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Bitcoin Displays Promising Signs: Can Other Cryptocurrencies Follow Suit?
Bitcoin experienced an underwhelming week until the bulls made an unexpected resurgence, breathing life back into Bitcoin and a handful of other cryptocurrencies. As Bitcoin dipped below the $25,000 mark earlier this week, the bears missed their chance to take control. This incident might have triggered bullish buying patterns, attempting to spur a recovery for Bitcoin and a few select altcoins.
Moreover, factors like BlackRock's plans to introduce a Bitcoin spot price ETF and the continued robust performance of U.S. equities markets might have boosted sentiment in the cryptocurrency sector. As per CoinGlass data, Bitcoin is set to end the week with a slight 2% rise, while institutional purchases in the Grayscale Bitcoin Trust have narrowed its discount to the Bitcoin spot from 44% on June 13 to 36.6%.
Even though Bitcoin and a few altcoins are struggling to trigger a rebound, the overall tendency is still bearish. This means that short-term traders betting on a pullback should think about taking profits or adjusting their stop orders when the price finds it hard to break through solid resistance levels.
Conversely, long-term investors could take advantage of the price drops to robust support levels to buy their preferred cryptocurrencies. It's advisable to take a gradual buying approach, as a sudden rally is highly unlikely.
Let's now delve into the top five cryptocurrencies that are trying to trigger a short-term recovery.
Understanding Bitcoin's Current Performance
On June 15, Bitcoin bounced back impressively, potentially catching aggressive bears off-guard who might have shorted after breaking below $25,250. This could have resulted in a short-term short squeeze, propelling the price towards the 20-day exponential moving average ($26,403).
The bears are trying to cap the relief rally at the 20-day EMA, but the fact that the bulls have not given up much ground is promising. This indicates that buyers are retaining their positions in hopes of a higher surge.
Nevertheless, the bears may have different intentions as they will likely put up stiff resistance in the zone between the 20-day EMA and the resistance line of the descending channel. If the price drops from this zone, the BTC/USDT pair could stay within the channel a bit longer.
If the bulls push the price above the channel, however, it could signify a potential trend reversal in the near term. The pair could then potentially surge toward $31,000.
The 20-EMA on the four-hour chart is looking up, and the relative strength index (RSI) is in positive territory, suggesting that the bulls currently have the upper hand. There is minor resistance at $26,850, but if that is overcome, the pair might reach the channel's resistance line near $27,600. Crossing this level could be a challenging task for the bulls, but if they succeed, the pair could rally to $28,500.
This optimistic viewpoint will be short-lived if the price drops and breaks below the 20-EMA. This could drag the price down to the 50-simple moving average and potentially the strong support zone between $25,250 and $24,800. A break below this zone could trigger an intense sell-off.
BNB's Current Performance
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.
On the contrary, if bulls propel the price above the 20-day EMA, the pair could reach the 61.8% Fibonacci retracement level of $272.50. This is a crucial level for the bears to defend because if it gives way, the pair may soar toward $305.
The four-hour chart shows that the moving averages have completed a bullish crossover, and the RSI has risen into the positive zone. This indicates that buyers are attempting a comeback. The bulls will have to overcome the barrier at $252.50 to gain strength. The pair could then rally to $265.
On the downside, the first support is at the 20-EMA. If this level breaks down, the pair could slip to the uptrend line. A break and close below this level will indicate that the bulls have given up. The pair could then retest the critical support at $220.
Litecoin's Current Performance
Litecoin plunged below the symmetrical triangle pattern on June 10, indicating that bears have the upper hand. The sellers pulled the price below the immediate support at $75 on June 14 but could not build upon this move.
The sharp recovery in the past few days has pushed the LTC/USDT pair back above $75. This shows strong buying at lower levels. The bulls will next try to push the price to the 20-day EMA ($82), which is an important level to keep an eye on. If buyers clear this hurdle, the pair may rise to the 50-day SMA ($86).
Contrary to this assumption, if the price turns down from the current level or the 20-day EMA and breaks below $70, it will signal the start of the downtrend. The first stop is likely to be $65 and then $60.
The strong recovery pushed the price above the 20-EMA on the 4-hour chart, suggesting that the selling pressure is reducing. The moving averages are on the verge of completing a bullish crossover and the RSI has jumped into the positive territory, indicating that buyers are attempting a comeback.
There is a minor resistance at $80 but if bulls overcome this obstacle, the pair may accelerate to $85 and thereafter to $90. If bears want to prevent the up-move, they will have to quickly yank the price back below $75.
OKB's Current Performance
OKB (OKB) broke below the symmetrical triangle pattern on June 10, signaling the start of a deeper correction. A minor positive for the bulls is that they successfully defended the support at $30.50, indicating demand at lower levels.
The price has reached the 20-day EMA ($42.73), which is an important level to watch out for. If the price turns down from the current level, it will suggest that the sentiment remains negative and traders are selling on rallies. That could pose a serious threat to the $38.50 support. If this level gives way, the OKB/USDT pair may skid to $35 and eventually to $30.
Contrarily, if buyers thrust the price above the 20-day EMA, it will suggest that the bears may be losing their grip. The pair could then 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 pair bounced off $38.50 with vigor but is facing resistance near $42.39. A minor positive in favor of the buyers is that the moving averages have completed a bullish crossover and the RSI is in the positive territory.
If buyers thrust the price above $42.39, the pair may pick up momentum and soar to $46 where the bears are again expected to mount a strong defense.
Another possibility is that the price turns down and tumbles below the 20-EMA. That may indicate a possible range-bound action between $38.50 and $42.39 for some time.
Quant's Current Performance
Quant rebounded off the $95 level with strength on June 16, indicating aggressive buying at the support.
However, the bears have not yet given up and they are fiercely defending the downtrend line. Sellers will try to sink the price below $95 while the bulls will try to maintain the QNT/USDT pair above it.
If the price turns up from $95 once again, it will enhance the prospects of a rally above the downtrend line. If that happens, the pair may start a strong recovery that could catapult the price to $135.
This positive view could invalidate in the near term if the price continues lower and plummets below $95. The pair may then slip to $87 and subsequently to $80.
The four-hour chart shows that the pair quickly gave back a major portion of its gains, indicating that bears are active at higher levels. They pulled the price below the 61.8% Fibonacci retracement level of $103.90, which is a negative sign.
Buyers will have to quickly drive the price back above the moving averages if they want to have another shot at the downtrend line. Alternatively, if the price sustains below the 50-SMA, the likelihood of a drop to $95 increases.
