The crypto markets have remained relatively stable over the weekend and on July 4, which is a holiday for the United States financial markets due to I
The crypto markets have remained relatively stable over the weekend and on July 4, which is a holiday for the United States financial markets due to Independence Day. Although Arthur Hayes, former CEO of derivatives platform BitMEX, was expecting a “mega crypto dump” around July 4, it has not materialized.
The drop in Bitcoin’s (BTC) volatility in the past few days has resulted in the squeezing of the Bollinger Band’s width. This indicates a possible increase in volatility in the next few days, according to popular analyst Matthew Hyland.
Meanwhile, crypto investors seem to be waiting for clues from the U.S. equities markets and the U.S. dollar.
Bitcoin’s correlation coefficient with the dollar in the week ending July 3 slumped to 0.77 below zero, the lowest level in seventeen months. The majority of the analysts surveyed by JP Morgan expect the dollar to end at or below the current price levels of about 105. Any weakness in the dollar could be beneficial for Bitcoin.
Could bulls start a recovery in the short term? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
The failure of the bears to extend Bitcoin’s decline below $19,637 suggests a lack of sellers at lower levels. The bulls will now attempt to push the price back above the resistance at $19,637.
If that happens, the BTC/USDT pair could rise to the 20-day exponential moving average (EMA) ($21,255). This level could again act as a stiff resistance but if bulls clear this hurdle, the pair may rise to the overhead zone between $22,000 and $23,362.
A break above this zone could open the doors for a possible rally to the 50-day simple moving average (SMA) ($25,710). The bulls will have to overcome this barrier to signal a potential trend change.
On the contrary, if the price turns down from the 20-day EMA, it will suggest that the sentiment remains bearish and traders are selling on rallies. That could increase the possibility of a retest of the critical support at $17,622. If this support cracks, the decline could extend to $15,000.
ETH/USDT
Ether (ETH) slipped below the psychological level at $1,000 on June 30 but the bears could not capitalize on this weakness. This suggests that bulls are buying on dips.
The bulls will now try to push the price above the 20-day EMA ($1,192) and gain the upper hand. If they do that, the ETH/USDT pair could rise to $1,280 and then to the 50-day SMA ($1,535). This level could again act as a strong resistance. The bulls will have to propel the price above $1,700 to signal the start of a new up-move.
Conversely, if the price turns down from the 20-day EMA, it will suggest that the sentiment remains negative and bears are selling on rallies. The bears will then try to sink the price below $998 and challenge the critical support at $881.
BNB/USDT
The buyers have successfully defended the support at $211 since June 29, indicating strong demand at lower levels. The bulls are presently attempting to push BNB above the 20-day EMA ($231).
If they succeed, it will suggest that the BNB/USDT pair may have bottomed out at $183. The buyers will then attempt to drive the pair to the 50-day SMA ($266). A break and close above this resistance could signal a potential change in trend.
Contrary to this assumption, if the price turns down from the 20-day EMA, it will suggest that bears are selling on every minor rally. The bears will then again try to sink the price below $211 and gain the upper hand.
XRP/USDT
XRP has been trading inside a symmetrical triangle pattern, indicating indecision among the bulls and the bears. The symmetrical triangle usually acts as a continuation pattern but on some occasions, it also behaves as a reversal pattern.
The price has rebounded off the support line of the triangle and the bulls will attempt to push the XRP/USDT pair above the 20-day EMA ($0.33). If they succeed, the pair could rise to the resistance line of the triangle.
A break and close above this level could suggest the start of a new up-move. The pair could then rally to $0.48.
Another possibility is that the price turns down sharply from the 20-day EMA and breaks below the support line of the triangle. That could pull the pair down to the critical support at $0.28. If this level cracks, the next stop could be $0.23.
ADA/USDT
Although Cardano (ADA) has been trading near the $0.44 level since June 30, the bears have not been able to pull and sustain the price below the support. This suggests that bulls are buying the dips toward $0.44.
The buyers are currently attempting to push the price above the 20-day EMA ($0.48). If they accomplish this task, the ADA/USDT pair could rise to the 50-day SMA ($0.51). This is an important level to keep an eye on because a break…
cointelegraph.com