Bitcoin (BTC) plummeted close to the crucial support of $20,000 as traders panicked and dumped their holdings, fearing an aggressive rate hike by the
Bitcoin (BTC) plummeted close to the crucial support of $20,000 as traders panicked and dumped their holdings, fearing an aggressive rate hike by the United States Federal Reserve on June 15. Another reason for the sell-off could be fears of possible contagion if lending platform Celsius and crypto venture capital firm Three Arrows Capital (3AC) go belly up.
Data from on-chain analytics platform CryptoQuant showed 24-hour exchange inflows of 59,376 Bitcoin on June 14, the highest inflows since November 30, 2018. The Bitcoin miners also joined other investors in sending Bitcoin to the exchanges. The Bitcoin Miners to Exchange flow metric reached a seven-month high of 9,476, indicating that the miners may be anticipating a further fall in the near term.
Prominent investors are divided on whether a bottom has been made in Bitcoin or not. Galaxy Digital Holdings chairman and CEO Mike Novogratz believes that Bitcoin could hold $20,000 and Ether (ETH) may bottom out at $1,000. These levels were also referred to by Arthur Hayes, co-founder and former chief of BitMEX, who cautioned that if the levels crack, it may lead to “massive sell pressure in spot markets.”
What are the important levels to watch out for on Bitcoin and major altcoins? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin remains in a firm bear grip. The bulls tried to start a recovery on June 14, as seen from the long wick on the day’s candlestick, but the bears were in no mood to relent. They sold aggressively and pulled the price to $20,111 on June 15.
The sharp selling in the past few days has pulled the relative strength index (RSI) near 21. This suggests that a rebound is possible in the short term. The BTC/USDT pair could rise to the 38.2% Fibonacci retracement level of $24,562 and then to the 50% retracement level at $25,938. The bears are expected to mount a strong defense in this zone.
If the price turns down from this overhead zone, the bears will attempt to resume the downtrend by pulling the pair below $20,000. If they succeed, the pair could drop to the next support at $17,500 and later $16,000.
The buyers will have to push and sustain the price above the 20-day exponential moving average (EMA)($27,748) to indicate a potential trend change.
ETH/USDT
Ether is in a strong downtrend. The buyers tried to stall the decline on June 14 but they could not sustain the higher levels. The bears renewed their selling on June 15 but the bulls are defending the psychological level of $1,000 with all their might.
The incessant selling of the past few days has pulled the RSI into deeply oversold territory. This suggests that the selling may have been overdone in the short term. This could result in a strong bear market rally that may pick up momentum above $1,268. The ETH/USDT pair could then rally to the 20-day EMA ($1,636).
Alternatively, if the price continues lower and breaks below $1,000, it will suggest the resumption of the downtrend. The pair could then drop to $900 where the bulls will again try to arrest the decline.
BNB/USDT
BNB is witnessing a tough battle between the bulls and the bears near the crucial level of $211. The bulls tried to start a rebound on June 14 but they could not sustain the higher levels.
The bears took advantage of this and pulled the price below $211 on June 15. Although the downsloping moving averages indicate an advantage to bears, the deeply oversold level on the RSI suggests a relief rally in the short term.
If bulls sustain the price above $211, the BNB/USDT pair could attempt a rally to the 20-day EMA ($275). A break and close above this resistance could suggest that the pair may remain stuck in a large range between $211 and $350 for some more days.
On the contrary, if the price turns down from the current level or the 20-day EMA, the bears will try to resume the downtrend. The next support on the downside is at $186.
ADA/USDT
The bears tried to pull Cardano (ADA) below the support at $0.44 on June 13 and 14 but failed to sustain the lower levels. This suggests that the bulls are defending the support zone between $0.44 and $0.40 aggressively.
The bulls will attempt to push the price above the 50-day simple moving average (SMA)($0.60). If they manage to do that, the ADA/USDT pair could rise to $0.69 and then to $0.74. The bears are likely to defend this overhead zone with vigor.
Contrary to this assumption, if the price turns down from the 20-day EMA ($0.54), it will suggest that the sentiment remains negative and traders are selling on minor rallies.
The bears will then make one more attempt to sink the price below the support zone. If they succeed, the pair could signal the start of the next leg of the downtrend. The next support on the downside is…
cointelegraph.com