Bitcoin fell 56.2% in the second quarter of 2022, according to crypto analytics platform Coinglass. That makes it the worst quarter for Bitcoin since the third quarter of 2011, when the price of BTC fell 67%. Much of the damage occurred in the month of June, when Bitcoin fell 37%, the worst monthly decline since September 2011.
Not everything is doom and gloom for crypto investors. On June 29, JPMorgan strategist Nikolaos Panigirtzoglou said that the “net leverage metric” suggests that cryptocurrency deleveraging may be in its last stages. The eagerness of crypto companies with stronger balance sheets to bail out struggling crypto companies is also a positive sign.
Another positive opinion on Bitcoin came from analysts at Deutsche Bank. In a recent report, strategists said the S&P 500 could make up lost ground and rise to levels seen in January. This could benefit Bitcoin due to its close correlation with the S&P 500.
Could the downtrend resume or will lower levels attract buyers? Let’s study the charts of the top 10 cryptocurrencies to find out.
BTC/USDT
Bitcoin dipped below immediate support at $19,637 on June 30, but the long tail of the candle indicates strong buying at lower levels. The bulls tried to build on the momentum of July 1 and push the price towards the overhead resistance of $22,000, but the long wick of the candlestick shows that the bears are active at higher levels.
If the price sustains below $19,637, the probability of a retest of the critical support at $17,622 increases. The falling moving averages and the relative strength index in the oversold zone indicate that the bears are in control.
A breakout and close below $17.622 could signal a resumption of the downtrend. The next support is at $15,000.
This negative view could be invalidated in the short term if the price breaks above the 20-day EMA ($21.907). Such a move could pave the way for a possible rally towards the 50-day simple moving average (SMA) ($26,361).
ETH/USDT
Ether (ETH) dipped below the immediate support of $1,050 on June 30, but the bulls bought the dip. The buyers tried to extend the rally on July 1st, but the long wick of the candlestick shows that the bears are selling on minor rallies.
The bears will try to push the price below the psychological level of $1,000. If successful, the selling could gain momentum and the ETH/USDT pair could drop to the important support at $881. If this level gives way, the pair could resume the downtrend. The next support is at $681.
Contrary to this assumption, if the price bounces off the current level or $1,000, the bulls will try to push the pair above the 20-day EMA. If they can pull it off, it will suggest that the bears may be losing control. Upside momentum could pick up on a break above $1,280.
BNB/USDT
BNB dipped below strong support at $211 on June 30, but the lower levels attracted strong buying as seen by the long tail of the day’s candle.
The buyers tried to extend the rally on July 1, but the long wick of the candlestick shows that the bears are aggressively defending the 20-day EMA ($234). The 20-day EMA going down and the RSI in the negative territory indicate an advantage for the sellers.
If the price sustains below $211, the BNB/USDT pair could retest the crucial support at $183. If this support breaks, the downtrend could resume. The next support is at $150.
This negative view could be invalidated in the short term if the price breaks above the 20-day EMA. That could pave the way for a potential rally towards the 50-day SMA ($271).
XRP/USDT
Ripple (XRP) attempted a rally on June 30, but the bulls were unable to push the price above the overhead resistance at $0.35. This suggests that the bears are unwilling to give up their advantage.
The XRP/USDT pair could drop to the strong support at $0.28, where the bulls are likely to mount a strong defense. If the price bounces off $0.28, it will suggest that the bulls continue to buy lower levels. Afterwards, the bulls will make one more attempt to push the price above the 50-day SMA ($0.37).
Conversely, if the bears sink the price below $0.28, it could start the next leg of the downtrend. The pair could then drop to $0.23.
ADA/USDT
Cardano (ADA) bounced off $0.44 on June 30, but the bulls were unable to break above the 20-day EMA ($0.49) on July 1. This suggests that the bears continue to defend the moving averages vigorously.
The downsloping 20-day EMA and the RSI in the negative zone indicate that the path of least resistance is to the downside. If the price breaks below $0.44, the ADA/USDT pair could drop to the critical $0.40 support.
The bulls are expected to defend this level with all their might because if the support breaks, the pair could resume its downtrend. The next support is at $0.33.
Alternatively, if the price bounces off $0.44 or $0.40, the buyers will once again try to remove the overhead resistance at the moving averages. If they are successful, the pair could start a relief rally towards $0.70.
SOL/USDT
Solana (SOL) dipped below the immediate support at $33 on June 30, but the long tail of the candle shows strong buying at lower levels. The buyers tried to push the price above the 20-day EMA ($36) on July 1, but the bears did not budge.
The sellers will try to gain the upper hand by driving the price below $30. If they manage to do that, the SOL/USDT pair could drop to $27 and then to the crucial support at $25.86. A breakout and close below this level could signal a resumption of the downtrend.
Another possibility is that the price bounces off $30. That will indicate accumulation at lower levels. The bulls will then try to break through the overall hurdle at the moving averages and push the price back to $50.
DOGE/USDT
Dogecoin (DOGE) is witnessing a tough battle between the bulls and the bears near the 20-day EMA ($0.07). The RSI is just below the midpoint and the 20-day EMA has leveled off, indicating a minor upside for the sellers.
If the price breaks below $0.06, it will suggest that the bears are back in the driver’s seat. Sellers will then try to sink the DOGE/USDT pair below the important $0.05 support and resume the downtrend. The next support is at $0.04.
Conversely, if the price turns up from the current level, the buyers will once again try to break above the general hurdle at the 50-day SMA ($0.08). If they are successful, it will suggest that the bears may be losing control. Afterwards, the pair could rally to the strong overhead resistance at $0.10.
DOT/USDT
Polkadot (DOT) broke out and closed below the strong support of $7.30 on June 29. The buyers tried to push the price above the June 30 level, but failed. This suggests that the bears are selling every minor rally.
The 20-day EMA ($7.74) has started to turn down and the RSI is in the negative territory, which indicates that the bears are in command. If the price breaks below $6.36, the DOT/USDT pair could start the next leg of the downtrend. The next support is at $5.00.
Contrary to this assumption, if the price bounces off the current level, the bulls will again try to clear the overhead resistance at the 20-day EMA. If they are successful, the pair could rally to the 50-day SMA ($8.89).
LEO/USD
UNUS SED LEO (LEO) turned down on June 30, but the bulls did not allow the price to get back into the descending channel. This indicates that the buyers are trying to turn the resistance line into support.
The breakout of the channel indicates the beginning of a new upward movement. The buyers pushed the price to $6.50 on July 1, but the long wick of the candlestick shows that the bears are selling on the rallies. If the bulls sustain the price above $6.00, the LEO/USD pair can rally back to $6.50. If this level is breached, the rally could extend to the pattern target of $6.90.
To invalidate this bullish view, the bears will have to break the price below the 20-day EMA ($5.63). If that happens, the pair can drop to the 50-day SMA ($5.27).
SHIB/USDT
Shiba Inu (SHIB) closed below $0.000010 on June 28, but the bears could hold the lower levels. The bulls bought the dip but are struggling to push the price above the 50-day SMA ($0.000010)
Both moving averages have flattened out and the RSI is just below the midpoint. This suggests a state of equilibrium between buyers and sellers. If the price breaks below $0.000009, it will suggest an advantage for the bears. The SHIB/USDT pair could then drop to the crucial support of $0.000007.
Alternatively, if the bulls push the price above the 50-day SMA, the pair could rally to $0.000012. This level can again act as a resistance, but if it is crossed, the rally can reach $0.000014.
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 .