Most major cryptocurrencies are stuck in a range suggesting a balance between supply and demand.
Kraken crypto exchange CEO Jesse Powell has said that a large number of both retail and institutional investors have opened accounts with them. This shows that all types of investors are concerned about the current economic condition, hence they have been diversifying their portfolio using cryptocurrencies. The influx of institutional money is a positive sign because it will give confidence to the other institutions to take the plunge.
WisdomTree Investments, a New York-based asset manager has sought approval to launch an exchange-traded fund that plans to invest about 5% of its net assets in cash-settled Bitcoin (BTC) futures and the rest in four commodity sectors. If the ETF receives the regulatory nod, it would be a huge positive.
Daily cryptocurrency market performance. Source: Coin360
For the past few days, the S&P 500 has been rising but BTC, the top-ranked cryptocurrency on CoinMarketCap, has stalled. PlanB, the creator of the stock-to-flow model, said that both assets are highly correlated but their current performance is showing a large divergence in the short-term. Hence, he anticipates either the stock market to correct or Bitcoin to rally.
Bitcoin (BTC) has been facing stiff resistance at the 20-day exponential moving average ($9,476) for the past few days. The flat 20-day EMA and the RSI just below the 50 level suggest that the bulls are losing their grip.
BTC/USD daily chart. Source: Tradingview
If the bears sink the price below the trendline of the developing ascending triangle pattern, a drop to $8,638.79 and then to $8,130.58 is likely. If the price rebounds off this strong support, the BTC/USD pair might remain range-bound for a few days. However, if the pair slips below $8,130.58, it would be a huge negative.
On the other hand, if the bulls can scale the price above the 20-day EMA, a move to $10,000 is possible. A breakout of the $10,000–$10,376.38 zone will complete the bullish ascending triangle pattern that has a target objective of $11,869.42.
Ether (ETH) is currently consolidating between $225.873 and $239.35. The 20-day EMA ($232) has flattened out and the RSI is close to the midpoint, suggesting a balance between supply and demand.
ETH/USD daily chart. Source: Tradingview
A break below $225.783 and the 50-day simple moving average ($219) will tilt the advantage in favor of the bears. The next support on the downside is $196.875 and then the critical level of $176.112.
Conversely, if the second-ranked cryptocurrency on CoinMarketCap rebounds off the current level and breaks out of $239.35, a move to $253.55 is possible. Above this resistance, the momentum is likely to pick up and the next level to watch out for is $288.599.
While in a range, it is difficult to predict which way the breakout will happen. Therefore, it is best to wait for the price to start a trending move before initiating any trades.
XRP has dipped to the support line of the symmetrical triangle. The downsloping 20-day EMA ($0.195) and the RSI in the negative territory suggest that bears have the upper hand.
XRP/USD daily chart. Source: Tradingview
If the altcoin breaks and closes (UTC time) below the triangle, the bears will try to drag the price to $0.162 and then to $0.144.
This bearish view will be invalidated if the fourth-ranked cryptocurrency on CoinMarketCap turns around from the current levels and breaks out of the downtrend line of the triangle. A close (UTC time) above the triangle can push the price to $0.214616 and then to $0.235688.
Bitcoin Cash (BCH) turned down from the moving averages on June 17. The bears are currently attempting to sink the price to the support at $217.55. If this support cracks, the decline can extend to $200.
BCH/USD daily chart. Source: Tradingview
Conversely, if the fifth-ranked cryptocurrency on CoinMarketCap turns up from the current levels, the bulls will try to push it back above the moving averages. If successful, a move to $255.46 is possible.
If the BCH/USD pair turns down from this level, the range-bound action is likely to extend for a few more days. However, if the bulls can propel the pair above $255.46, a rally to $280.47 is likely. This is a critical resistance because above this, the rally can extend to $350.
The bears are attempting to sink Bitcoin SV (BSV) below the $170–$165.380 support zone. The 20-day EMA ($183) is sloping down and the RSI has drifted below the 40 level, which suggests that bears have the upper hand.
BSV/USD daily chart. Source: Tradingview
Although a fall to the support of a large range is usually a good level to buy, traders should wait for the price to rebound before initiating any long positions because, on the way down, there is a risk that the support might not hold.
A break below the support zone will indicate that the bears have overpowered the bulls. The next support on the downside is $146.2 and if that also breaks, the decline can extend to $120.
Conversely, if the sixth-ranked cryptocurrency on CoinMarketCap rebounds off the current levels and breaks above the moving averages, it will increase the possibility of a rally to $200 and then $227.
The bears again defended the moving averages on June 19. If Litecoin (LTC) breaks below $41.7326, a drop to the support at $39 is possible. This is a critical level to watch out for because if it breaks, the next support is at $32.50.
LTC/USD daily chart. Source: Tradingview
However, if the seventh-ranked cryptocurrency on CoinMarketCap rises from the current levels and breaks above the moving averages, the bulls will attempt to carry it to the resistance at $51.
If the LTC/USD pair turns down from this level, a few more days of range-bound action is likely. However, if the bulls can propel the price above $51, the momentum is likely to pick up with the next target objective being $64.
Binance Coin (BNB) has again dropped to the support of the $15.72–$18.1377 range. Repeated retests of a support level tend to weaken it. The downsloping 20-day EMA ($16.70) and the RSI in the negative territory suggest that bears have the upper hand.
BNB/USD daily chart. Source: Tradingview
If the eighth-ranked crypto-asset on CoinMarketCap breaks below the $15.72–$15.40 support, a drop to $13.65 is possible.
Conversely, if the BNB/USD pair rebounds off the current levels and breaks above the moving averages, a rally to $18.1377 is possible. A breakout of this resistance can attract buyers who can push the price to $21.50.
EOS has again turned down from just below the moving averages. The 20-day EMA ($2.61) is gradually sloping down and the RSI is in the negative territory, which suggests that bears have a slight advantage.
EOS/USD daily chart. Source: Tradingview
The bears will now try to sink the ninth-ranked cryptocurrency on CoinMarketCap to the critical support at $2.3314. A breakdown of this support will be a negative sign and could result in a new downtrend.
Conversely, if the EOS/USD pair rises from the current levels and breaks above the moving averages, it can reach $2.8319. This level has been acting as stiff resistance for the past few weeks. If the pair again turns down from this resistance, a few more days of range-bound action is likely.
On the other hand, if the bulls can push the price above $2.8319, a rally to $3.1104 is possible.
The bears are attempting to stall Cardano’s (ADA) rally at $0.085. However, the positive thing is that they have not been able to break the price below the 20-day EMA ($0.077), suggesting demand at lower levels.
ADA/USD daily chart. Source: Tradingview
If the bulls can carry the price above $0.085, the 10th-ranked cryptocurrency on CoinMarketCap can reach the recent highs at $0.0901373. A breakout of this resistance will signal resumption of the uptrend.
This bullish view will be invalidated if the ADA/USD pair slips and sustains below the 20-day EMA. Such a move can drag the pair to $0.069488 and if this support gives way, the next level to watch out for is the 50-day SMA ($0.064).
Crypto.com Coin (CRO) has reached close to the overhead resistance of $0.118234. Both the upsloping moving averages and the RSI near the overbought territory suggest that bulls have the upper hand.
CRO/USD daily chart. Source: Tradingview
If the bulls can push the price above $0.118234, the uptrend is likely to resume. The first target objective is $0.135202 and if this resistance is scaled, the rally can extend to $0.15306.
However, if the 11th-ranked cryptocurrency on CoinMarketCap turns down from $0.118234, it could get stuck in a range for a few days. The first sign of weakness would be a break below $0.101266.
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.