Bitcoin (BTC) has made a tentative start to the month of June, indicating that the bears have not yet gone into hibernation. Although bitcoin is trading up about 55% from its all-time high of $69,000, whales and institutions remain cautious and have not approached the market with enthusiasm, according to Blocktrends analyst Kauai Oliveira.
According to Cryptoquant contributor VentureFounder, a low between $14,000 and $21,000 could be formed over the next six months if bitcoin repeats the historical pattern seen after the previous halving cycle. Thereafter, bitcoin could drop to a range of around $28,000 to $40,000 for a large part of the next year and around $40,000 during the halving.
Crypto’s bear market hasn’t stopped Goldman Sachs from exploring the possibility of integrating its derivatives products into the FTX.US derivatives offerings. This suggests that the investment bank expects demand for derivatives to increase in the future.
Has bitcoin started a bottom formation? Is the short term downtrend over for altcoins? Let’s study the chart of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin reached an overhead resistance of $32,659 on May 31, but the bulls could not overcome this hurdle. Doji candlestick pattern on May 31 indicates uncertainty among buyers and sellers.
This uncertainty was resolved in favor of the bears on June 1 and they pulled the price below the 20-day exponential moving average ($30,741). If the price sustains below the 20-day SMA, the next stop could be $28,630. Buyers are expected to defend this level with all their might.
If the price bounces off $28,600, the BTC/USDT pair could make another attempt to rally towards $32,659. If this happens, the pair may consolidate between these two levels for a few days.
If the price breaks above or below the range then the next trending move could be triggered. If the price climbs above $32,659, a rally to the 50-day simple moving average ($34,629) is possible. The downtrend could resume with a break below the $28,630 support area at $26,700.
ETH/USDT
The bears halted a relief rally in Ether (ETH) on May 31 at the 20-day EMA ($2,009), indicating that they are not allowing the bulls to gain a foothold.
The bears will try to pull the price towards the important support level of $1,700. This is an important level for the bulls to defend because if it breaks, the ETH/USDT pair could see a panic sell-off. The pair can then resume its downtrend and fall to $1,300.
Alternatively, if the price bounces off $1,700, it would suggest that the bulls are actively buying at these levels. The bulls will again attempt to push the price above the 20-day SMA and challenge the tight resistance at $2,159.
BNB/USDT
Binance Coin (BNB) rose above the immediate resistance at $320 on May 30, but the bulls have not been able to build on the move. This indicates that the bears are posing a strong challenge at $325.
Sellers have pulled the price up to the uptrend line. This is an important level to keep an eye on in the near future. If the price rebounds from this level, it would indicate that the bulls are accumulating on the downside. This could increase the chances of a break above $325.
Contrary to this sentiment, if the bears push the price below the ascending trend line, the BNB/USDT pair could decline towards a strong support area between $286 and $265. A break below $265 could propel the pair towards the key support level at $211.
XRP/USDT
Ripple (XRP) rose above the downtrend line on May 30, but the bulls could not overcome the upper hurdle at the 20-day EMA ($0.43). This shows that the bears are not ready to give up their advantage.
The bears will try to push the price below the downtrend line. If this happens, the XRP/USDT pair could drop to $0.38. Buyers are likely to protect this level and a bounce back would point towards a possible consolidation in the near term.
Conversely, if the price rebounds from the downtrend line, it would suggest that the bulls are attempting to flip this level to support. If this happens, the chances of a breakout above the 20-day EMA increase. The pair could then rally to psychological resistance at $0.50.
ADA/USDT
Cardano (ADA) broke above the 20-day EMA ($0.56) on May 30 and was followed by another sharp rise on May 31. This pushed the price towards the 50-day SMA ($0.70), but the long wick day candlestick shows that the bears are selling near this level.
The bears will try to pull the price back below the 20-day EMA and trap the aggressive bulls. If this happens, the ADA/USDT pair could drop to $0.44 where a buy could emerge.
This could suggest a consolidation in the larger range between $0.44 and $0.74. The 20-day EMA and the relative strength index (RSI) just below the midpoint also indicate a range-bound action in the near term.
If the price bounces off the 20-day SMA and breaks above $0.74, the bulls could gain the upper hand. Such a move would indicate that the downtrend may be over.
SOL/USDT
Solana (SOL) relief rally is facing stiff resistance near the $50 psychological level from the bears. This shows that the bears have not given up yet and continue to sell on the rallies.
The bears will try to pull the price towards the strong support level of $40. The bulls are expected to buy dips till this level. If price bounces off this support, buyers will again attempt to push the SOL/USDT pair above the 20-days EMA ($51). If they succeed, the pair can rebound to $60 and then try to move up to the breakdown level of $75.
On the other hand, if the bear price falls below $40, the pair can fall to the intraday low of May 12 at $37. If the bears pull the price below this important support, the pair may resume its downtrend.
doge/usdt
Dogecoin (DOGE) price has been trading near the 20-day EMA ($0.09) for the past two days, but the bulls have failed to gain a breakout. This shows that the bears are vigorously defending the 20-day EMA.
The bears will try to push the price lower towards the strong support at $0.07. This level has been formed on the last two occasions, so the bulls will again try to defend it. If the price bounces off this support, the DOGE/USDT pair may remain in the range of $0.10 and $0.07 for some time.
If the bulls drive the price above $0.10, it would indicate that the downtrend could be weakening. Then the pair can rally to $0.12. Conversely, the downtrend could resume on a break below $0.07.
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dot / usdt
Polkadot (DOT) is facing resistance at the 20-day EMA ($10.55), but the bulls haven’t allowed the price to sustain below $10. This suggests strong demand at lower levels.
If the bulls push the price above the 20-day EMA and sustain, the DOT/USDT pair could rally towards $12. This level could act as a minor hurdle, but if it is crossed, a recovery could lead to a strong upper resistance at $14.
Contrary to the sentiment, if the price declines and sustains below $10, the downside could extend to a strong support at $8. A strong bounce off this support will indicate that the pair may remain in the range between $8 and $12 for some time.
AVAX/USDT
Avalanche (AVAX) broke below the downtrend line on May 31, suggesting that the bears continue to defend their level of strength. The bears will now try to pull the price from the strong support area of $23.51 to $21.35.
If they succeed, the AVAX/USDT pair will complete a descending triangle pattern, indicating the start of the next leg of the downtrend. The pair could then drop to $20.
Although the downsloping 20-day EMA ($31.33) is in favor of the bears, a positive divergence on the RSI suggests that bearish momentum could be weakening. If the price rises above the current level and breaks above the 20-day EMA, buying may resume. Then the bulls will try to propel the pair to $38.
shib/usdt
The Shiba Inu (SHIB) recovery is facing stiff resistance at the 20-day EMA ($0.000012), which indicates that sentiment remains negative and the bears are selling on the rallies.
The bears will try to pull the price towards the strong support level of $0.00010. This stage is likely to attract aggressive buying by the bulls. If the price rebounds from $0.0000010, the SHIB/USDT pair is likely to rally towards the 20-day SMA.
If buyers push the price above the 20-day EMA, the pair can rise to $0.0000014, and later to the level of breakout of $0.0000017. On the downside, bears will need to push the price below $0.000009 to signal a resumption of the downtrend.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should do your own research when making a decision.
Market data is provided by hitBTC Exchange.