As there is an ease in the lockdown phase, the following months perceive potential to a second wave of infections due to coronavirus. This creates a risk that the current market recovery will begin to recede. This can be an opportunity for investors and traders to invest at lower levels. Let's have a look at the price analysis of the top cryptocurrencies of CoinMarketCap.
BITCOIN / U.S. DOLLAR
Price Analysis
Bitcoin witnesses a huge sell wall at the resistance line of the symmetrical triangle. Bears have strongly mounted themselves at the $10,000 resistance level. The bulls failed to sustain the price in the upper half region of Bollinger Bands as BTC closed below its moving averages yesterday. Bitcoin could only make a high of $9684 and closed the price at $9312 on Wednesday, 24th June 2020. Bulls bought the dip slightly above the lower Bollinger Band at a low of $9212 yesterday. Short-term traders closely watch out for the trendline of the symmetrical triangle at $9100 as a fall below it will lead to a decline to lower levels where they could buy the asset again.
Key points to watch out for:
Bulls need to increase the price momentum above BTC's 20-day EMA and the basic line of BB to retest the $10,000 - $10,500 resistance range before rallying towards $12,000.
The trendline of the ascending triangle is acting as important support at $9100. If bears take over and push BTC below it, we can expect a sharp decline towards $8100.
Indicators
The moving average convergence divergence (MACD) has begun to slightly increase its deceleration. The MACD line was almost touching the signal line but sloped down a bit yesterday due to selling by bears indicating negative momentum. MACD is trending above the 0 level indicating the market is still in the hands of bulls.
The relative strength index (RSI) has turned bearish by sloping down to 47 which might result in a downward divergence in the next few days.
ETHEREUM / U.S. DOLLAR
Price Analysis
Ethereum seems to maintain the battle between bulls and bears strongly. The bears are trying to push Ether down to lower levels, but the bulls successfully bought the dip and closed the price just before the 20-day exponential moving average (EMA). The bulls could only push Ether just below the aggressive resistance level of $250, as seen in the daily chart below. ETH made a high of $249.7 and closed at $234.7 on Wednesday, June 24. The bulls bought the low from $230.9 yesterday. Ethereum faces a decent balance between the supply and demand levels. If bulls successfully push Ether above the upper Bollinger Band, ETH will witness higher levels otherwise it will remain range-bound within the Bollinger Bands in the upcoming days.
Key points to watch out for:
Bulls need to keep ETH above its 20-day EMA and the 20-day basis line of BB and increase the price momentum to retest $250 and $253 before rallying towards $277.
If bears takeover and push ETH below the lower BB at $244, it will test the next support at its 50-day MA at $222. If this support fails, we can expect ETH to decline towards $196.
Indicators
MACD began to slightly increase its deceleration indicating a negative price momentum. The MACD line had sloped up towards the signal line but turned away yesterday due to selling by the bears. MACD is trending above 0 confirming that the market is still in the hands of bulls, but needs more positive momentum to start a bullish trend.
RSI has sloped down to 52, indicating bulls have tried their best to save its bullish divergence.
RIPPLE / U.S. DOLLAR
Price Analysis
Ripple turns completely bearish as the price falls below its symmetrical triangle support. All the moving averages and the basis of Bollinger Bands are sloping down. The bulls have a strong struggle to face as there are many resistance levels on the upside. XRP could only make a high of $0.190 and closed the day's candle at $0.183 with a low of $0.181 on Wednesday, 24th June 2020. Ripple is trading entirely in the hands of bears and more downtrend can be expected in the upcoming days. Only if bulls take the price above the basis of Bollinger Bands, can we see some possible recovery.
Key points to watch out for:
Bulls need to apply strong positive momentum to push XRP above the symmetrical triangle support at $0.186. The next resistance level will be faced at its 20-day EMA at $0.192, followed by its 20-day basis line of BB at $0.193 and then its 50-day MA at $0.198.
If bears push XRP below the lower BB at $0.180, we can see a sharp decline to $0.175 or below.
Indicators
MACD is still trending in the negative area below the 0 level. The MACD line is below the signal line indicating bearish momentum.
Similarly, RSI has turned even more negative, sloping down to 37 indicating bearish divergence. Ripple seems to be taken over by bears strongly.
LITECOIN / U.S. DOLLAR
Price Analysis
Litecoin is being rejected again and again from its moving averages for 2 weeks now. Both the 20-day basis of Bollinger Bands and 20-day exponential moving average (EMA) are gradually sloping down. Bulls need to sustain the price momentum inside the Bollinger Bands, otherwise, LTC will witness a sharp decline to its major support as the bears are having some advantage currently. Bulls have strongly mounted themselves at the $39 support level since April, but if this level is broken, Litecoin will completely go in the hands of bears. Bulls need to increase the price momentum strongly and push LTC in the upper half of the Bollinger Bands to witness higher levels. Litecoin made a high above its moving averages and basis of BB at $44.7 but closed below them at $42.6 with a low of $42.1 on Wednesday, 24th of June 2020.
Key points to watch out for:
Bulls need to push LTC above its 20-day EMA at $44, facing next resistance at the convergence of its 50-day MA and the 20-day basis line of BB at $44.6. Only if LTC enters the upper half of BB, it will test the $47 resistance level before rallying towards $51 resistance.
If bears push LTC below the lower BB at $41, we will see a sharp decline to the $39 support level.
Indicators
MACD has increased its deceleration showing negative momentum. The MACD line was positively correcting itself until it sloped away from the signal line due to selling by bears yesterday. MACD still remains below the 0 level indicating a bearish Litecoin market.
RSI also indicates bearish divergence as it has sloped down to 42.8 level.
BITCOIN CASH / U.S. DOLLAR
Price Analysis
Bitcoin Cash tried rising above its moving averages but failed to sustain its rising momentum as it closed much below its 20-day exponential moving average (EMA). The bulls are struggling to sustain the price momentum above the moving averages as the 50-day moving average (MA) is acting as a strong resistance level since 2 weeks, as seen in the daily chart below. The bears are trying to pull the price down to lower levels and will succeed if they break the important support of $217 that has been holding since the month of April 2020. Bulls tried to push BCH to the upper half of Bollinger Bands making a high of $245 but closed with a negative bias at $232.8 with a low of $229 on Wednesday, 24th June 2020.
Key points to watch out for:
If bulls are able to push and sustain BCH above its 20-day EMA at $239 and its 20-day basis line of BB at $242, we can see it retest the $255 - $258 resistance range before rallying towards $280.
If bears push BCH below the lower BB at $224, it will test $217, followed by $200 at the lower support levels.
Indicators
MACD develops negative momentum as its deceleration increases and is still trending below 0. The MACD line has turned down bearish indicating BCH is in the hands of bears.
The RSI has also sloped down to 43.9 indicating a bearish divergence.
