Bitcoin (BTC) plummeted to its lowest point since February, reflecting a wave of panic selling among investors. Despite this downturn, Adam Back, founder and CEO of Blockstream, reassured in a post on X that such drawdowns are a “typical pattern in a bull market.” He advised traders to view this as a buying opportunity rather than succumb to panic.
The panic selling was triggered by the German government’s liquidation of its Bitcoin holdings and expectations that Mt. Gox creditors would also sell off their claims. Financial analyst Jacob King noted in a post on X that most former Mt. Gox creditors are likely to offload their holdings.
Daily view of crypto market data. Source: Coin360
According to CoinGlass data, cryptocurrency liquidations over the past 24 hours exceeded $665 million, marking the highest figure in two months. Analysts anticipate continued selling pressure, forecasting Bitcoin to potentially drop to $50,000.
A significant decline in Bitcoin’s price could attract interest from long-term investors. What are the crucial support levels for Bitcoin and other cryptocurrencies? Let’s delve into the charts of the top 10 cryptocurrencies for insights.
**Bitcoin Price Analysis**
Bitcoin’s price range between $56,552 and $73,777 broke down on July 5, but sellers are struggling to maintain lower levels.
BTC/USDT daily chart. Source: TradingView
Bulls are attempting to reclaim the $56,552 level. Oversold levels on the Relative Strength Index (RSI) indicate a potential relief rally in the short term, likely facing selling pressure at the 20-day Exponential Moving Average (EMA) at $62,055.
If the price reverses from the 20-day EMA, bears may target the $56,552 to $53,485 support zone. A breach could lead the BTC/USDT pair towards $50,000. This bearish outlook will be invalidated if bulls sustain prices above the 20-day EMA.
**Ether Price Analysis**
Ether (ETH) has been trading within a broad range of $2,850 to $4,094.
ETH/USDT daily chart. Source: TradingView
Aggressive selling pushed prices to the $2,850 support on July 5. The oversold RSI suggests a potential relief rally, facing resistance at the 20-day EMA ($3,373). Failure to hold above the 20-day EMA could increase the risk of breaking below $2,850, with the next support at $2,200. Bulls need to push prices above the 20-day EMA to maintain the range-bound action.
**BNB Price Analysis**
BNB (BNB) easily broke through $551 and $536 supports on July 4, indicating strong bearish sentiment.
BNB/USDT daily chart. Source: TradingView
Selling continued on July 5, pushing below solid support at $495. However, bulls defended the $460 level. Oversold RSI levels suggest potential for a recovery, encountering resistance at the 20-day EMA ($570). Further downside could test $495 and possibly $400 if breached.
**Solana Price Analysis**
Solana (SOL) failed to break above the 50-day Simple Moving Average (SMA) ($154) on July 3.
SOL/USDT daily chart. Source: TradingView
Prices dropped near strong support at $116 on July 5. Bulls are likely to defend this level, with resistance at the 20-day EMA ($141). A breakdown below could lead to a decline towards $100. Bulls would gain momentum above the 50-day SMA.
**XRP Price Analysis**
XRP nosedived below supports at $0.46 and $0.41 on July 4 and 5 respectively.
XRP/USDT daily chart. Source: TradingView
Bulls defended the $0.41 level, with oversold RSI indicating a potential relief rally. Failure to sustain above moving averages may result in further downside towards $0.30, unless bulls break above resistance levels.
**Dogecoin Price Analysis**
Dogecoin (DOGE) closed below $0.12 on July 3, indicating bearish resolution.
DOGE/USDT daily chart. Source: TradingView
Prices declined to $0.10 on July 5, with support expected at $0.08. Bulls may face resistance at the 20-day EMA ($0.12). Sustained prices above this level are needed to weaken bearish sentiment.
**Toncoin Price Analysis**
Toncoin (TON) faced resistance at $8.29 on July 3, with prices declining below the 20-day EMA ($7.48) on July 4.
TON/USDT daily chart. Source: TradingView
Prices dipped below $6.77 on July 5 but found support near $6. Bears struggle to maintain lower levels, with bulls defending $6. A break above the 50-day SMA ($7.09) could stabilize prices within a range of $8.29 to $6.36.
**Cardano Price Analysis**
Cardano (ADA) encountered resistance at the 50-day SMA ($0.42) on July 3.
ADA/USDT daily chart. Source: TradingView
Selling pressure intensified below the 20-day EMA ($0.39) on July 4, testing support at $0.35. Further decline may target $0.30 and $0.25, with buyers likely to intervene at the latter. Upside resistance is expected at the 20-day EMA and 50-day SMA.
**Avalanche Price Analysis**
Avalanche (AVAX) failed to sustain above $29 on July 3, with prices slipping below $23.51 on July 5.
AVAX/USDT daily chart. Source: TradingView
Buyers defended lower levels, with resistance expected at the 20-day EMA ($27.71) and $29. Further downside may test support at $21.80 and $19 if breached.
**Shiba Inu Price Analysis**
Shiba Inu (SHIB) fell below $0.000016 on July 4, signaling bearish dominance.
SHIB/USDT daily chart. Source: TradingView
Prices slipped below $0.000014 on July 5, with support likely at $0.000010. Oversold RSI suggests potential for a rebound, needing sustained prices above the 20-day EMA ($0.000017).
**Disclaimer:** This article does not provide investment advice or recommendations. All investment and trading activities carry risks, and readers should conduct their own research before making decisions.