Bitcoin (BTC) experienced a decline to its lowest point in February, suggesting a surge in panic selling among investors. Nevertheless, Adam Back, the founder and CEO of Blockstream, mentioned in a post on X that downtrends are a customary occurrence in a bullish market. He advised traders to view this as an opportunity to “buy the dip” instead of succumbing to panic.
The recent panic has been sparked by the liquidation of the German government’s Bitcoin reserves and speculations that the Mt. Gox creditors will follow suit and cash in their repayments as well. Financial analyst Jacob King highlighted in a post on X that a significant portion of Mt. Gox’s former creditors are inclined to sell off their holdings.
According to data from CoinGlass, cryptocurrency liquidations in the last 24 hours have surpassed $665 million, marking the highest figure in two months. Analysts foresee a continuation of the selling pressure, potentially driving Bitcoin’s value down to $50,000.
A considerable drop in Bitcoin’s price is anticipated to attract interest from long-term investors. What are the key support levels to monitor for Bitcoin and alternative cryptocurrencies? Let’s delve into the charts of the top 10 cryptocurrencies for a better understanding.
Bitcoin Price Analysis:
The substantial price range of Bitcoin spanning from $56,552 to $73,777 breached on July 5, though the ongoing challenge for sellers is to maintain these lower levels.
The bulls are striving to recapture the $56,552 threshold. The oversold conditions on the relative strength index (RSI) indicate a possibility of a short-term relief rally, likely facing resistance at the 20-day exponential moving average ($62,055).
If a downturn occurs from the 20-day EMA, bears could test the $56,552 to $53,485 support range once again. A breach of this zone could potentially drag the BTC/USDT pair towards $50,000. This negative scenario would be invalidated if the bulls manage to sustain the price above the 20-day EMA in the near future.
Ether Price Analysis:
Ether (ETH) has been confined within a wide-ranging bracket between $2,850 and $4,094 for several days now.
Intense selling pressure pushed the price towards the lower end of the range at $2,850 on July 5. The RSI dipping into oversold territory suggests a possible relief rally shortly.
Should the price bounce from its current level, the ETH/USDT pair might encounter selling pressure around the 20-day EMA ($3,373). A drop from the 20-day EMA raises the likelihood of breaching the $2,850 support, with the subsequent support at $2,200. To sustain the range-bound activity, bulls need to propel the price above the 20-day EMA.
BNB Price Analysis:
BNB (BNB) swiftly pierced through $551 and later the $536 support on July 4, signaling aggressive selling by the bears.
The bearish momentum continued on July 5, leading to a breach of the strong support level at $495. A positive aspect is that the bulls have managed to prevent the price from plummeting below the $460 support.
Oversold levels on the RSI imply that bulls could initiate a recovery, likely encountering resistance at the 20-day EMA ($570). A reversal from the 20-day EMA might prompt bears to make another attempt to drive the BNB/USDT pair below $495. If successful, the pair could decline towards $400.
Solana Price Analysis:
Solana (SOL) failed to surge above the 50-day SMA ($154) on July 3, attracting selling pressure.
The price dipped close to the significant support at $116 on July 5. This level has withstood three prior tests, and therefore, the bulls are expected to defend it once again. A rebound could face selling at the 20-day EMA ($141).
Failure to rally from the 20-day EMA increases the risk of a breakdown, potentially leading the SOL/USDT pair towards $100. Bulls could regain control upon surpassing the 50-day SMA.
XRP Price Analysis:
XRP (XRP) plummeted beneath the $0.46 support on July 4, followed by a substantial drop below $0