On June 13, the decline in US equity markets continued. The S&P 500 fell more than 20% to its Jan. 4 high and hit a new low for the year.
The cryptocurrency markets are following the equities markets down, and the selling pressure has intensified due to Celsius’s liquidity crisis and traders selling positions in order to meet margin calls. The total crypto market capitalization fell below $1 trillion.
Everyday cryptocurrency market performance. Source: Coin360
Analysts are projecting very bearish targets due to the sharp fall. Although anything is possible on the markets, it is hard to predict a bottom. However, capitulations tend to initiate a bottoming formation. Traders might get their buy lists ready and think about accumulating in phases once the price stops falling.
What are the key levels that could stop the decline of Bitcoin (BTC), and other altcoins,? Let’s look at the charts of the top 10 cryptocurrencies to discover more.
Bitcoin fell below its immediate support level at $28,630 on June 11, and the bears pulled it below that critical support. This led to an acceleration in selling, and the bears drove the price below $28,630 on June 11. This signaled the resumption the downtrend.
Daily chart of BTC/USDT Source: TradingView
On June 13, the bears kept selling pressure and sent BTC/USDT to an intraday low at $22,600. The relative strength index (RSI), which has fallen sharply in the last few days, is now in the oversold area. This indicates that consolidation or a relief rally is possible in the coming days.
Selling in the $26,700 to $28,630 zone is likely to stop any recovery. This zone will be considered resistance if bears turn it into support. The downtrend could be re-established by traders. A break below $22,600 can send the pair to the psychological level of $20,000.
To suggest that the bears are losing their grip, the bulls will need to push the price higher than $28,630.
The vital support of $1700 was broken by Ether (ETH) on June 10, which indicated that the bears are in charge. This was the beginning of the next downtrend.
Daily chart of ETH/USDT Source: TradingView
On June 11, selling momentum picked up and the price has fallen below $1,300. This indicates that traders are fearful and are selling their positions.
The RSI has fallen below 22 due to the aggressive selling over the last three days. The RSI drops close to 21 and the ETH/USDT pair usually starts a relief rally. This suggests that the pair could rally to $1,700.
Alternativly, bears could continue to sell pressure and the pair could fall to psychological support at $1,000.
Strong selling may have been triggered by strong selling by bears on June 11, due to the failure of bulls to push BNB into the triangle. The price dropped to $211, where it gained momentum.
Daily chart BNB/USDT TradingView
It will indicate accumulation at lower levels if the price recovers from $211. The buyers will attempt to push the price higher than the 20-day exponentially moving average ($289). If they succeed, it will mean that the BNB/USDT pairing may be rangebound for a few more days between $211 to $350.
If bears drop below $211, it signals the beginning of the next downtrend. Although the psychological level of $200 might provide some support, it could give way to $186 if that level is breached.
Cardano (ADA), broke below the 20 day EMA ($0.56) June 10, and bulls tried to push it higher on June 11, but strong selling was seen at higher levels.
Daily chart ADA/USDT Source: TradingView
The price has moved to the support zone of $0.44- $0.40 by the bears. The bulls will likely be buying in large quantities because it is a strong support zone. A break below this could signal the start of a downtrend. The ADA/USDT currency pair could then begin its southward journey towards $0.30 as the next major support.
The bulls may also attempt to push the pair higher than the 50-day SMA ($0.61) if the price increases from its current level. The pair could consolidate for a few more days between $0.74 to $0.40 if that happens.
Ripple (XRP), which broke below $0.38 support on June 11, closed below it. This completes a bearish descending triangle pattern that signals sellers have the upper hand.
Daily chart of XRP/USDT Source: TradingView
The selling momentum picked up and the bears drove the price below $0.33 on June 13. This signals the beginning of the next downtrend. Short-term bears could book profits close to the pattern target at $0.30.
The XRP/USDT pairing could launch a relief rally if they do so. It may even reach the $0.33 or $0.38 breakdown levels. If bears drop below $0.30, the price could fall to $0.24, which would be the next strong support.
Solana (SOL), had been stuck between $35 and the 20-day EMA ($40), for a few days. The uncertainty was resolved on June 11, when bears pulled the price lower than the support.
Daily chart of SOL/USDT Source: TradingView
The bears pushed the price below $30, which accelerated the selling. Next support is at $22 and then later at $20.
The RSI has been in the oversold zone due to the sharp selling that took place the last few days. In the short term, this suggests that a consolidation or relief rally is possible. Bulls will try to push the price higher than the breakdown level at $35 and the 20-day EMA. It will be a sign that the current collapse was a bear trap if they succeed.
Dogecoin (DOGE), tight range trading expanded to a downsider on June 10. The bears pulled the price down below the $0.07 intraday low on May 12, indicating the resumption the downtrend.
Daily chart of DOGE/USDT Source: TradingView
Further selling momentum was seen and bears pulled DOGE/USDT to $0.05 psychological support. This level could be a temporary support as the RSI is showing a relief rally possible.
The bears will try to stop the recovery at $0.07, which is the break-even point. The bears will try to halt the recovery at the $0.07 resistance. A break above the 20-day EMA ($0.08) will signal strength.
Similar: How to survive in bear markets? Tips for beginners
On June 10, aggressive selling by bears attracted to the failure of the bulls in pushing Polkadot(DOT) back into a symmetrical triangle. This caused a decline that brought the price down below $7.30.
Daily chart of DOT/USDT Source: TradingView
Bulls are trying to get the price above $7.30. If they succeed, it could indicate that the bear trap of the $7.30 break may have been avoided. The DOT/USDT exchange rate could rise to the $20 EMA ($9.17).
If the price does not rise above $7.30 it could indicate that the bears have turned the level into resistance. This could reopen the downtrend. The psychological level of $5, and then the pattern target at $4.23, will be the next stop.
UNUS SED LEO has been trading in a downward channel for several weeks. Although the bears pose a challenge at $5.60, it is difficult for them to keep the price below the $20-day EMA ($5.24).
Daily chart LEO/USD TradingView
The LEO/USD pair could move gradually up to the resistance line if the price rises above the current level. This level is likely to be defended aggressively by the bears.
The bears will try to sink the pair below 20-day EMA if the price falls below the resistance line. The pair could eventually fall towards the support line if that happens. This will indicate that the pair could extend their stay within the channel.
If the bears or bulls lower the pair below support, the next trending move might be made.
Avalanche’s (AVAX), tight range trading between 20-day EMA ($24), and critical support $21 resolved to the downside in June 11. This signaled the resumption the downtrend.
Daily chart of AVAX/USDT Source: TradingView
The selling gained momentum and broke through $18 support on June 12. The AVAX/USDT pair has a weak support at $15. However, if it breaks down, the AVAX/USDT could plunge to the next strong support at $13.
Despite the fact that sellers have an advantage due to the downward-sloping moving averages, the RSI shows oversold levels suggesting that selling may be overdone in near future. This could lead to a rally to $21. To indicate that bears are losing their grip, the bulls will need to push the price higher than the 20-day EMA.
Risk is inherent in every investment or trading move. Before making any investment or trading move, you should do your research.
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I am a technology and gaming writer by profession. I love NFT’s and play to earn gaming such as Axie Infinity. I love writing about anything on the blockchain, especially gaming and entertainment. I often sing, write or draw to portray my feelings. When it comes to my free time or you can say ‘ME-TIME’, I love to play with my cat, sleep an extra hour, or play my favorite video games.