The bitcoin price briefly pulled back after today’s high inflation, but the bounce seen in the crypto market suggests that buyers are buying during the dip.
The US consumer price index soared to 9.1% in June, beating expectations for an 8.8% year-on-year rise.. Fed funds futures are currently pointing to an 81 basis point rate hike for July, suggesting that some participants anticipate a 100 basis point hike.
Several on-chain indicators have been indicating that bitcoin (BTC) is likely to hit a bottom, but analysts at market intelligence firm Glassnode are not convinced that such a bottom has been reached yet.. In “The Week On-Chain” report on July 11, analysts said the market may have to fall further “to fully test investors’ resolve, and allow the market to establish a resilient bottom”.
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Although the short term remains bearish, strategists are confident in their long-term outlook. CoinShares chief strategist Meltem Demirors said on CNBC that bitcoin may extend its “downward correction” in the short term, but is likely to hit a new all-time high “within the next 24 months.”
What are the important levels of bitcoin and major altcoins that could stop the slide? Let’s study the charts of the top 10 cryptocurrencies to find out.
BTC/USDT
Bitcoin pulled back to the support line of the symmetrical triangle on Jul 12, indicating that the break above the triangle on Jul 7 may have been a bull trap..
Buyers are trying to defend the level, but The long wick of the July 13 candlestick shows that the bears are selling near the 20-day exponential moving average ($20,796). Both moving averages are sloping down and the RSI is in the negative zone, which indicates that the bears are in command..
If the price breaks below the support line, the BTC/USDT pair could drop to the $18.626-$17.622 support zone. This is an important area to defend for the bulls.as if it gives way, the pair could drop to $15,000.
The first sign of strength will be the breakout and close above the 20-day EMA. This move will suggest strong buying at lower levels. That could increase the possibility of a rally to the 50-day SMA ($24,084)..
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ETH/USDT
Ether (ETH) broke below the support line of the ascending triangle pattern on Jul 12, invalidating the bullish setup. A small silver lining is that the bulls are trying to get the price back into the triangle.
If they do, this will suggest that the drop below the triangle may have been a trap. The bulls will endeavor to push the price back above the overhead resistance of $1,280. A breakout and close above the 50-day SMA ($1,383) could improve the prospects for the start of a new move higher.
On the contrary, if the price turns down from the support line, it will suggest that the bears have turned the level into resistance. Sellers will try to sink the ETH/USDT pair below $998 and challenge the fundamental support at $881.. If this support breaks, the pair could start the next leg of the downtrend.
BNB/USDT
The bulls were unable to take advantage of Binance Coin (BNB) breaking above the 20-day EMA ($231). The bears took advantage of this failure: Aggressively sold higher and dragged the price below the 20-day EMA on July 11.
The BNB/USDT pair attempted a bounce from the strong support of $211 on Jul 13but the long wick of the candle shows that the bears are selling near the 20-day EMA. If the price breaks below $211, the selling could intensify and the pair could slide to the $183 support..
On the contrary, If the price rebounds from $211 and breaks above the 20-day EMA, it will suggest strong demand at the lower levels. Buyers will then make another attempt to break above the 50-day SMA ($253) hurdle..
XRP/USDT
Ripple (XRP) plunged below the support line of the symmetrical triangle on July 11. This indicates that the uncertainty between the bulls and bears has been resolved to the downside..
The bulls tried to get the price back into the triangle on Jul 13, but the long wick on the candlestick suggests that the bears are selling on small intraday rallies. If the price breaks below $0.30, the XRP/USDT pair could drop to the crucial support at $0.28. A breakout and close below this level could signal the start of the next leg of the downtrend..
The first sign of strength will be a breakout and close above the 20-day EMA ($0.33). This move will suggest that the break below the triangle may have been a trap for the bears. The pair could signal a possible change in trend if it breaks above the resistance line of the triangle.
ADA/USDT
Cardano (ADA) dipped below the immediate support of $0.44 on July 11, indicating that the bears are in command. The selling continued and the bears dragged the price down to the $0.40 support.
Buyers tried to start a rally on July 13, but The long wick of the day candle shows that the bears are trying to turn the $0.44 level into resistance. If the price breaks below $0.40, the selling could pick up momentum and the ADA/USDT pair could resume the downtrend. The pair could drop to $0.33.
To invalidate this negative view, the buyers will have to take and sustain the price above the moving averages. If this happens, the pair could attempt a rally to $0.60..
SOL/USDT
Solana (SOL) broke below the support line of the symmetrical triangle on Jul 11 and bulls’ attempts to push the price back into the triangle failed on Jul 12.
Nevertheless, the bulls have not given up and are trying again to get the price into the triangle on Jul 13. If they succeed, it will be understood that the July 11 breakup may have been a setup. Buyers will try to break above the resistance line barrier and start a new move higher towards $50.
On the contrary, If the price turns down from the current level or overhead resistance and breaks below $31, the selling could intensify and the SOL/USDT pair could drop to $26.
DOGE/USDT
Dogecoin (DOGE) dipped below the 20-day EMA ($0.07) on July 10. The bears took advantage of this opportunity and dragged the price below the $0.06 support on Jul 12..
If the price sustains below $0.06, the selling could pick up momentum and the DOGE/USDT pair could retest the critical $0.05 support. This is an important level to watch because a break below it could signal a resumption of the downtrend.. In that case, the pair could drop to $0.04.
Secondly, If the price rises from the current level, the buyers will try to push the pair above the moving averages. If they succeed, the pair could rally to $0.08 and then $0.10.
DOT/USDT
Polkadot (DOT) broke out and closed below the crucial support of $6.36 on Jul 12, signaling aggressive selling by the bears.. One small silver lining is that the RSI has maintained positive divergence, indicating that the bearish momentum may be ending.
The buyers are trying to push the price back above $6.36. If this happens, the DOT/USDT pair could rally to the overhead resistance of $7.30. Buyers will have to overcome this hurdle and the 50-day SMA ($8.04) to indicate that the downtrend may be over.
On the contrary, If the price fails to sustain above $6.36, it will be understood that the bears are still in control. Sellers will try to resume the downtrend and drag the pair back to $5.
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SHIB/USDT
Shiba Inu (SHIB) dipped below the psychological level of $0.000010 on July 12, indicating strong selling by the bears. A positive aspect is that the bulls bought the dip and are attempting to sustain the price above $0.000010.
Both moving averages have flattened out and the RSI is just below the midpoint, which indicates a balance between supply and demand. In a range, traders typically buy near support and sell near resistance.
If the buyers push the price above the moving averages, the SHIB/USDT pair could attempt a rally to $0.000012. The bulls will have to overcome this resistance to open the doors for a possible rally to $0.000014.. This view could be invalidated if the price breaks below $0.000009.
LEO/USD
Repeated failure of buyers to sustain UNUS SED LEO (LEO) price above $6 suggests a lack of demand at higher levels. This may have attracted selling from the aggressive bears.
The price turned down from $5.91 on July 10 and broke below the 20-day EMA ($5.60). This was followed by more selling which took the price below the 50-day EMA ($5.42) on July 12.. If the bears sustain the price below the 50-day EMA, the LEO/USD pair could drop to the support line of the descending channel.
On the contrary, If the price bounces off the current level, the bulls will make another attempt to break through the resistance line hurdle and challenge the crucial $6 level..
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. All investment and operation involves risk. You must do your own research when making a decision.
Market data was provided by the exchange HitBTC.
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