Bitcoin and altcoins are being sold heavily as the massive spin on June 13 could be the last capitulation level event before the market finally bottoms.
US stock markets continued the decline that started on June 13th. The S&P 500 hit a new yearly low and plunged into bear market territory, more than 20% below its Jan. 1 all-time high. four.
Cryptocurrency markets are tracking the decline in stock markets, and selling pressure has further intensified on rumors of a liquidity crunch for major lending platform Celsius and traders who may be selling positions to meet margin requirements. This reduced the total crypto market cap to under $1 trillion.
Cryptocurrency market daily indicators. Source: Coin360
The sharp drop has led some analysts to forecast extreme bearish targets. While anything is possible in the markets and it is hard to speak of a bottom, capitulations usually tend to form a bottom. Merchants can prepare their shopping list and consider a gradual switch after the price stops falling.
What are the key levels that can prevent Bitcoin (BTC) and major altcoins from falling? Let’s examine the charts of the top 10 cryptocurrencies to find out.
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On June 11, Bitcoin breached the immediate support at $28,630. This accelerated the selling and the bears pushed the price below the critical support at $26,700 on June 12th. This indicated a resumption of the downtrend.
BTC/USDT daily chart. Source: Trade View
On June 13, the bears continued the selling pressure, which caused the BTC/USDT pair to drop to an intraday low of $22,600. The sharp drop over the past few days has sent the Relative Strength Index (RSI) into oversold territory. This suggests that a rally or consolidation is likely over the next few days.
Any bounce is likely to face selling in the $26,700-$28,630 zone. If the bears flip this zone into resistance, it means that sentiment remains negative. Traders can then make another attempt to restart the downtrend. A break below $22,600 could take the pair to the psychological $20,000 level.
The bulls need to push and hold the price above $28,630 to indicate that the bears might lose their footing.
Ether (ETH) broke below the key $1,700 support on June 10, suggesting that the bears are in control. This signaled the start of the next leg of the downtrend.
Daily ETH/USDT chart. Source: Trade View
Selling intensified on June 11 and the bears took the price below the strong support at $1,300. This indicates that traders are becoming fearful and are trimming their positions.
The aggressive selling of the past three days has pushed the RSI below 22. Historically, ETH/USDT has started to rally when the RSI falls near 21. This suggests that the pair could attempt a rally to the $1,700 breakout level.
Alternatively, if the bears continue to apply selling pressure, the pair could drop to psychological support at $1,000.
The inability of the bulls to push BNB back into the triangle may have prompted heavy selling by the bears on June 11th. Selling gained momentum and the price dropped near the strong support at $211.
BNB/USDT daily chart. Source: Trade View
If the price recovers from $211, it would indicate accumulation at lower levels. The buyers will then try to push the price above the 20-day exponential moving average ($289). If successful, it would mean that the BNB/USDT pair could remain range bound between $211 and $350 for several days.
On the other hand, if the bears sink the price below $211, it will signal the start of the next leg of the downtrend. The $200 psychological level might offer minor support, but if the level gives way, the next support could be $186.
Cardano (ADA) broke below the 20-day EMA ($0.56) on June 10th and bulls’ attempts to push the price back above the June 11th level led to heavy selling at higher levels.
Daily ADA/USDT chart. Source: Trade View
The bears pulled the price into a strong support zone between