Coronavirus cases worldwide today reached 10 million and the number of new cases in the United States. has increased to new registrations in the past few days, This has jeopardized the economic recovery, while equity markets may face selling pressure. In the meantime, safe haven assets like gold continue to perform well.
Daily look at the cryptocurrency market. Source: Coin360
Earlier this week, Bloomberg analyst Mike McGlone said the decline in Bitcoin (BTC) volatility has led to tightening of the Bollinger Bands, a popular technical analysis indicator used by many traders.McGlone hopes that the cryptocurrency on CoinMarketCap will recover to $ 13,000 if it stays above the $ 6,500 support.
Most major cryptocurrencies have entered a consolidation phase and trading in a limited market can be difficult as price movements are volatile. Traders might consider reducing their risk by reducing the size of their usual position. The normal position size can be restored when the cryptocurrency markets regain relevance.
BTC / USD
After failing to climb over the $ 10,000 to $ 10,500 zone in the past few days, Bitcoin records record gains from short-term bulls. On June 27, the price fell below the trend line and also the critical support at $ 8,910.04.
Daily chart for the BTC / USD pair. Source: trade view
The 10-day exponential moving average ($ 9,277) has started to decline and the RSI is in the negative zone, lor to point out that bears have the short-term advantage. In the medium term, however, this indicates consolidation, as the simple 50-day moving average ($ 9,399) remains unchanged.
The bears’ failure to take advantage of the drop below $ 8,910.04 on June 27 indicates a lack of sellers at lower levels.
The bulls are currently trying to recover. If they can bring and hold the price above the trend line, it is possible to cross the downtrend line of the descending channel.
On the other hand, If the BTC / USD pair falls below the moving average and falls below USD 8,910.04, the channel’s support line may fall lower. Bulls are likely to aggressively defend the range between $ 8,130.58 and the transmitter support line.
4-hour chart for the BTC / USD pair. Source: trade view
The current recovery trend may encounter resistance from the previous support, which has now led to resistance on the trend line.
If the bulls can bring the price above this resistance, the possibility of a recovery of the channel’s downtrend line increases. A break in the channel is the first sign of strength indicating a possible move to $ 10,000.
Vice versa, If the price drops below the upper resistance level, the bears will try again to continue the downward movement. A pause below $ 8,825 indicates weaknessBelow this support, the decline can range to $ 8,628 and then to $ 8,400.
There is no clear trend, so price behavior should remain volatile, which can benefit the short-term trader who quickly enters and exits trades without expecting a big step.
ETH / USD
Ether (ETH) is consolidating in an upward trend. Although the price fell below the critical support of $ 217.67 on June 27, the bears were unable to maintain lower levels, suggesting that the bulls continue to buy during the decline.
Daily chart for the pair ETH / USD. Source: trade view
Bulls are currently trying to keep the price above the 50-day SMA ($ 223).that stabilize if they are successful, lA cryptocurrency that ranks second on CoinMarketCap can rise to the 10-day EMA ($ 230).
Conversely, if the price drops from the current level, Bears will again try to lower the price below the support zone from $ 217.67 – $ 216,006. In this case, a drop to $ 200 is likely.
4 hour chart for the ETH / USD pair. Source: trade view
The ETH / USD pair broke out of the 10-EMA, which is the first sign that the bulls are aggressively buying at the lower levels. If the price stays above 10-EMA, the 50-SMA resistance zone is likely to rise – $ 236.
Vice versa, If the pair doesn’t hold above 10 EMA, the bears will try again to lower the price below $ 216. If they are successful, they will likely start a new downward trend.
So, Traders should closely monitor $ 216 and if this level of support breaks, long positions should be avoided as more correction is possible.
BCH / USD
Bitcoin Cash (BCH) has been stuck in a wide range of $ 200 to $ 280 for over two months. P.Or in general, when the price spends so much time in the range, it needs strong momentum to break or leave the range.
Daily chart for the BCH / USD pair. Source: trade view
Although the 10-day EMA ($ 230) is falling and the RSI is negative, Bears were unable to lower the price below $ 200 on June 27. This suggests that a bullish buy is near range support.
If the bulls can maintain the rebound and put the cryptocurrency in CoinMarketCap in fifth place above the 10-day EMA, A switch to $ 240 and then to $ 260 is possible.
Conversely, if the price falls below the 10-day EMA, The bears will make another attempt to go below $ 200 support. If they are successful, a new downward trend will likely start.
4 hour chart for the BCH / USD pair. Source: trade view
The bulls pushed the price above previous support and found resistance at $ 220, which is a positive sign. This indicates a massive buy at the lower levels.
If the BCH / USD pair breaks out of the downtrend line, the momentum should accelerate. The next level to increase is $ 235 and then $ 244.
However, if the pair rejects the downtrend line, there will be another attempt to lower the price to the critical support of $ 200. If this support breaks convincingly, a new downward trend is likely to begin.
Vice versa, If the pair recovers from $ 200 again, it will likely attract more buyers as it will consolidate the level as a strong support.
XLM / USD
Stellar Lumens (XLM) is traded within a descending channel. On June 27, the bulls aggressively bought the dip near the channel’s support line, as seen from the long candle wick.
Daily chart for the XLM / USD pair. Source: trade view
The current recovery is likely to encounter resistance at the 10-day EMA ($ 0.067) and above the transmitter’s downtrend line. A break in the channel is the first sign that the downtrend may have ended.
However, if the fourteenth-ranked cryptocurrency on CoinMarketCap rejects the 10-day EMA, the likelihood of an interruption below the $ 0.060 support increases. Below this level, the decline may range to $ 0.055.
The 10-day EMA is falling and the RSI is in the negative zone, suggesting that the bears have the edge. In a downward trend, selling generally offers more profit potential than buying in dips.
4-hour chart for the XLM / USD pair. Source: trade view
The current withdrawal attempt is likely to encounter resistance in the area between the 10-EMA and the downtrend line.
If the price falls below this resistance zone, the bears will try again to lower the XLM / USD pair below $ 0.060. If they are successful, the downward trend is likely to continue.
Conversely, when the bulls push the price down the downtrend line, The trend of a recovery can extend to the resistance line of the channel. If the price falls below this resistance, the bears will try to resume the negative trend.
This bearish view becomes invalid if the bulls can push the price above the channel resistance line. Such a move indicates a likely change in the trend.
LINK / USD
Chainlink (LINK) hit near highs of $ 4.9762 between June 23 and 24. The bulls, however, were unable to overcome this resistance. This resulted in short-term profits for traders, which led to a correction.
Daily chart for the LINK / USD pair. Source: trade view
Although the price fell below the immediate support of $ 4.50 on June 27, Bears were unable to maintain levels, suggesting bulls continue to buy on declines as they expect the positive trend to resume soon.
If the price stays above $ 4.50, The bulls will likely make another attempt to move the cryptocurrency to 13th on CoinMarketCap for over $ 4,962. If they are successful, a rally to $ 6 is possible.
This bullish view becomes invalid If buyers don’t keep the price above $ 4.50, a 50-day SMA drop ($ 4.13) is likely.
4-hour chart for the LINK / USD pair. Source: trade view
The four-hour chart shows that the LINK / USD pair found support at USD 4.30. This is a positive sign as it suggests the bulls are buying in the dips. This is just above the Fibonacci level of 50% in the last phase of the recovery.
The current recovery could see little resistance on the downtrend line. This level may lead to less consolidation or retracement, but is likely to exceed. above this level will be a new test of the heights in the wilderness.
Repeated tests of resistance weaken it and increase the likelihood of a breakout, contrary to what is assumed if the price falls below the current level or general resistance and falls below USD 4.30. A deeper correction is likely.
The views and opinions expressed here are solely those of the author and do not necessarily reflect Cointelegraph’s views. Every investment and trade movement involves risks. You have to do your own research when making a decision.
Market data is provided by the HitBTC exchange.