The bears tried to resume the Bitcoin (BTC) downtrend on July 8, but the bulls bought the dip. According to Farside Investors data, spot Bitcoin ETFs (exchange-traded funds) listed in the United States have seen inflows of over $650 million since July 5, indicating solid demand from low levels.
However, the selling pressure is unlikely to end quickly. According to Arkham Intelligence data, the German government wallet appears to be preparing to sell 6,000 more bitcoins. Also, the market will be watching closely to see how much the selloff will be after creditors of the closed cryptocurrency exchange Mt. Gox are paid off.
Uncertainty over the size of Bitcoin’s additional supply in the market has hurt sentiment. According to Glassnode data, the Crypto Fear & Greed Index has plunged to 27, its lowest level since January 23.
Could Bitcoin begin a rally in the coming days, pushing altcoins higher? Let’s take a look at the charts of the top 10 cryptocurrencies.
Bitcoin Price Analysis
Bitcoin’s bounce on July 8th showed that the bulls were fiercely defending the $56,552 to $53,485 support area. Buyers pushed the price up to the 20-day exponential moving average ($60,217) on July 10th.
If the price breaks below the 20-day EMA, it indicates that sentiment is still negative and traders are selling the rally. Then, the bears will try to push the BTC/USDT pair below the support zone. If successful, the pair can fall to the psychological support of $50,000.
The first strength signal is a breakout and close above the 20-day EMA. This would open the way for a potential upside move towards the 50-day SMA ($64,970). This move suggests that the range between $53,485 and $73,777 could continue for some time.
Ether Price Analysis
The bulls managed to retest the $2,850 support level for Ethereum (ETH) on July 8, indicating that the range remains intact.
The relief rally could reach the 20-day EMA ($3,245), a key resistance level to watch. If the price breaks below the 20-day EMA, the bears will try to push the ETH/USDT pair below $2,850. If they do, the pair could crash to $2,200.
Contrary to this assumption, if the price rises above the 20-day EMA, it signals that the pair may continue to fluctuate within a large range between $2,850 and $4,094 for a few more days.
BNB Price Analysis
On July 8, the bears pushed the BNB (BNB) price below the $495 support level, but the bulls successfully defended the $460 support level.
The BNB/USDT pair may reach the 20-day EMA ($548), which is likely to act as a strong resistance. If the price breaks down from the 20-day EMA, the bears will attempt to push the BNB/USDT pair below $460.
Conversely, a breakout and close above the 20-day EMA would signal the end of the correction phase. The pair could rally to the 50-day SMA ($593) and then to the strong resistance at $635.
Solana Price Analysis
On July 10, the bulls pushed Solana (SOL) above the 20-day EMA ($141), indicating that the bears were losing strength.
The SOL/USDT pair can rise to the 50-day SMA ($151), where the bears are expected to make a strong defense. If the price declines from the 50-day SMA, the bears will try to drag the pair down to $116.
Conversely, a breakout and close above the 50-day SMA would suggest higher levels of demand. The pair could then move up to the downtrend line. Buyers would need to push the price above the downtrend line to invalidate the developing descending triangle pattern.
XRP Price Analysis
The bears again attempted to push XRP (XRP) price below the $0.41 support level on July 8, but the bulls remained unshaken.
The XRP/USDT pair could rise to $0.46, in which case bears are likely to sell aggressively. If the price breaks down from the overhead resistance, the pair could consolidate between $0.41 and $0.46 for a while.
The downward moving average and RSI are in the negative territory, indicating that the bears are in the upper hand. If the price declines and falls below $0.41, it suggests a decline to $0.38 and eventually to $0.30.
Dogecoin Price Analysis
Dogecoin (DOGE) is trading below the $0.12 level, but the downtrend has yet to begin.
The DOGE/USDT pair can rise to $0.12, where bulls and bears are likely to witness a fierce battle. If the price plunges from $0.12, the pair can fall back to $0.09 and move between these two levels for a while.
Instead, if buyers push the price above $0.12, it suggests that the market has rejected the breakdown. The pair could then attempt a rally to the 50-day SMA ($0.14), which could act as a hurdle.
Toncoin Price Analysis
TON Coin (TON) bounced off the $6.77 support level on July 8, indicating that bulls were buying the decline to the support level.
A breakout and close above the 20-day EMA ($7.39) could open the door for a run to $7.72, followed by a run to the range resistance of $8.29. Sellers are expected to defend this level vigorously, as a breakout of this level would start the next phase of the uptrend.
On the downside, the $6.77 level is still a key level that bulls need to protect. If this level is broken, the selling could intensify as the TON/USDT pair completes a double top pattern. Then, the price could fall to $6 and later to $5.50.
Related: Why did the XRP price go up today?
Cardano Price Analysis
Cardano (ADA) will bounce from the support line of the descending channel and try to reach the resistance line on July 5th.
The bears will try to defend the resistance line, but if the bulls win, the ADA/USDT pair could start a strong recovery towards $0.50. The positive divergence of the RSI suggests that a short-term relief rally is possible.
This optimistic view will be invalidated in the short term if the price breaks below the 20-day EMA or resistance line. This will cause the price to stay inside the downtrend channel for a longer period of time.
Avalanche Price Analysis
The bears did not allow Avalanche (AVAX) to rise above the 20-day EMA ($27.14), but the positive sign is that the bulls did not give up much ground to the sellers.
The AVAX/USDT pair may rise to the 50-day SMA ($30.96), at which point the bears will try to stop the recovery. If the price falls from the 50-day SMA but finds support at the 20-day EMA, it suggests that sentiment is turning positive and traders are buying on the dips.
Contrary to this assumption, if the price declines from current levels, it will be a signal that the bears are still in control. A breakout and close below $21.80 will signal a resumption of the downtrend. The next support level is $19.
Shiba Inu Price Analysis
Shiba Inu (SHIB) has been hanging on the 20-day EMA ($0.000017) for the past few days, which indicates that the bulls are about to bounce back.
A break and close above the 20-day EMA could push the price up to the $0.000020 level. If the bears turn this level into resistance, the SHIB/USDT pair could retest the July 5 low of $0.000012. If this level is broken, the next stop is likely to be $0.000010.
Conversely, if buyers push the price above the 50-day SMA ($0.000020) and hold it, this would indicate that the correction is over. The bulls would then attempt to push the pair to $0.000026.
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.