Crypto Rakesh Upadhyay says Bitcoin (BTC) and altcoins are on the verge of falling below critical support levels. Bitcoin is now trading near lows again. So is this a threat of crisis at the capitulation level? To answer this question, Rakesh Upadhyay analyzes leading cryptocurrencies, including SHIB. We present the analyst’s predictions to our readers in his own words.
Crypto market overview
US inflation rose 8.6% from a year ago to its highest level since 1981. Stock markets fell after that. Now investors are pricing in a key interest rate of 3% by year end.
Bitcoin (BTC) maintains its tight correlation with the S&P 500. It therefore fell below $30,000 on June 10. Analysts are still unable to reach consensus on short-term price action. But Fundstrat co-founder Tom Lee says in an interview with CNBC that Bitcoin has already bottomed out. That said, Lee seems to have downplayed his expectations, saying that Bitcoin “could hold steady or rise throughout the year.”
Daily cryptocurrency market performance / Source: Coin360 Meanwhile, among the constant stream of negative news, there is also positive news. As reported in Kriptokoin.com news, Bloomberg has expanded the scope of crypto money data in Bloomberg Terminal. So this was a beacon of hope for the market. Bloomberg crypto product manager Alex Wenham said that institutional interest in digital assets continues to grow.
BTC, ETH, BNB, ADA and XRP analysis
Bitcoin (BTC)
Bulls on June 9 It tried to push the price above the 20-day exponential moving average (EMA) ($30,365). But the bears did not give up. On June 10, the sale continued. Later, the bears pulled the price below the trendline of the ascending triangle.
Now the 20-day EMA has started to drop gradually. Also, the relative strength index (RSI) is in negative territory, giving sellers an advantage.
If the price stays below the trendline, it will invalidate the bullish setup. In this case, BTC could drop to $28,630. This also acts as a strong support. However, if this level is broken, the decline extends to $26,700. Alternatively, if the price rallies above $28,630 and rises above the 20-day EMA, the upward move could reach $32,659.
Ethereum (ETH)
Strong selling on June 10 dragged Ether (ETH) below critical support at $1,700. If the price breaks below this support, ETH will resume its bearish trend.
ETH could drop to $1,500 first. Then if this level also leads, the next stop would be vital support at $1,300. In this case, the bulls need to defend this level with all their might.
Contrary to this assumption, if the bears fail to sustain the price below $1,700, they will suggest accumulation at lower levels. The first sign of strength will be a break and close above the 20-day EMA. This opens the doors for a possible rally to $2,159. The falling moving averages favor the sellers. That’s why the indicators are giving a mixed signal. However, the positive divergence in the RSI indicates that a relief rally may be just around the corner.
Binance Coin (BNB)
BNB has been trading below the support line of the symmetrical triangle for the past three days. But the bears failed to build on the collapse. This indicates that sales are drying up at lower levels.
On the other hand, buyers will try to push the price back into the triangle. If that happens, aggressive bears that are short on the break below the support line are likely to fall into the trap. This results in a short close that could push the price above the resistance line of the triangle. Such a move suggests that the bears may be losing control.
Contrary to this assumption, if the price continues lower than the current level and dips below $273, it will increase the probability of a break below the critical support of $260. BNB is likely to start a decline towards vital support at $211 later
Cardano (ADA)
Bulls overtake Cardano (ADA) on June 8 and 9 It pushed above the 50-day simple moving average (SMA) ($0.64). However, it was unable to sustain higher levels. This encouraged short-term traders to book profits.
Now the bears are trying to keep the price below the 20-day EMA ($0.58). If they do, ADA is likely to drop to the next support at $0.53. If this level also paves the way, the decline can be extended to $0.44.
Alternatively, if the price retraces from the current level, it indicates that sentiment has turned positive and the bulls are buying on the dips. The bulls will then make an attempt to break through the general hurdle at the 50-day SMA. If successful, ADA is likely to rally to the $0.74 break level, which again acts as a resistance.
Ripple (XRP)
Ripple (XRP) has been trading close to the downtrend line for the past two days. Failing to push the price above the overhead resistance may have pulled the profit booking of short-term traders.
XRP declined to the strong $0.38 support where buyers could try to stop the decline. If the price bounces back from the support and rises above the downtrend line, XRP is likely to rise to $0.46.
Conversely, if the bears sink and hold the price below $0.38, it will complete a bearish descending triangle pattern. This intensifies the sale and pushes the price down to $0.33. A break below this support signals a resumption of the downtrend.
SOL, DOGE, DOT, AVAX and SHIB analysis
Solana (SOL)
Solana, last few days 20 It is trading between the daily EMA ($44) and $37. Buyers tried to push the price above the 20-day EMA on June 9. But the bears held their ground. The positive divergence in the RSI
points to a minor advantage for the buyers, while the descending moving averages suggest the bears have the upper hand. This uncertainty is unlikely to continue for long. So if the bears sink the price below $35, the SOL is likely to resume the downtrend. The next stop on the downside for the left is $30.
Contrary to this assumption, if the bulls push the price above the 20-day EMA, the SOL is likely to rise to $50 and then to the overhead resistance at $60
Dogecoin (DOGE)
Bulls struggled to keep Dogecoin (DOGE) above $0.08 on June 8 and 9. This attracted more selling and support collapsed on June 10.
The bears will try to improve their advantage and bring the price down to the vital support of $0.07. A break and close below this level marks the start of the next leg of the downtrend.
If the price rises and rises above the 20-day EMA ($0.08), this negative view will be invalidated in the short term. This way, it becomes possible for buys to come from aggressive bulls that could push DOGE to $0.10.
Polkadot (DOT)
Looking at Polkadot, the bulls tried to push DOT back into the symmetrical triangle on June 9th. However, the bears defended the level aggressively. This shows that the bears have turned the support line into resistance.
The bears will attempt to push the price below the immediate support of $8.56. If successful, DOT is likely to drop to the critical level at $7.30. The bears will have to push the price below this support to signal the resumption of the downtrend.
This bearish view will be invalidated if the price recovers from $8.56 and rises above the resistance line. In this case, the DOT is likely to attract buyers who will try to push the price to $11 and then $12.50 later.
Avalanche (AVAX)
AVAX has formed a Doji candlestick pattern over the past two days, showing indecision between bulls and bears. This uncertainty resolved to the downside on June 10 and the bears are trying to push the price towards the strong support at $21.
Price is stuck between the 20-day EMA ($27) and $21. This narrow range trading is likely to be resolved with a range expansion in the next few days. The positive divergence in the RSI points to a minor advantage for the buyers. However, the descending moving averages suggest that the bears have the upper hand.
If the range extends downwards and the price drops below $21, it will suggest a resumption of the downtrend. AVAX is likely to drop to $18 later. Alternatively, if the price breaks above the 20-day EMA, it opens the way for a possible rally to $33 and then to $37.
Shiba Inu (SHIB)
Now SHIB is trading close to strong support at $0.000010 since June 7. Although the bulls defended the support, they failed to achieve a strong rebound.
This increases the probability for SHIB to break below the strong support of $0.000010. If this happens, SHIB will complete a bearish descending triangle pattern. In this case, SHIB is likely to drop to 0.000009, the intraday low of 12 May. If this support also breaks, the next stop is $0.000006.
To invalidate this bearish view, buyers will need to push the price above the downtrend line. In such a case, it opens the way for a possible rally to $0.000014 for SHIB.
