Bitcoin (BTC) is witnessing a fierce battle between the bulls and the bears. The buyers are trying to keep the price in the range of $56,552 to $73,777, while the bears are trying to push the price down. The sellers pushed the price down to around $53,500 on July 5, but the lower levels attracted the bulls to buy.
According to Farside Investors, the U.S.-based Spot Bitcoin ETF saw net inflows of $143.1 million on July 5, the largest in a month. In a post on X, Bitwise Asset Management CEO Hunter Horsley said that investors without exposure to Bitcoin “have a chance to buy the dip” as “the outlook for Bitcoin is stronger than ever.”
Bitcoin’s recent decline has led to a sell-off in several altcoins, but several have managed to hold strong support levels. These altcoins could lead the recovery if Bitcoin starts to move towards $60,000.
What are the key resistance levels that need to be surpassed for Bitcoin and altcoins to start buying? Let’s take a look at the top five cryptocurrencies showing strength on the charts.
Bitcoin Price Analysis
Bitcoin plunged below the $56,552 support level on July 5, but bulls managed to buy the dip and defend the level at the close.
However, the bears will not give up easily and will make another attempt to drop the price below $56,552 and hold it. If they do, the BTC/USDT pair could fall to $53,485 and eventually find solid support at $50,000.
The downward sloping 20-day exponential moving average ($61,231) suggests a bearish bias, but the positive divergence in the relative strength index (RSI) suggests that downside momentum may be slowing.
Buyers would need to push the price above the 20-day EMA to indicate that the price could continue for some time in the range between $56,552 and $73,777.
The 20-EMA on the 4-hour chart is flattening, and the RSI is just below the midpoint, suggesting that selling pressure is decreasing. The downtrend line is an important level to watch on the upside. A break above the downtrend line and close will signal that the correction is over. The pair could then rise to $64,602.
Conversely, a break and close below $56,552 would suggest that bears will continue selling in the relief rally, which could put the $53,485 level at risk of breaking.
Solana Price Analysis
Solana (SOL) is forming a descending triangle pattern that is likely to break out and close below $116.
A small advantage for the bulls is that the RSI is showing signs of forming a positive divergence, which suggests that selling pressure may be decreasing. If the bulls push the price above the 20-day EMA ($141), the SOL/USDT pair may attempt to rise to the 50-day SMA ($153) and then move towards the downtrend line.
Instead, if the price breaks below the 20-day EMA and drops below $116, the downtrend setup is complete. This could lead to a plunge to $80 for the pair.
The solid pullback from $121 for this pair shows that the bulls are fiercely defending the $116 support. If the price rises from current levels and breaks above $145, the next stop is likely to be $155. This level could again act as a solid barrier, but if it is overcome, the pair could rise to the downtrend line.
In a downtrend, the bears will have the upper hand if the price falls below $130. Then there is a risk of the $121 support level being broken. If that happens, the pair could crash to $116.
Polkadot Price Analysis
Polkadot (DOT) crashed to $4.91 on July 5, but the long tails of the candlesticks show solid buying at lower levels.
The bulls continued to buy on July 6 and pushed the price above the 20-day EMA ($6.08), indicating that the bears are losing control. If the buyers break through the hurdle at the 50-day SMA ($6.54), the DOT/USDT pair could attempt a rally to $7.29 and then $7.77.
Conversely, if the price breaks below the 50-day SMA, it is a signal that bears are active at higher levels. If the pair slides below the $5.38 to $4.91 support area, selling may increase.
The 4-hour chart shows a V-shaped recovery from $4.92. The 20-EMA has started to rise and the RSI is rising into positive territory, indicating that the bulls are attempting a comeback. If buyers push the price above $6.60, the pair is likely to gain momentum and make a run to $7.29.
Contrary to this assumption, if the price declines and falls below the 20-EMA, it suggests that the bulls are exhausted. Selling may intensify below $5.60, and the pair may retest the solid support at $4.91.
Related: Bitcoin traders are hopeful that a bottom has been found after the BTC price bounced 9% from its lows.
NEAR Protocol Price Analysis
NEAR Protocol (NEAR) has been trading between $4.28 and $8.58 for several days. The bears pushed the price below the support line on July 5, but were unable to hold the lower level.
While the downward moving averages are in favor of the bears, the positive divergence in the RSI suggests that selling pressure may be weakening. The first signal of strength would be a breakout and close above the 20-day EMA ($5.17).
Then, the NEAR/USDT pair can rise to $5.63. This level can act as a resistance line, but if it crosses, the pair will complete a short-term double bottom pattern, with a target price of $6.11.
Or, if the price drops and falls below $4, it signals the start of a new downtrend. The pair can drop to $3.50 and then to $3.
The 20-EMA on the 4-hour chart is flattening, and the RSI is just below the midpoint, indicating a balance between supply and demand. If the bulls push the price above the 50-SMA, the pair could rise to $5.63. This level could act as strong resistance, but if it crosses, the pair could begin its journey to $6.71.
If the price were to plunge from current levels and crash below $4, the bears would take control. This could start a new downtrend towards $3.50.
Caspar Price Analysis
Kaspar (KAS) closed above the $0.19 resistance level on June 29, but the downtrend failed to build on this breakout.
The price fell on June 30, but found support just below the 50-day SMA ($0.15) on July 5. This shows that the bulls are aggressively defending the 50-day SMA. Buyers are looking to push the price above the 20-day EMA ($0.17) and hold it. If they can do so, it will signal the end of the pullback. This could see the KAS/USDT pair rise to $0.19.
This positive outlook will be invalidated in the short term if the price declines and breaks below the 50-day SMA. This could lead to a drop to $0.13 and eventually $0.10.
The 4-hour chart shows that the bears are trying to delay the recovery from the 50-SMA. If the price rises from the current level of $0.16, the bulls will try to overcome the barrier at the 50-SMA again. If successful, the pair can jump to $0.19.
Conversely, if the $0.16 support is broken, it indicates that the bears are not giving up and are selling in the rally. Then, the pair may sink to the solid support of $0.14. The bulls are expected to protect that level strongly.
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.