Bitcoin and altcoins are losing their bullish momentum and the ongoing selling at the upper resistance suggests the current consolidation is far from over.

Bitcoin (BTC) continues to trade in a range with local highs and lows coinciding with increased whale activity in the region, according to online analytics resource Whalemap.

Bitcoin’s range has analysts guessing, with some expecting the consolidation to continue for some time while others anticipate further downside.

Glassnode’s June 6th report states that the cumulative realized losses of long-term holders reflect more than 0.006% of the market cap as of May 29th.

Cryptocurrency market daily indicators. Source: Coin360
In addition to the size of the losses, investors may also have to be prepared for a longer phase of low prices. The duration of the current loss for long-term investors is only a month, while previous losses lasted about a year.

Can Sluggish Trading in Bitcoin and Other Major Altcoins Continue? Let’s examine the charts of the top 10 cryptocurrencies to find out.

DELIVERY EVERY MONDAY
subscribe to something
Markets Outlook newsletter
Email-address
Subscribe to
By subscribing you agree to our
Terms of Use and Privacy Policy

Bitcoin/US Dollar
Bitcoin fell below the 20-day exponential moving average (EMA) ($30,565) on June 7, but the positive sign is that the bulls have been aggressively buying the pullback towards the ascending triangle pattern trendline. This led to a strong retracement as seen in the long tail of the daily candle. The ascending triangle pattern remains unchanged, favoring buyers.

BTC/USDT daily chart. Source: Trade View
However, the slight downside is that the bulls failed to develop momentum on June 8th. This provided an opportunity for the bears to sink the price back below the 20-day EMA. This suggests that the bears will continue selling in the range between the 20-day EMA and $32,659.

If the bears sink the price below the trendline, BTC/USDT could drop to $28,630 where buying could occur. In that case, the pair could stay in the $32,659-$28,630 range for a few more days.

The next directional move is likely to start on a break above $32,659 or below $28,630. Until then, the volatile movement is likely to remain within a limited range.

ETH/USDT
Ether (ETH) deviated from the 20-day EMA ($1,908) on June 6th, suggesting that the bears are not ready to give way to the bulls. The sellers then attempted to sink the price below the critical $1,700 support on June 7, but the long tail of the candle shows aggressive buying by the bulls near the support.

Daily ETH/USDT chart. Source: Trade View
The price is currently floating between the 20-day descending EMA and $1,700. This is likely to lead to a widening of the range, which could pave the way for the next directional move.

If buyers push the price above the 20-day EMA, ETH/USDT could rally to $2,159. At this level, the bears can build strong defenses again. If the price deviates from this, the pair could spend some time in the $2,159 to $1,700 range.

A break above $2,159 would be the first sign that the pair may have bottomed, while a break below $1,700 could signal a resumption of the downtrend.

BNB/USDT
BNB reversed from the resistance line of the symmetrical triangle pattern on June 6 and fell below the support line. This suggests that the bears will continue to sell aggressively at higher levels.

BNB/USDT daily chart. Source: Trade View
On June 7, the bears pulled the price below the immediate support at $286, but the daily candle’s long wick shows strong buying at lower levels. The bulls are attempting to push the price back above the June 8 support line.

If they succeed, the BNB/USDT pair could attempt to scale above the resistance line and trap aggressive bears. Conversely, when the price turns down from the current level, it means that the bears have flipped the support line towards the resistance. This could increase the chances of a drop to $265.

ADA/USDT
The long wick on the June 6-7 Cardano (ADA) candlestick shows bears selling the rally to the 50-day simple moving average (SMA) ($0.65). Although the bears attempted to sink the price below the 20-day EMA ($0.58) on June 7, the bulls held their ground.

Daily ADA/USDT chart. Source: Handelsansi

Source: CoinTelegraph

LEAVE A REPLY