Bitcoin price continues to lose momentum, signaling the possible start of a deeper correction below $8,200.
Grayscale Investments has been taking in Bitcoin (BTC) at a frantic pace. In the last week alone, the fund gobbled up 19,879 Bitcoin, which is way over the 7,081 Bitcoin mined during the period, according to crypto researcher Kevin Rooke. This shows that demand far exceeds supply at the moment, which is a positive sign.
However, Tone Vays believes that if the S&P 500 breaks below 3,000, it could fall another 12%. Due to the strong correlation between the S&P 500 and Bitcoin a crash in the equity markets could drag the top-ranked asset on CoinMarketCap to the $7,000 levels. Vays expects Bitcoin to consolidate “between $6,000 and $10,000 for the majority of this year.”
Daily cryptocurrency market performance. Source: Coin360
Social Capital CEO and Virgin Galactic Chairman Chamath Palihapitiya has once again suggested that investors should put about 1% of their money in Bitcoin as an insurance against bad government financial decisions.
However, Palihapitiya does not want Bitcoin to skyrocket to the moon because he believes that such a move will happen only if the financial system collapses and that would wreck the lives of friends and family who are not hedged in Bitcoin.
BTC/USD
Currently, the bulls are attempting to defend the trendline of the ascending triangle. If Bitcoin (BTC) bounces off this level and rises above the moving averages it will signal that investors remain keen to buy each dip.
BTC/USD daily chart. Source: Tradingview
The critical level to watch on the upside is the $10,000–$10,500 zone because if the bulls can propel the price above this area a new sustained uptrend is likely.
Conversely, if the rebound off the trendline of the triangle turns down from the moving averages, it will increase the possibility of a break below the triangle. If that happens a deeper correction is likely.
The first support is at $8,638.70 but if this level cracks, the decline can extend to $8,130.58. This is a critical support, hence, the bulls are likely to defend this level aggressively.
ETH/USD
Ether (ETH) has dropped to the support at $225.783. The 50-day simple moving average ($223) is just below this level, hence, the bulls are likely to aggressively defend the $225.783–$218.331 zone.
ETH/USD daily chart. Source: Tradingview
A strong bounce off the support zone is likely to keep the second-ranked cryptocurrency on CoinMarketCap between $225.783 and $253.556 for a few more days. The flat 20-day exponential moving average ($233) and the relative strength index just below the midpoint also supports this view.
However, if the bears sink the price below the $225.783–$218.331 support zone, the ETH/USD pair is likely to start a deeper correction that can reach $200 and below that $176.112.
XRP/USD
XRP closed (UTC time) below the support line of the symmetrical triangle on June 24, which completed the pattern. The target objective of this breakdown is $0.124412.
XRP/USD daily chart. Source: Tradingview
Both moving averages are sloping down and the RSI is below the 40 level, which suggests that bears are in command. The next support on the downside is $0.16 and if that breaks, a drop to $0.14 is possible. Any pullback is likely to face stiff resistance at the 20-day EMA ($0.19).
This bearish view will be invalidated if the fourth-ranked cryptocurrency on CoinMarketCap rises and breaks above the downtrend line of the triangle. Such a move will suggest that the current breakdown was a bear trap.
BCH/USD
The bulls have not been able to sustain Bitcoin Cash (BCH) above the moving averages and the bears have failed to sink the price below the immediate support at $217.55.
BCH/USD daily chart. Source: Tradingview
The 20-day EMA ($238) has been sloping down gradually and the RSI has been trading between 40 and 50 levels. This suggests that bears are trying to make a comeback.
A break below $217.55 will be the first indication that bears have gained the upper hand. Below this level, a drop to $200 is possible.
Alternatively, if the fifth-ranked cryptocurrency on CoinMarketCap breaks above the moving averages, a move to $255.46 is likely. A break above this resistance will indicate the advantage is with the bulls.
BSV/USD
The bulls are struggling to keep Bitcoin SV (BSV) inside the large $170–$227 range. Both moving averages are sloping down and the RSI has slipped below 40, which suggests that bears have the upper hand.
BSV/USD daily chart. Source: Tradingview
If the sixth-ranked cryptocurrency on CoinMarketCap drops below the $170– $165.380 support zone, the decline can extend to $146.10. If the strong downward momentum breaks below this level, the next target is $110.
The possibility is low, but if the BNB/USD pair bounces off the current levels and breaks out of the moving averages it can move up to $209. Above this level, a rally to $227 is possible.
LTC/USD
Litecoin (LTC) has been gradually moving lower for the past few days. On the upside, the bears are defending the moving averages while the bulls are attempting to hold the altcoin above the immediate support at $41.
LTC/USD daily chart. Source: Tradingview
Today, the seventh-ranked cryptocurrency on CoinMarketCap bounced sharply from $41.3866, which is a positive sign. If the bulls can push the price above the moving averages, a rally to $47.50 and above it to $51 is possible.
Conversely, if the LTC/USD pair again turns down from the moving averages, the bears will attempt to sink the price below $41. If successful, a drop to $39 is likely.
BNB/USD
Binance Coin (BNB) is struggling to stay above the $15.72–$15.40 zone. This suggests that the bulls are not confident that the support will hold, hence, they are not buying in a hurry even at these levels.
BNB/USD daily chart. Source: Tradingview
The 20-day EMA ($16.36) is sloping down and the RSI has dipped below the 40 which suggests that bears have the upper hand. A drop below the support zone can result in a fall to $15 and then to $13.65.
Contrary to this assumption, if the eighth-ranked crypto-asset on CoinMarketCap rebounds off the current levels and rises above the moving averages, a move to $18.1377 is likely. However, the possibility of such a move looks bleak.
EOS/USD
EOS rebounded off $2.3889, which suggests that the bulls have still not given up on the altcoin. However, until the price remains below the moving averages it will continue to face selling from the bears.
EOS/USD daily chart. Source: Tradingview
If the price again turns down from the moving averages, the bears will make one more attempt to break below $2.3314. If they succeed a new downtrend is likely. The first support on the downside is $2.00 followed by $1.80.
The gradually downsloping moving averages and the RSI oscillating between 40 and 50 level suggests that bears have the upper hand.
This bearish view will be invalidated if the bulls can propel the ninth-ranked cryptocurrency on CoinMarketCap above the moving averages.
ADA/USD
Cardano (ADA) has held the 20-day EMA ($0.079) for the past two days but the bulls are struggling to sustain the rebound. This suggests that higher levels are attracting selling by the bears.
ADA/USD daily chart. Source: Tradingview
The 20-day EMA is still gradually sloping up and the RSI has been consolidating between 54 and 62 levels, which suggests that bulls have a minor advantage.
A breakout and close (UTC time) above $0.085 will signal strength. Above this resistance, a retest of $0.0901373 will be on the cards. If this level is scaled, the 10th-ranked cryptocurrency on CoinMarketCap can rally to $0.10.
Conversely, if the bears sink the ADA/USD pair below the 20-day EMA, a deeper correction is likely. The next support zone on the downside where buyers might step in is $0.0722722–$0.0694880.
CRO/USD
Crypto.com Coin (CRO) slipped below the $0.118234 support on June 25. However, the uptrend is intact as both moving averages are sloping up and the price remains in the positive territory.
CRO/USD daily chart. Source: Tradingview
The gradual fall from the recent highs suggests that only a few bulls have closed their positions, which is a positive sign.
If the 11th-ranked cryptocurrency on CoinMarketCap rebounds off the 20-day EMA ($0.112), the buyers will attempt to resume the uptrend. Momentum is likely to pick up above $0.126245 and the target levels to watch out for are $0.135202 and then $0.15306.
This bullish view will be negated if the CRO/USD pair breaks and sustains below the 20-day EMA. Such a move can drag the price to $0.101266.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Market data is provided by HitBTC exchange.
