The current Bitcoin (BTC) bear market is one of the worst, according to a report by on-chain analytics firm Glassnode. This was the first time in history that the Mayer multiplier had fallen below the lowest level in the previous cycle. Bitcoin’s drop below $20,000 on June 18 marked the biggest loss ever made by investors in a single day at $4.23 billion. Given the above factors and a few other events, Glassnode believes that Bitcoin capitulation may have begun.
Bitcoin whales seem to be starting to buy, suggesting a bottom may be near and on June 25, Game of Trades analysis source highlighted that demand from whales holding 1,000 to 10,000 Bitcoins saw a sharp rise in demand.
Daily cryptocurrency market performance. Source: Coin360
Another sign that traders are buying comes from Glassnode comments that the 30-day average change in supply held on exchanges fell by 153,849 Bitcoin on June 26, the largest ever in history.
Can the bulls continue their buying on dips and form a higher bottom? Let’s study the charts of the top 10 cryptocurrencies to find out.
delivered every day
By subscribing, you agree to
BTC / USDT
Bitcoin is down from $22,000 on June 26, indicating that sentiment remains negative and that traders are selling on slight gains. The bears will attempt to pull the price to the psychological level of $20,000.
BTC/USDT daily chart. Source: TradingView
If the price rebounds below $20,000, this will indicate that the bulls are building on the dips. The pair could keep the range between $20,000 and $22,000 for a few days.
The first sign of strength will be a breakout and a close above the 20-day exponential moving average (EMA) ($22,890). That could open the door for a potential rally to the 50% Fib retracement level at $24,693.
This level could act as resistance again, but if the bulls overcome the barrier, the BTC/USDT pair could rise to the 50-day simple moving average (SMA) ($27,150). Bulls will have to push the price above this level to signal that the pair may have bottomed.
ETH / USDT
Ether (ETH) reached the 20-day moving average ($1,300) on June 26 but the bulls were unable to push the price above the resistance level. This indicates that the bears are not willing to give up their advantages easily.
ETH/USDT daily chart. Source: TradingView
If the price drops below the current level, the bears will attempt to pull the ETH/USDT pair to $1,050. This is an important level to watch because a break below it could indicate bears in control.
Conversely, if the price breaks above the current level or rises from $1050, the bulls will try to push the pair above the 20-day moving average. If they manage to do so, the pair could rise to the breaking level of $1,700. A breakout and a close above this resistance may signal the start of a new bullish trend.
BNB / USDT
BNB has held its 20-day EMA ($241) since June 24. This indicates that the bears are defending the level but the bulls have not yet given up as they are expecting a higher move.
BNB/USDT daily chart. Source: TradingView
If buyers push the price above the 20-day moving average, the BNB/USDT pair could rise to the 50-day simple moving average ($277). This level may once again act as a strong hurdle but if it is exceeded, the pair may try to rise towards $350.
Conversely, if the price drops below the current level, the pair may drop to $211. This is an important level to watch as a bounce from it would suggest that the bulls are trying to make a higher bottom. But if the level breaks, the pair may retest the vital $183 support.
XRP / USDT
Ripple (XRP) broke out and closed above the upper resistance at $0.35 on June 24 but the bulls were unable to clear the barrier at the 50-day SMA ($0.38). This indicates that the bears are aggressively defending the level.
XRP/USDT daily chart. Source: TradingView
The simple positive is that the bulls did not allow the price to fall back below the 20-day moving average ($0.35). This indicates buying on dips. If the price bounces off the current level, the bulls will try again to push the price above the 50 day simple moving average.
If they manage to pull it back, it will indicate that the downtrend may weaken. Next, the XRP/USDT pair could rise to $0.45.
Another possibility is that the bears pull the price below $0.35. If that happens, the pair could drop to $0.32 and then to $0.28.