Bitcoin (BTC) is down from a mid-week high of around $72,000, but bulls are trying to keep the price above $69,000. Bitcoin is set to end the week with marginal gains of just over 2%. Although Bitcoin failed to overcome overhead resistance, buyers still held on.
About $1.7 billion flowed into spot Bitcoin exchanges this week, according to data from Farside Investors. This brings total investments in spot Bitcoin ETFs to $15.5 billion as of June 6. This strong buying suggests that traders expect the uptrend to continue.
However, Bitcoin fell on June 7, which caused several altcoins to decline. Trader Daan Crypto Trades said in an The decline does not appear to have unnerved investors. QCP Capital believes Bitcoin and Ethereum are likely to form local lows as the Federal Reserve’s upcoming actions could benefit risk assets.
Can Bitcoin stay above $69,000 and begin a recovery? Will altcoins go higher? Let’s take a look at the top five cryptocurrencies that are showing strength on the charts.
Bitcoin Price Analysis
Bitcoin declined sharply from minor resistance at $72,000 on June 7, indicating that bears remain active at higher levels.
Bears are finding support at the 20-day exponential moving average ($68,603), which suggests bulls continue to see dips as a buying opportunity. If the price rebounds strongly from the 20-day EMA, bulls will again try to push the BTC/USDT pair down to the overhead resistance at $73,777. A break above this resistance and a closing price could potentially open the door to a rise to $80,000 and $88,000.
Related: Bitcoin volatility is hovering within 6% of its all-time low.
Conversely, if the price falls below the 20-day EMA, it is a sign that the uptrend has been abandoned. This could push the price up to the 50-day simple moving average ($65,807).
Bitcoin has been trading between $66,500 and $72,000 for some time. As the price failed to move above the overhead resistance, a retracement began and is trying to find support near $69,000. Buyers will need to hold the price above the 20-EMA to improve the rally prospects towards $72,000.
On the downside, a close below $68,420 would favor a near-term downtrend. The pair could then plummet to the strong support level of $66,500.
BNB price analysis
BNB (BNB) began a correction starting at $722 on June 6, indicating profit booking by short-term traders. An important support level to watch on the downside is the 20-day EMA ($639).
If the price bounces back with strength from the 20-day EMA, it means sentiment is still positive and traders are buying dips. This increases the chances of the upward trend resuming. The BNB/USDT pair could then move up to the pattern target of $775.
This positive view will be invalidated in the near term if the price continues lower and falls below the breakout level of $635. This can trap an aggressive uptrend and pull it towards an uptrend line.
The bears pulled the price below the 20-EMA, but were unable to extend the decline to the 50-SMA. This means the sale will close at a lower level. The bulls will try to push the price back above the 20-EMA. If that happens, the pair could rise to $695 and then $722.
Alternatively, if the price falls from the 20-EMA, it would be a signal that the bears are about to move towards the resistance level. The pair may then fall towards the 50-SMA. If a crack occurs, the next stop could be at $635, so this is an important support to watch out for.
Toncoin price analysis
The bulls’ repeated failure to keep Toncoin (TON) above the resistance level of $7.67 may have tempted short-term traders to book profits.
A positive sign is that the bears are finding support at the 20-day EMA ($6.80). If the price rises from current levels, bulls will again attempt to overcome the $7.67 barrier. If successful, the TON/USDT pair is likely to accelerate towards the psychological level of $10.
Conversely, if the price breaks below the 20-day EMA by falling from current levels or overhead resistance, it would suggest that the bulls are rushing for the exit. The price could then drop to $6.
TON/USDT fell below the 50-SMA, but buying continued at lower levels. The bulls will try to push the price up to the overhead resistance of $7.67. A breakout and close above this level could begin the next phase of the uptrend.
The key level to watch during a downtrend is the rising trend line. A breakdown of this support would signal the start of a deeper correction. The pair is likely to find support in the $6-$6.26 area.
Filecoin price analysis
Filecoin (FIL) has been consolidating between $5 and $6.77 for several days, indicating that bulls are trying to form a base.
The bulls tried to push the price above the overhead resistance line of June 7, but the long wicks of the candlesticks show that the bears are fiercely defending the resistance line. A positive sign in favor of buyers is that a downtrend has been captured in the moving average. If the price rises from the current level and goes above $6.77, it would mean the start of a new upward movement. The FIL/USDT pair may rise to $8.54 and then to $9.35.
Contrary to this assumption, if the price falls sharply due to overhead resistance, this means that the pair could spend more time within that range.
Looking at the 4-hours chart, we see support at the 50-SMA after falling from the overhead resistance of $6.77. A rising 20-EMA and RSI in positive territory indicate an advantage for buyers. There is a small resistance at $6.50, but if this level is extended, the pair could retest the resistance at $6.77.
The bears likely have other plans. They will try to drive the price below the 50-SMA. If that happens, the pair could fall to $5.60 and later to $5.48.
Injection Pricing Analysis
Injective (INJ) formed an ascending triangle pattern, completing on the break and closing above $29.93.
The 20-day EMA ($26.15) has started to gradually rise and the RSI has jumped into positive territory, suggesting that the bulls have a slight advantage. If buyers overcome the $29.93 barrier, the INJ/USDT pair will gain momentum and surge up to $36.50, eventually reaching the pattern target of $41.74.
This optimistic view will be invalidated in the near term if the price declines and falls below the support line. The pair could then fall to $18.
Looking at the 4-hour chart, we can see that the bulls rose above the indirect resistance of $29.93, but were unable to sustain the breakout. This shows that the bears are aggressively selling above $29.93. The price declined and fell below the 20-EMA, but quickly bounced back from the 50-SMA.
Bulls will again try to overcome the resistance area between $29.93 and $31. If they do so, the pair will likely start a new uptrend. A decline below the 50-SMA will give bears the upper hand.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.