The price of bitcoin is struggling to hold onto the $20,000 support and the outcome of this bull vs bear battle will determine the next direction.
The sharp drop in cryptocurrencies has caused the total cryptocurrency market capitalization to fall below $900 billion. According to CoinGoLive, 72 of the top 100 tokens have fallen over 90% from their all-time highs. By comparison, the top 10 coins outperformed the decline, falling an average of 79% from their all-time highs.
Bitcoin (BTC) has fallen more than 70% from its all-time high, but the bulls are struggling to stop the fall. Jurrien Timmer, Fidelity’s director of global macroeconomics, stressed that Bitcoin “may be cheaper than it looks” when looking at a price-to-network ratio that is similar to the price-to-earnings ratio seen in the stock market to value. used – stock.
Daily dynamics of the cryptocurrency market. Source: Coin360
Billionaire investor Mark Cuban told Fortune that projects with no real business prospects will disappear as bear markets have a cleansing effect on the market. However, he added that innovation in the crypto sector is likely to continue during the downturn in the market.
Can Bitcoin and the major altcoins hold their respective support levels? Let’s examine the charts of the top 10 cryptocurrencies to find out.
DELIVERY EVERY MONDAY
Subscribe to something
Markets Outlook newsletter
By subscribing, you agree to our
The bulls are trying to hold Bitcoin above the psychological support of $20,000 but are facing strong resistance at $23,362. This suggests that the bears have not given up and continue to sell on the rally.
BTC/USDT daily chart. Source: Trading View
The longer you hold around $20,000, the more likely it is to break below this mark. If the bears push the price below $20,000, the BTC/USDT pair could face panic selling. This could push the price up to $17,500 and then to $16,000.
The only glimmer of hope for buyers is that the Relative Strength Index (RSI) has fallen to deep oversold levels. This suggests that a recovery rally is possible in the near future. If the bulls push the price above $23,362, the pair could rise to the 20-day exponential moving average (EMA) of $26,574.
Ether (ETH) is in a tight bear grip. The bulls bought the dip to $1,014 on June 15, as evidenced by the long tail of the daily candle. However, the bounce was short-lived as the bears pushed the price below $1,100 on June 16.
Daily ETH/USDT chart. Source: Trading View
If the bears push the price below $1,000, selling pressure could increase and ETH/USDT could drop to $900. While declining moving averages point to a bearish lead, the RSI’s deep oversold level suggests a recovery rally may be imminent.
Bulls need to push and hold the price above $1268 to start a sustainable recovery. Above this level, the pair could rise to the 20-day EMA ($1,547) where the bears could once again provide strong resistance.
BNB has been consolidating near the critical $211 support since June 13th. The bulls started the rally on June 15, but it ended at $237 on June 16.
BNB/USDT daily chart. Source: Trading View
If the price breaks below the $211-$198 support zone, BNB/USDT could start the next leg of the downtrend. The pair could then drop to $186 before crashing to strong support at $150.
On the other hand, if the price recovers from the $211 support, buyers will try to push the pair above $237. If they succeed, the pair could rise to the 20-day EMA ($265). This is an important level to look out for as a break and close above it will indicate that the pair may have bottomed out.
Cardano (ADA) bounced off $0.44 on June 14 and the bulls pushed the price down to the 20-day EMA ($0.54) on June 15. The bears defended this level aggressively and on June 16 the price turned down.
Daily ADA/USDT chart. Source: Trading View
The price is stuck between the 20-day EMA and $0.44, but this tight trading is unlikely to last. If buyers push the price above the 20-day EMA, the ADA/USDT could rise to the 50-day SMA.