To further consolidate their control over the crypto market, the bears want to bring Bitcoin (BTC), below $19,000. Analysts who are closely monitoring Bitcoin’s MVRVZ Score (a measure that measures the price of Bitcoin relative to its “fair value”) expect a deeper fall before it reaches its bottom.
Alex Krueger, a trader, entrepreneur and economist, pointed out that Bitcoin’s June volume reached an all-time record. Krueger believes that Bitcoin will form a bottom in July if it follows the historic pattern of the 2018 bear markets.
Daily view of crypto market data. Source:Coin360
Crypto traders must be aware of the close correlation between Bitcoin and S&P 500. This week’s performance in the US equities markets will be closely monitored. The release of minutes from the U.S. Federal Reserve last meeting and the June Jobs report may have an impact on crypto traders.
Could Bitcoin make a new low, leading the crypto markets to a path of recovery? Let’s look at the charts of top five cryptocurrencies that suggest a possible relief rally in the near term.
Bitcoin’s July 1 candlestick has a long wick that shows bears are still selling on rallies close to the 20-day exponential moving Average ($21,396). Although bears managed to bring the price down below $19,637 they were unable to sustain the momentum.
Daily chart of BTC/USDT Source: TradingView
Bulls are trying to get the price above $19,637. If they succeed, the BTC/USDT exchange rate could rise again towards the 20-day EMA. If the pair breaks and closes above $22,000, it could signal a possible trend shift. The pair could rally to the 50 day simple moving average ($25.938).
Contrarily, if the price drops from its current level, it will indicate that the bears are still in control. The sellers will attempt to lower the price to $18,626. The pair could then slide to the support zone between $17.960 and $17.622.
The bulls must defend this zone as a failure to do so can lead to the next downtrend. This could lead to the pair sliding to $15,000.
BTC/USDT 4-hour chart. TradingView
The 4-hour chart clearly shows that bears are aggressively defending 20-EMA. Both moving averages are falling and the relative strength indicator (RSI), is in the negative zone. This indicates that bears hold the upper hand. Bears could be strengthened if they break below $18,626.
If bulls push the price higher than the 20-EMA, this bearish view may be retracted in the near term. The price could rise to the 50 SMA, where bears may pose a challenge. The price could rise above the resistance to $21,000, and then to $22,000 if it does.
Shiba Inu’s (SHIB), has been trading within a narrow range close to the moving averages, as bulls try to make a lower low at $0.000009. A tight range is usually followed by a widening range.
Daily chart of SHIB/USDT TradingView
The SHIB/USDT currency pair could gain momentum if the price breaks the 50-day SMA ($0.000010). This would allow the pair to rally to $0.000012, and then towards $0.000014. Breaking and closing above this level could indicate a possible change in trend.
Contrary to the assumption, if the price falls below $0.000009 it could trap bulls who may have purchased the break above 50-day SMA. This could open the way for a retest of $0.000007. Breaking below this support could signal the resumption or continuation of the downtrend.
SHIB/USDT 4-hour chart. TradingView
The formation of a symmetrical triangle shape is shown in the 4-hour chart. The price of the pair was stuck between the 20-EMA, and the support line. The pair could fall to $0.000009 if bears continue to sink below the support line. Breaking below this support could indicate that bears have returned to the driver’s seat.
If bulls push the price higher than the 20-EMA, it could lead to a rise to the resistance line. The pair could reach $0.000011 if this level is reached. If it crosses, the pair could then surge to $0.000012.
Polygon (MATIC), which was facing strong overhead resistance at $0.61 on June 26, declined and the bears pulled it below the 20-day EMA ($0.50 on June 28). The bulls didn’t allow the bears build on their advantage and bought down the dip on June 30, which is a minor plus.
Daily chart MATIC/USDT Source: TradingView
Since then, the MATIC/USDT currency pair has traded close to the 20-day EMA. This indicates that bulls are trying to push the price higher than the level. The pair may be able to overcome the $0.61 hurdle if they succeed.
The RSI is showing a positive divergence. This could indicate that bears are losing their grip. A break above $0.61 could open the way for a rally to $0.75.
Contrary to the assumption, if the price falls below $0.41 it will indicate that the recent rally may have been a bearish market rally. The sellers will attempt to bring the price back towards the critical support of $0.31.
MATIC/USDT 4-hour chart. Source: TradingView
Although the buyers drove the price higher than the downtrend line, the 20-EMA and the 20 EMA, they could not break the psychological barrier of $0.50. The bears pulled the price down to $0.45, attracting selling. A retest of $0.41 would be possible if this support breaks.
Contrarily, if the price bounces off its current level, it will indicate that bulls are buying dips. The bulls will attempt to break the $0.50 overhead resistance. The pair could rally to $0.55 if they succeed.
Related: Bitcoin’s inverted correlation with the US dollar reaches 17-month highs — What’s next for BTC
Cosmos (ATOM), after a long downtrend, is trying to find a bottom. Although the buyers drove the price higher than the 20-day EMA (7.84) on July 1, the 50-day SMA (8.81) will likely act as a strong barrier.
Daily chart ATOM/USDT Source: TradingView
The flattish 20 day EMA and the RSI close to the midpoint suggest that selling pressure is decreasing. The bullish momentum could pick up if buyers push the price higher than the 50-day SMA. If that happens, the ATOM/USDT currency pair could rally to $10.84 then to $12.50. An upward trend change could be possible if the price breaks or closes above this level.
If the price falls below $6.89, this bullish signal could be invalidated. The pair could retest critical support at $5.55 if that happens.
ATOM/USDT 4-hour chart. Source: TradingView
The 4-hour chart clearly shows that bulls are trying to turn the 50-SMA support level into support. The bulls may challenge $8.75 if the price rises above the current level. Breaking above this level could signify the resumption or the continuation of the up-move. This could lead to the pair rising to $9.
If the price falls below the moving averages and the price drops, it will indicate that bears are continuing to sell at higher levels. The price could fall to $7.18, then $6.89.
ApeCoin (APE), which was closed above the 20-day EMA ($4.69) June 27, was pushed by buyers. However, they were unable to build on the recovery. Although the bears brought the price below the 20-day EMA, it is a positive sign that the bulls are not giving up any ground.
Daily chart of APE/USDT TradingView
This indicates that buyers aren’t selling their positions as they expect a higher price. Flattening 20-day EMA, and RSI just below midpoint indicate that selling pressure may be reducing.
The buyers could drive the price higher than the 20-day EMA to tilt the favor in their favor. The APE/USDT price could rally to the 50 day SMA ($5.72), where bears will mount a strong defense.
Contrary to the assumption, if prices fall below the current level, and drop below $4.21 then the next stop could possibly be $3.85.
APE/USDT 4-hour chart. TradingView
A symmetrical triangle formation is seen in the 4-hour chart, which indicates indecision between buyers and sellers. Both the moving averages and the RSI are close to the midpoint, suggesting a state of equilibrium.
The triangle will indicate that bears have taken control of the market. If the price falls below it, it could be a sign that the bears are in control. The price could fall to $3.78, which is the pattern target.
The bulls could also benefit if the price moves above the triangle and rises above its current level. The price could rise to $5.38, and then to $5.57.
You should research all aspects of trading and investment before making any decision.
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.