US stock markets crashed on June 10 after the CPI showed that inflation rose by 8.6% from a year ago, the highest increase since 1981. The latest figures show that inflation talks have been premature and according to Bloomberg, investors price 3% policy rate at the end of the year.
With its continued close correlation with the S&P 500, Bitcoin (BTC) fell below $ 30,000 on June 10th. Analysts still disagree on price action in the near future, but Tom Lee, founder of Fundstrat, said in an interview with CNBC that Bitcoin could have already bottomed out. However, Lee seems to have lowered his expectations as he said that Bitcoin could “stay flat this year, possibly up”.
Among the steady flow of negative news was a glimmer of hope from the news that Bloomberg had expanded its coverage of cryptocurrency data at Bloomberg Airport to 50 cryptocurrencies. Alex Wenham, Bloomberg’s chief cryptocurrency officer, gave a positive message when he said that institutions’ interest in digital assets continues to grow.
Now that Bitcoin is trading near the volatility level again, is a crisis at the capitulation-level a threat? Let’s look at the charts of the top 10 cryptocurrencies to find out.
BTC / USDT
The bulls tried to push the price above the 20-day exponential moving average (EMA) ($ 30,365) on June 9, but the bears did not give up. Sales continued on June 10, and the bears have lowered their prices below the triangle’s rising line.
The 20-day EMA has begun to decline gradually and the Relative Strength Index (RSI) is in the negative zone, indicating a sell-off advantage.
If the price stays below the trend line, it will invalidate the bullish setup. It could pull the BTC / USDT pair down to $ 28,630, which could act as strong support, but if this level clicks, the decline could reach $ 26,700.
Otherwise, if the price goes back from $ 28,630 and rises over the 20-day EMA, the increase could be $ 32,659.
ETH / USDT
Strong sales on June 10 have dragged Ether (ETH) down to significant support at $ 1,700. If the price stays below this support, the pair could continue to fall.
The ETH / USDT pair could first drop to $ 1,500 and if this level also picks up, the next stop could be significant support at $ 1,300. The bulls are expected to defend this point with all their might.
Contrary to this assumption, if bears fail to maintain the price below $ 1,700, it will indicate accumulation at lower levels. The first sign of strength will be a break and closure over 20 days of EMA. That could open the door for a possible increase to $ 2,159.
The indicators give mixed signals because falling averages are in favor of sellers, but a positive difference in RSI indicates that relief may be around the corner.
BNB / USDT
BNB has been trading under the symmetrical triangle’s support line for the past three days, but the bears have not been able to rely on the split. This indicates that sales are drying up at lower levels.
Buyers will try to push the price back into the triangle. If this happens, aggressive bears that may have gone a short distance below the support line may get caught. This could lead to a short coverage, which could push the price over the triangle’s resistance line. Such a movement will indicate that the bears may be losing control.
Contrary to this assumption, if the price continues to fall from the current level and falls below $ 273, it will increase the possibility of a break below the significant support of $ 260. The pair could then begin to decline towards significant support of $ 211.
ADA / USDT
The bulls pushed Cardano (ADA) above the 50-day simple moving average (SMA) ($ 0.64) on June 8 and 9, but could not sustain higher levels. It may have tempted short-term traders to book profits.
The Bears are trying to keep the price below the 20 day EMA ($ 0.58). If they do, the ADA / USDT pair could drop to the next $ 0.53 support. If this level also deviates, the reduction could be as high as $ 0.44.
Otherwise, if the price falls back from the current level, it will indicate that the attitude has become positive and the bulls are buying dips. The bulls will then make one more attempt to get rid of the barrier for 50 days SMA. If they succeed, the pair could rise to the $ 0.74 breakdown level, which in turn could act as resistance.
XRP / USDT
Ripple (XRP) had been trading near the downgrade line for the past two days. Failure to push the price above the cost resistance could have resulted in a profit posting from short-term buyers.
The XRP / USDT pair has fallen to a strong support of $ 0.38 as buyers could try to stop the decline. If the price returns from the support and rises above the falling line, the pair could rise to $ 0.46.
On the contrary, if bears sink and keep the price below $ 0.38, it will end with a bearish declining triangle pattern. This could increase sales and bring the price down to $ 0.33. A break below this support could indicate a resumption of the downturn.
SOL / USDT
Solana (SOL) is trading between 20 days of EMA ($ 44) and $ 37 in recent days. Buyers tried to push the price over the 20-day EMA on June 9, but the Bears held their ground.
A positive difference in RSI indicates a slight advantage for buyers, while a falling average indicates that bears have the upper hand. This uncertainty is unlikely to continue for long. If bears drop below $ 35, the SOL / USDT pair could continue to fall. The next stop on the downside could be $ 30.
Contrary to this assumption, if a bull pushes the price up for 20 days EMA, the pair could rise to $ 50 and then to a cost of $ 60.
DOGE / USDT
The bulls struggled to maintain Dogecoin (DOGE) above $ 0.08 on June 8 and 9. This could have led to further sales and support collapsed on 10 June.
The Bears will try to build on their advantage and try to lower the price to a significant support of $ 0.07. Breaks and closures below this level could indicate that the next team in the downtrend has begun.
This negative view could be invalidated in the short term if the price reverses and breaks above the 20 day EMA ($ 0.08). This could lead to a purchase from aggressive bulls, which could push the DOGE / USDT pair up to $ 0.10.
Connected: Ethereum eyes fresh annual lows vs Bitcoin when bull stumbles successful ‘Combine’ exercise
DOT / USDT
The bulls tried to push Polkadot (DOT) back into the symmetrical triangle on June 9, but the bears defended the attack aggressively. This suggests that the bears have turned the support line in resistance.
The Bears will try to lower the price under immediate support of $ 8.56. If they succeed, the DOT / USDT pair could fall to the critical level of $ 7.30. Bears must reduce the price of this support to indicate that declining trends will resume.
This bearish view could be invalidated if the price goes back from $ 8.56 and rises above the resistance line. If that happens, the pair could attract buyers who could then try to push the price up to $ 11 and later to $ 12.50.
AVAX / USDT
Avalanche (AVAX) formed the Doji candlestick pattern over the past two days, indicating indecision among bulls and bears. This uncertainty was set aside on June 10 and the Bears are trying to pull the price up to a strong support of $ 21.
The price is fixed between 20 days EMA ($ 27) and $ 21. It is likely that this narrow business will be resolved with the expansion of the division in the next few days. Although a positive difference in RSI indicates a minor advantage for buyers, falling averages indicate that bears have the upper hand.
If the gap widens and the price falls below $ 21, it will indicate that the downturn will resume. The AVAX / USDT pair could then drop to $ 18. Otherwise, if the price explodes over the 20-day EMA, it could clear the way for a possible rise to $ 33 and then $ 37.
SHIB / USDT
Shiba Inu (SHIB) has been close to strong support at $ 0.000010 since June 7th. Although the bulls defended the support, they have not been able to get a strong rebound.
This increases the possibility of a break under strong support of $ 0.000010. If that happens, the SHIB / USDT pair will complete a bearish declining triangle pattern. The pair could then fall to a May 12 low within the day, $ 0.000009. If this support also clicks, the next stop could be $ 0.000006.
To invalidate this bearish view, buyers must push the price up for a falling line. That could clear the way for a possible increase to $ 0.000014.
The views and opinions expressed herein are those of the authors only and do not necessarily reflect the views of Cointelegraph. Every investment and business involves risk. You should do your own research when making a decision.
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