According to Coinglass, Bitcoin fell 56.2% during the second quarter 2022. This is the worst quarter for Bitcoin since the third quarter 2011, when BTC prices fell 67%. The majority of the damage was done by June, when Bitcoin plummeted 37%, the largest monthly drawdown since September 2011.
Crypto investors are not doomed to failure. Nikolaos Panigirtzoglou, a JPMorgan strategist, stated that crypto’s “Net Leverage” metric suggests that it may be in its last days. Positive sign is the willingness of crypto companies to bail out distressed crypto firms with stronger balances.
Everyday cryptocurrency market performance. Source: Coin360
Deutsche Bank analysts also have a positive opinion on Bitcoin. According to a recent report by Deutsche Bank analysts, the S&P 500 could regain lost ground and rally back to January levels. Due to Bitcoin’s close relationship with the S&P 500, this could be a benefit.
Will the downtrend continue or will buyers be attracted to lower levels? Let’s look at the charts for the top 10 cryptocurrencies to see what happens.
Bitcoin fell below $19,637 as the immediate support on June 30, but the candlestick’s long tail indicates that there was strong buying at lower levels. Bulls attempted to capitalize on the momentum of July 1 and push Bitcoin towards $22,000 overhead resistance, but the candlestick’s long tail shows that bears remain active at higher levels.
Daily chart of BTC/USDT Source: TradingView
The probability of a retest at $17.622 is increased if the price remains below $19,637 Bears are in control of the oversold zone, as indicated by the downsloping moving Averages and relative strength index.
Breaking below $17,622 may signal the resumption or continuation of the downtrend. Next support is at $15,000
If the price rises above $201,907 (the 20-day exponential moving mean), this negative view may be invalidated. This could open the door to a rally towards the 50-day simple movement average (SMA), which is currently at $26,361.
The Ether (ETH), fell below $1,050 as the support on June 30, but the bulls bought the dip. Although the buyers attempted to extend the recovery, the candlestick’s long wick shows that bears are buying on minor rallies.
Daily chart of ETH/USDT Source: TradingView
Bears will attempt to lower the price below $1,000 psychological level. If they succeed, selling could pick up and the price of the Ethereum/USDT pair could fall to $881. The pair could resume its downtrend if this level is broken. The $681 level is the next support.
Contrary to what you might think, if the price bounces off the $1,000 level, the bulls will try to push the pair over the 20-day EMA. It will indicate that bears are losing their grip if they manage to pull it off. A break above $1,280 could see bullish momentum pick up.
BNB fell below $211 support on June 30, but strong buying was attracted by the longer tail of the day’s candlestick.
Daily chart BNB/USDT TradingView
Although the buyers attempted to extend the recovery, the candlestick’s long wick shows that bears are aggressively defending the 20 day EMA ($234). Sellers have an advantage because of the RSI in negative territory and the downsloping 20 day EMA.
The BNB/USDT pair may retest $183 as support if the price falls below $211. The downtrend could resume if this support breaks. The next support level is at $150.
If the price rises and breaks above 20-day EMA, this negative view may be invalidated in the short term. This could open the way for a rally towards the 50-day SMA ($271).
On June 30, Ripple (XRP), attempted to recover but the bulls couldn’t push the price higher than the overhead resistance of $0.35. This indicates that bears will not let go of their advantage.
Daily chart of XRP/USDT Source: TradingView
The XRP/USDT currency pair could fall to $0.28, where bulls will likely mount a strong defense. It will indicate that bulls are continuing to buy at lower levels if the price recovers from $0.28. The bulls will attempt to push the price higher than the 50-day SMA ($0.37).
If bears drop below $0.28, then the next leg in the downtrend could start. This could lead to a decline in the pair to $0.23
Cardano (ADA), gained $0.44 on June 30, but bulls couldn’t clear the 20-day EMA ($0.49) July 1. This indicates that the bears are continuing to defend the moving averages vigorously.
Daily chart ADA/USDT Source: TradingView
The RSI in negative zone and the 20-day EMA that are both downsloping indicate that the downside is the path of least resistance. The ADA/USDT pairing could fall to $0.40 if the price falls below $0.44.
This level is expected to be defended by the bulls as a reversal of the downtrend could occur if it cracks. Support is located at $0.33.
If the price rebounded below $0.44 or $0.40 buyers might attempt to break the overhead resistance at moving averages. The pair may be able to start a rally towards $0.70 if they succeed.
Solana (SOL), fell below $33 as the immediate support on June 30, but the candlestick’s long tail shows that there was strong buying at lower levels. Although the buyers attempted to push the price higher than the 20-day EMA ($36), the bears refused to relent.
Daily chart of SOL/USDT Source: TradingView
Sellers will attempt to get the upper hand by lowering the price below $30. If they succeed, the SOL/USDT exchange rate could fall to $27, and then to $25.86. Breaking and closing below this level could signify the resumption or continuation of the downtrend.
Another possibility is the price rebounding below $30. This will signal accumulation at lower levels. The bulls will attempt to overcome the overhead hurdle at moving averages, pushing the price up to $50.
Dogecoin’s (DOGE), is seeing a fierce battle between bulls and bears at the 20-day EMA ($0.07). The RSI is at the midpoint, and the 20-day EMA has flattened. This indicates that sellers have a slight advantage.
Daily chart of DOGE/USDT Source: TradingView
If the price falls below $0.06 it will indicate that bears are back in control. Sellers will attempt to lower the DOGE/USDT price pair below $0.05 in order to resume the downtrend. The next support is at $0.04.
The buyers will attempt to overcome the overhead hurdle at $0.08 ($50-day SMA) if the price goes up from its current level. It will indicate that the bears are losing their grip if they succeed. The pair could rally to $0.10 overhead resistance.
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Polkadot, (DOT), broke below $7.30 support on June 29. The sellers tried to push it back above the June 30 level but failed. This indicates that bears are selling at every minor rally.
Daily chart of DOT/USDT Source: TradingView
The 20-day EMA ($7.74), has begun to decline and the RSI remains in the negative territory. This indicates that bears have taken control. The DOT/USDT pairing could begin the next leg in the downtrend if the price falls below $6.36. Support is located at $5.00.
Contrary to what is being said, if the price bounces off the current level the bulls will attempt to clear the overhead resistance at 20-day EMA. The pair could rally to the 50 day SMA ($8.89) if they succeed.
UNUS SED LEO LEO (LEO), declined on June 30, but the bulls didn’t allow the price slip back into the descending channel. This suggests that buyers are looking to turn the resistance line into support.
Daily chart LEO/USD TradingView
The channel’s breakout indicates a new up-move. Although the buyers drove the price up to $6.50 July 1, the candlestick’s long wick shows that bears are buying rallies. The LEO/USD pair could rise to $6.50 if bulls can maintain the price above $6.00. The rally could reach the $6.90 pattern target if it clears this level.
The bears must pull the price below $5.63, in order to invalidate the bullish view. The pair could drop to the 50 day SMA ($5.27) if that happens.
The Shiba Inu (SHIB), closed below $0.000010 June 28, but the bears may be able to sustain lower levels. Bulls bought the dip, but are having difficulty pushing the price higher than the 50-day SMA ($0.000010)
Daily chart of SHIB/USDT TradingView
Both moving averages are flattened and the RSI is at or near the midpoint. This indicates that there is equilibrium between buyers and sellers. It will indicate a favorable position for bears if the price falls below $0.000009. The SHIB/USDT exchange could fall to $0.000007, which is the critical support.
If bulls push the price higher than the 50-day SMA, then the pair may rise to $0.000012. This resistance level could again be a barrier, but if it is crossed, the rally might reach $0.000014.
Risk is inherent in every investment or trading move. Before making any investment or trading move, you should do your research.
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Eileen Wilson –Technology and Energy
My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.