the upper resistance at $32,659.
The price action over the past few days has formed an ascending triangle pattern that will end with a breakout and close above $32,659. If this happens, the BTC/USDT pair may start a new growth. The target of the triangle breakout pattern is $38,618.
The 20-day EMA has flattened out and the Relative Strength Index (RSI) is close to its midpoint, indicating that the selling pressure has eased.
This positive view may be invalidated if the price reverses sharply down and falls below the triangle trendline. The pair could then drop to strong support at $28,630 where the bulls could try to stop the decline. A break and close below this support could tip the lead in favor of the bears.
Ether (ETH) rebounded from $1,737 on June 3, indicating that the bulls are trying to defend key $1,700 support. Buyers are trying to push the price above the upper resistance at the 20-day EMA ($1930) on June 6th.
If they succeed, the ETH/USDT pair could gain momentum and rise to $2016. Above this level, the pair could reach a tough upper resistance level at $2159. Bears are likely to aggressively defend this level. If the price deviates from this resistance, the pair could settle between $2159 and $1700 for a few more days.
The long wick on the June 6 candle suggests that the bears continue to defend the 20-day EMA. This indicates that sentiment remains negative and traders are selling on the upside. Now the bears will try to take the pair below $1,700 and resume the downtrend.
Binance Coin (BNB) has formed a symmetrical triangular pattern, which indicates the indecision of the bulls and bears. The bulls are trying to push the price above the resistance line, but the bears are unwilling to give in.
If the price deviates from the upper resistance level, the bears will again try to drag the BNB/USDT pair below the support line. If they manage to do so, the pair could drop to $265 where buying could come in.
Alternatively, if the bulls push the price above the resistance line and hold it, this would mean that the sellers are losing their grip. The pair could then rise to the $350 breakout level. This is an important level to keep an eye on because a break and close above it can signal that the downtrend may be ending.
Ripple (XRP) is trading inside a bearish descending triangle. The bulls are trying to push the price above the downtrend line, but the bears are making a serious challenge, as seen in the long wick on the daily candle.
If the bulls take the price above the downtrend line, this will negate the bearish pattern. This could trigger a short squeeze, pushing the XRP/USDT pair to $0.46 and then to the psychological $0.50 level.
Conversely, if the price deviates from the downtrend line, the pair could drop to support at $0.38. If the bears push the price below $0.38, the descending triangle pattern will end. The pair could then drop to important support at $0.33. A break and close below this support could restart the downtrend.
Cardano (ADA) has held above the 20-day EMA ($0.56) for the past few days, indicating bulls are accumulating. Buying intensified on June 6 and the bulls are trying to push the price above the 50-day SMA ($0.66).
If they succeed, ADA/USDT could rise to the $0.74 breakout level. This level could once again become a major hurdle, but if the bulls break through it, the recovery could gain momentum. The pair could then rise to $0.90.
The 20-day EMA has flattened out and the RSI is just above its midpoint, indicating a slight advantage for buyers.
This bullish outlook may not be valid in the short term if the price turns lower and falls below the 20-day EMA. If this happens, the pair could gradually slide towards strong support at $0.44.
Solana (SOL) fell below the critical support of $37 on June 4, but the small upside is that the bulls were buying at lower levels. This could take aggressive bears by surprise, leading to a strong recovery, as seen in the long tail on the daily candle.
The RSI has formed a positive divergence, which indicates that the bearish momentum may be declining. The bulls are trying to push the price above the 20-day EMA ($46). If they succeed, SOL/USDT could rise to $55 and then to $60.
Conversely, if the price reverses down from the 20-day EMA, this would mean that the trend remains negative and the bears are selling on the rally. The bears will then make another attempt to restart the downtrend by dropping the pair below $35.
Dogecoin (DOGE) has been stuck between the 20-day EMA ($0.08) and $0.08 for the past few days, but this tight range trading is unlikely to last long.
If buyers push the price above the 20-day EMA, the DOGE/USDT pair could rise to the psychological resistance at $0.10. This level could again become a hurdle, but if the bulls break it, the pair could rise to $0.12.
Contrary to this assumption, if the price deviates from the 20-day EMA down, this would mean that the bears continue to sell on small ups. If the bears take the price below $0.08, the pair could drop to $0.07. A break and close below this support suggests a resumption of the downtrend.
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Polkadot (DOT) has formed a symmetrical triangle that usually acts as a continuation pattern. Buyers are trying to push the price above the 20-day EMA ($10) and challenge the triangle resistance line.
A break and close above the triangle would be the first sign of a potential trend reversal. The DOT/USDT pair could rise to $12 and then try to rise to the $14 breakout level. Bears are likely to aggressively defend this level.
Alternatively, if the price reverses down from the upper resistance level and breaks below the triangle, this would indicate that the bears are in control. The pair could then drop to $8 and then retest the May 12 intraday low of $7.30.
Avalanche (AVAX) rebounded from $22.14 on June 4, indicating that the bulls are vigorously defending the $21.35 support. Buyers have pushed the price above the downtrend line and are trying to overcome the overhead at the 20-day EMA ($28).
If they manage to do so, AVAX/USDT could gain momentum and move north towards $33 and then $37. Such a move would mean that the bulls are back in the game.
Contrary to this assumption, if the price turns down from the 20-day EMA, this would mean that the bears remain active at higher levels. The pair could then drop to $21.35. A break and close below this support could start the next leg of a downtrend.
Buyers have successfully defended the $0.000010 support over the past few days, but they have failed to push the Shiba Inu (SHIB) above the 20-day EMA of $0.000012. This suggests that buying is drying up at higher levels.
Trading in the tight range between $0.000010 and the 20-day EMA is unlikely to last long. If the bears push below $0.000010, SHIB/USDT could retest the May 12 intraday low at $0.000009. A break and close below this level could signal a resumption of the downtrend.
Alternatively, if buyers push the price above the 20-day EMA, the pair could rise to upper resistance at $0.000014. Bears are expected to form a strong defense at this level.
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