Bitcoin (BTC) fell to its lowest level since February, indicating panic selling among investors. However, Blockstream founder and CEO Adam Back said in a post on X that the decline is a “normal bull market pattern.” He said traders should buy the dip instead of panicking.
The panic was triggered by expectations that the German government would liquidate its Bitcoin holdings and that Mt. Gox creditors would also cash out their payments. Financial analyst Jacob King said in a post on X that most of Mt. Gox’s former creditors are likely to sell their holdings.
According to CoinGlass data, liquidations of cryptocurrencies in the last 24 hours have surpassed $665 million, the highest level in two months. Analysts expect the sell-off to continue and for Bitcoin to fall to $50,000.
The sharp decline in Bitcoin price is likely to attract long-term investors. What are the important support levels to watch out for in Bitcoin and altcoins? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin Price Analysis
Bitcoin broke a large range between $56,552 and $73,777 on July 5, but the positive side is that sellers are having a hard time holding the lows.
The bulls are trying to reclaim the $56,552 level. The oversold level of the Relative Strength Index (RSI) suggests that there may be a short-term relief rally, which is likely to face selling at the 20-day exponential moving average ($62,055).
If the price breaks below the 20-day EMA, the bears will try again at the $56,552 to $53,485 support zone. If this zone breaks, the BTC/USDT pair could fall to $50,000. This negative view will be invalidated in the short term if the bulls push the price above the 20-day EMA and hold it.
Ether Price Analysis
Ether (ETH) has been trading in a wide range between $2,850 and $4,094 for several days.
The bears’ aggressive selling drove the price down to the range-bound support at $2,850 on July 5. The RSI has fallen into the overheated selling zone, suggesting a short-term relief rally is possible.
If the price rises from current levels, the ETH/USDT pair is likely to face selling at the 20-day EMA ($3,373). If the price falls below the 20-day EMA, the risk of a drop below $2,850 increases. The next support level for the downtrend is $2,200. The bulls need to push the price above the 20-day EMA to indicate that the range-bound action is intact.
BNB Price Analysis
BNB (BNB) signaled that the bears were about to be aggressively sold off as it easily broke through the $551 and $536 support levels on July 4th.
Selling continued on July 5th, with the bears pushing the price below the solid support of $495. The positive sign is that the bulls prevented the price from falling below the $460 support.
The oversold level on the RSI indicates that the bulls may try to start a recovery, which will most likely be met with selling at the 20-day EMA ($570). If the price breaks down from the 20-day EMA, the bears will once again try to push the BNB/USDT pair below $495. If they can do this, the pair could fall to $400.
Solana Price Analysis
A sell-off occurred on July 3rd as Solana (SOL) failed to rise above its 50-day SMA ($154).
The price has fallen close to the strong support of $116 on July 5. This level has been retested three times before, so the bulls will try to protect it again. The bounce is likely to face selling at the 20-day EMA ($141).
If the price breaks below the 20-day EMA, there is a high risk of a breakdown. If that happens, the SOL/USDT pair could fall to $100. If it breaks above the 50-day SMA, it will tilt to the bulls.
XRP Price Analysis
XRP (XRP) plunged below the $0.46 support level on July 4, before making another solid downtrend below $0.41 on July 5.
The long tails on the candlesticks show that the bulls have bought the dip and are trying to hold the price above $0.41. The oversold level on the RSI suggests that the XRP/USDT pair could witness a relief rally that could reach the moving averages.
If the price breaks down from the moving average, it indicates that the bears are active at higher levels. Then there is a risk of a breakdown of the $0.41-$0.38 zone, and the pair can break down to $0.30.
Conversely, if it rises above the moving average and then falls below $0.41, it is likely a bear market.
Dogecoin Price Analysis
Dogecoin (DOGE) closed below the $0.12 support level on July 3, indicating that the range had turned down.
The bulls were unable to stop the decline from the $0.10 support on July 5, opening the door for further declines to the solid support of $0.08. Buyers are likely to defend the $0.08 level with all their might, but the rescue rally may face resistance at the 20-day EMA ($0.12). If the price breaks sharply from $0.12, the DOGE/USDT pair may retest the $0.08 support.
For a downtrend to lose momentum, bulls must push prices above the 20-day EMA and hold them there.
Toncoin Price Analysis
TON Coin (TON) fell from $8.17 on July 3, which is a sign that the bears are strongly defending the upper resistance level of $8.29.
Selling increased after the price fell below the 20-day EMA ($7.48) on July 4. The bears pushed the price below $6.77 on July 5, but are having trouble holding the low. This suggests that the bulls are buying the dip near the $6 support.
If the price closes above the 50-day SMA ($7.09), the TON/USDT pair may fluctuate between $8.29 and $6.36 for a while. Conversely, if the price declines from the moving average and closes below $6.77, the double top pattern is complete. This negative setup has a pattern target of $5.25.
Related: Here’s what happened in crypto today:
Cardano Price Analysis
Cardano (ADA) fell below the 50-day SMA ($0.42) on July 3, and selling intensified after the price fell below the 20-day EMA ($0.39) on July 4.
The failure of the bulls to defend the $0.35 support level shows that the bears are eager to sell. If the price closes below $0.35, there is a high risk of a decline to $0.30 and then to $0.25. Buyers are likely to stop the decline at $0.25 and intervene.
The first resistance on the upside is likely to come from the 20-day EMA, and then the 50-day SMA. A breakout and close above the 50-day SMA would signal that the downtrend may be coming to an end.
Avalanche Price Analysis
Avalanche (AVAX) fell from $29 on July 3, indicating that the downtrend has turned into resistance.
Selling has increased and bears have taken the price below the July 5 support of $23.51, but the long tail of the candlestick shows buying at lower levels. Any attempt at recovery is likely to be met with selling at the 20-day EMA ($27.71) and then at $29.
If the price breaks below the overhead resistance, the bears will again try to push the AVAX/USDT pair below $21.80. If they succeed in doing so, the pair could extend its downtrend to the next support at $19.
Shiba Inu Price Analysis
Shiba Inu (SHIB) signaled a narrow range turn to the downside on July 4th when it plunged below the $0.000016 support level.
Selling continued and the downtrend took the price below the $0.000014 support level on July 5. If the price holds below $0.000014, the next peak is likely to be the psychological support level of $0.000010.
The RSI has slipped into oversold territory, suggesting that the rescue rally is turning a corner. The bulls need to sustain the price above the 20-day EMA ($0.000017) to signal a comeback.
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.