Bitcoin price is struggling to hold support at $20,000. The outcome of this battle between the bulls and bears will determine the next directional move. Can major altcoins including Bitcoin and DOGE maintain their support levels? Crypto analyst Rakesh Upadhyay analyzes the 10 biggest cryptocurrencies to find out. We also prepared Rakesh Upadhyay’s analysis for our readers.
Overview of the crypto market
The sharp decline in the crypto market brought the total market cap below $900 billion. According to CoinGoLive, 72 out of the top 100 coins have dropped more than 90% from their all-time highs (ATH). By comparison, the top 10 cryptocurrencies outperformed the fall, dropping by an average of 79% from ATH levels.
As you follow on Kriptokoin.com , Bitcoin has dropped more than 70% from the ATH level. However, the bulls are struggling to stop the decline. Jurrien Timmer, Fidelity’s global director of macros, uses the price-to-network ratio metric, which is similar to the price-to-earnings ratio used in the stock market. Accordingly, Timmer emphasizes that Bitcoin may be ‘cheaper than it seems’.
Daily cryptocurrency market performance / Source: Coin360Billionaire investor Mark Cuban, on the other hand, draws attention to the cleansing effect of bear markets in an interview. In this context, Cuban says, projects that do not have viable job prospects will disappear. In other words, Cuban predicts a natural selection in crypto.
However, he notes that innovation in the crypto sector is likely to continue during the market downturn. Now it’s time for analysis.
BTC, ETH, BNB, ADA and XRP analysis
Bitcoin (BTC)
The bulls are trying to keep Bitcoin above the $20,000 psychological support. However, they are facing a strong resistance at $23,362. This shows that the bears did not give up and continued to sell in the rallies.
The longer the time spent near $20,000, the higher the probability of a break below that. If the bears sink the price below $20,000, BTC is likely to witness panic selling. This could push the price to $17,500 and then to $16,000.
The only glimmer of hope for buyers is the relative strength index (RSI) falling to oversold levels. This suggests that a relief rally is possible in the short term. If the bulls push the price above $23,362, BTC is likely to rise to the 20-day exponential moving average (EMA) ($26,574).
Ethereum (ETH)
Ethereum is in a solid bearish grip. The bulls bought the low to $1,014 on June 15, as seen from the long tail on the day’s candlestick. However, the recovery was short-lived as the bears pulled the price back below $1,100 on June 16.
Selling pressure is likely to accelerate if the bears sink the price below $1,000. In this case, ETH is likely to drop to $900. The downward sloping moving averages are showing an advantage for the bears. However, the oversold level on the RSI signals that a relief rally may be just around the corner.
The bulls will need to push and sustain the price above $1,268 to start a sustained recovery. Above this level, ETH is likely to rally to the 20-day EMA ($1,547), where the bears could form strong resistance again.
Binance Coin (BNB)
BNB has been consolidating near the critical support of $211 since June 13. The bulls started to recover on June 15. However, this one gushed on June 16 at $237.
If the price breaks below the $211 to $198 support zone, BNB is likely to start the next leg of the downtrend. BNB could decline to $186 later and then pull towards the strong support at $150.
On the other hand, if the price bounces back from the $211 support, buyers will try to push BNB above $237. If successful, BNB is likely to rise to the 20-day EMA ($265). This is an important level to be aware of. Because a break and close above it suggests that BNB has bottomed out.
Cardano (ADA)
Cardano bounced from $0.44 on June 14. The bulls pushed the price to the 20-day EMA ($0.54) on June 15. The bears aggressively defended this level. Then the price fell on June 16.
The price is stuck between the 20-day EMA and $0.44. However, this narrow gap trade is unlikely to continue for long. If buyers push the price above the 20-day EMA, ADA is likely to move up to the 50-day simple moving average (SMA) ($0.59). A break above this level could open the doors for a potential rally to the overhead zone between $0.69 and $0.74.
Alternatively, if the price drops and dips below $0.44, it indicates that the bears are back in the game. On the other hand, a break and close below $0.40 is possible to start the next leg of the downside move.
Ripple (XRP)
Ripple bounced off $0.29 on June 14. Then it reached $0.35 on June 5 and it turned out to be a stiff resistance. Meanwhile, buyers are still trying to push the price above $0.35.
If they do, XRP is likely to rise to the breakout level of $0.38. This is an important level to focus on. Because a break and close above this could open the way for a possible rally to the 50-day SMA ($0.44). Also, the positive divergence in the RSI indicates that the bears may be losing control.
Contrary to this assumption, if the price drops from the current level and dips below $0.29, it will suggest a resumption of the downtrend. The next support on the downside is $0.24.
SOL, DOGE, DOT, LEO and AVAX analysis
Left (LEFT)
Solana attempted a recovery on June 15. However, it hit a barrier at the breakdown level of $35. The price dropped on June 16. However, the bulls are trying to protect the level at $30.
Buyers will make another attempt to push the price above the general area between $35 and the 20-day EMA ($37). If they are successful, it is possible for the SOL to rise to the 50-day SMA ($52).
Conversely, if the price drops from the overhead zone, it will indicate that the bears continue to sell at the resistance levels. The bears will then attempt to push the SOL below $26 and continue the downtrend. The next support on the downside is $22 followed by $20.
Dogecoin (DOGE)
DOGE consolidates in downtrend. Buyers defended the psychological level at $0.05 and attempted a relief rally on June 15. However, they were unable to sustain higher levels. This indicates that DOGE bears continue to sell in rallies
Buyers are trying to stop the drop near $0.06 on June 17. If they are successful, DOGE may continue to recover. A break above the June 15 intraday high is likely to clear the way for a possible rally to the 20-day EMA ($0.07). If the bulls break this hurdle, the DOGE could rise to the 50-day SMA ($0.09).
Contrary to this assumption, if the price drops and breaks below the critical support at $0.05, it will suggest the start of the next leg of the downtrend. DOGE could drop to $0.04 later.
Polkadot (DOT)
Polkadot rally sharply on June 15 and reached the 20-day EMA ($8.62). However, the bulls failed to overcome this resistance. This indicates that the bears are active at higher levels.
DOT fell sharply on June 16. It retreated near the critical support zone between $7.30 and $6.36. Buyers are likely to defend this zone aggressively. Because failing to do so could continue the downtrend towards $4.23.
If the price breaks out of the support zone, it will suggest accumulation at lower levels. Buyers will then make an attempt to push the price above the 20-day EMA. If they manage to do so, it is possible for the DOT to rise to the 50-day SMA ($10.54).
UNUS SED LEO (LEO)
LEO continues to trade within the descending channel. The bears pulled the price below the moving averages on June 15. However, it could not extend the fall to the support line.
Buyers are trying to pull the price back towards the moving averages. If the price breaks down from this resistance, it is possible that the channel will increase the chances of a retest of the support line. A break and close below this level could intensify the sale.
Conversely, LEO is likely to rise to the resistance line if the buyers move the price above the moving averages. This is an important level for bears to defend. Because a break and close above this would suggest the start of a fresh upward move to $6.25.
Avalanche (AVAX)
Avalanche is consolidating in a downtrend. Also, the bulls are trying to protect the support at $14.50. Buyers tried to push the price to the $21.35 breakout level on June 16. However, higher levels continue to attract sales.
If the price declines and dips below $14.50, it could mark the start of the next leg of the downtrend. AVAX is likely to drop to $13 later.
Conversely, if the bulls successfully defend the $14.50 support, it is possible for AVAX to make another attempt to rise to $21.35. This is an important level to watch out for. Because the bears will try to turn it into resistance and pull AVAX to $14.50. Buyers will have to push and sustain the price above the 20-day EMA ($21.94) to signal a possible trend change.
