Bitcoin bulls defended the $ 31,000 level again, but the data shows that the demand for BTC and altcoins is weak and this increases the chase for more downsides.
Bitcoin (BTC) is witnessing a tough battle between the bulls and the bears near $ 31,000, which makes it an important level to watch out for. Data from Glassnode shows that the $ 31,000 to $ 34,300 zone has received strong interest from buyers and sellers, as 9.93% of Bitcoin’s supply has moved into this zone.
The failure of Bitcoin to quickly rebound from strong support levels indicates weak demand. Proof of the current disinterest comes from BlackRock CEO Larry Fink, who said in a recent CNBC interview that investor demand for cryptocurrencies had recently waned. Fink said that during his last two weeks of business trip, he was not presented with a single question about Bitcoin and investing in cryptocurrencies.
Daily performance of the cryptocurrency market. Source: Coin360
Another sign of reduced demand is that the 90-day inflow to US and Canada-based Bitcoin funds has plunged 93.49% from 191,846 BTC in January to 12,485 BTC, according to data compiled by ByteTree Asset. Management.
In an interview with CNBC on July 14, DoubleLine CEO Jeffrey Gundlach said that Bitcoin could fall below $ 23,000 due to the head and shoulders trading pattern, which "seems pretty convincing".
Will Bitcoin break below support and start the next leg down or is a bounce expected? Let’s study the charts of the top 10 cryptocurrencies to determine the critical levels to watch out for.
BTC / USDT
Bitcoin has been trading near the $ 31,000 support for the past two days. The fact that it has not recovered sharply from this critical support is a weak sign as it suggests a lack of strong demand at these levels.
BTC / USDT daily chart. Source: TradingView
The descending moving averages and the Relative Strength Index (RSI) in the negative territory indicate that the bears have the upper hand. A breakout and close below $ 31,000 could open the doors for a drop to the next support at $ 28,000.
If the price bounces around the $ 31,000 to $ 28,000 zone strongly, it will suggest accumulation at lower levels. The bulls will try to push the price above the moving averages. A breakout and close above the 50-day simple moving average ($ 35,084) will be the first sign of a possible trend reversal.
Conversely, if the price falls below $ 28,000, the bearish momentum could rebound and the BTC / USDT pair could drop to $ 20,000.
ETH / USDT
The Ether (ETH) relief rally on July 14 failed to break above the 20-day exponential moving average ($ 2,097). This suggests that sentiment remains negative and traders are selling on every minor rally. The largest altcoin could now fall to critical support at $ 1,728.74.
ETH / USDT daily chart. Source: TradingView
Both the moving averages are declining and the RSI is below 41, indicating that the bears are in control. If the bears slide the price below $ 1,728.74, the ETH / USDT pair will complete a descending triangle pattern.
That could indicate the resumption of the downtrend with the next support at $ 1,536.92 and then $ 1,293.18.
Contrary to this assumption, if the price bounces off the $ 1,728.74 support, the bulls will make one more attempt to erase the moving averages. If they are successful, the pair could rally to the downtrend line.
BNB / USDT
Binance Coin (BNB) has been trading near the 20-day EMA ($ 313) for the past few days. Although the price fell below the 20-day EMA on July 14, the long tail of the day’s candle showed buying at lower levels.
BNB / USDT daily chart. Source: TradingView
Buyers tried to push the price above the 50-day SMA ($ 329) on July 15, but failed. This shows that the bears have yet to give up and are aggressively defending the 50-day SMA. The flat moving averages and the RSI just below the midpoint indicate a balance between supply and demand.
A breakout and close above the 50-day SMA will be the first sign of strength. The bulls will try to push the price to $ 379.58 and then to $ 400. Conversely, a break below the $ 276.40 to $ 264.26 support zone will indicate an advantage for the bears. That could bring the price down to $ 211.70.
ADA / USDT
Cardano’s (ADA) rebound of $ 1.19 on July 14 failed to rise above $ 1.28, suggesting that bears are defending this level aggressively. The price dropped from $ 1.28 on July 15 and fell below $ 1.19 today.
ADA / USDT daily chart. Source: TradingView
The long tail of today’s candle suggests that the bulls are again attempting to halt the decline and begin a relief rally. A breakout and close above the 20-day EMA ($ 1.32) will be the first sign of strength. The pair could then move up to the 50-day SMA ($ 1.44).
On the other hand, if the bears hold the price below $ 1.19, the ADA / USDT pair could continue its decline to $ 1.10. A break below this support can retest the critical support at $ 1. This level has held several times since Feb 26, so the bulls will again try to defend it.
A strong bounce off $ 1 will indicate accumulation at lower levels, but the bulls are likely to face stiff resistance at $ 1.19. If the price turns down from this level, the possibility of a break below $ 1 increases. If that happens, the pair could start a new downtrend with the next support at $ 0.80.
XRP / USDT
The bulls are attempting to defend the $ 0.59 support for the past two days, but have not been able to pull off a strong bounce. This suggests a lack of urgency among traders to buy XRP at current levels.
XRP / USDT daily chart. Source: TradingView
The falling moving averages and RSI below 39 suggest that bears have the upper hand. A breakout and close below $ 0.59 could send the price down to the critical support of $ 0.50.
If the price bounces off $ 0.50 strongly, the bulls will again attempt to push the XRP / USDT pair above the 20-day EMA ($ 0.65). If they are successful, the pair could rise to $ 0.75.
On the other hand, if the bears drop the price below $ 0.50, the pair could drop to the next support at $ 0.45 and then to $ 0.40.
DOGE / USDT
Dogecoin (DOGE) has continued to decline towards the critical support at $ 0.15. This level had been held on two previous occasions, so the bulls will once again try to defend it aggressively.
DOGE / USDT daily chart. Source: TradingView
If the price bounces off $ 0.15, the bulls will try to push the price above the 20-day EMA ($ 0.22). If they can pull it off, it will suggest the beginning of a relief rally that can reach the 50-day Simple Moving Average (SMA) ($ 0.27).
Conversely, if the bears lower the price below $ 0.15, the selling could intensify as traders rush out. That could result in a drop to $ 0.10 and then $ 0.07. The falling moving averages and the RSI near the oversold zone suggest that the possibility of a breakout is greater.
DOT / USDT
The failure of the bulls to propel Polkadot (DOT) back above $ 14.50 in the past two days indicates a lack of demand at higher levels. That resulted in more selling today, sinking the altcoin below critical support at $ 13.
DOT / USDT daily chart. Source: TradingView
Both the moving averages are declining and the RSI is close to the oversold territory, which suggests that the bears are in command. If the price sustains below $ 13, the DOT / USDT pair could decline to the next support at $ 10.
The bulls may attempt to halt the decline at the psychological $ 10 level, but any relief rally is likely to face resistance at $ 13. If the bears change this level to resistance, the possibility of a decline to $ 7 increases. First sign of strength will be a breakout and close above the 20-day EMA ($ 15.38).
UNI / USDT
Uniswap’s (UNI) attempt to rebound from the $ 16.93 support on July 14 found no buyers at higher levels. The altcoin was down on July 15 and broke below $ 16.93 today, but the long tail on the day’s candle suggests buying at lower levels.
UNI / USDT daily chart. Source: TradingView
If the price sustains above $ 16.93, the bulls will again try to push the price to the downtrend line. A breakout and a close above this resistance will suggest a possible trend reversal.
Conversely, if the price sustains below $ 16.93, the UNI / USDT pair could drop to $ 15 and then to the critical support of $ 13. Both moving averages are down and the RSI has dropped below 40. , indicating that the bears have the upper hand.
If the price falls below $ 13, the pair will complete a bearish descending triangle pattern. This could resume the downtrend with the next support at $ 10 and then $ 7.
Related: the Bitcoin price surpasses $ 32K and traders are wary of ‘relief rally’ if resistance holds
BCH / USDT
The bulls tried to get Bitcoin Cash (BCH) back above $ 475.69 on July 14, but they failed. This suggests that the bears have turned the $ 475.69 level to resistance. The altcoin turned down and resumed its downward move on July 15.
BCH / USDT daily chart. Source: TradingView
There is minor support at $ 428. If the price bounces off this level, the bulls will again try to push the BCH / USDT pair above $ 475.69. If they are successful, the pair can rise to $ 538.11. A breakout of this resistance will indicate a possible trend reversal.
Alternatively, if the price continues its downward movement and breaks below $ 428, the pair could fall to the psychological level at $ 400 and then $ 370. The decreasing moving averages and RSI below 36 suggest that bears have the control. A break below $ 370 could start the next stage of the downtrend.
LTC / USDT
Litecoin (LTC) bounce from the $ 118 support on July 14 turned off at the downtrend line on July 15. This suggests that the bears are aggressively defending the downtrend line.
LTC / USDT daily chart. Source: TradingView
The descending moving averages and the RSI below 36 suggest that the path of least resistance is to the downside. If the bears sink and hold the price below $ 118, the LTC / USDT pair could fall to the $ 104.92 to $ 100 support zone.
This zone may attract buyers, but if the bulls fail to push the price back above $ 118, the selling could continue. A break below $ 100 could extend the fall to the next support at $ 70. This negative view will be invalidated if the price rebounds from the current level and breaks above the downtrend line.
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 views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trade move involves risk, you should do your own research when making a decision.
The entry Price Analysis 7/16: BTC, ETH, BNB, ADA, XRP, DOGE, DOT, UNI, BCH, LTC was published first in Bitcoin, Cryptocurrency and Blockchain News.