Bitcoin (BTC) has been trading within a wide range of $56,552 to $73,777 for an extended period, indicating a strategy of buying near the support levels and selling close to the resistance barriers. When an asset remains in consolidation mode for a significant duration, it typically requires a strong catalyst to break out of the established range.
Attempts by the bears to drive Bitcoin’s price below the support were seen following news of the German Government selling off their Bitcoin holdings and anticipated selling pressure associated with the Mt. Gox payout. Despite these efforts, lower price levels attracted buyers who defended the support zone and are now initiating a potential recovery.
Investors seem to have capitalized on the recent market weakness to accumulate more assets. Data from SoSo Value reveals a net inflow of $31 million into spot Bitcoin exchange-traded funds, following significant outflows totaling almost $1.3 billion over the past two weeks.
The key question now is whether Bitcoin bulls can prevent a breakdown below $56,552, and if so, whether this could catalyze a recovery in other cryptocurrencies, known as altcoins. Let’s delve into the charts of the top 10 cryptocurrencies to gain further insights into the market sentiment.
Bitcoin Price Analysis
Bitcoin bulls are facing a crucial challenge as they strive to defend the pivotal support level at $56,552 against the bearish pressure.
The recent drop below $60,000 on June 24 was met with buying interest at lower levels, as evidenced by the long tail on the candlestick. It is expected that bulls will actively defend the $56,552 to $60,000 range in the coming days, as a failure to do so may result in a potential drop to $50,000 for the BTC/USDT pair.
Monitoring the 20-day exponential moving average at $64,883 is essential, as surpassing this level and maintaining it could indicate a weakening bearish grip. Subsequently, Bitcoin may aim for a rally towards $70,000.
Ether Price Analysis
Ether (ETH) has been gradually declining towards the critical support level of $3,000, following a bounce from $3,240 on June 24. However, the struggle to push the price beyond the 20-day EMA at $3,506 is apparent.
A downturn from the current price level could prompt the bears to attempt a breach below $3,200, potentially leading the ETH/USDT pair towards the psychological barrier of $3,000. Strong defense is anticipated within the $3,000 to $2,850 range by buyers.
On the flip side, it will be crucial for the bulls to propel and maintain the price above the 20-day EMA to signal a decrease in selling pressure. This scenario could pave the way for a potential upward move towards $3,730.
BNB Price Analysis
BNB (BNB) witnessed a dip below the $560 support level on June 24, but the bears were unable to sustain the downtrend.
A potential recovery is likely to encounter notable resistance at the 20-day EMA of $597. Should the price retrace from the current level or the 20-day EMA, the bears may attempt to drive the BNB/USDT pair towards $536, a crucial support level. A breach below this point could lead to a further decline to $495.
Conversely, a price surge beyond the moving averages could indicate a weakening bearish trend, potentially propelling the pair towards the overhead resistance at $635.
Solana Price Analysis
Solana (SOL) displayed a notable recovery from $122 on June 24, re-entering a descending channel pattern on June 25.
Potential resistance is expected at the 20-day EMA of $143, which, if sharply rejected, could result in a decline of the SOL/USDT pair towards the pivotal support level at $116. Bulls are anticipated to fiercely defend this level, as a