Bitcoin (
BTC
) once again tested the $60,000 support on July 3, indicating that selling pressure from bears is still present. Breaking through the $60,000 to $56,552 support zone may prove difficult as bulls are expected to defend it, keeping Bitcoin in a large range for some time.
The Mt. Gox creditors pose a potential risk to Bitcoin’s sideways movement as they may rush to sell and book profits after receiving their repayments in early July. The amount of Bitcoin these creditors will dump in the market is uncertain, as some may opt for over-the-counter trading desks. This uncertainty could lead to volatility in the coming days.
On the other hand, lower levels are likely to see buying from United States-based spot Bitcoin exchange-traded funds, which have accumulated $14.8 billion in net inflows since their launch in January.
Now let’s analyze the charts of the top 10 cryptocurrencies to identify important support and resistance levels.
Bitcoin Price Analysis:
Bitcoin faced rejection from the 20-day exponential moving average ($63,212) on July 1, indicating negative sentiment and selling near overhead resistance levels. The bears will attempt to push the price below the immediate support at $60,000. If successful, the BTC/USDT pair could drop to the pivotal support at $56,552. Buyers are expected to strongly defend this level, as failure to do so may initiate a downtrend. The next support level is at $50,000. If the price rebounds from $56,552, the bulls will aim to push the pair to the 20-day EMA. Overcoming this barrier will signal that the pair remains within the $56,552 to $73,777 range for a few more days.
Ether Price Analysis:
Ether failed to maintain its position above the 20-day EMA ($3,451) on July 1, suggesting bearish activity at higher levels. The downsloping 20-day EMA and negative RSI indicate that bears have the advantage. Sellers will attempt to push the price down to $3,240, which is expected to act as strong support. If this level breaks, the next stop could be $3,000. On the upside, a break and close above the 50-day SMA will indicate the end of the short-term correction. The ETH/USDT pair could then rally to $3,730 and subsequently to $3,887.
BNB Price Analysis:
BNB faced rejection from the 20-day EMA ($585) on July 1, indicating strong defense from bears. The bears will attempt to keep the price below the immediate support at $551. A successful breach could lead to increased selling, pushing the BNB/USDT pair to $536 and eventually to the solid support at $495. However, if the price rebounds from $551, it will indicate strong demand at lower levels. Bulls will need to push the price above the 50-day SMA ($604) to suggest the end of the correction. The pair may then rise to $635.
Solana Price Analysis:
Buyers pushed Solana above the resistance line on July 2, but the price quickly turned down from the 50-day SMA ($156) on July 3. The 20-day EMA has flattened out, and the RSI is near the midpoint, indicating a balance between supply and demand. Sustaining below the 20-day EMA suggests that the SOL/USDT pair may swing between $116 and the 50-day SMA for a while. On the other hand, breaking above the 50-day SMA will signal the bulls taking control. The pair could rally to $175 and subsequently to $189, while sellers are expected to fiercely protect the zone between $189 and $205.
XRP Price Analysis:
Bulls are attempting to push XRP above the 20-day EMA ($0.48), but bears are resisting. If the price continues to drop, bears will try to push the XRP/USDT pair below $0.46. If successful, the pair could gradually decline toward $0.41. Bulls are expected to aggressively defend the zone between $0.41 and $0.46. On the upside, buyers need to clear the 20-day EMA hurdle to pave the way for a rally to the 50-day SMA ($0.50). Breaking above this resistance will suggest a strong recovery toward $0.57.
Dogecoin Price Analysis:
Dogecoin has failed to break above the 20-day EMA ($0.13) in recent days, showing a lack of demand at higher levels. The tight consolidation near the $0.12 support increases the risk of a breakdown. If the price closes below $0.12, the DOGE/USDT pair could decline to $0.10 and later to the solid support at $0.08. Bulls need to quickly push the price above $0.13 to prevent further downside. The pair could then start a recovery to the 50-day SMA ($0.14), maintaining the range-bound action.
Toncoin Price Analysis:
Toncoin rose above the $7.87 resistance on July 2, indicating continued control by buyers. If the price surpasses $8.29, the TON/USDT pair will resume its uptrend. The pair could attempt a rally towards the psychologically significant level of $10, which may attract strong selling by bears. The first support to watch is the 20-day EMA ($7.55). A break below this level could lead to a slide towards the 50-day SMA ($7.08), which bulls need to defend to maintain an advantage.
Cardano Price Analysis:
Cardano resolved its range-bound action between $0.40 and $0.35 to the upside on July 1, indicating buyer dominance. The up move is currently facing resistance at the 50-day SMA ($0.43). If the bulls hold the price above $0.40, it will signal a change in sentiment from selling on rallies to buying on dips. This will improve the prospects of a rally above the 50-day SMA, with the ADA/USDT pair potentially reaching $0.50. However, a break below $0.40 could trap aggressive bulls and pull the pair to the crucial support at $0.35.
Avalanche Price Analysis:
Avalanche closed above the overhead resistance of $29 on June 30, but the bulls failed to maintain higher levels. The bears pulled the price back below $29 on July 1, suggesting a possible bull trap. The AVAX/USDT pair could drop to the solid support at $23.51, where buyers are expected to step in. This could lead to the pair being stuck in a range for some time. Bulls need to push and maintain the price above $30.12 to make a comeback. If successful, the pair may start a relief rally to the 50-day SMA ($32.55) and later to $37.20.
Shiba Inu Price Analysis:
Shiba Inu has held the $0.000016 support in recent days, but the failure to initiate a strong rebound may intensify bearish selling. The 20-day EMA ($0.000018) is sloping down, and the RSI is near the oversold territory, indicating bearish control. If the $0.000016 support breaks, the SHIB/USDT pair could decline to $0.000014 and eventually to $0.000010. Bulls will need to quickly drive the price above the 20-day EMA and the breakdown level of $0.000020 to make a comeback. If successful, the pair may start a recovery toward $0.000025.
Disclaimer: This article does not provide investment advice or recommendations. Readers should conduct their own research and decision-making process as every investment and trading move involves risk.