The bears lost an opportunity when they failed to sustain Bitcoin (BTC) below the $25,000 level this week. That may have attracted buying from the bul
The bears lost an opportunity when they failed to sustain Bitcoin (BTC) below the $25,000 level this week. That may have attracted buying from the bulls who are attempting to start a recovery in Bitcoin and select altcoins.
Additionally, BlackRock’s application to launch a Bitcoin spot price exchange-traded fund and the sustained strength in the United States equities markets may have helped improve crypto sentiment. Bitcoin is on track to finish the week with a minor gain of 2% and institutional buying in the Grayscale Bitcoin Trust reduced its discount to Bitcoin spot from 44% on June 13 to 36.6%, according to CoinGlass data.
Although Bitcoin and select altcoins are trying to start a relief rally, the overall trend remains bearish. Therefore, short-term traders who buy for a pullback should consider booking profits or tightening their stops when the price struggles to break above stiff resistance levels.
The strategy may be different for long-term investors who may use the dips to strong support levels to acquire the cryptocurrencies of their choice. It is prudent to adopt a staggered buying approach as a runaway rally is unlikely.
Let’s look at the top-5 cryptocurrencies that are trying to start a recovery in the short term.
Bitcoin price analysis
Bitcoin turned up sharply on June 15, trapping the aggressive bears who may have gone short on a break below $25,250. That may have caused a short squeeze in the near term, which propelled the price to the 20-day exponential moving average ($26,403).
The bears are trying to limit the relief rally at the 20-day EMA but a positive sign is that the bulls have not given up much ground. This suggests that the buyers are holding on to their positions in anticipation of a move higher.
However, the bears are likely to have other plans as they will try to offer stiff resistance in the zone between the 20-day EMA and the resistance line of the descending channel. If the price turns down from this zone, the BTC/USDT pair may remain inside the channel for a while longer.
But if bulls drive the price above the channel, the pair will signal a potential trend change in the near term. The pair could then surge toward $31,000.
The 20-EMA on the 4-hour chart has turned up and the relative strength index (RSI) is in the positive area, indicating that bulls have the upper hand in the near term. There is a minor resistance at $26,850 but if that is crossed, the pair may reach the resistance line of the channel near $27,600. This level may prove to be a difficult hurdle for the bulls to cross but if they manage to do that, the pair could rally to $28,500.
This positive view will invalidate in the short term if the price turns down and breaks below the 20-EMA. That could pull the price down to the 50-simple moving average and eventually to the strong support zone between $25,250 and $24,800. A break below this zone may intensify selling.
BNB price analysis
BNB (BNB) has been in the thick of things for the past few days but a positive sign is that the bulls did not allow the price to break the $220 support. This indicates demands at lower levels.
The first resistance on the upside is the 38.2% Fibonacci retracement level of $252.50. If this level is scaled, the BNB/USDT pair may reach the 20-day EMA ($261). The bears will try to halt the recovery at this level. If they succeed, the pair may turn down toward $220.
On the contrary, if bulls propel the price above the 20-day EMA, the pair could reach the 61.8% Fibonacci retracement level of $272.50. This is a crucial level for the bears to defend because if it gives way, the pair may soar toward $305.
The 4-hour chart shows that the moving averages have completed a bullish crossover and the RSI has risen into the positive zone. This indicates that buyers are attempting a comeback. The bulls will have to overcome the barrier at $252.50 to gain strength. The pair could then rally to $265.
On the downside, the first support is at the 20-EMA. If this level breaks down, the pair could slip to the uptrend line. A break and close below this level will indicate that the bulls have given up. The pair could then retest the critical support at $220.
Litecoin price analysis
Litecoin (LTC) plunged below the symmetrical triangle pattern on June 10, indicating that bears have the upper hand. The sellers pulled the price below the immediate support at $75 on June 14 but could not build upon this move.
The sharp recovery in the past few days has pushed the LTC/USDT pair back above $75. This shows strong buying at lower levels. The bulls will next try to push the price to the 20-day EMA ($82), which is an important level to keep an eye on. If buyers clear this hurdle, the pair may rise to the 50-day SMA…
cointelegraph.com