US stock markets extended their decline to start the week on June 13. The S&P 500 hit a new year-to-date low and plunged into bearish territory, falling more than 20% from its all-time high reached on Jan. 1. 4.
Cryptocurrency markets are following equity markets lower and selling pressure has intensified further due to rumors of a liquidity crunch from major lending platform Celsius and traders possibly selling positions for respond to margin calls. This brought the total crypto market capitalization below $1 trillion.
The steep declines have led some analysts to project extremely bearish targets. While anything is possible in the markets and it is difficult to call a bottom, breakouts usually tend to trigger a formation at the bottom. Traders can prepare their buy list and consider accumulating in phases after the price stops falling.
What are the important levels that can stop the decline of Bitcoin (BTC) and major altcoins? Let’s study the charts of the top 10 cryptocurrencies to find out.
Bitcoin broke below immediate support at $28,630 on June 11. This accelerated the sell-off and the bears pulled the price below the critical support at $26,700 on June 12. This indicated the resumption of the downward trend.
The bears maintained their selling pressure on June 13 and sent the BTC/USDT pair down to an intraday low of $22,600. The sharp decline over the past few days has pushed the Relative Strength Index (RSI) into the oversold zone. This suggests that a recovery or consolidation is likely in the coming days.
Any recovery should face selling in the area between $26,700 and $28,630. If the bears tip this area into resistance, it will suggest that sentiment remains negative. Traders could then make another attempt to resume the downtrend. A break below $22,600 could drop the pair to the psychological level at $20,000.
The bulls will need to push and hold the price above $28,630 to suggest that the bears may lose their grip.
Ether (ETH) dropped below vital support at $1,700 on June 10, indicating the bears are in control. This marked the start of the next leg of the downtrend.
The selling accelerated on June 11 and the bears pulled the price below the strong support at $1,300. This suggests that traders get scared and abandon their positions.
The aggressive selling of the last three days has taken the RSI back below 22. Historically, the ETH/USDT pair starts a relief rally when the RSI falls near 21. This suggests that the pair could attempt a rally to the breakdown level of $1,700.
Alternatively, if the bears maintain their selling pressure, the pair could fall to psychological support at $1,000.
The failure of the bulls to push Binance Coin (BNB) back into the triangle may have attracted strong selling from the bears on June 11. The selling accelerated and the price fell near the strong support at $211.
If the price bounces off $211, it will suggest an accumulation at lower levels. The buyers will then attempt to push the price above the 20-day exponential moving average ($289). If they succeed, it will indicate that the BNB/USDT pair could stay in a range between $211 and $350 for a few days.
Conversely, if the bears cause the price to drop below $211, it will signal the start of the next leg of the downtrend. The psychological level of $200 may offer minor support, but if the level gives way, the next support could be at $186.
Cardano (ADA) broke below the 20-day EMA ($0.56) on June 10 and attempts by the bulls to bring the price back above the June 11 level were met with strong selling at higher levels. students.
The bears pulled the price towards the strong support zone between $0.44 and $0.40. This area is likely to attract strong buying from the bulls as a break below could signal the resumption of the downtrend. The ADA/USDT pair could then begin its journey south towards the next major support at $0.30.
Alternatively, if the price rises from the current level, the bulls will attempt to push the pair above the 50-day simple moving average ($0.61). If this happens, the pair may consolidate between $0.74 and $0.40 for a few days.
Ripple (XRP) broke and closed below support at $0.38 on June 11. This completed a descending bearish triangle, signaling that the sellers have the upper hand.
The selling accelerated and the bears pulled the price below the crucial support at $0.33 on June 13th. This indicates the start of the next leg of the downtrend. Short-term bears could see profits close to the $0.30 pattern target.
If they do, the XRP/USDT pair could start a relief rally that could reach the breakdown level of $0.33 and then $0.38. Alternatively, if the bears cause the price to drop below $0.30, the pair could drop to the next strong support at $0.24.
Solana (SOL) was stuck between the 20-day EMA ($40) and $35 for a few days. This uncertainty resolved on the downside on June 11 when the bears pulled the price below support.
This accelerated the sell-off and the bears pulled the price below the immediate support at $30. The next downside support is $22 and later $20.
The strong selling of the past few days has sent the RSI into oversold territory. This suggests that a recovery or consolidation is likely in the near term. The bulls will attempt to push the price above the $35 breakdown level and the 20-day EMA. If they are successful, it will suggest that the current outage may have been a bear trap.
Dogecoin (DOGE) narrow range trading extended lower on June 10th. The bears pulled the price below the May 12 intraday low of $0.07 on June 11, indicating the resumption of the downtrend.
The selling accelerated further and the bears pulled the DOGE/USDT pair towards the psychological support of $0.05. This level could serve as short-term support, as the deeply oversold levels of the RSI suggest that a relief rally is possible.
On the upside, the bears will try to block the recovery at the $0.07 breakdown level. If the price turns down from this resistance, the bears will attempt to resume the downtrend and push the pair down to $0.04. The first sign of strength will be a breakout and a close above the 20-day EMA ($0.08).
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The failure of the bulls to push Polkadot (DOT) back into the symmetrical triangle attracted aggressive selling from the bears on June 10th. This triggered a downward move that pulled the price below the critical $7.30 support.
The bulls are trying to push the price back above the $7.30 breakdown level. If they manage to do so, it will suggest that the break below $7.30 may have been a bear trap. The DOT/USDT pair could then reach the 20-day EMA ($9.17).
Alternatively, if the price does not break above $7.30, it will suggest that the bears have tipped the level into resistance. This could resume the downtrend with the next stop being the psychological level of $5 and then the pattern target of $4.23.
UNUS SED LEO (LEO) has been trading in a descending channel for several weeks. The bears pose a challenge near $5.60 but struggle to pull the price below the 20-day EMA ($5.24).
If the price bounces off the current level and breaks above $5.60, the LEO/USD pair could gradually move up to the resistance line of the channel. Bears are likely to defend this level aggressively.
If the price drops from the resistance line, the bears will attempt to sink the pair below the 20-day EMA. If this happens, the pair may gradually dip towards the support line. Such a move will suggest that the pair could extend its stay inside the channel for some time.
The next trend move could start after the bulls push the price above the resistance line or the bears dip the pair below the support line.
Avalanche (AVAX) tight range between the 20-day EMA ($24) and critical support at $21 resolved lower on June 11th. This indicated the resumption of the downward trend.
The selling gained momentum and broke through the support at $18 on June 12th. There is minor support at $15, but if that level breaks down, AVAX/USDT could drop to the next strong support at $13.
Although the descending moving averages indicate an advantage for the sellers, the oversold levels of the RSI suggest that the selling may have been overdone in the short term. This could lead to a relief rally to the $21 breakdown level. The bulls will need to push the price above the 20-day EMA to signal that the bears may be losing their grip.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of UKTN. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Market data is provided by HitBTC swap.