Bitcoin (BTC) once again tested the $60,000 support on July 3, signaling the sustained selling pressure from the bears. Breaking through the support zone of $60,000 to $56,552 may prove challenging as the bulls are expected to put up a strong defense, potentially keeping Bitcoin range-bound for some time.
The potential threat to Bitcoin’s sideways movement could arise from the selling pressure exerted by Mt. Gox creditors, who might look to capitalize on profits following their repayments in early July.
On the bright side, lower levels are likely to witness buying activity from U.S.-based spot Bitcoin exchange-traded funds, which have accumulated $14.8 billion in net inflows since their introduction in January.
Predicting the volume of Bitcoin that Mt. Gox creditors might release onto the market is tricky due to the possibility of some transactions occurring through over-the-counter trading desks, adding a layer of uncertainty that could lead to market volatility in the coming days. Keeping an eye on critical support and resistance levels for both Bitcoin and altcoins is essential for the discerning investor.
Bitcoin Price Analysis
Following a downward turn from the 20-day exponential moving average ($63,212) on July 1, it’s evident that sentiment remains negative, with traders selling near resistance levels.
The bears will aim to solidify their position by pushing the price below the immediate support at $60,000. A successful breach could potentially send the BTC/USDT pair tumbling to the pivotal support level at $56,552. Buyers are expected to vigorously defend this level to prevent a potential downtrend, with the next significant support at $50,000.
If the price rebounds from $56,552, the bulls will likely push the pair towards the 20-day EMA, with a breakthrough indicating the continuation of the range between $56,552 and $73,777 for the foreseeable future.
Ether Price Analysis
Ether (ETH) failed to sustain its position above the 20-day EMA ($3,451) on July 1, demonstrating bearish activity at higher levels.
The descending 20-day EMA and negative RSI suggest bear dominance. Sellers will target pushing the price down to $3,240, a crucial support level, with a potential breakdown leading to $3,000.
On the flip side, a decisive breakout above the 50-day SMA could signal the end of the short-term correction. This move could pave the way for a rally towards $3,730 and subsequently $3,887 for the ETH/USDT pair.
BNB Price Analysis
BNB (BNB) retreated from the 20-day EMA ($585) on July 1, highlighting strong resistance from the bears.
Sustaining the price below the immediate support at $551 could accelerate selling pressure, potentially driving the BNB/USDT pair towards $536 and ultimately $495, a robust support level.
However, a bounce back from $551 would indicate solid demand at lower levels. For a correction signal, bulls need to surpass the 50-day SMA ($604), potentially leading to a rise towards $635.
Solana Price Analysis
Solana (SOL) breached the resistance line on July 2 but faced a sharp rejection from the 50-day SMA ($156) on July 3.
The flat 20-day EMA ($145) and RSI hovering near the midpoint suggest a balance between supply and demand levels. If the price holds below the 20-day EMA, the SOL/USDT pair may oscillate between $116 and the 50-day SMA for some time.
Conversely, a break above the 50-day SMA would signal bullish control, potentially driving SOL to $175 and later, $189. Sellers are likely to defend the zone between $189 and $205 fervently.
XRP Price Analysis
XRP (XRP) buyers are striving to push the price above the 20-day EMA ($0.48), but meeting resistance from bears.
Continued downward movement may prompt bears to aim for a breach below $0.46, with a potential drift towards $0.41. Bulls are expected to fiercely defend the $0.41-$0.46 zone.
On the upside, clearing the 20-day EMA barrier could pave the way for a rally towards the 50-day SMA ($0.50), a critical hurdle indicating a potential recovery towards $0.57.
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