The crypto markets have been in a strong bear phase for the past several months but JPMorgan Chase analysts expect that to change and they have projected a significant upside from the current levels. The analysts cited the rising share of all stablecoins in the total crypto market for their bullish outlook.
Unperturbed by the current fall, retail traders have been adding Bitcoin (BTC) to their portfolios. The number of wallet addresses holding one Bitcoin surged by 13,091 to a record high of 865,254. Similarly, the number of addresses holding about 0.1 Bitcoin has also witnessed a sharp rise in the past 10 days, according to data from Glassnode.
Bitcoin’s sharp recovery from the June 18 fall shows strong buying at lower levels and according to Whalemap, this has led to the formation of a new “whale level,” which may act as short-term support.
Could the recovery in Bitcoin and major altcoins continue in the near term? Let’s study the charts of the top-10 cryptocurrencies to find out.
Bitcoin plunged below $20,000 on June 18 but made an equally sharp recovery on June 19, indicating aggressive buying at lower levels. If bulls sustain the price above $20,000, it could improve sentiment and attract more buyers.
The BTC/USDT pair could first rise to the 38.2% Fibonacci retracement level of $23,024 and then to the 20-day exponential moving average (EM($24,890). The bears are likely to defend this zone with all their might.
If the price turns down from this zone, the sellers will make another attempt to pull the pair below $20,000. A break and close below $17,622 could start the next leg of the downtrend.
Alternatively, if buyers push the price above the 20-day EMA, it will signal a potential change in trend. The pair could then rally to the 50-day simple moving average (SMA) ($29,386) where the bears may mount a strong defense.
Ether (ETH) plummeted below the psychological level of $1,000 on June 18, which suggests that the downtrend remains intact. A minor positive is that the bulls purchased the dip as seen from the long tail on the day’s candlestick.
The buyers sustained the momentum on June 19 and pushed the price back above $1,000. The ETH/USDT pair could rise to $1,250 and later to the 20-day EMA ($1,429). This remains the critical resistance to watch out for.
If the price turns down from the current level or the 20-day EMA, it will suggest that the bears are active at higher levels. The sellers will then try to pull the pair to the June 18 intraday low of $881. A break and close below this level could signal the resumption of the downtrend.
BNB broke and closed below the strong support at $211 on June 18 but the bears could not build upon this advantage. This suggests that lower levels continue to attract buyers.
The bulls pushed the price back above the breakdown level of $211 on June 19. If buyers sustain this level, it will suggest that the breakdown on June 18 may have been a bear trap.
If bears rush to cover their positions, it could cause a short squeeze and push the BNB/USDT pair toward the 20-day EMA ($251). If bulls overcome this barrier, the pair could rise to the 50-day SMA ($297).
Contrary to this assumption, if the price turns down from the current level and breaks below $211, it will suggest that bears are selling on minor rallies. The bears will then try to sink the pair below $183 and resume the downtrend.
The bulls once again successfully defended the $0.44 to $0.40 zone on June 18. That started a recovery in Cardano (ADA), which has reached the 20-day EMA ($0.52).
If bulls drive the price above the moving averages, the ADA/USDT pair could rise to the overhead resistance zone between $0.70 and $0.74. The bears are likely to defend this zone with all their might.
If the price turns down from it, the pair could remain stuck in a wide range between $0.40 and $0.74 for a few days. The next trending move could begin after bulls push the price above $0.74 or bears pull the pair below $0.40.
Ripple (XRP) slipped below $0.29 on June 18 but the bears could not capitalize on the advantage. This suggests that selling dries up at lower levels.
The bulls may attempt to push the price to the overhead resistance zone between the 20-day EMA ($0.35) and the breakdown level of $0.38. The bears are likely to defend this zone aggressively but if bulls bulldoze their way through, the XRP/USDT pair could rally to the overhead resistance at $0.46.
This positive view could invalidate if the price turns down from the…