Bitcoin (BTC) continues to face a tough battle near the psychological level of $20,000 as the bulls and bears try to assert their supremacy. Trading firm QCP Capital said in its latest market circular that funding rates in derivatives markets were stable and bearish conditions were fading.
Another ray of hope for Bitcoin bulls is that Bitcoin miners may be capitulating as the recent price drop has made some mining rigs unprofitable. Data from Arcane Research shows that public Bitcoin miners that had only sold 30% of their mined output from January to April of this year shed 100% of their Bitcoin output in May. Some analysts believe that the miners’ exit was a bullish sign.
However, one metric suggests that Bitcoin may not have bottomed out. Historically, Bitcoin signals a bottom when less than 50% of Bitcoin addresses remain profitable. Glassnode data from June 20 shows that 56.2% of Bitcoin addresses are still in profit, raising concerns of another leg down.
Will Bitcoin and altcoins be able to sustain the rally or will the bears sink the price? Let’s study the charts of the top 10 cryptocurrencies to find out.
BTC/USDT
The bulls are attempting to initiate a rally in Bitcoin, but the long wick of the June 21 candle suggests that the bears are unwilling to give up their advantage.
One small silver lining is that the shorts are buying dips to $20,000 on June 22. If the price rebounds from the current level, the buyers will try to push the BTC/USDT pair above $22,000. That could open the doors to a possible rally towards the 20-day exponential moving average ($24.076).
This level is likely to act as a strong resistance, but if the bulls breach this barrier, the next stop could be the 50-day SMA ($28.678).
This bullish view could be invalidated if the price turns down and breaks below $19,600. This could increase the prospects of retesting the intraday low of June 18 at $17.622.
ETH/USDT
Ether (ETH) bounce from June 18 intraday low of $881 has turned into a decline from $1,194 on June 21, which suggests that the bears have not given up yet and continue to sell every that the price goes up.
If the bears do not give up much ground from the current level, the ETH/USDT pair could once again attempt a rally towards the 20-day EMA ($1.368). This is an important level to watch out for because bears tend to defend the 20-day EMA during downtrends.
If the price turns down from the 20-day EMA, the bears will once again try to sink the pair towards $1,000 and then towards $881. A break below this level could signal a resumption of the downtrend. short. On the other hand, if the bulls push the price above the 20-day EMA, the pair could rally to $1.0700.
BNB/USDT
Binance Coin (BNB) has been holding above the crucial support of $211 since June 19, but the bulls are struggling to push the price higher. The long wick of the June 21 candle suggests that the bears are still selling on the rallies.
If the bears sink the price below $211, the BNB/USDT pair could drop to $200 and then to the June 18 intraday low of $183. This is an important level to watch because if the price falls below it, the pair could drop to $150.
Conversely, if the price rebounds from $211 or $200, it will suggest that the bulls continue to buy dips. The bulls will once again try to break above the 20-day EMA hurdle. If they do, they will suggest that the break below $211 may have been a bear trap.
ADA/USDT
Cardano’s (ADA) bounce from the $0.44 to $0.40 support zone fizzled out near the 20-day EMA ($0.51) on June 21. This suggests that the bears are still defending the level aggressively.
Sellers will now try to sink the price below the support zone. If they succeed, it will be the start of the next leg of the downtrend. The ADA/USDT pair could drop to $0.33 and then to $0.30.
On the other hand, if the price bounces back off the support zone, it will suggest that the bears are still accumulating on the dips. The buyers will make one more attempt to push the pair above the moving averages and start a rally towards $0.70.
XRP/USDT
Ripple (XRP) has been in a range between 0.28 and 0.35 for the past few days. This suggests a balanced state between the bulls and bears.
The longer it spends inside the range, the stronger the breakout of the range will be. If the price continues to decline and breaks the range support at $0.28, it could suggest a resumption of the downtrend.
The RSI is showing a positive divergence, which indicates that the bearish momentum may be weakening. If the bulls push the price above $0.35, this will suggest the start of a new move higher. The XRP/USDT pair could then rally to the 50-day SMA ($0.41) and subsequently rally to $0.45.
SOL/USDT
Solana (SOL) recovery on June 21 broke above the 20-day EMA ($36) but the long wick of the daily candle shows that the bears are selling at higher levels.
The price remains below the 20-day EMA on June 22, but the bulls have not given up much ground. This suggests that the buyers are waiting for a break above the 20-day EMA. If this happens, the SOL/USDT pair could rally to the 50-day EMA ($47), where the bears could once again mount a strong defense.
Conversely, if the price fails to break above the 20-day EMA, it could attract profit-taking from short-term traders. That could drag the pair to $30 and subsequently to $27.
DOGE/USDT
Dogecoin (DOGE) started a recovery on June 19 and reached the 20-day EMA ($0.06) on June 21. Although the bulls pushed the price above the 20-day EMA, they could not sustain the higher levels.
This may have attracted short-term bulls to take profits and aggressive bears to sell. The sellers will now try to sink the DOGE/USDT pair below $0.06 and reach the vital support of $0.05.
On the other hand, if the price rebounds from $0.06, it will suggest that sentiment has changed from selling on rallies to buying on dips. This could increase the possibility of a break above the 20-day EMA. If this occurs, the pair could rally to the 50-day EMA ($0.08).
DOT/USDT
Polkadot (DOT) turned down from the 20-day EMA ($8.20) on June 21, which suggests that the bears are still defending the level aggressively. The sellers will now try to sink the price below the immediate support at $7.30.
If they get away with it, the DOT/USDT pair could drop to the crucial support at $6.36. This is an important level to watch as a break below it could start the next leg of the downtrend to $4.23.
Conversely, if the price bounces off $7.30, it will suggest that the bulls are trying to form a higher low. This could increase the prospects for a break above the 20-day EMA. Then the pair could rally to the 50-day EMA ($9.78). If this level is also crossed, the next stop could be $12.44.
LEO/USD
The bulls pushed UNUS SED LEO (LEO) above the resistance line of the descending channel on June 22, but the long wick of the daily candle suggests that the bears are selling higher.
The 20-day EMA ($5.29) has started to turn up and the RSI is close to the overbought zone, which indicates that the bulls have the upper hand. If the price sustains above the channel, it could open the doors to a possible move higher to $6.50.
Conversely, if the price fails to hold above the channel, traders could take profits and that could push the LEO/USD pair towards the 20-day EMA. This move will suggest that the pair may remain stuck inside the channel for a few more days.
SHIB/USDT
The failure of Shiba Inu (SHIB) to break below $0.000007 may have tempted short sellers to take profits and more aggressive bulls to start buying. This may have triggered the sharp rally on June 21.
The traders pushed the price above the 20-day EMA ($0.000010), but were unable to break above the 50-day SMA ($0.000012) hurdle. This suggests that the bears are defending the level aggressively.
The sellers are trying to push the price back below the 20-day EMA. If they do, they will suggest that the recent rally may have been a bear market rally. The SHIB/USDT pair could then drop towards $0.000007.
The 20-day EMA is flattening out and the RSI is close to the midpoint, which suggests a range-bound action in the short term. The bulls will have to push and hold the price above the 50-day SMA to signal a possible trend reversal.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.
Market data is provided by the exchange HitBTC.