Bitcoin (BTC) fell to its lowest level since February, indicating panic selling among investors. However, Blockstream founder and CEO Adam Back said in a post on X that drawdowns are a “normal bull market pattern.” He said that traders should buy the dip instead of panicking.
The panic has been triggered by the liquidation of the German government’s Bitcoin holdings and the expectations that Mt. Gox creditors will also monetize their repayments. Finance analyst Jacob King said in a X post that most of Mt. Gox’s former creditors are likely to sell their holdings.
According to CoinGlass data, cryptocurrency liquidations over the past 24 hours have reached over $665 million, the highest in two months. Analysts expect the selling to continue and Bitcoin to drop to $50,000.
A sharp drop in Bitcoin’s price is likely to attract buying from long-term investors. What are the critical support levels to watch out for in Bitcoin and altcoins? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin price analysis
Bitcoin’s large range between $56,552 and $73,777 broke down on July 5, but a minor positive is that the sellers are finding it difficult to sustain the lower levels.
The bulls are attempting to reclaim the $56,552 level. The oversold levels on the relative strength index (RSI) point to a possible relief rally in the near term, which is likely to face selling at the 20-day exponential moving average ($62,055).
If the price turns down from the 20-day EMA, the bears will have another go at the $56,552 to $53,485 support zone. If this zone cracks, the BTC/USDT pair could slide to $50,000. This negative view will be invalidated in the near term if the bulls push and sustain the price above the 20-day EMA.
Ether price analysis
Ether (ETH) has been trading inside a large range between $2,850 and $4,094 for several days.
Aggressive selling by the bears pulled the price to the support of the range at $2,850 on July 5. The RSI has dipped into the oversold territory, indicating that a relief rally is possible in the near term.
If the price turns up from the current level, the ETH/USDT pair is likely to face selling at the 20-day EMA ($3,373). If the price turns down from the 20-day EMA, it increases the risk of a break below $2,850. The next support on the downside is at $2,200. The bulls will have to kick the price above the 20-day EMA to indicate that the range-bound action remains intact.
BNB price analysis
BNB (BNB) easily sliced through $551 and then the $536 support on July 4, signaling aggressive selling by the bears.
The selling continued on July 5, and the bears tugged the price below the solid support at $495. A positive sign is that the bulls have not allowed the price to break below the $460 support.
The oversold levels on the RSI signal that the bulls could attempt to start a recovery, which is likely to face selling at the 20-day EMA ($570). If the price turns down from the 20-day EMA, the bears will make one more attempt to sink the BNB/USDT pair below $495. If they can pull it off, the pair may drop to $400.
Solana price analysis
The failure of the bulls to propel Solana (SOL) above the 50-day SMA ($154) attracted selling on July 3.
The price dropped close to the formidable support at $116 on July 5. This level has held on three previous retests; hence, the bulls will try to protect it again. The bounce is likely to face selling at the 20-day EMA ($141).
If the price turns down from the 20-day EMA, it increases the risk of a breakdown. If that happens, the SOL/USDT pair could decline to $100. The advantage will tilt in favor of the bulls on a break above the 50-day SMA.
XRP price analysis
XRP (XRP) nosedived below the $0.46 support on July 4 and followed it up with another solid down move below $0.41 on July 5.
The long tail on the candlestick shows that the bulls purchased the dip and are trying to maintain the price above $0.41. The oversold level on the RSI suggests that the XRP/USDT pair may witness a relief rally that could reach the moving averages.
If the price turns down from the moving averages, it will indicate that the bears remain active at higher levels. That will put the $0.41 to $0.38 zone at risk of breaking down, and the pair may collapse to $0.30.
Contrarily, a rise above the moving averages will suggest that the break below $0.41 may have been a bear trap.
Dogecoin price analysis
Dogecoin (DOGE) closed below the $0.12 support on July 3, indicating that the range resolved in favor of the bears.
The bulls could not stop the decline at the $0.10 support on July 5, opening the gates for a further fall to the solid support at $0.08. Buyers are likely to defend the $0.08 level with all their might, but the relief rally may face resistance at the 20-day EMA ($0.12). If the price turns down sharply from $0.12, the DOGE/USDT pair may retest the $0.08 support.
The bulls will have to drive and sustain the price above the 20-day EMA to suggest that the bears may be losing their grip.
Toncoin price analysis
Toncoin (TON) turned down from $8.17 on July 3, signaling that the bears are fiercely protecting the overhead resistance at $8.29.
The selling increased after the price slipped below the 20-day EMA ($7.48) on July 4. The bears pulled the price below $6.77 on July 5 but are struggling to sustain the lower levels. This suggests that the bulls are buying the dips near the $6 support.
If the price closes above the 50-day SMA ($7.09), the TON/USDT pair could swing between $8.29 and $6.36 for some time. On the contrary, if the price turns down from the moving averages and closes below $6.77, it will complete a double-top pattern. This negative setup has a pattern target of $5.25.
Related: Here’s what happened in crypto today
Cardano price analysis
Cardano (ADA) turned down from the 50-day SMA ($0.42) on July 3, and the selling intensified after the price slipped below the 20-day EMA ($0.39) on July 4.
The failure of the bulls to defend the $0.35 support shows intense selling by the bears. If the price closes below $0.35, the risk of a fall to $0.30 and thereafter to $0.25 increases. Buyers are likely to step in and arrest the decline at $0.25.
The first resistance on the upside is likely to be at the 20-day EMA and then at the 50-day SMA. A break and close above the 50-day SMA will signal that the downtrend could be ending.
Avalanche price analysis
Avalanche (AVAX) turned down from $29 on July 3, indicating that the bears flipped the level into resistance.
The selling picked up, and the bears yanked the price below the $23.51 support on July 5, but the long tail on the candlestick shows buying at lower levels. Any recovery attempt is likely to face selling at the 20-day EMA ($27.71) and then at $29.
If the price turns down from the overhead resistance, the bears will again try to sink the AVAX/USDT pair below $21.80. If they manage to do that, the pair could extend the decline to the next support at $19.
Shiba Inu price analysis
Shiba Inu (SHIB) plunged below the $0.000016 support on July 4, signaling that the tight range resolved in favor of the bears.
The selling continued, and the bears pulled the price below the $0.000014 support on July 5. If the price sustains below $0.000014, the next stop is likely to be the psychological support at $0.000010.
The RSI has slipped into the oversold territory, indicating that a relief rally may be around the corner. The bulls will have to drive and maintain the price above the 20-day EMA ($0.000017) to signal a comeback.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.