Bitcoin and select altcoins are finding buyers at lower levels, indicating a pick-up in positive sentiment.
Bitcoin and select altcoins are finding buyers at lower levels, indicating a pick-up in positive sentiment.
Bitcoin is still struggling to stay above $31,000.
While a tight consolidation near the overhead resistance is a positive sign, the failure to rise above it may result in short-term liquidations. However, a shallow pullback should not be considered a trend change because, many times, the bulls take a step back to regroup and launch another attack at the resistance. If the barrier is overcome, the positive momentum picks up.
Binance CEO Changpeng “CZ” Zhao said in an “ask me anything” session on Twitter that Bitcoin (BTC) could witness a bull year after its halving in 2024. CZ added that BlackRock’s foray into cryptocurrencies will be “hugely beneficial” for the industry.
BlackRock CEO Larry Fink made positive comments about Bitcoin while speaking in an interview with Fox Business on July 5. Fink said that Bitcoin was an “international asset not based on any one currency,” and investors could use it as a hedge against inflation or currency devaluation.
Could positive comments from Fink act as a floor during pullbacks? What are the important overhead resistance levels in Bitcoin and altcoins that need to be crossed to signal the start of a short-term up move? Let’s study the charts of the top 10 cryptocurrencies to find out.
Bitcoin price analysis
Bitcoin once again rose above $31,000 on July 6, but the rally was met with strong selling pressure from the bears. That pulled the price down to the 20-day exponential moving average (EMA) at $29,763.
A positive sign in favor of the bulls is that the BTC/USDT pair has rebounded off the 20-day EMA. This suggests a positive sentiment where traders are viewing minor dips as a buying opportunity. That enhances the prospects of a rally above the $31,000 to $31,500 resistance zone.
If that happens, the pair could start an upward march to $40,000. The bears will attempt to stall the up move at $32,400, but the buyers are expected to bulldoze their way through.
Conversely, if the price turns down and breaks below the 20-day EMA, it will suggest that bears have the upper hand. The pair may then dump to the 50-day simple moving average (SMA) of $27,971.
Ether price analysis
The long wick on Ether’s (ETH) July 6 candlestick shows that the bears are aggressively guarding the psychological resistance at $2,000.
Both moving averages have flattened out and the relative strength index (RSI) is near the midpoint, indicating a balance between supply and demand. If bears sink the price below the 50-day SMA ($1,837), the short-term advantage will tilt in favor of the bears. The ETH/USDT pair could then descend toward $1,626.
On the contrary, if the price turns up from the current level and maintains above the 20-day EMA ($1,872), it will suggest strong buying at the 50-day SMA. The bulls will then again try to push the price above $2,000.
BNB price analysis
BNB (BNB) has been consolidating between $257 and $220 for the past few days. This suggests that the bears are using the relief rallies to sell while the bulls are buying the dips.
The downsloping 20-day EMA ($242) and the RSI in the negative territory indicate that bears have an edge. Sellers will try to drag the price to the crucial support at $220. The bulls are expected to defend this level with vigor.
On the upside, the bulls will have to propel the price above $257 to suggest the start of a sustained recovery. The $265 level may act as a barrier, but it is likely to be crossed. The pair may then surge to $280.
XRP price analysis
XRP (XRP) has been trading between the 20-day EMA ($0.48) and the horizontal support at $0.45 for the past few days. This shows that the bears are selling on rallies, but supply is being lapped up at lower levels.
This tight-range trading is unlikely to continue for long and may result in a breakout. If the support at $0.45 gives way, the bears will try to build upon this advantage and tug the price to the next strong support at $0.41.
Alternatively, if the price turns up from the current level, the bulls will try to overcome the obstacle at the moving averages. If they manage to do that, the XRP/USDT pair could start its march toward $0.56.
Cardano price analysis
Cardano (ADA) has been trading between $0.30 and $0.24 for the past few days. Generally, inside a range, traders buy near the support and sell close to the resistance.
Traders did just that in the ADA/USDT pair and sold at $0.30. The bulls are attempting to arrest the decline at the uptrend line. If the price turns up from the current level or the uptrend line, the bulls will once again endeavor to clear the…
cointelegraph.com