Upon hearing that the United States Securities and Exchange Commission (SEC) had taken legal action against Binance in a U.S. district court for conducting unregistered securities operations, Bitcoin and other altcoins experienced a sharp decline in value.
This lawsuit could potentially impede the recovery of Bitcoin (BTC) and majority of the major altcoins, as traders might choose to wait a few days until the situation becomes more transparent. Another event that could possibly deter investors is the Federal Reserve’s meeting on June 14.
Data from Glassnode reveals that holders of the largest amount of Bitcoin (10,000+ BTC) have been amassing more over the last few days, while the other major cohorts have been offloading theirs. Despite the unclear short-term outlook, this is the case.
Let’s analyze the charts to discover the crucial support levels that may initiate a rebound in Bitcoin and the main altcoins.
S&P 500 Index price analysis
On May 26th, the S&P 500 Index (SPX) surpassed the 4,200 resistance level, thereby concluding the bullish ascending triangle pattern.
The bears attempted to ensnare the hostile bulls on May 30 and May 31, yet the bulls assertively bought the decline to the 20-day exponential moving average (EMA) at 4,183. The uptrend resumed on June 1, and the bulls capitalized on it on June 2.
At 4,325 there is slight opposition, where the bears will attempt to impede the rally. If the bulls do not permit the cost to drop below 4,200 while descending, it will improve the prospects of a climb to the 4,500 to 4,600 area.
Contrary to this presumption, if the cost declines and falls beneath the 50-day simple moving average (SMA) at 4,128, it would indicate that the most recent breakout may have been a false signal. The index could then plunge to the uptrend line.
U.S. Dollar Index price analysis
On June 2, the U.S. Dollar Index (DXY) recovered from the 20-day EMA (103), indicating that the sentiment has become optimistic and investors are taking advantage of price drops.
The bulls are attempting to take the price higher than the current resistance at 104.70. If successful, the index could reach the overhead level of 106. This is an important level to observe as a break above it could initiate a new upward trend.
If the price drops from 106 and breaches the 20-day EMA, it indicates that the index may remain within the range for some more days. The bears will have to push the price below 100.82 to form the bearish head-and-shoulders pattern.
Bitcoin price analysis
In the last few days, Bitcoin has been dealing within the confines of a descending channel pattern. On June 4th, the bulls managed to push Bitcoin above the 20-day EMA ($27,083), yet the long wick on the candlestick reveals that the bears sold the uptrend.
On June 5, the price decreased drastically and fell below the immediate support level of $26,500. The selling accelerated, causing the BTC/USDT pair to plunge into the critical support region between $25,800 and $25,250.
Buyers should be vigilant in protecting this area, as a drop below it could lead to substantial losses. The pair could then drop to $20,000.
The first sign of strength will be a break and close above the descending channel, which could signify the end of the corrective phase. Afterwards, the pair could potentially soar to $31,000.
Ether price analysis
On May 28, Ether (ETH) broke out of the descending wedge pattern and was able to sustain the retest on June 1, yet the bulls were unable to initiate a new bullish trend.
The bears seized the chance to make a resurgence when sellers pulled the price beneath the moving averages on June 5, intensifying the selling. The ETH/USDT pair dropped under the wedge pattern’s resistance line. If this level fails to hold, the next destination could be $1,740 and then the support line.
This pessimistic outlook could be disproven in the near future if the cost increases and surpasses $1,928. This could cause the pair to skyrocket to $2,000 and eventually to $2,200, where the bears may again put up a strong resistance.
BNB price analysis
On June 5, BNB (BNB) trading in a confined range was resolved to the downside. There was a steep decline in the price, pushing it below $300 and the following support level at $280.
The BNB/USDT pair could potentially fall to $265, which is a critical level to monitor. If the price recovers from $265 and surpasses $280, it could be interpreted as a sign of strong buying at lower prices. The pair may rise to the 20-day EMA ($306) where the bulls could face strong resistance from the bears.
Should the $265 support level be broken and closed below, it could mark the beginning of a new downtrend. This could result in the pair plummeting to $240 and then to $220.
XRP price analysis
XRP has been fluctuating in a wide range between $0.56 and $0.30 for the past few months. Generally, when a range is clearly defined, traders purchase near the floor of the range and sell near the top.
The XRP/USDT pair declined from the overhead resistance on June 4, indicating that the bulls took profits and the bears opened short positions.
If the price rises from the 20-day exponential moving average ($0.49), this indicates that sentiment has become more optimistic and investors are buying on dips. The bulls will then attempt one more time to surpass the resistance.
If the price falls below the moving averages, it could indicate that the pair might remain within the range for a longer period of time.
Cardano price analysis
The bears were able to stop the upswing of the relief rally at the 50-day SMA ($0.38) as evidenced by the long wick on Cardano’s (ADA) June 4 candlestick.
The ADA/USDT pair saw a sharp decline on June 5, dropping below the uptrend line of the ascending channel pattern. This invalidates the bullish outlook, and the pair could now head towards the crucial support level of $0.30.
If bulls wish to impede the downward trend, they must act swiftly to return the value within the channel. This action will demonstrate that the pair has refused to accept the lower levels. The upward momentum could gain traction if it surpasses $0.39.
An analyst has stated that Bitcoin’s price will be put to the test once again by the 200-week trend line.
Dogecoin price analysis
The bulls have been unable to break through the 20-day EMA ($0.07) for Dogecoin (DOGE) in recent days, suggesting that the bears are strongly protecting the level.
The sale increased in velocity on June 5, and the bears drove the cost beneath the quick backing at $0.07. That could have activated the stops of multiple traders, allowing for a further decrease to $0.06. This mark could draw in powerful purchasing by the bulls.
The positive side is that the $0.07 level may now act as a strong barrier during times of recovery. The bulls must be able to push and keep the cost above the breakdown point of $0.07 in order to signal the potential start of a comeback.
Solana price analysis
Solana (SOL) rose above the 50-day Simple Moving Average ($21.54) on June 4, but the buyers were unable to keep the bullish momentum going. This suggests that demand decreases when prices go up.
The bears saw a chance and drove the price down beneath the moving averages. This could have ensnared the assertive bulls, leading to a significant decrease to the powerful support at $18.70. This is a significant level to watch because if it is broken and finished beneath it, there is a possibility of a plunge to $15.28.
If the SOL/USDT pair bounces back from $18.70, the bulls will make another attempt to surpass the resistance posed by the moving averages. If the pair breaks and manages to close above $22.30, the bears may gain the upper hand.
Polygon price analysis
The bulls have been attempting to lift Polygon (MATIC) above the 20-day EMA ($0.89) over the last several days, though the bears have been successful in keeping it at bay.
The selling increased on June 5, causing the bears to push the cost down to the crucial support at $0.82. It is anticipated that buyers will firmly protect this level. If there is a powerful rebound from this support, it could indicate that the pair may stay trapped between $0.82 and $0.94 for a while longer.
Should the backing at $0.82 crumble, the MATIC/USDT pairing may begin to drop towards the next major support at $0.69. The bulls must lift and maintain the price above the moving averages to demonstrate the launch of a sustained upturn.
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