Bitcoin (BTC) continues to have an uphill battle around the psychological $20,000 level as bulls and bears attempt to assert dominance. Trading firm QCP Capital said in its latest market report that funding rates in derivatives markets are stable and bearish conditions are easing.
Another bright spot for bitcoin bulls is that bitcoin miners may capitulate as the recent price drop has rendered some mining machines unprofitable. Data from Arcane Research shows that publicly traded bitcoin mining companies, which sold just 30% of their mining from January to April this year, gave up 100% of their bitcoin mining in May. Some analysts believe the miner failure was a bullish signal.
Cryptocurrency market daily indicators. Source: Coin360
However, one metric suggests that Bitcoin may not have bottomed out. Historically, Bitcoin signals the day when less than 50% of Bitcoin addresses remain profitable. Glassnode data as of June 20 shows that 56.2% of Bitcoin addresses are profitable, raising fears of a further decline.
Can Bitcoin and Altcoins Recover or Will the Bears Lower the Price? Let’s examine the charts of the top 10 cryptocurrencies to find out.
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The bulls are attempting to initiate a bitcoin rally, but the long wick of the June 21 candle suggests the bears are reluctant to give up their lead.
BTC/USDT daily chart. Source: Trade View
On a small positive note, the bulls are buying on the dip to $20,000 on June 22nd. If the price recovers from current levels, buyers will attempt to push the BTC/USDT pair above $22,000. This could open the doors for a possible rally towards the 20-day exponential moving average (EMA) ($24,076).
This level is likely to act as a hard resistance, but if the bulls break this barrier, the next stop could be the 50-day simple moving average (SMA) ($28,678).
This optimistic view could be refuted if the price turns lower and falls below $19,600. This could improve the prospects for a retest of the June 18 intraday low at $17,622.
Ethereum (ETH) is recovering from the June 18 intraday low of $881 and is down from $1,194 on June 21, suggesting that the bears are not yet giving up and are continuing to sell on the rally.
Daily ETH/USDT chart. Source: Trade View
If the bulls do not exit positions from the current levels, the ETH/USDT pair could make another attempt to scale to the 20-day EMA ($1368). This is an important level to watch as bears usually defend the 20-day EMA during downtrends.
If the price turns down from the 20-day EMA, the bears will again attempt to drag the pair to $1,000 and then to $881. A break below this level could signal a resumption of the downtrend. On the other hand, if the bulls push the price above the 20-day EMA, the pair could rally to $1,700.
BNB has been holding above the critical $211 support since June 19, but the bulls are struggling to push the price higher. The long wick of the June 21st candle suggests that the bears will continue to sell on the rally.
BNB/USDT daily chart. Source: Trade View
If the bears sink the price below $211, BNB/USDT could drop to $200 and then the intraday low of June 18 of $183. This is an important level to watch out for because if the price falls below it, the pair could drop to $150.
Conversely, if the price recovers from $211 or $200, it would mean the bulls will continue buying dips. The bulls will then make another attempt to clear the overhead at the 20-day EMA. If they succeed, it would mean that a break below $211 could be a bear trap.
Cardano (ADA)’s bounce from the $0.44 support zone to $0.40 ended near the 20-day EMA ($0.51) on June 21. This suggests that the bears will continue to defend the level aggressively.
Daily ADA/USDT chart. Source: Trade View
Now the sellers will try to lower the price below the support zone. If they succeed, it will mark the beginning of the next leg of the downtrend. The ADA/USDT pair could then drop to $0.33 and then $0.30.
Alternatively, if the price bounces back from the support zo