Bitcoin and most major altcoins are facing selling at higher levels, but there are no signs of panic selling
Bitcoin and most major altcoins are facing selling at higher levels, but there are no signs of panic selling at the moment.
Bitcoin (BTC) and altcoins have been volatile in the past two days as the cryptocurrency markets come to terms with the actions of the United States Securities and Exchange Commission (SEC) against two of the biggest crypto exchanges, Binance and Coinbase.
After the initial knee-jerk reaction to the news and the subsequent rebound, markets are likely to enter a range as traders reflect upon the uncertainty around the lawsuits. The initial response has been encouraging as the markets have not collapsed, indicating the growing maturity of the crypto space.
Glassnode data shows a decline of 12,600 Bitcoin from exchange balances on June 5 and 6, indicating that traders kept their cool and did not panic as they had done during the FTX episode in November.
What are the critical support levels to watch for on the downside? Will lower levels attract buyers? Let’s study the charts of the top-10 cryptocurrencies to find out.
Bitcoin price analysis
Bitcoin snapped back from the vital support at $25,250 on June 6, indicating that the bulls are trying to fiercely guard the level. However, the recovery is facing selling near the moving averages.
The bears will make another attempt to tug the price to $25,250. This remains the key level to keep an eye on because a break and close below it may open the doors for a potential fall to $20,000. Such a deep fall may delay the start of the next leg of the up-move.
The bulls are expected to aggressively purchase the dips to the zone between $25,250 and the support line of the channel. On the upside, buyers will have to thrust the price above the resistance line of the channel to signal the end of the corrective phase. The BTC/USDT pair may then rally to $31,000.
Ether price analysis
Ether (ETH) dipped below the resistance line of the falling wedge pattern on June 5 but the bears could not build upon the strength. This shows demand at lower levels.
The bulls propelled the price back above the moving averages on June 6 but met with heavy selling pressure from the bears. The sellers will again try to sink the price into the wedge. If they manage to do that, the ETH/USDT pair could extend the decline to the support line of the wedge.
On the contrary, if the price rebounds off the resistance line of the wedge, it will suggest that the bulls have flipped the line into support. Buyers will have to drive the price above $1,928 to start the northward march to $2,000 and subsequently to $2,200.
BNB price analysis
BNB (BNB) plummeted sharply on June 5, which yanked the price below the strong support at $280. There was a meek attempt to start a recovery on June 6 but the bears did not allow the price to sustain above $280.
The selling resumed on June 7 and the bears have dragged the price below the crucial support at $265. This is a negative sign as it suggests the start of a new downward move to $240 and then to the vital support at $220.
If bulls want to make a comeback, they will have to push the price back above the breakdown level of $265. If they can pull it off, the BNB/USDT pair could pull back to $280 and later to the 20-day exponential moving average ($299).
XRP price analysis
In an up-move, traders generally buy the dip to the 20-day EMA ($0.49) and they did just that in XRP (XRP) on June 5 and 6 as seen from the long tail on the candlesticks.
However, the bears are not ready to give up easily. They continue to sell on rallies to the resistance zone between $0.56 and $0.59. If the price turns down sharply and breaks below the 20-day EMA, it will suggest that the bears want to keep the range between $0.30 and $0.56 intact.
Meanwhile, buyers are likely to have other plans. They will try to clear the overhead hurdle and if they do that, it will indicate the start of a new uptrend. The XRP/USDT pair could rally to $0.60 and then to $0.80.
Cardano price analysis
Cardano (ADA) tumbled below the uptrend line of the ascending triangle pattern on June 5, invalidating the bullish setup.
The bulls purchased the dip on June 5 but could not kick the price back inside the channel. This suggests that bears are trying to flip the uptrend line into resistance. The selling continued on June 7 and the bears yanked the price below $0.33. The ADA/USDT pair could descend to the strong support at $0.30.
On the upside, the first sign of strength will be a close inside the channel. Such a move will suggest that the break below the channel may have been a bear trap. The pair could attract strong buying above $0.39.
Dogecoin price analysis
Dogecoin (DOGE) broke below the immediate…
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