Technical measure’s and Bitcoin’s strengthening price range points out a very blunt, game-changing breakout in BTC and altcoins are in the process.
Technical measure’s and Bitcoin’s strengthening price range points out a very blunt, game-changing breakout in BTC and altcoins are in the process. During last week, Fan YiFei, the deputy governor of the People’s Bank of China gave out a warning that stablecoins like Tether (USDT) are “risks and challenges to the international monetary system, and payments and settlement system.” Fan did not leave out even a single Bitcoin (BTC) and named it as a tool for supposition and a possible threat to “financial security and social stability.”
Apart from the FUD from China, many traders have been focusing on the unlocking of a large amount of Bitcoin at the Grayscale Bitcoin Trust as a possible bearish sign. Nevertheless, market analysis by crypto trading firm QCP capital mentioned that the event won’t have any “Significant impact on the overall market outside of GBTC itself.” On the brighter outlook of all this, analyst William Clemente mentioned that more than 50,000 new Bitcoin entities are arriving on-chain a day and its not just retail that has been buying. Based on Clemente’s observation, whales have initiated accumulating and their overall holdings have increased by 65,429 BTC. All of this comes downs to traders will to buy in the current zone or wait for a further fall. Let’s go through the charts to understand the possible path of least resistance.
Bitcoin has been trading in the lower half of the $31,000 to $42,451.67 rectangle for the past few days. This is seen as a bad sign as it shows that demand is piped down at higher levels and bears are not waiting for a sharp rally to start short positions. The 20-day substantial moving average ($34,440) has begun to go down again and the relative strength index (RSI) has decreased down to 46, which proves that bears have a slight advantage. The sellers will now make an attempt to sink the BTC/USDT pair down to $31,000 to $28,000 support zone. Nevertheless, it is not likely to be easy as the bulls will climb a strong defense at the zone.
If the price increases from the present level or rebounds off $31,000 the buyers will again try to push the price to $36,670. An eruption of this movement will be given as the first indication of strength. This will clear the path for an up-move to $42,451.67. but if the $28,000 support breaks down, panic selling may follow as stops of traders who have been accumulating above $31,000 may hit. The next support on the downside will be $20,000.
Ether (ETH) increased above the 50-day simple moving average ($2,350) on July 7 but the bulls could not maintain the higher levels. This may have brought attention to profit-booking by short-term traders and shorting by hostile bears. The ETH/USDT pair decreased below the 20-Day EMA ($2,203) on July 8 but the positive sign is that the bulls are violently defending the support at $2,000. If buyers pushed the price higher than the moving averages, the pair could rise to the downtrend line. A break above this level will be the initial signal that the correction might be coming to an ending.
Basically, if the price goes down from the moving averages, the bears will again try to sink the pair under $2,000. If they pass this, the pair will be able to drop to the next critical support at $1,728.74. This is very crucial to support to watch out due to the cracks, the bearish momentum may pick up and the decline could extend to $1,536.92.
The relief rally in Binance coin (BNB) reached a point at the 50-day SMA ($231), which points out that bears continue to sell at higher levels. The seller will now try to pull the price under the 20-day EMA ($312). If they pass. The BNB/USDT pair could decrease down to the $276.40 to $264.26 support zone. The flat moving averages and the RSI is under the midpoint which shows a balance between supply and demand. If the pair increases from the present level or rebounds off the support zone the bulls will again pursue to push and maintain the price above the 50-day SMA. If they are capable of pulling this off, the pair could increase to $379.58 and then to $433. Eventually, as the bears drops the price below $264.26, the next place would be $211.70. A break under this would point out the resumption of the downtrend.
Due to the failure to rebound off the 20-day EMA ($1.38) between July 5 to July 7 this showed an absence of buying in Cardano (ADA). The short-term traders might have already booked profits on July 8, which draw the price under the 20-day EMA. The price rebounded off the $1.28 support today. The Bulls will now push the ADA/USDT pair above the 20-day EMA. Also, if the price decreases from the 20-day EMA, the bears will try to drop the pair below $1.28. If this happens the pair may go down to critical support at $1. And if this happens, the pair may drop to $0.68.