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Bitcoin (BTC) continues to face an uphill battle near the psychological $20,000 level as the bulls and bears both attempt to assert their positions. QCP Capital says funding rates are near neutral and bearish sentiment is cooling off.
Data from Arcane Research shows that public Bitcoin miners only sold 30% of their mining output between January and April of this year. However, with the market situation not so good since May, they had to dump all their Bitcoin reserves. Some analysts believe this is a signal for a short-term rally.
However, one metric suggests that Bitcoin may not have bottomed yet. Historically, Bitcoin signaled a bottom when less than 50% of Bitcoin addresses were still profitable. Glassnode data as of June 20 shows that 56.2% of Bitcoin addresses are still profitable, raising fears of another drop.
The bulls are attempting to initiate Bitcoin’s rally but the long wick on the June 21 candlestick shows that the bears are not willing to give up their advantage.
One small positive is that the bulls continue to buy on the drop to $20,000 on June 22. If the price recovers from current levels, buyers will attempt to push the BTC/USDT pair above $21,000. That could open the door for a rally to the 20-day EMA ($24,076).
This level is likely to act as a strong resistance but if the bulls break through it, the next stop could be the 50-day simple moving average (SMA) ($28,678). This bullish view will be negated if the price turns down and breaks below $19,600. That could raise the prospect of a retest of the June 18 low of $17.622.
Ether (ETH)’s strong bounce since $881 has been blocked by $1,194, showing that the bears have not given up and they continue to sell as the price recovers. The ETH/USDT pair can recover to the 20-day EMA ($1.368) again if the bullish momentum holds. This is an important level to watch as the bears tend to defend the 20-day EMA in a downtrend.
If the price turns down from the 20-day EMA, the bears will again attempt to drag the pair to $1,000 and then to $881. A break below this level could signal a continuation of the bearish correction. On the other hand, if the bulls push the price above the 20-day EMA, the pair can rally to $1,700.
BNB has maintained above the critical support at $211 since June 19 and the bulls continue to push the price higher. The long wick on the June 21 real body shows that bears continue to maintain selling on the upside.
If the bears push the price below $211, the BNB/USDT pair can drop to $200 and then as low as $183. This is an important level to watch because if the price drops below that level, the pair has could plummet to $150.
Conversely, if the price recovers from $211 or $200, it will show that the bulls continue to buy on the downside. They will then make one more attempt to clear the overhead barrier at the 20-day EMA. If successful, it suggests that a break below $211 could be a bear trap.
Cardano (ADA) bounce from the $0.44 – $0.40 support area disappeared near the 20-day EMA ($0.51) on June 21. This shows that the bears are still trying. Try to protect this landmark.
The sellers will now try to push the price below the support zone. If that is achieved, this will be the start of the next phase of the downtrend. The ADA/USDT pair can then slide to $0.33 and lower to $0.30.
Additionally, if the price once again recovers from the support area, it will show that the bulls continue to accumulate on the downside. After that, the buyers will make one more push of the ADA/USDT pair above the moving averages and initiate a rally to $0.70.
Ripple (XRP) has been range-bound between $0.28 and $0.35 for the past few days. This shows an equilibrium between the bulls and the bears.
The longer the time inside the range, the stronger the breakout from that range. If the price continues to decline and breaks below the support of the range at $0.28, it could suggest a continuation of the downtrend.
The RSI is showing a bullish divergence, suggesting that the downside momentum may be waning. If the bulls push the price above $0.35, it will suggest the start of a new up move. The XRP/USDT pair can then rise above the 50-day SMA ($0.41) and above it to $0.45.
Solana (SOL) rally on June 21 helped the price rise above the 20-day EMA ($36) but the long wick on the intraday bar shows that bears are still maintaining selling momentum at high levels.
SOL price remains below the 20-day EMA on June 22 but the bulls have not given up on the recovery yet. This shows that the buyers are expecting a breakout above the 20-day EMA. If this happens, the SOL/USDT pair can move up to the 50-day SMA ($47), where the bears will make drastic containment decisions to firmly defend this mark.
Conversely, if the price fails to rise above the 20-day EMA, the SOL/USDT currency pair can be dragged down to $30 and then to $27.
Dogecoin (DOGE) started to recover on June 19 and reached the 20-day EMA ($0.06) on June 21. Although the bulls pushed the price above the 20-day EMA, the price could not maintained at higher levels.
Sellers will now attempt to push the DOGE/USDT pair below $0.06 and challenge the critical support at $0.05.
If the price recovers from $0.06, it will indicate that sentiment has changed from “sell on the rise” to “buy on the downside” and could increase the likelihood of a break above the 20-day EMA. The pair can rise to the 50-day SMA ($0.08).
Polkadot (DOT) lost the 20-day EMA ($8.20) on Jun 21, showing that the bears continue to defend this level aggressively. The sellers will now attempt to drag the price below the nearest support at $7.30.
If successful, the DOT/USDT pair can drop to the critical support at $6.36. This is an important level to watch as a break below it could start the next phase of the downtrend with a target of $4.23.
Conversely, if the price recovers from $7.30, it will indicate that the bulls are attempting to form a higher low and could raise the prospect of a breakout above the 20-day EMA. The pair can then recover to the 50-day SMA ($9.78). If this level is also conquered, the next stop could be at $12.44.
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