The recent relief rally for cryptos like Bitcoin and altcoins might just be a brief respite as charts suggest that we could see prices head back down.
Bitcoin had been trading in a negative trend since it hit a value of $21,164 on June 28th. It is currently declining towards support near that price point and indicator signals continue to suggest traders will sell off whenever there are minor rallies. The bears are trying to pull the price of Bitcoin down below $20,000.
If the price rebounds off $20,000 it will suggest that bulls are accumulating on dips. That could keep Bitcoin in a tight range between its current levels of support at around $20,000 and resistance up near $22,000.
The first sign of strength will be a break and close above the 20-day exponential moving average (EMA) ($20,824). That could open up the potential for an upward trend to retest 50% Fibonacci territory at around $24,000.
The 50% Fibonacci level could act as a resistance, but if bulls overcome this barrier it is possible that they will rally up to the $27,000 SMA (simple moving average) which would indicate strong buying interest for bitcoin.
The bulls will have to push the price above this level in order for them to confirm that the pair has bottomed out.
Eth has been on a rollercoaster this week. The price reached its 20-day EMA ($1,166) on June 28 but couldn’t quite make it past these supports and closed right back down below them later in the session – suggesting that the bears are not about to give up on this anytime soon.
The bears are likely to push the price of Ethereum down towards $1,050 if it continues a downward trend. It’s important to watch out for signs of a breakdown below this level because it could mean that bears are in control.
If the price reaches $1,105 or turns up from its current level then it is possible the bulls will try to push it above the 20-day EMA. If they can do that, the pair could rally to a breakdown level of $1.7000! A break and close above this resistance would indicate an uptrend is underway.
Dogecoin broke above the 20-day EMA ($0.07) on June 28, which has been a wee bit nerve-racking for DOGE investors. The buyers extended their gains on June 28 and pushed the price to a 50-day SMA ($0.07), but it’s not over yet. Bears are fighting hard in defense of this level with impressive vigor.
The buyers are trying to push the price above 50-day SMA again. If they manage it, then DOGE/USDT could rally all of the ways up until $0.09 or more potentially reaching psychological levels at $0.10. This last barrier may be a challenge for the bulls but if they overcome it, there’s no telling how far the momentum will take them.
Alternatively, if the price continues to fall below 50-day SMA it will suggest that bears are taking control of market sentiment. Once the bears feel that there is enough support they will try to pull the price back below the 20-day EMA.
Shiba Inu (SHIB) broke above the 50-day SMA ($0.000011) on June 28 but could not continue its recovery. The bears are trying to pull the price back below the 50-day SMA, near $0.00001 on June 28th.
The 20-day EMA ($0.000010) is turning up gradually and the RSI indicates that buyers have a slight edge. The price may continue to move up if it bounces off the 20-day EMA or resumes its upward trajectory.
The price of the SHIB/USDT could rally to $0.000014 if the current price rises above $0.000010. In the short term, the positive view could be negated if prices turn down and plummet below their 20-day EMA.