Altcoins are gaining momentum as the relief rally in Bitcoin and Ether gains traction.
The active supply of Bitcoin (BTC), currencies that have moved in the past two years or earlier, fell to a five-month low of 44.5% on June 2, according to data from Glassnode. This indicates that investors who bought Bitcoin more than two years ago are unwilling to sell after the 40% drop.
Even the miners, who sold during the May correction, have reversed their decision. Miner address exits are at the lowest level in seven months, suggesting that miners are holding onto their Bitcoin.
Daily performance of the cryptocurrency market. Source: Coin360
Veteran trader Peter Brandt believes that the Bitcoin correction could extend below $ 30,000. Brandt said that every 50% drop in Bitcoin’s history has spread to 70%. He also highlighted that based on past precedence, Bitcoin is unlikely to hit a new all-time high within seven months of a 50% correction.
However, PlanB, creator of the stock and flow-based Bitcoin pricing models, believes that a further drop below $ 30,000 is unlikely to occur. It also remains positive about the prospects for Bitcoin to hit a new all-time high this year.
At the moment, analysts are divided in their opinion on Bitcoin’s short-term price action. Let’s analyze the charts of the top 10 cryptocurrencies to determine the path of least resistance.
BTC / USDT
Bitcoin continues to trade within a symmetrical triangle pattern as the bulls and bears struggle to establish their supremacy. Although the symmetrical triangle generally acts as a continuation pattern, it is difficult to predict with certainty until the price breaks out of the triangle.
BTC / USDT daily chart. Source: TradingView
The falling moving averages and the Relative Strength Index in negative territory suggest that bears have the upper hand. If the BTC / USDT pair breaks below the triangle, the bearish momentum could rebound. There is minor support at $ 28,000, but if that also cracks, the pair could retest the $ 20,000 level.
This negative view will invalidate if the bulls push and hold the price above the resistance line of the triangle. If that happens, it will suggest that the bulls have dominated the bears. The pair could then attempt a rally to the 50-day simple moving average ($ 49,201).
This level may again act as a stiff resistance, but if the bulls push the price above it, the pair will indicate that the downtrend may be over.
ETH / USDT
Ether (ETH) was down from the 20-day exponential moving average ($ 2,762) on June 1, but the positive sign is that the bulls did not give up much ground. This suggests that buyers were not quick to close their positions.
ETH / USDT daily chart. Source: TradingView
The 20-day EMA is flattening out and the RSI has risen near the midpoint, indicating that the selling pressure has eased.
If buyers push and hold the price above the resistance line of the symmetrical triangle, the ETH / USDT pair could initiate a relief rally that can reach the 61.8% Fib retracement level at $ 3,362.72 and then the level of 78.6% retracement at $ 3,806.91.
Contrary to this assumption, if the bulls fail to hold the price above the triangle, the pair may consolidate within the triangle for a few more days. A breakout and close below the triangle will indicate an advantage for bears.
BNB / USDT
Binance Coin (BNB) has risen above the 20-day EMA ($ 399), but it could face stiff resistance at $ 423.83. If the price turns down from this general resistance, the bulls will try to stop the decline at the trend line.
BNB / USDT daily chart. Source: TradingView
If they are successful, it will suggest that the bulls are attempting to form a higher low. This will increase the possibility of a breakout above $ 423.83. The BNB / USDT pair could then rally to the 50-day SMA ($ 505). A breakout of this resistance would suggest that the downtrend may be over.
Conversely, if the price turns down from the current level and plummets below the trend line, it will suggest that sentiment remains negative and traders are selling in rallies. The pair could retest the critical support at $ 211.70.
ADA / USDT
Cardano (ADA) broke above the downtrend line on June 1 and the bulls are trying to extend the relief rally above $ 2 today. The 20-day EMA ($ 1.64) has started to appear and the RSI is trading above 54, which suggests that the bulls have the upper hand.
ADA / USDT daily chart. Source: TradingView
If buyers manage to push the price above $ 2, the ADA / USDT pair could rise to the all-time high at $ 2.47.
On the other hand, if the price falls below $ 2, the bears will try to lower the price below the downtrend line. If that happens, it will suggest that the buy is sold out at higher levels. Then the pair could drop to the 50-day Simple Moving Average (SMA) ($ 1.52).
A breakout and close below the 50-day SMA could attract more selling and the pair could drop to $ 1.33 and then $ 1.
DOGE / USDT
Dogecoin (DOGE) broke above the downtrend line on May 31 and broke the hurdle of the 20-day EMA ($ 0.37) today. The RSI has jumped into the positive territory and the 20-day EMA has started to appear, suggesting that the bulls are making a comeback.
DOGE / USDT daily chart. Source: TradingView
If buyers lift the price above $ 0.47, the DOGE / USDT pair could pick up more momentum and climb to $ 0.59.
Conversely, if the price falls below $ 0.47, the pair could correct to the 20-day EMA. If this support holds, it will suggest that sentiment has turned positive and traders are buying on dips. The bulls will make one more attempt to push the price above $ 0.47.
However, if the price turns down and breaks below the 20-day EMA, the pair could drop to $ 0.28 and then $ 0.21.
XRP / USDT
The bulls attempted to push XRP above the 20-day EMA ($ 1.07) on June 1, but they encountered stiff resistance from the bears. However, buyers did not give up much ground, indicating strength.
XRP / USDT daily chart. Source: TradingView
The bulls will again try to push and hold the price above the 20-day EMA. If they manage to do that, the XRP / USDT pair could start its relief rally to the 50-day SMA ($ 1.30) and then to the downtrend line.
Alternatively, if the price turns down from the 20-day EMA, the pair could drop back to the $ 0.88 to $ 0.80 support zone. A break below this zone could result in a retest of the May 23 low at $ 0.65.
DOT / USDT
Polkadot (DOT) creeps towards overhead resistance at $ 26.50. The price had declined since this resistance on May 28, so it is likely that the bears will again defend this level aggressively.
DOT / USDT daily chart. Source: TradingView
If the DOT / USDT pair turns down from $ 26.50 but bounces off the trend line, it will suggest that the bulls are piling on dips.
That could result in the formation of a bullish ascending triangle pattern, which will complete on a breakout and close above $ 26.50. The target pattern for this setup is $ 35.91.
Alternatively, if the bears sink the price below the trend line, the pair could fall to the support at $ 15. A strong bounce from this support will suggest a few days of action within the range between $ 15 and $ 26.50.
UNI / USDT
Uniswap (UNI) turned down from the 20-day EMA ($ 28.41) on June 1, but the positive sign is that the bulls did not allow the price to fall. Buyers are again trying to push the price above the 20-day EMA today.
UNI / USDT daily chart. Source: TradingView
Repeated repetition of a resistance level tends to weaken it. The 20-day EMA is flattening out and the RSI has risen above 48, indicating that the selling pressure has eased.
If buyers push the price above the 20-day EMA and $ 30, the UNI / USDT pair could rise to the 50-day SMA ($ 33.67). A breakout of this resistance could signal the end of the downtrend.
Conversely, if the price turns down from the 20-day EMA and falls below $ 25.94, the bears will attempt to lower the pair to $ 21.50. A break and a close below this support will suggest that the bears have reasserted their supremacy.
ICP / USDT
Internet Computer (ICP) remains weak as the bulls have been unable to push the price above $ 120 in the past five days. This suggests a lack of aggressive buying even at current levels.
ICP / USDT daily chart. Source: TradingView
If the bears sink and hold the price below the $ 103.71 support, the ICP / USDT pair could resume its downtrend and challenge the May 19 low at $ 86. If this support breaks, the pair may fall to $ 60.
Conversely, if the bulls push and hold the price above $ 120, it will suggest accumulation at lower levels. That may clear the way for an up move to $ 168.
If the price turns down from this resistance, a few days of range action is likely. The pair could take bullish momentum on a breakout and close above $ 168.
BCH / USDT
Bitcoin Cash (BCH) rose above $ 685.36 on May 31. The bears tried to lower the price below the June 1 level, but could not sustain the lower levels. This suggests that buyers are trying to form a higher low.
BCH / USDT daily chart. Source: TradingView
The relief rally is likely to face strong resistance at the 20-day EMA ($ 801). If the price turns down from this resistance, the bears will make one more attempt to sink the BCH / USDT pair below the $ 685 to $ 600 support zone. If successful, the pair could retest the 23rd low. May at $ 468.13.
Conversely, if the bulls carry the price above the 20-day EMA, the momentum could pick up and the pair could rally to the 50-day SMA ($ 958). This level may again act as stiff resistance, but if the bulls can push the price above it, the rally may extend to the 61.8% Fib retracement level at $ 1,198.53.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trade movement involves risk. You should do your own research when making a decision.
Market data is provided by the HitBTC exchange.
The entry Price Analysis 6/2: BTC, ETH, BNB, ADA, DOGE, XRP, DOT, UNI, ICP, BCH was published first in Bitcoin, Cryptocurrency and Blockchain News.