Bitcoin (BTC) tumbled near key support at $20,000 as traders panicked and dumped their holdings on fears that the Federal Reserve will hike interest rates sharply on June 15. Another reason for the sell-off could be concerns that if the lending could spread the bankruptcy of platform Celsius and crypto venture capital firm Three Arrows Capital (3AC).
Data from on-chain analytics platform CryptoQuant shows that 59,376 bitcoins were exchanged in 24 hours on June 14, the highest inflow since November 30, 2018. Bitcoin miners also send bitcoins to exchanges along with other investors. The Bitcoin miner-to-exchange flow metric hit a seven-month high of 9,476, a sign that miners may be anticipating further declines in the near term.
Prominent investors are divided on whether Bitcoin has bottomed out. Mike Novogratz, chairman and CEO of Galaxy Digital Holdings, believes that Bitcoin could hold $20,000 while Ether (ETH) could bottom out to $1,000. These levels were also mentioned by Arthur Hayes, co-founder and former head of BitMEX, who warned that a breakdown of the levels could lead to “significant selling pressure in the spot market.”
What are the important levels to watch for Bitcoin and major altcoins? Let’s study the chart of the top 10 cryptocurrencies to find out.
Bitcoin remains in firm bear control. The bulls attempted to start a recovery on June 14, as seen by the long wicks on the candlesticks that day, but the bears were not in the mood to relax. They sold aggressively and pulled the price to $20,111 on June 15th.
The sharp sell-off in previous days has pulled the Relative Strength Index (RSI) to around 21. This indicates that there is a possibility of a rebound in the short term. The BTC/USDT pair could rise to the 38.2% Fibonacci retracement level of $24,562 and then the 50% retracement level of $25,938. The bears are expected to mount a strong defense in this area.
If the price turns down from this overhead zone, the bears will try to resume the downtrend by pulling the pair below $20,000. If they succeed, the pair could drop to the next support at $17,500 and then $16,000.
Buyers will have to push and sustain prices above the 20-day exponential moving average (EMA) ($27,748) to signal a potential trend change.
Ethereum is in a strong downtrend. Buyers tried to stop the decline on June 14, but they were unable to sustain higher levels. The bears sold again on June 15, but the bulls are fully defending the psychological $1,000 level.
Continued selling over the past few days has pulled the RSI into deep oversold territory. This suggests that the sell-off may be excessive in the short term. This could lead to a strong bear market rally, possibly above $1,268. Then, the ETH/USDT pair could rally to the 20-day EMA ($1,636).
Alternatively, if the price continues lower and breaks below $1,000, it would signal a resumption of the downtrend. The pair could then drop to $900 and the bulls will once again try to stop the decline.
BNB witnessed a fierce battle between bulls and bears near the key $211 level. The bulls attempted to start a rebound on June 14 but were unable to sustain higher levels.
The bears took advantage of this and pulled the price below $211 on June 15. While the downward sloping moving averages suggest that the bears have the upper hand, the heavily oversold levels of the RSI suggest a relief rally in the near term.
If the bulls sustain the price above $211, BNB/USDT could try to rally towards the 20-day EMA ($275). A breakout and close above this resistance could suggest that the pair could remain in a wider range between $211 and $350 for a few more days.
Conversely, if the price turns down from the current levels or the 20-day EMA, the bears will try to resume the downtrend. The next support on the downside is $186.
The bears attempted to pull Cardano (ADA) below the $0.44 support on June 13 and 14, but were unable to sustain lower levels. This shows that the bulls are aggressively defending the support area between $0.44 and $0.40.
The bulls will try to push the price above the 50-day simple moving average (SMA) ($0.60). If they manage to do this, the ADA/USDT pair could rise to $0.69 and then $0.74. The bears are likely to vigorously defend this overhead area.
Contrary to this assumption, if the price turns down from the 20-day EMA ($0.54), it will indicate that market sentiment remains negative and traders are selling on small rallies.
Then, the bears will make another attempt to sink the price below the support area. If successful, the pair could herald the start of the next downtrend. The next support on the downside is $0.30.
Ripple (XRP) fell to $0.30 on June 13, the pattern target of a break below the descending triangle. The bears pulled the price below support on June 14, but the bulls bought the dip from the long tail of the day’s candlestick.
Buyers are trying to start a recovery that may reach the $0.38 breakdown level. If the bears turn this level into resistance, it will indicate that market sentiment remains negative. Sellers will then attempt to resume the downtrend and sink the XRP/USDT pair to the next strong support at $0.24.
Conversely, if the bulls push the price higher and sustain above $0.38, it will indicate strong buying at lower levels. Buyers will then try to push the pair above the 50-day SMA ($0.45). The bears could pose a strong challenge in the $0.46-$0.50 area.
Solana (SOL) is trying to hold above the $26 level. The bulls attempted to push the price back above the $35 breakdown level on June 14, but the bears held their ground. This suggests that the bears are attempting to turn the $35 level into resistance.
If the price turns down and breaks below $26, it will signal a resumption of the downtrend. The SOL/USDT pair could then drop to $22 and then to the psychological level of $20.
This bearish view could be invalidated in the short-term if buyers push and sustain the price above the 20-day EMA ($38). If this happens, aggressive bears who may have entered short positions below $35 may rush to exit. This could lead to a bear squeeze and push the pair towards overhead resistance at $60.
Buyers are trying to hold Dogecoin (DOGE) above the psychological level of $0.05. Severely oversold levels on the RSI suggest a possible relief rally in the near term.
If the price bounces off the current levels, the bulls will try to push the DOGE/USDT pair to the 20-day EMA ($0.07). If the price turns down from this level, the bears will make another attempt to resume the downtrend and sink the pair to $0.04.
Contrary to this assumption, if the price breaks above the 20-day EMA, the bullish momentum could build and the pair could rally towards the 50-day SMA ($0.09). Such a move would indicate that the pair may bottom in the near term.
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Polkadot (DOT) has been trading near the key support level of $7.30 for the past two days. Although the bears dragged the price below $7.30, they were unable to sustain lower levels. This indicates strong buying on dips.
If buyers sustain the price above $7.30, the DOT/USDT pair could rise to the 20-day EMA ($8.80). This is an important level to watch, as a breakout and close above it would suggest that the pair could consolidate between $6.36 and $12.44 for some time.
Conversely, if the price turns down from the 20-day EMA, it will indicate that bears are active at higher levels. A break and close below $6.36 could signal a resumption of the downtrend. The pair could then drop to $5 and then $4.23.
UNUS SED LEO (LEO) dipped below the moving average on June 13, but the long tail of the day’s candlestick showed aggressive buying at lower levels. This was followed by an intraday candlestick pattern on June 14, indicating indecision between buyers and sellers.
The bulls attempted to push the price to the resistance line of the descending channel on June 15, but the bears have other plans. They have pulled the price back below the moving averages, increasing the likelihood of a drop to the channel support line.
If the price rebounds strongly from the support line, it will indicate that the LEO/USD pair may stay within the channel for a few more days. If the bears sink the pair below the channel or the bulls push the price above the resistance line, the next trend could begin.
The bulls are trying to aggressively defend the $0.000007 level. Shiba Inu (SHIB) formed a doji candlestick pattern on June 14, indicating indecision between bulls and bears.
If the uncertainty resolves upwards and the bulls push the price above $0.000009, the SHIB/USDT pair could rise to the $0.000010 breakdown level. If the price turns back from this level, it will indicate that the trend is still negative and traders are selling on rallies. The bears will then try to resume the downtrend and sink the pair to $0.000006.
Alternatively, if the bulls push the price above the downtrend line, it could open the doors for a rally to $0.000014. Such a move could indicate that the pair may have bottomed out.
The views and opinions expressed here are those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading action involves risk. You should do your own research when making a decision.
Market data is provided by the HitBTC exchange.