Bitcoin (BTC) continues to face a tough battle near the psychological level of $20,000 as the bulls and the bears attempt to assert their supremacy. Trading firm QCP Capital said in their latest market circular that funding rates on derivatives markets were stable and bearish conditions were fading.
Another ray of hope for the Bitcoin bulls is that Bitcoin miners may be capitulating as the recent decline in the price has made some mining machines unprofitable. Data from Arcane Research shows that public Bitcoin mining companies that had only sold 30% of their mined production from January to April of this year had dumped 100% of their Bitcoin production in May. Some analysts believe that miners giving up was a bullish signal.
However, one metric suggests that Bitcoin may not have bottomed out. Historically, Bitcoin signals a bottom when less than 50% of the Bitcoin addresses remain profitable. Glassnode data as of June 20 shows that 56.2% of Bitcoin addresses are in profit, increasing concerns of another down leg.
Could Bitcoin and the altcoins sustain the recovery or will bears pull the price lower? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
The bulls are attempting to start a recovery in Bitcoin but the long wick on the June 21 candlestick suggests that bears are not willing to surrender their advantage.
A minor positive is that the bulls are buying the dips to $20,000 on June 22. If the price rebounds off the current level, the buyers will try to drive the BTC/USDT pair above $22,000. That could open the doors for a possible rally to the 20-day exponential moving average ($24,076).
This level is likely to act as a stiff resistance but if bulls overcome this barrier, the next stop could be the 50-day simple moving average ($28,678).
This bullish view could be negated if the price turns down and breaks below $19,600. That could enhance the prospects of a retest of the June 18 intraday low of $17,622.
ETH/USDT
Ether’s (ETH) bounce off the June 18 intraday low of $881 turned down from $1,194 on June 21, suggesting that bears have not yet given up and they continue to sell on rallies.
If bulls don’t not give up much ground from the current level, the ETH/USDT pair could again attempt a rally to the 20-day EMA ($1,368). This is an important level to keep an eye on because bears tend to defend the 20-day EMA during downtrends.
If the price turns down from the 20-day EMA, the bears will again try to pull the pair to $1,000 and then $881. A break below this level could signal the resumption of the downtrend. On the other hand, if bulls push the price above the 20-day EMA, the pair could rise to $1,700.
BNB/USDT
Binance Coin (BNB) has been sustaining above the crucial support of $211 since June 19 but the bulls are struggling to push the price higher. The long wick on the June 21 candlestick suggests that bears continue to sell on rallies.
If bears sink the price below $211, the BNB/USDT pair could decline to $200 and then to the June 18 intraday low of $183. This is an important level to watch out for because if the price dips below it, the pair could plummet to $150.
Conversely, if the price rebounds off $211 or $200, it will suggest that bulls continue to buy on dips. The bulls will then make one more attempt to clear the overhead hurdle at the 20-day EMA. If they succeed, it will suggest that the break below $211 may have been a bear trap.
ADA/USDT
Cardano’s (ADA) bounce from the $0.44 to $0.40 support zone fizzled out near the 20-day EMA ($0.51) on June 21. This suggests that the bears continue to defend the level aggressively.
The sellers will now attempt to sink the price below the support zone. If they manage to do that, it will suggest the start of the next leg of the downtrend. The ADA/USDT pair could then slip to $0.33 and later to $0.30.
Alternatively, if the price again rebounds off the support zone, it will suggest that bulls continue to accumulate on dips. The buyers will then make one more attempt to push the pair above the moving averages and start a rally to $0.70.
XRP/USDT
Ripple (XRP) has been range-bound between $0.28 and $0.35 for the past few days. This suggests a state of equilibrium between the bulls and the bears.
The longer the time spent inside the range, the stronger will be the breakout from it. If the price continues lower and breaks below the support of the range at $0.28, it could suggest the resumption of the downtrend.
The RSI is showing a positive divergence, indicating that the bearish momentum may be weakening. If bulls push the price above $0.35, it will suggest the start of a new up-move. The XRP/USDT pair could then rise to the 50-day SMA ($0.41) and later rally to $0.45.
SOL/USDT
Solana’s (
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