Price Analysis 6/22: BTC, ETH, XRP, BCH, BSV, LTC, BNB, EOS, CRO, ADA
Bitcoin is flashing some bullish signals as volatility is expected to pick up over the next few days.
The current economic environment has made it difficult for pension funds to sustain their expected rate of return. The U.S. Federal Reserve has continued along the path of cutting rates to zero and it seems likely to keep them there for at least a couple of years. This means pension funds may be forced to explore other strategies to increase their returns.
Morgan Creek Digital co-founder Anthony Pompliano has suggested that pension funds allocate a small amount of 1 to 5 percent of their portfolios to Bitcoin (BTC). Such a move “would increase the risk-adjusted returns for a public pension fund,” according to Pompliano.
Daily cryptocurrency market performance. Source: Coin360
However, several traditional investors remain skeptical of the top-ranked cryptocurrency on CoinMarketCap. Although investment guru Jim Rogers believes that people who use cryptocurrency are smarter than governments, he also predicted that governments will use their armed power to make cryptocurrencies worthless.
The largest digital asset on CoinMarketCap has been consolidating near the overhead resistance zone of $10,000–$10,500 for the past few weeks. In doing so, it has formed an ascending triangle, which is a bullish setup.
BTC/USD daily chart. Source: Tradingview
For the uptrend to resume, the bulls will have to push the price above the $10,000–$10,376.38 resistance zone. This will complete the bullish pattern, which has a target objective of $11,869.42.
If the BTC/USD pair reverses direction from the current levels or from the overhead resistance, the bears will try to sink the price below the trendline of the triangle. Such a breakdown will weaken sentiment and attract selling by the short-term traders.
Selling could intensify on a break below $8,910.04 and this could sink the pair to a critical support at $8,130.58.
Ether (ETH) has bounced sharply off the $225.783 support and has cleared the hurdle at $239.45. This suggests renewed buying interest in the biggest altcoin. The next level to watch out for is $253.556.
ETH/USD daily chart. Source: Tradingview
If momentum picks up, the second-ranked cryptocurrency on CoinMarketCap is likely to break out of $253.556 and move towards $288.599. This is an important resistance level, which is likely to be defended aggressively by the bears.
This bullish view will be invalidated if the ETH/USD pair reverses direction from the current levels or from $253.556 and breaks below the 50-day simple moving average ($220). Below this level, a drop to $200 and then to $176.112 is possible.
XRP closed (UTC time) below the support line of the symmetrical triangle on June 21 but the price has quickly turned around and re-entered the triangle. This suggests a lack of follow up selling at lower levels.
XRP/USD daily chart. Source: Tradingview
If the fourth-ranked cryptocurrency on CoinMarketCap rises above the 20-day exponential moving average ($0.19) a move to the downtrend line of the triangle is possible. A breakout of this level will signal advantage to the bulls.
However, if the XRP/USD pair turns down from the 20-day EMA, it will indicate a lack of demand at higher levels. In such a case, the bears will once again try to sink the price below the triangle. If they are successful, a new downtrend is likely.
Bitcoin Cash (BCH) has been trading between $255.46–$217.55 for the past few days. The flat moving averages and the RSI close to the midpoint suggests that the range-bound action is likely to continue for a few more days. Trading in a small range can be difficult because the price action is usually choppy.
BCH/USD daily chart. Source: Tradingview
If the bulls drive the fifth-ranked cryptocurrency on CoinMarketCap above the moving averages, a rally to $255.46 is possible.
This is an important level to watch out for because a few days back, it had acted as a stiff resistance (marked via ellipse on the chart). Therefore, a breakout of it will be the first indication that the bulls are back in the game.
This view will be invalidated if the BCH/USD pair turns down from the moving averages. In such a case a drop to $217.55 is possible.
The bears have not been able to sink Bitcoin SV (BSV) below the critical support at $170. This suggests a lack of sellers at lower levels. This has kept the price inside the $170–$227 range.
BSV/USD daily chart. Source: Tradingview
The bulls are currently attempting to carry the sixth-ranked cryptocurrency on CoinMarketCap above the 20-day EMA ($180). If that happens, a move to the 50-day SMA ($190) and then to $200 is likely.
However, if the price turns down from the 20-day EMA, it will be a negative sign as it will indicate a lack of buyers at higher levels. That will increase the possibility of a break below the critical support at $170.
Litecoin (LTC) is getting squeezed between the moving averages and $42. If the bulls can push the price above the moving averages, a move to $47 and then to $51 is possible. The bears are likely to defend this level aggressively.
LTC/USD daily chart. Source: Tradingview
If the seventh-ranked cryptocurrency on CoinMarketCap turns down from $51, the range-bound action is likely to extend for a few more days.
However, if the bulls fail to sustain the price above the moving averages, the bears will make another attempt to sink the LTC/USD pair to $39.
The next trending move is likely to start after the pair breaks out of the range. Until then, the volatile range-bound action is likely to continue.
Binance Coin (BNB) has been trading in the top half of the $13.65–$18.1377 range for the past few days. On June 20, the bears attempted to sink the price below the $15.72 support but failed.
BNB/USD daily chart. Source: Tradingview
This suggests that the bulls are aggressively defending the $15.72 level. Currently, the eighth-ranked crypto-asset on CoinMarketCap has bounced off the support and the bulls are attempting to propel the price above the moving averages.
If successful, a move to $18.1377 will be on the cards. A breakout of this resistance will signal the possible start of a new uptrend.
However, if the bears again defend the moving averages, the price might dip back to $15.72. A breakdown of this support can drag the price down to $13.65.
EOS remains stuck inside the $2.3314–$2.8319 range. The flat moving averages and the RSI just below the 50 level suggests that this range-bound action is likely to continue for a few more days.
EOS/USD daily chart. Source: Tradingview
Currently, the bulls are attempting to push the price above the moving averages. If successful, the ninth-ranked cryptocurrency on CoinMarketCap can move up to $2.8319, which is a critical resistance to watch out for.
Conversely, if the EOS/USD pair turns down from the moving averages, the bears will attempt to break the critical support of $2.3314. If they succeed, the pair can decline to $2 and below it to $1.80.
Crypto.com Coin (CRO) broke above the overhead resistance of $0.118234 on June 20 and resumed the up move. The trend remains strong with both moving averages separating out and the price well above the 20-day EMA ($0.1090).
CRO/USD daily chart. Source: Tradingview
The bulls will now try to carry the 10th-ranked cryptocurrency on CoinMarketCap to $0.135202 and if that resistance is crossed, the next target is $0.15306.
The only warning sign on the chart is the possibility of the RSI forming a bearish divergence. However, until the price slips and sustains below $1.118234, there is no danger to the uptrend.
This bullish view will be invalidated if the CRO/USD pair turns down and slides below the 20-day EMA. Such a move will indicate selling at higher levels.
The dip from $0.0844398 on June 18 was short lived as the bulls defended the 20-day EMA ($0.078) aggressively. This suggests that the bulls continue to buy the dips as they expect Cardano (ADA) to resume its rally.
ADA/USD daily chart. Source: Tradingview
The trend is bullish as both moving averages are sloping up and the RSI is in the positive territory. A breakout of the downtrend line and the $0.085 resistance will signal the possibility of a retest of $0.0901373.
Contrary to this assumption, if the 11th-ranked cryptocurrency on CoinMarketCap turns down from the downtrend line, the bears will try to sink it to the $0.0722722–$0.0694880 support zone.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Market data is provided by HitBTC exchange.