After the tough sell-off seen in the past week, the cryptocurrency markets will be looking for some support from the macroeconomic data this week. The
After the tough sell-off seen in the past week, the cryptocurrency markets will be looking for some support from the macroeconomic data this week. The all-important United States Consumer Price Index report on June 13 will be followed up by the Federal Reserve’s policy decision on June 14.
Both these events could trigger a sharp response from equities and crypto traders. While a knee-jerk reaction is expected, it will be interesting to note if there is any follow-up to it. Traders may remain cautious as market volatility is likely to pick up over the next few days.
Although the lawsuit by the U.S. Securities and Exchange Commission (SEC) against Binance and Coinbase has weakened sentiment, Bitcoin (BTC) whales are using this opportunity to increase their holdings. Behavior analytics platform Santiment said in a recent report that Bitcoin whales accumulated 57,578 Bitcoin since April 9, even as Bitcoin’s price fell by roughly 10% during the period.
What are the important support levels in Bitcoin and the major altcoins that need to hold for the recovery to start? Let’s study the charts to find out.
S&P 500 Index price analysis
The S&P 500 Index (SPX) reached the overhead resistance at 4,325 on June 9, but the long wick on the day’s candlestick shows that the bears are trying to stall the up move at this level.
The upsloping moving averages and the relative strength index (RSI) in the positive territory indicate that the path of least resistance is to the upside. If buyers thrust the price above 4,325, the index could start its march toward 4,500, where the bulls may encounter selling from the bears.
This positive view will invalidate in the near term if the price turns down and breaks below the moving averages. Such a move will suggest that the bulls are aggressively booking profits. The index could then tumble to the uptrend line.
U.S. Dollar Index price analysis
The U.S. Dollar Index (DXY) skidded back below the 20-day exponential moving average (EMA) of 103 on June 8, but the bears are struggling to sustain the lower levels.
Buyers are trying to propel the price back above the 20-day EMA, which could start a rally to 104.70 and subsequently to 106. This level is likely to act as a formidable resistance.
The flattish 20-day EMA and the RSI just above the midpoint suggest that the index may remain inside the large range between 100.82 and 106 for a while longer.
Alternatively, if the price turns down and slips back below the 20-day EMA, it will suggest that the bears are selling on rallies. The index could then start a deeper correction to the 50-day simple moving average (SMA) of 102.
Bitcoin price analysis
The bulls have managed to sustain Bitcoin above the important support of $25,250 for the past few days, indicating strong buying at the level.
Although the downsloping moving averages indicate an advantage to bears, the positive divergence on the RSI suggests that the selling pressure could be reducing. The bulls will try to thrust the price above the 20-day EMA ($26,654), clearing the path for a potential rally to the resistance line of the descending channel.
Instead, if the price turns down from the 20-day EMA, it will suggest that the bears are maintaining their selling pressure. The BTC/USDT pair could then retest the support at $25,250. If this level breaks down, the pair may decline to the support line of the channel and eventually to $20,000.
Ether price analysis
Ether (ETH) tried to start a recovery on June 11, but the shallow bounce suggests that the bears are selling on every minor rally.
The bears are trying to strengthen their position further by dragging the price below the immediate support at $1,700. If that happens, it will suggest the start of a deeper correction. There is minor support at $1,600, but if this level gives way, the decline may extend to $1,352.
On the contrary, if the ETH/USDT pair once again rebounds off $1,700, it will signal that the bulls are fiercely protecting the level. A rally above the resistance at $1,778 could clear the path for a potential up move to the moving averages.
BNB price analysis
BNB’s (BNB) price fell from $305 on June 5 to $220 on June 12, a 27% fall within a few days. This indicates that the bears are in firm command.
The sharp decline has pulled the RSI into deeply oversold territory, suggesting that a relief rally is possible in the next few days. The BNB/USDT pair could first rise to $240 and thereafter attempt a rally to the 38.2% Fibonacci retracement level of $252.50.
If the price turns down from this level, it will suggest that the sentiment remains negative and traders continue to sell on rallies. The bears will then again try to tug the price below $220. If they pull it off, the pair could nosedive…
cointelegraph.com