Stock markets are showing strength, and selling by crypto traders has taken a pause. Is this a sign that Bit
Stock markets are showing strength, and selling by crypto traders has taken a pause. Is this a sign that Bitcoin and altcoins are about to reverse course?
Bitcoin (BTC) remains well above the crucial support at $25,250, indicating that market participants have shrugged off the news of the lawsuit by the United States Securities and Exchange Commission (SEC) against Binance and Coinbase. When markets do not stay lower for long after negative news, it is a sign that traders are looking to buy the dips rather than panic and dump their holdings.
ARK Invest CEO Cathie Wood has been buying the dip in crypto-related stocks since the SEC unleashed its recent crypto regulatory action. First Wood purchased $21 million worth of Coinbase stock on June 6 and followed that up with a purchase of Block Inc. shares worth $19.9 million between June 7 and 8.
The resilience of the cryptocurrency space is supported by a risk on sentiment. The U.S. equities markets are on a roll with the S&P 500 rising above 4,300 on June 9, the first such instance since August 2022.
Can bulls sustain the recovery in the cryptocurrency markets or will higher levels bring out the bears in large numbers? Let’s study the charts of the top-10 cryptocurrencies to find out.
Bitcoin price analysis
Bitcoin turned down from the moving averages on June 7 but a minor positive is that the bulls did not allow the price to slump below $26,125. This suggests that lower levels are attracting buyers.
The bulls will again try to thrust the price above the 20-day exponential moving average ($26,924). If they succeed, it will suggest that the selling pressure is reducing.
The BTC/USDT pair may then climb to the 50-day simple moving average ($27,536) and later to the resistance line of the descending channel. The bears are expected to fiercely defend this level.
Another possibility is that the price turns down from the current level. In that case, the bears will try to strengthen their position by pulling the price to $25,250. Buyers are likely to protect this level to the best of their ability.
Ether price analysis
The bulls have managed to maintain Ether (ETH) above the resistance line of the falling wedge pattern, indicating demand at lower levels.
The 20-day EMA ($1,854) has flattened out and the relative strength index (RSI) is near the midpoint, indicating a balance between supply and demand. This balance will tilt in favor of the bears if they yank the price below $1,778. The ETH/USDT pair may then slip to $1,740 and subsequently to the support line of the wedge.
On the contrary, if buyers drive the price above $1,927, the bulls will gain the upper hand. The pair may first rise to $2,000 and thereafter dash toward the next major resistance at $2,200.
BNB price analysis
BNB (BNB) nosedived below the important support of $265 on June 7. The bulls tried to push the price back above the breakdown level on June 8 but the bulls held their ground.
The RSI in the oversold zone indicates that the selling may have been overdone in the near term. That could start a relief rally which is likely to face selling at $265 and again at $280. If the price turns down from either level, it will signal that the sentiment remains negative and traders are selling on rallies.
On the downside, if bears sink the price below the intraday low of $253 made on June 7, the BNB/USDT pair may extend its decline to $240 and below that to $220.
XRP price analysis
XRP (XRP) remains in an up-move. The bears tried to start a correction but could not pull the price to the 20-day EMA ($0.50) on June 7 indicating that the bulls are holding strong.
The rising 20-day EMA and the RSI in the positive territory indicate that the bulls are in command. Buyers will try to thrust the price above the overhead zone between $0.56 and $0.58. If they succeed, the XRP/USDT pair may start a new uptrend. The pair may first climb to $0.60 and then to $0.80.
If bears want to start a pullback, they will have to tug the price below the 20-day EMA. That may attract profit-booking from short-term traders and the pair could fall to the 50-day simple moving avearge ($0.47) and later to $0.42.
Cardano price analysis
The bulls tried to start a relief rally on June 8 but the long wick on the day’s candlestick shows that bears continue to sell Cardano (ADA) at higher levels.
Although the downsloping moving averages indicate advantage to bears, the RSI in the oversold territory suggests that a relief rally may be around the corner.The ADA/USDT pair may bounce off the solid support at $0.30.
The first overhead resistance to watch out for is the 20-day EMA ($0.35). A break and close above this resistance will indicate that…
cointelegraph.com