Bitcoin and select altcoins are making an attempt at flipping key resistance levels, but negative news-flow
Bitcoin and select altcoins are making an attempt at flipping key resistance levels, but negative news-flow and selling from BTC miners could continue to weigh on market sentiment.
Bitcoin (BTC) is attempting to rise above the psychological level of $20,000 on July 6, a sign that bulls are trying to stall the brutal bear market. The retail traders are making the most of the current fall and are on a buying spree. Proof of this comes from Glassnode data showing that wallets holding less than one Bitcoin scooped up 60,460 Bitcoin in June, at “the most aggressive rate in history.”
In a recent report, Glassnode analysts said that the activity on the Bitcoin network shows that “all speculative entities, and market tourists have been completely purged from the asset.” This means that mostly long-term investors are left holding Bitcoin.
However, not everyone is bullish about Bitcoin’s prospects in the short term. According to Arcane Research, the ProShares Short Bitcoin Strategy ETF (BITI), the first exchange-traded fund (ETF) to be “short” Bitcoin, has increased its short exposure “by more than 300% last week.”
Could the rush into the first inverse Bitcoin ETF act as a contrarian signal that indicates a possible bottom formation? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin is trading inside a symmetrical triangle pattern. The buyers tried to push the price above the resistance line of the triangle on July 5 but the bears held their ground.
The Doji candlestick pattern on July 5 shows indecision among the buyers and sellers. This uncertainty could tilt in favor of the bulls if the price breaks above the triangle. If that happens, it will suggest that the triangle may have acted as a reversal pattern.
The BTC/USDT pair could then rally toward the 50-day simple moving average ($25,324) and then to the pattern target of $26,490.
This hypothesis could prove to be incorrect if the price turns down from the current level and plummets below the support line of the triangle. That could pull the price to the critical support at $17,622. If this support collapses, the next stop could be $15,000.
ETH/USDT
Ether (ETH) attempted a rally above the 20-day exponential moving average ($1,186) on July 5 but the bears had other plans. The price action of the past few days has formed an ascending triangle pattern which will complete on a break and close above $1,280.
If buyers push the price above the 20-day EMA, the possibility of a break above $1,280 increases. If that happens, the ETH/USDT pair could rally to the 50-day SMA ($1,500) and then to the pattern target of $1,679.
Conversely, if the price turns down from the 20-day EMA and breaks below the support line, it will suggest that bears remain in command. That could pull the pair to the crucial support at $881. A break and close below this support could signal the start of the next leg of the downtrend.
BNB/USDT
The bulls pushed Binance Coin (BNB) above the 20-day EMA ($232) on July 5 but the bears posed a strong challenge at higher levels. A positive sign is that the bulls did not give up much ground and have again propelled the price above the 20-day EMA on July 6.
The 20-day EMA has flattened out and the relative strength index (RSI) is near the midpoint, indicating that bears may be losing their grip.
If buyers sustain the price above the 20-day EMA, the BNB/USDT pair could start its rally to the 50-day SMA ($264). This level may again act as a resistance but if bulls overcome this barrier, it will suggest that the pair may have bottomed out at $183.
Contrary to this assumption, if the price turns down from the current level or the 50-day SMA, it will indicate that bears continue to sell at higher levels. The bears will then try to pull the price to $211.
XRP/USDT
Ripple (XRP) has been stuck between the 20-day EMA ($0.33) and the support line of the symmetrical triangle pattern. Although the price rebounded off the support line on July 5, the bulls are struggling to clear the overhead resistance at the 20-day EMA.
The 20-day EMA continues to slope down gradually and the RSI is in the negative zone, indicating that bears have the upper hand. The sellers will attempt to sink the price below the support line. If they manage to do that, the XRP/USDT pair could slide to the critical support at $0.28.
Contrary to this assumption, if the price rises off the current level or the support line and breaks above the 20-day EMA, the pair could rally to the resistance line of the triangle. A break and close above this level could signal the start of a rally to $0.48.
ADA/USDT
Cardano (ADA) remains sandwiched between the 20-day EMA ($0.47) and $0.44 but this tight range…
cointelegraph.com