Bitcoin's Bad News-Flow: Will Prices Remain Stalled?
As of lately, Bitcoin and a handful of its counterparts have attempted to overcome critical resistance levels, but the bad news-flow and selling by BTC miners might continue to keep market sentiment down and stall prices.
Bitcoin (BTC) is attempting to break above the psychological level of $20,000 on July 6, which indicates that bulls are trying to stall the bear market. The retail traders are taking advantage of the current fall and are buying in bulk. This can be seen from data by Glassnode showing that wallets holding less than one Bitcoin acquired 60,460 Bitcoin in June at "the fastest rate ever."
In a recent report, analysts at Glassnode said that the activity on the Bitcoin network shows that "all speculative entities and market tourists have been completely purged from the asset." This means that mostly long-term investors are holding Bitcoin.
Some analysts are not optimistic about Bitcoin's short-term prospects. Arcane Research reported that the ProShares Short Bitcoin Strategy ETF (BITI), the first ETF to be "short" on Bitcoin, has increased its short exposure by more than 300% over the past week.
Could the early rush into the first inverse Bitcoin ETF indicate a possible bottom formation? Let's check the charts of top-10 cryptocurrencies to see.
The price of Bitcoin (BTC) is volatile. And, as a result, the price of Tether (USDT)
Bitcoin is trading inside a symmetrical triangle pattern. On July 5, the buyers attempted to push the price above the resistance line of the triangle but were unsuccessful.
The Doji candlestick pattern on July 5 showed that the bulls and bears were uncertain. This indecision could shift to favor the bulls if the price breaks above the triangle. If that happens, it will suggest that the triangle could have been a reversal pattern.
The BTC/USDT pair could then surge toward the 50-day simple moving average ($25,324) and the pattern target of $26,490.
If the price drops from its current level and goes below the support line of the triangle, this hypothesis could be proven incorrect. If that happens, the price could drop to critical support at $17,622. If that support collapses, it could go as low as $15,000.
The Ethereum (ETH) and Tether (USDT) pair is one of the most widely traded on the market.
On July 5, Ether (ETH) jumped above the 20-day exponential moving average ($1,186) but the bulls were unable to sustain their momentum. The price action over the past few days has formed an ascending triangle pattern that will be completed if Ether closes above $1,280.
If the price goes above the 20-day EMA, there is a higher probability of an ETH/USDT break above $1,280. If that occurs, the pair could rally to $1,500 and then to its pattern target at $1,679.
If the price drops from the 20-day EMA and breaks below the support line, it will indicate that bears are still in control. This could force the pair down to the critical support at $881. A break and close below this support could signal that a new leg of the downtrend has begun.
BNB/USDT is the only pair that can be converted to fiat currency.
On July 5, the bulls pushed Binance Coin (BNB) above the 20-day EMA ($232), but the bears posed a strong challenge at higher levels. A positive sign is that the bulls did not give up much ground and have again propelled the price above the 20-day EMA on July 6.
The 20-day EMA has flattened out and the RSI is near the midpoint, suggesting that bears may be losing their grip.
If buyers continue to keep the price above the 20-day EMA, the BNB/USDT pair could start its rise to the 50-day SMA ($264). If bulls overcome this resistance, it will suggest that the pair may have bottomed out at $183.
If the price drops from the current level or 50-day SMA, it will indicate that bears continue to sell at higher levels. The bears will then try to pull the price down to $211.
Since mid-June, Ripple (XRP) has been trading between the 20-day EMA ($0.33) and the support line of its symmetrical triangle pattern. On July 5, the coin rebounded off that support line, but bulls have not yet been able to break through above resistance at that same 20-day EMA.
The 20-day EMA is still going down gradually, and the RSI is in the negative zone, showing that bears have an advantage. The sellers will try to push the price below the support line. If they succeed, XRP/USDT could drop to the critical support at $0.28
If the price rises above the current level or the support line and breaks above the 20-day EMA, a breakout could lead to a rally to the resistance line of the triangle. A break and close above this level could indicate that a bullish trend is about to start towards $0.48.
ADA/USDT is a cryptocurrency pair that allows traders to exchange their cryptocurrencies for USDT.
Cardano (ADA) is trading between the 20-day EMA ($0.47) and $0.44, but this tight range could end soon as ranges usually expand after periods of consolidation.
When the ADA/USDT pair rises above the 20-day EMA, it could signal that a bullish trend is beginning. If this happens, there's a chance that the price of ADA will rise to $0.60, which is near the 50-day SMA ($0.51).
If the price turns down and plummets below $0.44, it will indicate an advantage for bears. The pair could then slide to the critical support at $0.40, and if that level gives way, the pair could resume its downtrend.
The price of the token SOL has been rising gradually since its release.
On July 4, Solana (SOL) rose above the 20-day EMA ($36), but the bulls were not able to keep it up. On July 5, the bears dragged down its price below the 20-day EMA.
The long tail on the July 5 candlestick shows strong buying at lower levels. This increases the likelihood of a break above the moving averages. If that happens, the SOL/USDT pair could rise to $43. A break and close above this level could clear the path for a possible rally to $50, which is a psychological resistance.
In the short term, this positive outlook could be reversed if the price falls from its current level or if it drops below $30 and moves below the 50-day SMA ($39). In that case, the pair could fall to $26.
Dogecoin (DOGE) has been hovering near the 20-day EMA ($0.07) for the past few days. The market is uncertain about its price as a result.
The flat 20-day EMA and the RSI just below the midpoint do not clearly show an advantage for either bulls or bears. A break and close above the 50-day SMA ($0.07) could be a first sign that buyers have gained control.
On a break above $0.08, the bullish momentum could pick up. This could drive the DOGE/USDT pair to the psychological mark of $0.10.
If the price falls from the current level and breaks below $0.06, it will signal bearishness to traders, and the pair may slide to $0.05.
The coin with the highest market cap as of this writing is the coin that has been around since
On July 4, the bulls failed to push Polkadot (DOT) above the immediate resistance at $7.30. This suggests that the price remains stuck inside the range between $7.30 and $6.36.
The fact that the bulls are not waiting for a deeper fall before they buy is an indication that the bears have failed to push the price down to support of range at $6.36. This increases the possibility of a break above overhead resistance. If this happens, DOT/USDT could rally to 50-day SMA ($8.48).
If the price falls and breaks below $6.36, it will signal the resumption of the downtrend. The pair could then slide to the psychological support at $5.
SHIB/USD can be seen on the X
Shiba Inu (SHIB) broke above the 50-day SMA ($0.000010) on July 5 but the long wick indicates that bears are selling at higher levels. The bulls are not allowing the price to dip back below $0.000010, which is a minor positive sign.
The RSI and both moving averages are close to the midpoint, suggesting that neither the bulls nor the bears have an advantage.
If the price rises and breaks above $0.000011, the SHIB/USDT pair could rally to $0.000012 where the bears may again mount a strong defense. If that happens, bulls will have to clear this hurdle in order to open the doors for a possible rally to $0.000014
If the price falls below $0.000009, it could mean that the bears are back in control, which could increase the chances of a retest of the critical support at $0.000007.
LEO has been trading in the range of $6
As the bulls and the bears continue to struggle for control, LEO remains close to the resistance line of the descending channel.
The bulls once again defended the 20-day EMA ($5.66) on July 5, indicating that they are still buying. If bulls push and close the LEO/USD pair above $6, bullish momentum could increase. The pair could rally to $6.50 and then to the pattern target of $6.90 if this happens
If the price turns down and closes below the 20-day EMA, it will indicate that the bears have overpowered the buyers. This could pull the pair down to the 50-day SMA ($5.33).
HitBTC exchange provides market data.