U.S. stock markets and the cryptocurrency market are experiencing easing this week. The growth of risky assets is supported by the US Dollar Index (DXY), which has fallen from its multi-year high. In general, cryptocurrencies move in reverse to the U.S. dollar, but this week’s bounce doesn’t necessarily mean the bulls ’squeeze over the market is over.
CryptoQuant chief analyst Julio Moreno, citing data within the chain, said Bitcoin (BTC) miners may have already capitulated. Historical data suggest that the capitulation of miners generally precedes market lows.
Daily cryptocurrency market performance. Source: Coin360
Another in-chain metric that indicates that the price of Bitcoin has reached attractive levels is the Strait of Mayer. The metric is calculated by dividing the price of Bitcoin by the 200-day moving average. He points out that Bitcoin is overbought, undervalued or fairly priced. On June 22, the indicator was 0.5, and cryptocurrency Kyle Chasse said Bitcoin had fallen below just 3% of all trading days.
Several in-chain indicators suggest that Bitcoin may be close to lows. Let’s study the graphs of the top 10 cryptocurrencies to find out what the techniques suggest!
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BTC / USDT
Bitcoin is trying to recover from the downtrend, but the bulls are struggling to reach the price of a 38.2% Fibonacci traceability level of $ 23,024. This suggests that demand is drying up at a higher level.
BTC / USDT daily chart. Source: TradingView
The first hurdle for bulls is likely to be $ 21,723, followed by the 20 – day exponential moving average (EMA) ($ 23,529).
If the price drops sharply compared to the 20-day EMA, it suggests that it is dominated by bears. The sellers will then make another attempt to push the BTC / USDT party to the final level of $ 17,622.
Conversely, if buyers raise the price above the 20-day EMA, it suggests bears may lose their grip. This could open the door to a rise toward the 50-day Simple Moving Average (SMA) ($ 27,995).
ETH / USDT
Ether (ETH) has been spinning between $ 1,200 and $ 1,050 since June 20th. This narrow-range trading turned upward on June 24 as the bulls tried to push the exchange rate to the 20-day EMA ($ 1,332).
ETH / USDT daily chart. Source: TradingView
This level is likely to attract strong resistance from bears. If the exchange rate falls sharply compared to the 20-day EMA, it suggests that the mood is still negative and traders are selling at rallies.
The bears then try to pull the price to $ 1,050. Pause and close during support can retest vital support for $ 881.
Alternatively, if the bulls drive the price above the 20-day EMA, the likelihood of rising to the $ 1,700 breakdown level increases.
BNB / USDT
The bears tried to pull the BNB under $ 211 on June 22, but the bulls persevered. This marked the beginning of a relief that hit the 20-day EMA ($ 243).
BNB / USDT daily chart. Source: TradingView
If the bulls push the price above the 20-day EMA, it increases the possibility that the breakthrough under $ 211 could have been a bear trap. The BNB / USDT pair could then reach the 50-day SMA ($ 284), where bears could once again face strong resistance.
Another possibility is that the price will fall sharply compared to the 20-day EMA. If that happens, the bears will try to pull the party under $ 211 and question the June 18 low of $ 183 during the day. A break under support could signal the start of a $ 150 declining trend.
XRP / USDT
Ripple’s (XRP) narrow-band trading turned upside down with a 20-day EMA ($ 0.35) break on June 24th. This suggests that bears may lose their grip.
XRP / USDT daily chart. Source: TradingView
Buyers tried to push the price above the 50-day SMA ($ 0.40) on June 24, but the long wick of the candlestick that day suggests the bears are still aggressively defending the level. If the exchange rate turns down and falls below the 20-day EMA, the XRP / USDT pair could fall to $ 0.35.
Contrary to this assumption, if the exchange rate turns up and falls above the 50-day SMA, it suggests the start of a new upward movement. The pair may first rise to $ 0.46 and then move toward $ 0.56.
ADA / USDT
Cardano (ADA) has fluctuated between a 20-day EMA ($ 0.50) and a strong $ 0.44 support in recent days, but this narrow-range trading is unlikely to last long.
ADA / USDT daily chart. Source: TradingView
The RSI gradually crawled up, am