Bitcoin (BTC) is leading the recovery in the cryptocurrency markets, which rose above the $21,000 level. However, BlockTrends analyst Caue Oliveira said on-chain data shows a decrease in “whale activity” since May, preventing a surge in activity during the collapse of Terra (LUNA) – which has been renamed Terra Classic (LUNC).
A survey conducted in China showed that most respondents believed that Bitcoin could drop much more. About 40% of respondents said they would buy Bitcoin if the price fell to $10,000. Only 8% of voters are interested in buying Bitcoin if it drops to $18,000.
Daily cryptocurrency market performance. Source: Coin360
Millionaire investor Kevin O’Leary told Cointelegraph that the cryptocurrency markets are likely to experience “enormous volatility” and enter a state of “total panic” before entering an exponential growth phase. He said that companies run by “stupid managers” will face the heat, but that it will lead to the emergence of stronger companies.
Could the highs continue to see violent selling by the bears? Let’s study the charts of the top 10 cryptocurrencies to find out.
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BTC / USDT
Bitcoin slipped below the support line of the symmetrical triangle on July 13, but the bears were unable to sustain the lower levels. This indicates that the bulls bought the dip and pushed the price to the 20-day EMA ($20,842).
BTC/USDT daily chart. Source: TradingView
The bulls will have to keep the price above the 20-day moving average to signal that the bears may lose their grip. Above the 20-day moving average, the recovery could extend to the 50-day simple moving average (SMA) ($23,753).
A breakout and a close above this resistance could indicate that the BTC/USDT pair may have bottomed.
This positive opinion can be invalidated if the price drops below the current level and breaks below the support line. Such a move could increase the likelihood of a retest of the crucial support area between $18,626 and $17,622
ETH / USDT
Ether (ETH) broke below the support line of the ascending triangle pattern on July 12th but the bears were unable to maintain the lower levels. The price rose from $1,006 and re-entered the triangle on July 13th. This indicates that the breakout below the triangle may have been a bearish trap.
ETH/USDT daily chart. Source: TradingView
Buyers will attempt to push the price above the upper resistance at $1,280 and the 50-day SMA ($1,358). If they succeed, the ETH/USDT pair could start to rise towards the pattern target at $1,679. Bears are expected to pose a strong challenge at the $1700 breakdown level.
Another possibility is that the price drops from $1,280. In this case, the pair may fall back to the triangle support line. The bears will have to sink the pair below $998 to gain the upper hand.
BNB / USDT
BNB rebounded from the strong support at $211 on July 13, indicating that the bulls are buying the dips to that level. The relief rally broke above the 20-day moving average ($233) on July 14 and the bulls will try to push the price to the 50-day simple moving average ($250).
BNB/USDT daily chart. Source: TradingView
The 20-day EMA has flattened and the Relative Strength Index (RSI) is in the positive territory, indicating a return to the bulls. A breakout and a close above the 50-day SMA could increase the probability of the BNB/USDT bottoming at $183. That could start a drive north of about $300.
Alternatively, if the price falls from the 50-day simple moving average and slips below the 20-day moving average, the pair could drop to $211. This could keep the pair confined to the $211-$250 range for a few more days. A breakout and a close below $211 could pave the way for a possible retest of the important $183 support.
XRP / USDT
Ripple (XRP) rebounded from the strong support at $0.30, indicating that the bulls are aggressively defending the level. On July 15, the recovery reached the downtrend line, which acts as a formidable barrier.
XRP/USDT daily chart. Source: TradingView
If the price breaks and continues below the 20-day EMA ($0.33), it will indicate that sentiment is still negative and traders are selling on rallies. The bears will then make another attempt to pull the price to the strong support level at $0.30.
If this level fades, the XRP/USDT pair may complete the descending triangle pattern. This may indicate a resumption of the downtrend.
Conversely, if the price rises from the current level and rises above the descending trend line, it will invalidate the descending triangle pattern. The failure of the bearish pattern is usually a bullish sign as it may result in the bears being covered by the shorts. After that, the pair may rise to $0.45.
ADA / USDT
Cardano (ADA) rebounded from the critical support at $0.40 on July 13 indicating that the bulls are trying to defend the level. belief