Bitcoin and several altcoins are stuck in a tight range, indicating that a breakout is brewing.
Bitcoin and several altcoins are stuck in a tight range, indicating that a breakout is brewing.
A large part of the recent leg of Bitcoin’s (BTC) rally started after BlackRock filed to list a spot Bitcoin exchange-traded fund (ETF) on June 15. Several applications by other firms have been rejected by the United States Securities and Exchange Commission in the past. However, BlackRock’s filing has a 50% possibility of getting approved, said Bloomberg senior ETF analyst Eric Balchunas.
Another bullish catalyst for the cryptocurrency markets could be a filing by asset manager Fidelity Investments to launch its Bitcoin spot ETF. CoinShares Chief Strategy Officer Meltem Demirors said that firms managing $27 trillion of assets are “actively” pursuing efforts to allow their clients exposure in the crypto space.
Most of the focus in recent days has been on institutional money but the retail trader’s power should not be underestimated. Fireblocks CEO and co-founder Michael Shaulov said in an interview with Cointelegraph that institutional entry may not boost prices higher because they are likely to do it in such a way as to avoid large price bursts. Shaulov said there was a significant inflow of institutional money in 2020 but the prices did not appreciate until retail investors entered.
Will Bitcoin and altcoins break out of their respective overhead resistance levels or could they start a short-term correction? Let’s study the charts of the top-10 cryptocurrencies to find out.
Bitcoin price analysis
Buyers tried to catapult Bitcoin above the overhead resistance of $31,000 on June 27 but the bears did not budge. This keeps the price stuck inside the tight range between $31,000 and $29,500.
The bears are likely to make an attempt to sink the price below $29,500 but if bulls protect this level, it will indicate strength. The rising 20-day exponential moving average ($28,696) and the relative strength index (RSI) in the positive territory indicate that the path of least resistance is to the upside.
If buyers propel the price above $31,000, the BTC/USDT pair may resume its uptrend. The bears may try to stall the up-move at $32,400 but the buyers are likely to bulldoze their way through.
The first indication of weakness will be a close below $29,500. That may pull the price to the 20-day exponential moving average ($28,696). If this level cracks, the pair may stay range-bound between $31,000 and $24,800.
Ether price analysis
Ether’s (ETH) narrow range trading between $1,936 and $1,861 resolved to the downside on June 26. The bulls pushed the price back into the range on June 27 but could not sustain the higher levels.
The bears are trying to sink the price below the moving averages. This remains the key level to watch out for in the near term because a break and close below it may open the gates for a potential decline to the strong support at $1,700.
Contrarily, if the price rebounds off the moving averages, it will suggest that the bulls are fiercely defending the level. The bulls will then make one more attempt to overcome the barrier at $1,937. If they succeed, the ETH/USDT pair could rally to the psychological level of $2,000 and then to $2,142.
BNB price analysis
BNB (BNB) has reached the first support at $230. This level has not been broken since June 13, hence the bulls will try to defend it aggressively.
The first sign of strength will be a rise above the 20-day EMA ($247). That will indicate solid buying at lower levels. The BNB/USDT pair may then rise to the overhead resistance zone between $257 and $265.
On the contrary, if the price dumps below $230, the pair could fall to the vital support at $220. This remains the key level to keep an eye on in the near term because a break and close below it may start the next leg of the downtrend to $200.
XRP price analysis
XRP (XRP) closed below the 50-day simple moving average ($0.48) on June 26 and the attempts by the bulls to push the price back above the level failed on June 27. This suggests that the bears are trying to flip the 50-day SMA into resistance.
The downsloping 20-day EMA ($0.49) and the RSI in the negative territory indicate that the bears have the upper hand. The XRP/USDT pair could first drop to $0.44 and next to the strong support at $0.41.
This negative view will invalidate in the near term if the price turns up from the current level and breaks above the 20-day EMA. That could open the doors for a possible rally to $0.53 and then to $0.56.
Cardano price analysis
The failure of the bulls to shove Cardano (ADA) above the overhead resistance of $0.30 may have resulted in profit booking.
The ADA/USDT pair turned down from the 20-day…
cointelegraph.com