BTC and altcoins found resistance at a key moving average, prompting traders to wonder if the current pullback is a test of lower support or evidence that the bears are still in control.
Bitcoin (BTC) made a tentative start into June, suggesting the bears haven’t wintered over yet. Despite bitcoin trading nearly 55% below its all-time high of $69,000, whales and institutions remain cautious and unenthusiastic about jumping into the market, according to BlockTrends analyst Caue Oliveira.
According to CryptoQuant Venturefounder, a bottom between $14,000 and $21,000 could form over the next six months if Bitcoin repeats historical patterns observed after previous halving cycles. After that, bitcoin could hover between $28,000 and $40,000 for most of the next year and around $40,000 during the halving.
Cryptocurrency market daily indicators. Source: Coin360
The crypto bear market hasn’t stopped Goldman Sachs from exploring the possibility of integrating its derivatives products with FTX.US derivatives offerings. This indicates that the investment bank expects demand for derivatives to increase in the future.
Is Bitcoin starting to bottom? Is the short-term downtrend in altcoins over? Let’s examine the charts of the top 10 cryptocurrencies to find out.
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Bitcoin reached the upper resistance at $32,659 on May 31, but the bulls failed to clear this hurdle. The May 31 doji candlestick pattern suggests uncertainty among both buyers and sellers.
BTC/USDT daily chart. Source: Trade View
This uncertainty dissipated in favor of the bears on June 1, and they dragged the price below the 20-day exponential moving average (EMA) of $30,741. If the price stays below the 20-day EMA, 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, BTC/USDT could revisit $32,659. In this case, the pair can consolidate between these two levels for several days.
The next trend move can start when the price breaks above or below the range. If the price surges above $32,659, the rally could reach the 50-day simple moving average (SMA) of $34,629. The downtrend might resume after a break below the $28,630-$26,700 support zone.
The bears halted the rise in ETH at the 20-day EMA ($2009) on May 31st, suggesting that they will not allow the bulls to gain a foothold.
Daily ETH/USDT chart. Source: Trade View
The bears will attempt to pull the price up to the key support at $1,700. This is an important level for bulls to protect because if it breaks, the ETH/USDT pair could see panic selling. The pair could then continue the downtrend and drop to $1,300.
Alternatively, if the price rebounds from $1,700, it would mean the bulls are actively buying at those levels. The bulls will then make another attempt to push the price above the 20-day EMA and challenge the tough resistance at $2159.
BNB surged above the immediate $320 resistance on May 30, but the bulls failed to build on this move. This suggests that the bears are a major problem at $325.
BNB/USDT daily chart. Source: Trade View
The sellers pulled the price up to the uptrend line. This is an important level to watch for in the near term. If the price recovers from this level, it means that the bulls are accumulating on dips. This could improve the prospects of a break above $325.
Contrary to this notion, if the bears sink the price below the uptrend line, the BNB/USDT pair could drop to a strong support zone between $286 and $265. A break below $265 could see the pair drop to the key support at $211.
Ripple (XRP) rallied above the downtrend line on May 30, but the bulls failed to clear the overhead at the 20-day EMA ($0.43). This suggests that the bears do not want to give up their advantage.
Daily XRP/USDT chart. Source: Trade View
The bears will attempt to sink the price below the downtrend line. In that case, the XRP/USDT pair could drop to $0.38. Buyers are likely to defend this level and a recovery from this level is pointing