Bitcoin dropped 56.2% in the second quarter of 2022, according to crypto analytics platform Coinglass. That makes it Bitcoin’s worst quarter since the third quarter of 2011 when BTC price fell by 67%. A large part of the damage was done in the month of June when Bitcoin plunged 37%, the worst monthly drawdown since September 2011.
It is not all gloom and doom for crypto investors. On June 29, JPMorgan strategist Nikolaos Panigirtzoglou said that the “Net Leverage metric” suggests that crypto’s deleveraging may be on its last legs. The eagerness of crypto companies with stronger balance sheets to bail out crypto firms in distress is also a positive sign.
Another positive view on Bitcoin came from Deutsche Bank analysts. In a recent report, the strategists said that the S&P 500 could recover lost ground and rally to the levels seen in January. This could benefit Bitcoin due to its close correlation with the S&P 500.
Could the downtrend resume or will lower levels attract buyers? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin plummeted below the immediate support at $19,637 on June 30 but the long tail on the candlestick indicates strong buying at lower levels. The bulls tried to build upon the momentum on July 1 and push the price toward the overhead resistance at $22,000 but the long wick on the candlestick shows that bears are active at higher levels.
If the price sustains below $19,637, the likelihood of a retest of the critical support at $17,622 increases. The downsloping moving averages and the relative strength index in the oversold zone indicate that bears are in control.
A break and close below $17,622 could signal the resumption of the downtrend. The next support is at $15,000.
This negative view could invalidate in the short term if the price rises above the 20-day exponential moving average ($21,907). Such a move could clear the path for a possible rally to the 50-day simple moving average ($26,361).
ETH/USDT
Ether (ETH) dipped below the immediate support of $1,050 on June 30 but the bulls purchased the dip. The buyers tried to extend the recovery on July 1 but the long wick on the candlestick shows that bears are selling on minor rallies.
The bears will try to pull the price below the psychological level of $1,000. If they succeed, the selling could pick up momentum and the ETH/USDT pair could drop to the important support at $881. If this level gives way, the pair could resume the downtrend. The next support is at $681.
Contrary to this assumption, if the price rebounds off the current level or $1,000, the bulls will attempt to push the pair above the 20-day EMA. If they can pull it off, it will suggest that bears may be losing their grip. The bullish momentum could pick up on a break above $1,280.
BNB/USDT
Binance Coin (BNB) dipped below the strong support at $211 on June 30 but the lower levels attracted strong buying as seen from the long tail on the day’s candlestick.
The buyers tried to extend the recovery on July 1 but the long wick on the candlestick shows that bears are defending the 20-day EMA ($234) aggressively. The downsloping 20-day EMA and the RSI in the negative territory indicate advantage to sellers.
If the price sustains below $211, the BNB/USDT pair could retest the crucial support at $183. If this support cracks, the downtrend could resume. The next support is at $150.
This negative view could invalidate in the short term if the price turns up and breaks above the 20-day EMA. That could clear the path for a possible rally to the 50-day SMA ($271).
XRP/USDT
Ripple (XRP) attempted a recovery on June 30 but the bulls could not push the price above the overhead resistance at $0.35. This suggests that bears are not willing to let go of their advantage.
The XRP/USDT pair could drop to the strong support at $0.28 where the bulls are likely to mount a strong defense. If the price rebounds off $0.28, it will suggest that bulls continue to buy at lower levels. The bulls will then make one more attempt to push the price above the 50-day SMA ($0.37).
Conversely, if bears sink the price below $0.28, the next leg of the downtrend could begin. The pair could then decline to $0.23.
ADA/USDT
Cardano (ADA) bounced off $0.44 on June 30 but the bulls could not clear the 20-day EMA ($0.49) on July 1. This suggests that bears continue to defend the moving averages with vigor.
The downsloping 20-day EMA and the RSI in the negative zone indicate that the path of least resistance is to the downside. If the price slips below $0.44, the ADA/USDT pair could drop to the critical support of $0.40.
The bulls are expected to defend this level with all their might because if the support cracks, the pair could resume its…
cointelegraph.com