The bears lost an opportunity when they failed to hold Bitcoin (BTC) below the $25,000 level this week. This may have attracted buying from bulls trying to start a recovery in Bitcoin and picking altcoins.
Additionally, BlackRock’s bid to launch an exchange-traded fund at the spot price of Bitcoin and continued strength in US equity markets may have helped improve crypto sentiment. Bitcoin is on track to end the week with a minor 2% gain and institutional buying in the Grayscale Bitcoin Trust has reduced its Bitcoin spot rebate from 44% on June 13 to 36.6%, according to data from CoinGlass .
Although Bitcoin and some altcoins are trying to start a relief rally, the overall trend remains bearish. Therefore, short-term traders buying for a pullback should consider booking profits or tightening their stops when price struggles to break above high resistance levels.
The strategy may be different for long-term investors who may use dips at high support levels to acquire cryptocurrencies of their choice. It is prudent to take a ladder buying approach as an out of control rally is unlikely.
Let’s take a look at the top 5 cryptocurrencies trying to start a short-term recovery.
bitcoin price analysis
Bitcoin rose sharply on June 15, trapping aggressive bears who may have missed a break below $25,250. This may have caused a short short-term squeeze, which propelled the price to the 20-day exponential moving average ($26,403).
The bears are trying to limit the relief rally during the 20-day EMA, but a positive sign is that the bulls haven’t given much ground. This suggests that buyers are holding their positions in anticipation of an upward move.
However, the bears are likely to have other plans as they will try to offer strong resistance in the area between the 20-day EMA and the descending channel resistance line. If the price drops from this area, the BTC/USDT pair may stay inside the channel for a while longer.
But if the bulls push the price above the channel, the pair will signal a potential short-term trend change. The pair could then jump towards $31,000.
The 20-EMA on the 4-hour chart has risen and the Relative Strength Index (RSI) is in the positive zone, indicating that the bulls have the upper hand in the short term. There is a minor resistance at $26,850 but if it is broken, the pair can reach the channel resistance line near $27,600. This level may prove to be a tough hurdle for the bulls to clear, but if they get there, the pair could hit $28,500.
This positive view will be invalidated in the short term if the price declines and breaks below the 20-EMA. This could push the price down to the 50 simple moving average and possibly the strong support zone between $25,250 and $24,800. A break below this zone could intensify selling.
BNB Price Analysis
BNB (BNB) has been in the thick of the action for the past few days, but a positive sign is that the bulls have not allowed the price to break the $220 support. This indicates requests at lower levels.
The first upside resistance is the 38.2% Fibonacci retracement level at $252.50. If this level is scaled, the BNB/USDT pair could reach the 20-day EMA ($261). The bears will try to stop the recovery at this level. If they succeed, the pair may drop towards $220.
On the contrary, if the bulls propel the price above the 20-day EMA, the pair could reach the 61.8% Fibonacci retracement level of $272.50. This is a crucial level for bears to defend as if it gives way, the pair could rise towards $305.
The 4-hour chart shows that the moving averages have completed a bullish crossover and the RSI has moved into the positive zone. This indicates that buyers are attempting a return. The bulls will need to breach the barrier at $252.50 to gain strength. The pair could then rally to $265.
On the other hand, the first support is at the 20-EMA. If this level breaks down, the pair could slide towards the uptrend line. A breakout and close below this level will indicate that the bulls have given up. The pair could then retest the critical support at $220.
Litecoin Price Analysis
Litecoin (LTC) dipped below the symmetrical triangle pattern on June 10, indicating that the bears have the upper hand. The sellers pulled the price below the immediate support at $75 on June 14, but could not build on that move.
The strong rally in recent days pushed the LTC/USDT pair back above $75. This shows strong buying at lower levels. The bulls will then try to push the price to the 20-day EMA ($82), which is an important level to watch. If the buyers break through this hurdle, the pair could hit the 50-day SMA ($86).
Contrary to this assumption, if the price declines from the current level or the 20-day EMA and breaks below $70, this will signal the start of the downtrend. The first stop is likely to be $65, then $60.
The strong rally has pushed the price above the 20-EMA on the 4-hour chart, suggesting selling pressure is easing. The moving averages are about to complete a bullish crossover and the RSI has jumped into positive territory, indicating that the buyers are attempting a comeback.
There is minor resistance at $80 but if the bulls overcome this hurdle, the pair may accelerate to $85 and then to $90. If the bears want to prevent the rise, they will have to quickly bring the price back below $75.
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OKB price analysis
OKB (OKB) broke below the symmetrical triangle pattern on June 10, signaling the start of a deeper correction. A small bright spot for the bulls is that they managed to defend the support at $30.50, indicating demand at lower levels.
The price has reached the 20-day EMA ($42.73), which is an important level to watch. If the price is falling from the current level, it will suggest that sentiment remains negative and traders are selling on rallies. This could pose a serious threat to the support at $38.50. If this level gives way, the OKB/USDT pair could slide to $35 and possibly $30.
On the contrary, if the buyers push the price above the 20-day EMA, it will suggest that the bears might lose their grip. The pair could then move up to the support line, which is likely to act as formidable resistance. Buyers will need to drive the price above $48 to gain the upper hand.
The pair rebounded from $38.50 with vigor but is facing resistance near $42.39. A small bright spot in favor of the bulls is that the moving averages have completed a bullish crossover and the RSI is in positive territory.
If the buyers push the price above $42.39, the pair could gain momentum and rise to $46, where the bears should once again mount a strong defense.
Another possibility is that the price goes down and falls below the 20-EMA. This may indicate possible action between $38.50 and $42.39 for some time.
Quantitative price analysis
Quant (QNT) rebounded from the $95 level with strength on June 16, indicating aggressive buying at the support.
However, the bears have not given up yet and are fiercely defending the downtrend line. The sellers will try to drive the price down below $95 while the bulls will try to hold the QNT/USDT pair above.
If the price rallies from $95, it will improve the outlook for a rally above the downtrend line. If that happens, the pair could start a strong rally that could propel the price to $135.
This positive view could be invalidated in the short term if the price continues to decline and drops below $95. The pair can then slide to $87 and then to $80.
The 4-hour chart shows that the pair has quickly given back much of its gains, indicating that the bears are active at higher levels. They pulled the price below the 61.8% Fibonacci retracement level of $103.90, which is a negative sign.
Buyers will need to quickly pull the price back above the moving averages if they want to attempt the downtrend line again. Alternatively, if the price holds below the 50-SMA, the likelihood of a drop to $95 increases.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
This article is for general informational purposes and is not intended to be and should not be considered legal or investment advice. The views, thoughts and opinions expressed herein are those of the author alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.