The cryptocurrency market stabilises, with individual and institutional investors taking advantage of price dips to accumulate Bitcoin. This trend and the gradual recovery of specific alternative cryptocurrencies suggest the market may be reaching its bottom.
On July 12, Bitcoin’s price found support around $56,500, indicating buyer interest at these lower levels. Data from blockchain analytics firms suggests a significant influx of institutional capital into Bitcoin, with reports of approximately 100,000 BTC being acquired by institutional investors within a week.
The apparent conclusion of Bitcoin sales by the German government is a positive development for market sentiment. However, traders now focus on the potential impact of Mt. Gox exchange creditors receiving their repayments. The market’s reaction to these repayments could influence Bitcoin’s short-term price trajectory. If selling pressure remains moderate, Bitcoin may see a recovery. Conversely, if creditors opt to sell their holdings en masse, it could extend the current period of price pressure.
Bitcoin’s failure to start a strong relief rally has halted the recovery in several altcoins, but the bulls have not ceded much ground to the bears. This suggests that the buyers are holding on to their positions as they anticipate the upmove to continue.
Will the selling pressure in Bitcoin and altcoins be reduced? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin (BTC) Market Analysis
The bulls tried to push Bitcoin above the 20-day simple moving average ($59,650) on July 11, but the bears held their ground. This shows that the sentiment remains negative, and traders sell on rallies.
The bulls must guard the zone between $56,552 and $53,485. If the price turns up sharply from the support zone, it will signal solid buying on dips. To reduce the selling pressure, the bulls will have to overcome the barrier at the 20-day SMA. The BTC/USDT pair could rise to the 50-day SMA ($64,532).
This optimistic view will be invalidated soon if the price continues lower and breaks below $53,485. If that happens, it will signal the start of a downtrend. The pair could plummet to $50,000, where the bulls will try to arrest the decline.
Ether (ETH) Market Analysis
The long wick on Ether’s July 11 candlestick shows that the bears sell the rallies to the 20-day SMA ($3,239).
The bears will try to pull the price to $2,850, a significant level to watch out for. Buyers are expected to defend the level with vigour. If the price rebounds off $2,850, the bulls will make another attempt to clear the hurdle at the 20-day SMA. If they succeed, it will suggest the start of a sustained recovery to the 50-day SMA ($3,499).
If bears want to strengthen their position, they will have to yank the price below $2,850, which might be difficult. If this level cracks, the selling could intensify, and the ETH/USDT pair may plunge to $2,200.
BNB Market Analysis
BNB turned down the 20-day SMA ($547) on July 11, indicating that the bears are aggressively defending the level.
The bears will try to pull the BNB/USDT pair to $495, which is an important level to watch. If the price rebounds off $495, it will suggest that the bulls are trying to make a higher low. That will improve the prospects of a break above the 20-day SMA.
Contrary to this assumption, if the price breaks below $495, it will suggest that the bears are maintaining their pressure. The pair could then drop to $460, which is likely to attract strong buying by the bulls.
Solana (SOL) Price Analysis
The bulls find pushing Solana above the 50-day SMA ($150) challenging, indicating that the bears are unwilling to give up.
The SOL/USDT pair could remain stuck between $116 and the 50-day SMA for some time. If the price skids below $116, it will complete a bearish descending triangle pattern. That may move downward to $100 and later to $80.
Instead, if the price rises and breaks above the 50-day SMA, it will signal the start of a relief rally to the downtrend line. The bears will try to stall the recovery at the downtrend line, but if the buyers bulldoze their way through, it will invalidate the bearish setup.
XRP Price Analysis
XRP’s pullback reached the 50-day SMA ($0.49) on July 12, where the bears sold aggressively, as seen from the long wick on the day’s candlestick.
If the price rebounds off $0.46, it will suggest a change in sentiment from selling on rallies to buying on dips. That will enhance the prospects of a break above the 50-day SMA. The XRP/USDT pair could then attempt a move to $0.53.
Conversely, if the price slips and maintains below $0.46, it will signal that the bears remain active at higher levels. The pair may then gradually decline toward the crucial support at $0.41. The bulls are expected to defend the $0.46 to $0.41 zone aggressively.
Dogecoin (DOGE) Price Analysis
Dogecoin is consolidating in a downtrend. The price is stuck between the breakdown level of $0.12 and the psychological support at $0.10.
The downsloping moving averages and the RSI in negative territory indicate an advantage to bears. A break and close below $0.10 will embolden the bears, who will try to sink the DOGE/USDT pair to $0.08.
On the upside, the crucial level to watch out for is the $0.12 resistance. If this level is scaled, it will suggest the start of a strong recovery. The 50-day SMA ($0.14) may act as a hurdle, but it will likely be crossed.
Toncoin (TON) Price Analysis
Toncoin has been trading near the 20-day SMA ($7.48), indicating that the bulls are maintaining their buying pressure.
If bulls propel the price above the 20-day SMA, the TON/USDT pair could rise to $7.72 and, after that, attempt a rally to $8.29. This level is expected to attract strong sales by the bears, who will try to keep the price inside the $6.77 to $8.29 range.
Contrarily, if the price turns down from the 20-day SMA, it will signal that the bears are fiercely defending the level. A break and close below $6.77 will complete a double top pattern, opening the gates for a drop to $6 and then $5.50.
Cardano (ADA) Price Analysis
Cardano has reached the descending channel’s resistance line, indicating that the bulls are attempting a comeback.
The 20-day SMA ($0.39) is flattening out, and the RSI is just above the midpoint, signalling that the selling pressure is reducing. If buyers shove the price above the 50-day SMA ($0.41), it will signal a short-term trend change. The ADA/USDT pair could then attempt a rally to $0.50.
This optimistic view will be negated if the price turns down sharply from the resistance line and breaks below the 20-day SMA. That could pull the price down toward the channel’s support line.
Avalanche (AVAX) Price Analysis
Avalanche has been trading between $27.50 and $24.50 for the past few days, but this tight-range trading is unlikely to continue.
If buyers kick and sustain the price above the 20-day SMA, the AVAX/USDT pair could rise to the 50-day SMA ($30.39). This level may offer resistance, but if the bulls prevail, the pair could surge to $34 and $37.20.
Alternatively, if the price turns down and breaks below $24, it will signal that the bears are in command. The pair may retest the July 5 low of $21.80. If this level cracks, the pair could plummet to $19.
Shiba Inu (SHIB) Price Analysis
The bears have not allowed Shiba Inu to rise above the 20-day SMA ($0.000017), indicating selling on rallies.
The downsloping moving averages and the RSI in the negative territory suggest that the bears have the edge. A break below $0.000015 will open the doors for a possible drop to $0.000012 and eventually to $0.000010.
The bulls are likely to have other plans. They will try to drive the price above the 20-day SMA and start a rally to the breakdown level of $0.000020. This level may again witness a tough battle between the bulls and the bears.
