BTC and altcoins are on the verge of falling below critical support levels and the higher-than-expected June 10 CPI report isn’t helping.

US stock markets tumbled on June 10 after the Consumer Price Index (CPI) report showed inflation rose 8.6% year-on-year, the highest since 1981. The latest data shows that talk of the The inflation peak was premature, and according to Bloomberg, investors expect the key interest rate to end the year at 3%.

Bitcoin (BTC) continued its close correlation with the S&P 500, falling below $30,000 on June 10. However, Lee appears to have tempered his expectations, saying that Bitcoin “could remain the same throughout the year and could potentially rise.”

Cryptocurrency market daily indicators. Source: Coin360
Among the constant negative news was a glimmer of hope from news that Bloomberg had expanded the coverage of cryptocurrency data on its Bloomberg Terminal to 50 crypto assets. Bloomberg Cryptocurrency Product Manager Alex Wenham was upbeat, saying that institutional interest in digital assets continues to grow.

Now that Bitcoin is once again trading near swing lows, is a capitulation level crisis a threat? Let’s examine the charts of the top 10 cryptocurrencies to find out.

DELIVERY EVERY MONDAY
subscribe to something
Markets Outlook newsletter
Email-address
Subscribe to
By subscribing you agree to our
Terms of Use and Privacy Policy

Bitcoin/US Dollar
The bulls attempted to push the price above the 20-day exponential moving average (EMA) ($30,365) on June 9, but the bears did not give up. The selling continued on June 10 and the bears pulled the price below the ascending triangle trendline.

BTC/USDT daily chart. Source: Trade View
The 20-day EMA has started gradually turning down and the Relative Strength Index (RSI) is floating in negative territory, indicating the advantage for the sellers.

If the price stays below the trendline, it will invalidate the bullish setup. This could drop the BTC/USDT pair to $28,630, which could be strong support, but if this level breaks, the decline could extend to $26,700.

Alternatively, if the price bounces off $28,630 and scales above the 20-day EMA, a move higher could reach $32,659.

ETH/USDT
Strong selling on June 10 sent Ether (ETH) below the critical support at $1,700. If the price stays below this support, the pair can resume the downtrend.

Daily ETH/USDT chart. Source: Trade View
The ETH/USDT pair might drop to $1,500 initially and if that level also gives way, the next stop could be a key support at $1,300. The bulls are expected to defend this level with all their might.

Contrary to this assumption, if the bears fail to sustain the price below $1,700, it will mean accumulation at lower levels. The first sign of strength will be a break and close above the 20-day EMA. This could open the door for a potential move to $2,159.

Indicators are giving mixed signals as descending moving averages favor sellers, but positive divergence on the RSI suggests a recovery rally may be imminent.

BNB/USDT
BNB has been trading below the symmetrical triangle support line for three days, but the bears failed to gain a foothold on the breakout. This suggests that sales are drying up at lower levels.

BNB/USDT daily chart. Source: Trade View
Buyers will try to bring the price back into the triangle. When this happens, aggressive bears that may have gone short on a break below the support line could get trapped. This can result in short positions being covered which will propel the price above the triangle resistance line. Such a move would mean that the bears could lose their footing.

Contrary to this assumption, if the price falls further below the current levels and falls below $273, the chances of a break below the critical $260 support will increase. The pair might then start a decline towards the key $211 support.

ADA/USDT
The bulls pushed Cardano (ADA) above the 50-day Simple Moving Average (SMA) ($0.64) on June 8-9 but failed to sustain at higher levels. This may have encouraged short-term traders to take profits.

Daily ADA/USDT chart. Source: Trade View
The bears are trying to sustain the price below the 20-day EMA ($0.58). If they succeed, ADA/U

Source: CoinTelegraph

LEAVE A REPLY