Bitcoin price saw a brief pull-back following today’s high inflation print, but the rebound seen in BTC and
Bitcoin price saw a brief pull-back following today’s high inflation print, but the rebound seen in BTC and altcoins suggests that buyers are buying the dip.
The United States Consumer Price Index soared to 9.1% in June, exceeding expectations of an 8.8% rise year-on-year. Currently, the Fed funds futures point to an 81 basis points rate hike for July, suggesting that some participants anticipate a 100 basis points hike.
Several on-chain indicators have been pointing to a likely bottom in Bitcoin (BTC) but the analysts from market intelligence firm Glassnode are not convinced that the low has been made. In “The Week On-Chain” report on July 11, the analysts said that the market may have to fall further “to fully test investor resolve, and enable the market to establish a resilient bottom.”
While the short term remains bearish, strategists are confident about its long-term prospects. CoinShares chief strategy officer Meltem Demirors said on CNBC that Bitcoin may extend its “downward correction” in the near term but it is likely to make a new all-time high “in the next 24 months.”
What are the important levels on Bitcoin and the major altcoins that could arrest the decline? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin dropped back to the support line of the symmetrical triangle on July 12, indicating that the break above the triangle on July 7 may have been a bull trap.
The buyers are trying to defend the level but the long wick on the July 13 candlestick shows that the bears are selling near the 20-day exponential moving average ($20,796). Both moving averages are sloping down and the relative strength index (RSI) is in the negative zone, indicating that bears are in command.
If the price breaks below the support line, the BTC/USDT pair could drop to the $18,626 to $17,622 support zone. This is an important zone for the bulls to defend because if it gives way, the pair could decline to $15,000.
The first sign of strength will be a break and close above the 20-day EMA. Such a move will suggest strong buying at lower levels. That could increase the possibility of a rally to the 50-day simple moving average ($24,084).
ETH/USDT
Ether (ETH) broke below the support line of the ascending triangle pattern on July 12 which invalidated the bullish setup. A minor positive is that the bulls are trying to push the price back into the triangle.
If they manage to do that, it will suggest that the break below the triangle may have been a bear trap. The bulls will then strive to push the price back above the overhead resistance at $1,280. A break and close above the 50-day SMA ($1,383) could enhance the prospects of the start of a new up-move.
Contrary to this assumption, if the price turns down from the support line, it will suggest that bears have flipped the level into resistance. The sellers will then try to sink the ETH/USDT pair below $998 and challenge the pivotal support at $881. If this support cracks, the pair could start the next leg of the downtrend.
BNB/USDT
The bulls could not capitalize on Binance Coin’s (BNB) break above the 20-day EMA ($231). This failure was exploited by the bears who sold aggressively at higher levels and pulled the price back below the 20-day EMA on July 11.
The BNB/USDT pair attempted a rebound off the strong support at $211 on July 13 but the long wick on the candlestick shows that the bears are selling near the 20-day EMA. If the price breaks below $211, the selling could intensify and the pair may slide to the vital support at $183.
Conversely, if the price rebounds off $211 and rises above the 20-day EMA, it will suggest strong demand at lower levels. The buyers will then make another attempt to clear the overhead hurdle at the 50-day SMA ($253).
XRP/USDT
Ripple (XRP) plunged below the support line of the symmetrical triangle on July 11. This indicates that the uncertainty among the bulls and the bears resolved to the downside.
The bulls tried to push the price back into the triangle on July 13 but the long wick on the candlestick suggests that bears are selling on minor intraday rallies. If the price breaks below $0.30, the XRP/USDT pair could drop to the crucial support at $0.28. A break and close below this level could signal the start of the next leg of the downtrend.
The first sign of strength will be a break and close above the 20-day EMA ($0.33). Such a move will suggest that the slide below the triangle may have been a bear trap. The pair may signal a potential trend change on a break above the resistance line of the triangle.
ADA/USDT
Cardano (ADA) slipped below the immediate support at $0.44 on July 11, indicating that bears are in command. The…
cointelegraph.com