Crypto markets are closely watching Bitcoin (BTC) trade near $31,000, as it is seen as an important resistance level. Analysts expect an upside breakout in Bitcoin, as institutional investors seem to be positive about the prospects of a further rally. CoinShares head of research James Butterfill recently reported that 98% of all the digital asset inflows of $334 million went into Bitcoin-related products.
Investors should stay cautious due to the uncertainty regarding macroeconomic issues. The crypto markets are likely to be influenced by the United States inflation figures and the Federal Reserve’s monetary action over the next few weeks. To understand the near-term support levels on Bitcoin and altcoins that need to hold for the recovery to continue, let’s study the charts of the top 10 cryptocurrencies.
Bitcoin price analysis
Bitcoin pushed past the $31,000 mark on July 3, however, the bulls failed to capitalize on this momentum. This indicates that the bears are still in the game.
The 20-day exponential moving average (EMA) of $29,673 is a key level to keep an eye out for. If the crypto currency rebounds from this point, it will demonstrate that the bulls are buying on the dips.
This could lead to a break above the $31,000 to $31,432 resistance zone. The BTC/USDT pair could then move up to $32,400, where the bears may put up a strong fight.
This optimistic outlook will be invalidated in the near future if the price reverses and dips below the 20-day EMA. This could cause the pair to plunge to the 50-day simple moving average (SMA) of $27,849.
Ether price analysis
Ether (ETH) turned down from the overhead resistance at $2,000, showing that the crypto bears are actively protecting the level.
The bears would have to push and maintain the price below the moving averages to indicate that the ETH/USDT pair could remain in consolidation between $2,000 and $1,626 for a while.
On the other hand, if the price bounces off the 20-day EMA ($1,876), it would suggest that the sentiment has become positive and traders are buying the dips. This could increase the chances of a break above $2,000. The pair could then surge to the $2,142 to $2,200 resistance zone.
BNB price analysis
On July 3, buyers attempted to push BNB’s (BNB) recovery beyond the 20-day EMA ($245), but the bears sold aggressively near the 38.2% Fibonacci retracement level of $252.
The price fell back below the 20-day EMA on July 4, showing that the bears remain active at higher levels. The flat 20-day EMA and the RSI in the negative territory suggest that the BNB/USDT pair may continue to fluctuate between $257 and $220 for a few more days.
Alternatively, if the price rises from the current level and breaks above $257, it will suggest that the sentiment is gradually improving and the crypto bulls are buying the dips. The positive momentum could gain traction after buyers thrust the price above the $257 to $265 resistance zone.
XRP price analysis
The bears have prevented the bulls from pushing and sustaining XRP (XRP) above the moving averages, indicating that higher levels still bring sellers.
The bears will attempt to increase their power by pushing the price below the immediate support at $0.44. If they succeed, the selling may intensify and the XRP/USDT pair could drop to the strong support at $0.41.
The first sign of strength will be a break and close above the moving averages. This could pave the way for a possible rally to the $0.56 to $0.59 resistance zone, where the bears are expected to put up a strong defense.
Crypto investors should keep an eye on the crypto.com and voyager crypto platforms for the latest news and updates on the XRP crypto currency.
Cardano price analysis
The crypto currency market’s narrow range trading in Cardano (ADA) was broken on July 5, indicating that the short-term bulls have taken their profits.
If the price remains below the 20-day EMA ($0.29), bears may try to push the ADA/USDT pair to $0.26. This could mean that the pair could stay in the range of $0.30 to $0.24 for a few more days.
On the other hand, if the price turns up from the current level and breaks above $0.30, it will signal the start of a sustained recovery. There might be a minor pit stop at the 50-day SMA ($0.32), but it is likely to be crossed. If this happens, the pair could surge toward $0.38.
Dogecoin price analysis
The bulls attempted to push and sustain Dogecoin (DOGE) above the overhead resistance of $0.07 on July 4, but the bears stayed strong.
The 20-day EMA ($0.07) has started to turn up gradually, while the RSI has dipped to the midpoint, showing that the positive momentum may be weakening. If the crypto currency drops and stays below the 20-day EMA, it will suggest that the DOGE/USDT pair may remain within the range between $0.06 and $0.07.
If bulls want to gain the upper hand, they will need to propel and maintain the price above $0.07. This could initiate a recovery in the pair that could reach $0.08 and then $0.10.
Solana price analysis
On July 4, the bears were seen protecting the level of Solana (SOL) with a long wick, preventing the price from dipping below the immediate support at $18.70. The bulls have the upper hand as the 20-day EMA ($17.87) is turning up and the RSI is in the positive territory.
The crypto bulls will try to break the downtrend line. If successful, the SOL/USDT pair could surge to $22 and then to $24.
On the other hand, if the pair moves lower and breaks below the moving averages, it could be the start of a deeper correction. The crypto currency could then fall to the strong support zone between $16.18 and $15.28.
Litecoin price analysis
Litecoin (LTC) has encountered a sharp decline from the overhead resistance of $115 and declined below the breakout level of $106, indicating the commencement of a corrective phase.
The 50% Fibonacci retracement level of $98 is a key support level to keep a close watch on. If there is a strong bounce from this level, it will be a positive sign, as it will demonstrate that traders are buying on dips. This will enhance the probability of a retest of $115. If this resistance is breached, the LTC/USDT pair may continue its upsurge towards $136.
On the other hand, if the price breaks below $98, it could mean that short-term traders may be closing their positions. The pair may then plunge to the 20-day EMA ($94). A deeper correction is likely to delay the resumption of the uptrend.
Polygon price analysis
On July 3, crypto traders drove Polygon (MATIC) above the overhead resistance of $0.69, forming a bullish ascending triangle pattern.
However, the bulls couldn’t keep the higher levels and the bears pulled the price back below the $0.69 breakout level.
If the price bounces off the current level and rises above $0.72, it could indicate the start of a new up move. The MATIC/USDT pair could then climb to the pattern target of $0.88. The 50-day SMA ($0.75) may act as an obstacle, but it’s likely to be surpassed.
The major support to keep an eye on the downside is the uptrend line. A break below it could cause the pair to drop to $0.56.
Polkadot price analysis
Polkadot (DOT) has seen a sharp decline from the overhead resistance of $5.56 on July 3, indicating that the bears are strongly defending the level.
The DOT/USDT pair is now at the immediate support at $5.15, an important level to watch. The moving averages are placed just below this support; hence, the bulls will try to bring up the crypto currency.
If the price rebounds sharply off $5.15, the pair could form an inverse head-and-shoulders pattern, which will be complete on a break and close above $5.56. This could start a strong up move to the downtrend line and later to the pattern target of $6.90.
This positive view will be nullified in the near term if the price drops below the moving averages. That could pull the pair to $4.74.
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