US stock markets gave up some of the gains they made last week, pushing Bitcoin towards psychological support at $20,000. This indicates that investors are wary of buying risky assets at higher levels.
Meanwhile, while speaking to podcast hosts Bankless on June 23, Mark Cuban said that the bearish cryptocurrency market may end after the price becomes so cheap that investors go and start buying or a useful app is launched that attracts users.
Daily cryptocurrency market performance. Source: Coin360
Many analysts expect Bitcoin to continue falling and eventually reach between $10,000 and $12,000. However, John Bollinger, creator of the popular Bollinger Bands trading indicator, said that the monthly charts indicate that the price of Bitcoin has reached a “logical place to put the bottom.”
Can the Bears Maintain Selling Pressure and Push Cryptocurrency Prices Lower? Let’s study the charts of the top 10 cryptocurrencies to find out.
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BTC / USDT
Bitcoin fell from $22,000 on June 26 and gradually retreated to the immediate support at $1,637. This indicates that the bears are staying in command and each rally is being sold.
BTC/USDT daily chart. Source: TradingView
If the price drops below $19,637, the BTC/USDT pair may be at risk of dropping to the critical support at $17,622. This is an important level to watch because a breakout and a close below it could start the next phase of the downtrend. The pair could then drop to $15,000.
On the other hand, if the price bounces back from $19,637, this will indicate demand at lower levels. Buyers will then attempt to push the price above the 20-day exponential moving average (EMA) ($22,393). If they succeed, the pair could rise to the 50-day simple moving average (SMA) ($26,735).
ETH / USDT
Ether (ETH) dropped from the 20-day moving average ($1,268) on June 26, indicating that sentiment remains negative and traders are selling on rallies.
ETH/USDT daily chart. Source: TradingView
Moving averages with a bearish slope and the RSI in negative territory indicate that the bears are under control. Sellers will attempt to pull the price below the immediate support at $1050. If they succeed, ETH/USDT could drop to the June 18th low at $881.
A break below this support may signal a resumption of the downtrend. The next support on the downside is at $681.
Contrary to this assumption, if the price bounces back from $1050, this will indicate demand at lower levels. Buyers will then make another attempt to push the price above the 20-day moving average and start the journey towards $1,500 and later $1,700.
BNB / USDT
Buyers failed to push BNB coin and keep it above the 20-day moving average ($238) between June 24 and 28. This booked profits, pushing the price to the strong $211 support.
BNB/USDT daily chart. Source: TradingView
The 20-day moving average has started falling again and the RSI has dropped into negative territory. This indicates that bears have the upper hand. If the price drops below $211, the BNB/USDT pair may fall to the critical support level at $183. If this support collapses, the pair may resume its downtrend and drop towards $150.
Conversely, if the price bounces back from $211, it will indicate that the bulls are trying to form a higher bottom. A strong bounce could increase the odds of a break above $250. Next, the pair may rise to the 50-day simple moving average ($273).
XRP / USDT
Ripple (XRP) fell below the breakout level at $0.35 on June 28, indicating that the bears continue to sell aggressively at higher levels.
XRP/USDT daily chart. Source: TradingView
The 20-day moving average ($0.35) is stable but the RSI has dropped below 40, which indicates that the bears have a slight edge. The sellers will attempt to pull the price to the vital support level at $0.28. This is an important level to watch because if it gives way, the XRP/USDT pair could start the next phase of its downtrend.