Will other cryptocurrencies follow if Bitcoin bulls regain control?
The bears missed an opportunity to keep Bitcoin (BTC) below the $25,000 level this week which may have caused buying from the bulls who are attempting to start a recovery in Bitcoin and select altcoins.
Furthermore, BlackRock has applied to launch a Bitcoin spot price exchange-traded fund and the strength in the United States equities markets may have helped to improve crypto sentiment. Bitcoin is expected to finish the week with a minor gain of 2%, and institutional buying in the Grayscale Bitcoin Trust reduced its discount to Bitcoin spot from 44% on June 13 to 36.6%, according to CoinGlass data.
Although Bitcoin and select altcoins are attempting to start a relief rally, the overall trend remains bearish. Therefore, short-term traders who buy for a pullback should consider booking profits or tightening their stops when the price struggles to break above stiff resistance levels.
The strategy may be different for long-term investors who may use the dips to strong support levels to acquire the cryptocurrencies of their choice. It is advisable to adopt a staggered buying approach as a runaway rally is unlikely.
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Let’s look at the top-5 cryptocurrencies that are trying to start a recovery in the short term.
Bitcoin price analysis
Bitcoin sharply turned up on June 15, trapping the aggressive bears who may have gone short on a break below $25,250. That may have caused a short squeeze in the near term, which propelled the price to the 20-day exponential moving average ($26,403).
The bears are trying to limit the relief rally at the 20-day EMA but a positive sign is that the bulls have not given up much ground. This suggests that the buyers are holding on to their positions in anticipation of a move higher.
However, the bears are likely to have other plans as they will try to offer stiff resistance in the zone between the 20-day EMA and the resistance line of the descending channel. If the price turns down from this zone, the BTC/USDT pair may remain inside the channel for a while longer.
But if bulls drive the price above the channel, the pair will signal a potential trend change in the near term. The pair could then surge toward $31,000.
The 20-EMA on the 4-hour chart has turned up and the relative strength index (RSI) is in the positive area, indicating that bulls have the upper hand in the near term. There is a minor resistance at $26,850 but if that is crossed, the pair may reach the resistance line of the channel near $27,600. This level may prove to be a difficult hurdle for the bulls to cross but if they manage to do that, the pair could rally to $28,500.
This positive view will be invalidated in the short term if the price turns down and breaks below the 20-EMA. That could pull the price down to the 50-simple moving average and eventually to the strong support zone between $25,250 and $24,800. A break below this zone may intensify selling.
BNB price analysis
BNB (BNB) has been in the thick of things for the past few days but a positive sign is that the bulls did not allow the price to break the $220 support. This indicates demands at lower levels.
The first resistance on the upside is the 38.2% Fibonacci retracement level of $252.50. If this level is scaled, the BNB/USDT pair may reach the 20-day EMA ($261). The bears will try to halt the recovery at this level. If they succeed, the pair may turn down toward $220.
The article discusses the current state of the cryptocurrency market, specifically focusing on three different cryptocurrencies: Litecoin, Bitcoin, and OKB. For Bitcoin, the article notes that if bulls continue to push the price above the 20-day EMA, the price could reach $272.50, though bears will try to defend this level. If the bulls are successful in surpassing this level, the price could rise to $305. On the other hand, if the price falls below the 20-day EMA, the pair may slip to the uptrend line, and a close below this level indicates that the bulls have given up, causing the pair to retest critical support at $220.
Regarding Litecoin, the article notes that the sellers pulled the price below immediate support at $75, but strong buying at lower levels has pushed the price back above this level. The bulls will try to push the price to the 20-day EMA ($82), and if they clear this hurdle, the pair may rise to the 50-day SMA ($86). However, if the price turns down from the current level or the 20-day EMA and breaks below $70, it will signal the start of a downtrend, with the first stop likely to be $65 and then $60.
For OKB, the article notes that it broke below the symmetrical triangle pattern on June 10, signaling the start of a deeper correction. The price has reached the 20-day EMA ($42.73), and if the price turns down from the current level, it suggests that sentiment remains negative, with traders selling on rallies. This could pose a serious threat to the $38.50 support, and if it gives way, the OKB/USDT pair may skid to $35 and eventually to $30. However, if buyers thrust the price above the 20-day EMA, it suggests that the bears may be losing their grip, and the pair could rise to the support line, which is likely to act as a formidable resistance. Buyers will have to kick the price above $48 to gain the upper hand.
The QNT/USDT pair recently bounced off $38.50 but is currently facing resistance near $42.39. One positive sign for buyers is that the moving averages have recently crossed over in a bullish manner, and the RSI is in positive territory.
If buyers can push the price above $42.39, the pair could gain momentum and potentially reach $46, although this level is expected to be met with strong resistance from the bears.
Alternatively, if the price falls below the 20-EMA, it may indicate a period of range-bound trading between $38.50 and $42.39.
Quant price analysis
On June 16, Quant (QNT) rebounded strongly off the $95 support level, indicating significant buying activity.
However, the bears have not given up and continue to defend the downtrend line. Sellers will attempt to push the price below $95, while buyers will try to keep the QNT/USDT pair above this level.
If the price can rebound from $95 once again, it would increase the likelihood of a rally above the downtrend line and potential recovery to $135.
This positive outlook may change if the price continues to decline and falls below $95. In this scenario, the pair could slip to $87 and subsequently to $80.
The 4-hour chart shows that the pair quickly gave up a significant portion of its recent gains, indicating bearish activity at higher price levels. Bears pulled the price below the 61.8% Fibonacci retracement level of $103.90, which is a negative signal.
Buyers will need to drive the price back above the moving averages quickly if they hope to challenge the downtrend line again. Conversely, if the price remains below the 50-SMA, the likelihood of a drop to $95 increases.