The United States dollar index (DXY) resumed its strong uptrend on July 11, indicating that investors are preparing for the July 13 CPI report to be h
The United States dollar index (DXY) resumed its strong uptrend on July 11, indicating that investors are preparing for the July 13 CPI report to be hotter than expected. A survey of economists by Bloomberg estimates that in June consumer prices surged to 8.8%, a four-decade high.
Arthur Hayes, the former CEO of derivatives trading platform BitMEX, believes that the U.S. dollar and the euro were moving towards hitting parity. If that happens, the central banks will have to adopt yield curve control, which could lead to the disintegration of the currency and ultimately benefit Bitcoin (BTC).
Glassnode analyst James Check said in an interview with Cointelegraph that the number of Bitcoin holders is higher during the current bear market. This shows the resilience of the Bitcoin network. Another positive is that the smaller investors have used the dip to add to their positions.
Although the short-term picture remains skewed to the downside, the long-term view looks encouraging for bulls. Will Bitcoin and the altcoins attract buying at lower levels? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin turned down from $22,527 on July 8 and broke below the 20-day exponential moving average (EMA) ($21,164) on July 10. This suggests that traders who may have bought at lower levels booked profits and the aggressive bears initiated short positions.
The BTC/USDT pair could decline to the support line of the triangle. This is an important level to watch out for because a bounce off it will suggest that the bulls are accumulating near this level. The buyers will then again try to clear the overhead hurdle at the 20-day EMA and push the pair to $23,363.
A break and close above the 50-day simple moving average (SMA) ($24,496) will suggest that the pair may have bottomed out.
Conversely, if the price breaks below the support line, it will indicate that bears are in control. The sellers will then attempt to sink the pair to the strong support zone between $18,626 and $17,622.
ETH/USDT
Ether (ETH) turned down from the overhead resistance at $1,280 on July 8, suggesting that the bears are defending the level aggressively. The sellers pulled the price below the 20-day EMA ($1,192) on July 10 and are attempting to break the support line of the triangle on July 11.
If they manage to do that, the bullish setup will be invalidated. That could sink the ETH/USDT pair to $998. This is an important level to watch out for because a break and close below it could result in a retest of $881.
Contrary to this assumption, if the price rebounds off the support line, it will suggest that the bulls are accumulating on dips. The buyers will have to push and sustain the price above $1,280 to gain the upper hand in the near term. The pair could then rise to the 50-day SMA ($1,422) and later rally to the pattern target at $1,679.
BNB/USDT
BNB failure to rise to the 50-day SMA ($257) may have attracted profit-booking from short-term traders. That has pulled the price below the 20-day EMA ($234).
If the price sustains below the 20-day EMA, the BNB/USDT pair could once again drop to the strong support at $211. This is an important level to keep an eye on because a strong bounce off it will indicate accumulation on dips.
The bulls will then make another attempt to push the price above the 50-day SMA. If they succeed, it will signal that the pair may have bottomed out. This positive view could invalidate if the price breaks below $211.
XRP/USDT
Ripple (XRP) failed to rise above the resistance line of the symmetrical triangle on July 8, indicating that the bears are selling on rallies. Strong selling on July 10 pulled the price to the support line of the triangle.
The relative strength index (RSI) has dropped near 43 indicating that the momentum favors the bears. If sellers sink the price below the support line, the XRP/USDT pair could decline to $0.30 and then retest the critical support at $0.28. If this level cracks, the pair could resume its downtrend.
If the price rebounds off the support line, it will suggest that the bulls continue to buy on dips. The buyers will then make another attempt to push the price above the triangle and gain the upper hand. If that happens, the pair could rise to $0.41.
ADA/USDT
Cardano’s (ADA) failure to sustain above the 20-day EMA ($0.47) suggests that the bears are defending this level aggressively. The sellers have pulled the price to the immediate support at $0.44.
The gradually downsloping 20-day EMA and the RSI in the negative territory suggest that bears have a slight edge. If the sellers pull the price below $0.44, the ADA/USDT pair could retest the crucial support at $0.40. If this level gives way, the selling could intensify and the…
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