“Bitcoin and altcoins are likely to remain under pressure for a few days but lower levels could attract buying.
United States Treasury Secretary Janet Yellen defended President Joe Biden’s latest massive spending package while speaking to Bloomberg. Yellen said it would be “a plus” for society even if it resulted in a higher interest rate environment.If rates inch higher, traders will explore the best possible options to hedge their portfolios. While gold is down about 2.5% year-to-date, Bitcoin (BTC) is still up 22% during the same period, even after the massive plunge in May.Bitcoin’s outperformance may not go unnoticed and several institutional investors are likely to make it a part of their portfolio along with gold. Daily cryptocurrency market performance. Source: Coin360London-based asset management firm Ruffer booked a profit of more than $1 billion on an investment of $600 million in Bitcoin. Ruffer’s investment director Hamish Baillie in an interview with The Times said the company bought in November and sold its “last tranche in April.” Baillie said institutional investors, including Ruffer, are likely to continue buying Bitcoin.This suggests that Bitcoin is likely to attract huge institutional interest at lower levels, which may act as a strong floor. The larger the purchases by institutions at lower levels, the higher the price is likely to rally during the next bull phase.Let’s analyze the charts of the top-10 cryptocurrencies to determine their next possible trending move.BTC/USDTBitcoin dropped to the trendline of the symmetrical triangle on June 5 but the bears could not break this support. The bulls successfully defended the trendline for the past two days and are attempting a rebound off it today.BTC/USDT daily chart. Source: TradingViewThe buyers will have to push the price above the resistance line of the triangle to gain the upper hand. If they manage to do that, the BTC/USDT pair could extend the relief rally to the 50-day simple moving average ($46,784).A breakout and close above the 50-day SMA will be the first indication that the downtrend could be ending.However, the downsloping moving averages and the relative strength index (RSI) in the negative territory suggest advantage to the bears. If the price turns down from the current level or the overhead resistance and breaks below the triangle, the pair could witness panic selling. That may pull the price down to the critical support zone at $30,000 to $28,000.ETH/USDTEther (ETH) turned down from the resistance line of the symmetrical triangle on June 4 but the shallow correction shows the bulls are buying on dips. The price has risen back above the 20-day exponential moving average ($2,743) and the bulls are challenging the resistance line of the triangle.ETH/USDT daily chart. Source: TradingViewIf buyers propel the price above the triangle and the 50-day SMA ($2,918), it will suggest the start of a rally to the 61.8% Fibonacci retracement level at $3,362.72. This level may act as stiff resistance but if the bulls arrest the next decline above the 20-day EMA, it will suggest the downtrend could be over.Contrary to this assumption, if the price turns down from the current level and slides below $2,550, the ETH/USDT pair could drop to the support line of the triangle. A bounce off this support could extend the stay of the pair inside the triangle.The first sign of weakness will be a break and close below the support line of the triangle. Such a move could clear the path for a decline to $2,180.53 and then $1,728.74.BNB/USDTBinance Coin (BNB) turned down from $433 on June 4 and the bears thwarted another attempt by the bulls to clear the resistance on June 5. This suggests the bears are aggressively defending the $433 level.BNB/USDT daily chart. Source: TradingViewAlthough the price traded below the 20-day EMA ($398) for the past two days, the bears could not sink the BNB/USDT pair to the trendline. This suggests that bulls may be regrouping to make another assault at the $433 level.If buyers succeed in driving the price above this resistance, the BNB/USDT pair could rally to the 50-day SMA ($492) and then to the 78.6% retracement level at $589.04.Alternatively, if the price turns down from the current level or the overhead resistance and drops below $365, the pair may correct to the trendline. A break below this support will suggest the bears are back in the game.ADA/USDT Cardano (ADA) turned down from $1.88 on June 3 but the bulls have not allowed the price to sustain below the 20-day EMA (1.67). This suggests the sentiment is turning positive and the bulls are buying on dips to the 20-day EMA.ADA/USDT daily chart. Source: TradingViewThe buyers will now have to push the price above $1.94 to gain the upper hand. If that happens, the ADA/UDST pair could rally to the all-time high at $2.47. A breakout and close above this resistance will suggest the start of the next leg of the uptrend.Contrary to this assumption, if the price turns down from the overhead resistance, it will suggest aggressive selling at higher levels. That could keep the pair range-bound between the 50-day SMA ($1.56) and $1.94 for a few days.The first sign of weakness will be a break below $1.33. That could open the doors for a further slide to $1.DOGE/USDTDogecoin (DOGE) had formed a Doji candlestick pattern on June 5 and 6 near the 20-day EMA ($0.37), indicating indecision among the bulls and the bears.DOGE/USDT daily chart. Source: TradingViewIf bears sink the price below $0.35, the DOGE/USDT pair could drop to the neckline of a large head and shoulders pattern. A breakdown and close below the neckline will be a huge negative as that could increase the possibility of a drop to $0.10.However, the moving averages are flat and the RSI is just below the midpoint, indicating a few days of range-bound action. If the price turns up from the neckline, the pair could rise to $0.47 and remain stuck between these levels for a few days.A breakout and close above $0.47 will be the first sign of strength. It will clear the path for a northward march toward $0.59.XRP/USDTXRP’s price is getting squeezed between the 20-day EMA ($1.03) and $0.88 for the past few days. The downsloping moving averages and the RSI below 44 indicate advantage to the bears.XRP/USDT daily chart. Source: TradingViewIf the price turns down from the current level or the 20-day EMA and breaks below $0.88, the XRP/USDT pair could drop to $0.79 and then to the May 23 low at $0.65.This negative view will invalidate if the bulls propel the price above $1.10. If that happens, the pair could rally to the 50-day SMA ($1.23) and then to the downtrend line. This is an important resistance to watch out for because a break above it will suggest the downtrend is over.DOT/USDTPolkadot (DOT) has been trading inside an ascending channel for the past few days. The altcoin is attempting to bounce off the trendline of the channel and rise above the overhead resistance at $26.50.DOT/USDT daily chart. Source: TradingViewIf that happens, the DOT/USDT pair could rise to the 50-day SMA ($31.68) and then to the resistance line of the channel. If the price turns down from the resistance line, the pair may continue to trade inside the channel.However, if the bulls thrust the price above the channel, the momentum could pick up. That will also suggest an end to the downtrend. Conversely, if the price turns down from the 20-day EMA or the 50-day SMA, it will suggest that traders are selling on rallies to the moving averages. A break below the trendline of the channel will increase the possibility of a drop to $18.41 and then to $15. UNI/USDTUniswap (UNI) turned down from the 20-day EMA ($27.64) on June 4 but the bulls did not allow the price to drop below $25. This suggests a positive sentiment because traders are not waiting for a deeper correction to buy.UNI/USDT daily chart. Source: TradingViewIf buyers thrust the price above the 20-day EMA and the overhead resistance at $30, the UNI/USDT pair could rise to the 50-day SMA ($32.79). This level may again act as a stiff resistance.However, if the bulls arrest the next decline at the 20-day EMA, it will suggest the sentiment has turned positive. That will enhance the prospects of a rally to the 78.6% retracement level at $38.15.This bullish view will invalidate if the price turns down and plummets below $21.50. Such a move will suggest the bears have overpowered the bulls.ICP/USDTInternet Computer (ICP) is struggling to rebound off the $103.71 support for the past two days, which indicates a lack of buyers even at these levels. This increases the likelihood of a break below the support.ICP/USDT daily chart. Source: TradingViewIf that happens, the ICP/USDT pair could drop to the all-time low at $86.01. This is an important support to watch out for because if this level cracks, the pair could extend its decline to $60.The negative view will invalidate if the price turns up from the current level and rises above $120. That will indicate strong buying at lower levels. A break above $136.60 could open the door for a rally to $168.BCH/USDTBitcoin Cash (BCH) is currently trading between the downtrend line and the support at $616.04. The downsloping 20-day EMA ($747) and the RSI in the negative zone suggest bears have the upper hand.BCH/USDT daily chart. Source: TradingViewIf the price dips below the $616.04 support, the bears will try to pull the price down to the May 23 support at $468.13. This is an important support to watch out for because if it cracks, the decline could extend to $400.Conversely, if the price turns up from the current level and breaks above the 20-day EMA, it will suggest buyers are attempting to make a comeback. The BCH/USDT pair could then rally to the 50-day SMA ($930).The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.Market data is provided by HitBTC exchange.”
Source: Cointelegraph.com News