Bitcoin (BTC) is currently locked in a fierce battle between bullish and bearish forces. Bulls are striving to maintain prices within the range of $56,552 to $73,777, while bears are attempting to drive prices lower. On July 5, sellers briefly pushed the price down to around $53,500, but this attracted buying interest from the bulls.
Spot Bitcoin exchange-traded funds based in the United States saw significant net inflows of $143.1 million on July 5, marking the highest inflow in a month, according to Farside Investors. Bitwise Asset Management CEO Hunter Horsley noted on X that investors without exposure to Bitcoin now have an opportunity to “buy the dip,” emphasizing that Bitcoin’s outlook “has never been stronger.”
Daily view of crypto market data. Source: Coin360
Bitcoin’s recent decline has intensified selling pressure across several altcoins, though a few have managed to maintain strong support levels. These altcoins could potentially lead a recovery if Bitcoin makes a move towards $60,000.
Key resistance levels need to be surpassed for increased buying interest in Bitcoin and altcoins. Let’s examine the top 5 cryptocurrencies showing strength based on chart analysis.
### Bitcoin Price Analysis
Bitcoin dropped below the $56,552 support on July 5 but was bought up by bulls, defending this level by the close.
BTC/USDT daily chart. Source: TradingView
However, bears are unlikely to give up easily and may attempt another push to sustain prices below $56,552. If successful, the BTC/USDT pair could slide towards $53,485 and potentially find solid support at $50,000.
The 20-day exponential moving average (EMA) of $61,231 indicates bearish advantage, yet a positive divergence on the Relative Strength Index (RSI) suggests a potential slowdown in bearish momentum.
Buyers will need to push prices above the 20-day EMA to suggest that the range-bound action between $56,552 and $73,777 may persist.
BTC/USDT 4-hour chart. Source: TradingView
On the 4-hour chart, the 20-EMA is flattening out and the RSI is just below midpoint, indicating diminishing selling pressure. The downtrend line represents a critical level to watch on the upside. A breakout and close above this line could signal the end of the correction, potentially propelling the pair towards $64,602.
Conversely, a break and close below $56,552 would indicate continued bearish sentiment, possibly risking a breakdown towards $53,485.
### Solana Price Analysis
Solana (SOL) is forming a bearish descending triangle pattern, likely completing upon breaking and closing below $116.
SOL/USDT daily chart. Source: TradingView
A minor advantage for bulls is the RSI showing signs of positive divergence, hinting at reduced selling pressure. If bulls push above the 20-day EMA ($141), SOL/USDT could attempt a rally towards the 50-day SMA ($153) and then the downtrend line.
Alternatively, a downturn from the 20-day EMA and a break below $116 could complete the bearish setup, potentially leading SOL/USDT towards $80.
SOL/USDT 4-hour chart. Source: TradingView
A strong bounce from $121 suggests vigorous defense by bulls near the $116 support. A move above $145 could pave the way towards $155, though this level might offer resistance before the downtrend line.
On the downside, breaking below $130 could strengthen bearish sentiment, risking a retest of $116.
### Polkadot Price Analysis
Polkadot (DOT) dropped to $4.91 on July 5 but showed strong buying interest at lower levels.
DOT/USDT daily chart. Source: TradingView
Bulls continued buying on July 6, pushing prices above the 20-day EMA ($6.08), signaling weakening bearish pressure. Clearing the 50-day SMA ($6.54) could open doors for a rally towards $7.29 and potentially $7.77.
Conversely, a rejection from the 50-day SMA could suggest bearish activity at higher levels, with potential downside pressure below the $5.38 to $4.91 support zone.
DOT/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows a V-shaped recovery from $4.92, with the 20-EMA turning upwards and the RSI moving into positive territory, indicating a potential bull comeback. Breaking above $6.60 could signal momentum towards $7.29, while a downturn below the 20-EMA might hint at weakening bullish strength below $5.60.
### NEAR Protocol Price Analysis
NEAR Protocol (NEAR) has traded between $4.28 and $8.58 for days, with bears briefly pushing below support on July 5.
NEAR/USDT daily chart. Source: TradingView
Despite downsloping moving averages favoring bears, a positive RSI divergence suggests weakening selling pressure. A break above the 20-day EMA ($5.17) could propel NEAR/USDT towards $5.63 and potentially complete a short-term double bottom pattern towards $6.11.
NEAR/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows a balanced 20-EMA and RSI just below midpoint, indicating equilibrium between supply and demand. Breaking above the 50-SMA could drive prices towards $5.63, while a sharp downturn below $4 might signal a downtrend towards $3.50.
### Kaspa Price Analysis
Kaspa (KAS) closed above the $0.19 resistance on June 29 but faced resistance thereafter.
KAS/USDT daily chart. Source: TradingView
Support near the 50-day SMA ($0.15) on July 5 indicates bullish defense. Maintaining above the 20-day EMA ($0.17) could suggest the end of the pullback, with potential gains towards $0.19.
KAS/USDT 4-hour chart. Source: TradingView
A bounce from $0.16 would reaffirm bullish intentions, with a potential break above the 50-SMA leading towards $0.19. A breakdown below $0.16, however, could shift sentiment towards support levels at $0.14.
This article does not provide investment advice. Readers are encouraged to conduct their own research and assessment before making investment decisions.