Bitcoin (BTC) is threatening to drop to its worst weekly close since December 2020. Cryptocurrency markets are in a tight grip, with selling accelerating after a higher-than-expected US inflation report on June 10th. .

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Not only crypto markets were affected, even US stock markets ended the week ending June 10 with sharp losses. Risk assets may remain volatile in the near term as traders wait for the results of the US Federal Open Market Committee. meeting 14 and 15 June.

Daily view of cryptocurrency market data. Source: Coin360
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Bloomberg Intelligence senior commodities strategist Mike McGlone warned that if stock markets continued to fall, it would be a signal that most assets may have peaked in the last two years.

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Can Bitcoin find support at lower levels and will it attract buying some altcoins? Let’s examine the charts of the top 5 cryptocurrencies that are most likely to rise if the mood improves.

Bitcoin/US dollar

Bitcoin broke below the trend line on June 10th, nullifying the emerging ascending triangle pattern. The bears maintained the selling pressure and pushed the price below the strong support of $28,630 on June 11.

BTC/USDT daily chart. Source: Trading View

The long tail of the June 12 candlestick shows that the bulls are trying to defend support at $26,700. If buyers push the price back above the $28,630 breakout level, this would mean that the BTC/USDT pair could remain in a range between $32,659 and $26,700 for some time.

On the other hand, if the price turns down from $28,630, it would mean that the bears have turned the level into resistance. This could increase the chance of a break below $26,700. If this happens, selling could pick up and the pair could drop to $22,000 and then $20,000.

BTC/USDT on the 4 hour chart. Source: Trading View

The pair rebounded sharply from $26,890, indicating aggressive buying near the critical $26,700 level. The bulls will try to push the price back above the $28,630 breakout level. If this happens, the next stop could be the 50 simple moving average. A break and close above this level could clear the way for a possible rally to $32,000.

A descending 20-EMA and RSI in the negative zone indicate that the bears are gaining the upper hand. If the price turns down from $28,630, the bears will make another attempt to push the pair below $26,700 and resume the downtrend.

FTT/USDT

The FTX token (FTT) has been in a downtrend for the past few months, but the RSI has formed a positive divergence, indicating that the bearish momentum may be waning.

Daily FTT/USDT chart. Source: Trading View

The bulls pushed the price above the 20-day EMA ($29) on June 9, but failed to hold on to higher levels. The bears returned the price below the 20-day EMA, but the bulls did not retreat. Steady bull buying pushed the price above June 12 resistance.

The FTT/USDT could rise to the 50-day SMA ($32) and if this level is crossed, a move higher could reach $35. This positive view could be invalidated if the price turns down and drops below $25. Such a movement will indicate the beginning of the next stage of the downtrend.

4-hour FTT/USDT chart. Source: Trading View

The 4-hour chart shows the formation of an inverted head and shoulders pattern that will end on a breakout and close above the neckline. If this happens, the pair could start a new upward move towards the $34 pattern target.

On the contrary, if the price fails to hold above the neck line, this will mean that the bears do not want to miss their advantage. The sellers will then try to push the price below $26. If they succeed, the pair could drop to $25.

XTZ/USDT

Tezos (XTZ) rallied above the 50-day SMA ($2.14) on June 9, but the bulls failed to build on that strength. This suggests that bears are active at higher levels.

Daily XTZ/USDT chart. Source: Trading View

Strong bear selling pushed the price below the moving averages and XTZ/USDT fell to the critical support zone of $1.61 to $1.45. If the price bounces from this zone, the bulls will again try to push the pair above the 50-day SMA and challenge the upper resistance at $2.36.

This positive view may become invalid if the price continues to decline and falls below the support zone. If this happens, the pair may resume the downtrend and fall to the psychological $1 level.

XTZ/USDT 4 hour chart. Source: Trading View

The 4-hour chart shows that the price is stuck in a range of $2.30 to $1.61. Typically, when price consolidates in a range, traders buy near support and sell near resistance. This is what happened, as seen in the bounce off $1.61.

The bears may try to sell on the rally to the 20-EMA, but if the bulls get past this hurdle, the pair is more likely to rise to $2.30. To disprove this view, the bears will have to drop and keep the price below $1.61. If this happens, the pair could drop to $1.45.

Ethereum price enters oversold zone for the first time since November 2018

KCS/USDT

The KuCoin (KCS) token rose sharply from the May 12 intraday low of $9.50 to hit $18 on May 31. This sharp rise may have prompted short-term traders to take profits, starting the current correction.

Daily KCS/USDT chart. Source: Trading View

Buyers will try to defend the zone between the 50% Fibonacci retracement level of $13.75 and the 61.8% retracement level of $12.75. If the price bounces from this zone, the bulls will try to push the KCS/USDT pair above the moving averages.

If they manage to do this, it will mean that the correction can be completed. The pair could then retest critical resistance at $18.

Alternatively, if the price continues to drop and falls below $12.75, this would mean that traders may rush to the exit. This could increase the chance of a 100% pullback to $9.50.

KCS/USDT 4-hour chart. Source: Trading View

The bulls tried to stop the fall around $15, but the bears continued selling and pulled the price below the support. Although the price is trading below $15, a small plus is that the bulls have not allowed the bears to continue lower.

Buyers will try to push the price back above $15 and the 20-EMA. If they do well, it will mean that the lower levels continue to attract active buying. This could push the price up to $16.30 and around $17.

Conversely, if the price turns down from $15, it would mean that the bears have turned the level into resistance. This could open the door for further declines into the $14 to $13.50 zone.

HNT/USDT

Helium (HNT) has been in a downtrend for the past few months. Buyers tried to recover and pushed the price above the 50-day SMA ($10.86) on June 9, but the bears had other plans.

HNT/USDT daily chart. Source: Trading View

On June 10, the bears sold aggressively at $12.50 and trapped aggressive bulls. This led to a long liquidation, causing the price to return below the 20-day EMA ($9.69) on June 11. The bulls will try to stop the decline at the strong support at $8 and make a higher low.

If they manage to do so, the HNT/USDT pair will again try to rise above the moving averages and challenge the resistance at $12.50.

This positive view may become invalid in the near future if the price drops below $8. If this happens, the pair could drop to an intraday low on May 12 at $6.54. A break below this level would signal a resumption of the downtrend.

HNT/USDT, 4-hour chart. Source: Trading View

The break and close below $11 boosted the selling and led to a waterfall. The moving averages have completed a bearish crossover and the RSI is in negative territory, indicating that the bears are in the lead.

An attempt to start a recovery is facing strong resistance around $9.50. If this level is crossed, the next hurdle could be the 20-EMA. A break above this resistance would be the first sign that selling pressure may ease.

Alternatively, if the price deviates from the upper resistance level and drops below $8.50, the pair could drop to strong support at $8.

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 step involves risk, you should do your own research when making a decision.