Bitcoin price surged to $31,000 as a handful of BTC spot ETF applications and Fed chair Jerome Powell's view
Bitcoin price surged to $31,000 as a handful of BTC spot ETF applications and Fed chair Jerome Powell’s views on stablecoins appear to have improved crypto investors’ view of the market.
BlackRock’s application for a spot Bitcoin (BTC) exchange-traded fund (ETF) has encouraged other financial firms to follow suit. First, it was the New York-based asset management fund WisdomTree which made a new filing on June 21 for a Bitcoin ETF. This was then followed by investment manager Invesco, which reactivated its application for a spot ETF.
These announcements boosted investor sentiment, resulting in a short squeeze and additional buying interest from traders who may have been waiting on the sidelines. The slew of events over the past few days has increased buying interest in Bitcoin, which sent its market dominance to above 50% on June 19.
The short-term traders who are expecting a quick rally to the all-time highs may be in for a shock. In the latest edition of its weekly newsletter, “The Week On-Chain,” analytics firm Glassnode warned investors that their patience could be tested for another 8-18 months before the market hits a new all-time high.
Will Bitcoin’s rally continue to rise for a few more days or is it time to book profits? Let’s study the charts of the top-10 cryptocurrencies to find out.
Bitcoin price analysis
Bitcoin broke and closed above the 20-day exponential moving average ($26,934) on June 17. The bears tried to sink the price back below the level on June 18 but the bulls held their ground.
That attracted aggressive buying on June 19, which picked up further momentum on June 20. That catapulted the price above the resistance line of the descending channel pattern, signaling a short-term trend change. This move may have hit the stops of several short-term bears, resulting in a short squeeze. That sent the price skyrocketing to $30,800 on June 21.
The bears are unlikely to give up easily. They will try to halt the rally at $31,000 but if the bulls do not give up much ground from the current level, it will enhance the prospects of a rally above the overhead resistance. If that happens, the BTC/USDT pair may surge to $32,400. The bears are expected to defend this level with all their might because if they fail to do that, the pair may surge to $40,000.
If bears want to trap the bulls, they will have to yank the price back below the moving averages. That could result in a long liquidation and threaten the $25,250 support.
Ether price analysis
Ether (ETH) turned up from the strong support of $1,700 on June 19, signaling strong buying at this level.
The bulls continued their purchase and pushed the price above the 20-day EMA ($1,781) on June 20. This was the first sign that the bears were losing their grip. The bullish momentum picked up further on June 21 and sent the ETH/USDT pair above the downtrend line. The pair is expected to rally to the psychological resistance at $2,000.
Contrarily, if the price reverses direction from the current level and slips below the 20-day EMA, it will suggest that bears remain in control. The pair could then dip to $1,700.
BNB price analysis
The wick on BNB’s (BNB) June 21 candlestick shows that the bears are selling the relief rallies to the 20-day EMA ($257).
The downsloping moving averages and the relative strength index (RSI) in the negative territory indicate that bears have an edge. If the price turns down from the current level, the BNB/USDT pair may slide to $230 and later retest the vital support at $220.
On the contrary, if bulls overcome the obstacle at the 20-day EMA, it will suggest solid demand at lower levels. The pair could then attempt a rally to the 61.8% Fibonacci retracement level of $272 and subsequently to the 50-day simple moving average ($290).
XRP price analysis
XRP (XRP) turned down sharply from the 20-day EMA ($0.49) on June 20 and slipped below the 50-day SMA ($0.47) but the long tail on the candlestick shows aggressive buying at lower levels.
The 20-day EMA has flattened out and the RSI is just above the midpoint, indicating a balance between supply and demand. If bulls sustain the price above the 20-day EMA, it could open the doors for a potential rally to the overhead resistance at $0.56. This level may again act as a strong barrier.
The 50-day SMA remains the key support to watch out for on the downside. If this level is breached, the advantage will tilt in favor of the bears. The XRP/USDT pair could then plummet to $0.41.
Cardano price analysis
The long tail on Cardano’s (ADA) June 20 candlestick shows that the bulls are trying to guard the zone between $0.25 and $0.24.
The ADA/USDT pair could reach the $0.30 level,…
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