The United States equities markets tumbled on June 10 after the Consumer Price Index (CPI) report showed inflation soaring 8.6% from a year ago, the highest increase since 1981. The latest figures show that talks of inflation having peaked were premature and according to Bloomberg, investors are pricing in the key interest rate of 3% by the end of the year.
Continuing its tight correlation with the S&P 500, Bitcoin (BTC) dipped below $30,000 on June 10. Analysts are still divided about the near-term price action but Fundstrat co-founder Tom Lee said in an interview with CNBC that Bitcoin may have already bottomed. However, Lee seems to have toned down his expectations as he said that Bitcoin could “remain flat for the year, possibly up.”
Among the constant flow of negative news, there was a ray of hope from news that Bloomberg expanded coverage of cryptocurrency data on its Bloomberg Terminal to 50 crypto assets. Bloomberg cryptocurrency product manager Alex Wenham, gave positive vibes as he said that institutional interest in digital assets continues to grow.
Now that Bitcoin is trading near swing lows again, is a capitulation-level crisis a threat? Let’s study the charts of the top-10 cryptocurrencies to find out.
Bitcoin Price Analysis
The bulls tried to push the price above the 20-day exponential moving average (EMA) ($30,365) on June 9 but the bears did not relent. The selling continued on June 10 and the bears have pulled the price below the trendline of the ascending triangle.
The 20-day EMA has started to turn down gradually and the relative strength index (RSI) is in the negative territory, indicating advantage to sellers.
If the price sustains below the trendline, it will invalidate the bullish setup. That could pull the BTC/USDT pair down to $28,630, which may act as strong support but if this level cracks, the decline could extend to $26,700.
Alternatively, if the price rebounds off $28,630 and rises above the 20-day EMA, the up-move could reach $32,659.
Ethereum Price Analysis
Strong selling on June 10 has pulled Ether (ETH) below the critical support at $1,700. If the price sustains below this support, the pair could resume its downtrend.
The ETH/USDT pair could first decline to $1,500 and if this level also gives way, the next stop could be the vital support at $1,300. The bulls are expected to defend this level with all their might.
Contrary to this assumption, if bears fail to sustain the price below $1,700, it will suggest accumulation at lower levels. The first sign of strength will be a break and close above the 20-day EMA. That could open the doors for a possible rally to $2,159.
The indicators are giving a mixed signal because the downsloping moving averages favor the sellers but the positive divergence on the RSI suggests that a relief rally may be around the corner.
Cardano Price Analysis
The bulls pushed Cardano (ADA) above the 50-day simple moving average (SMA) ($0.64) on June 8 and 9 but could not sustain the higher levels. That may have tempted short-term traders to book profits.
The bears are attempting to sustain the price below the 20-day EMA ($0.58). If they manage to do that, the ADA/USDT pair could plummet to the next support at $0.53. If this level also gives way, the decline could extend to $0.44.
Alternatively, if the price rebounds off the current level, it will suggest that the sentiment has turned positive and the bulls are buying on dips. The bulls will then make one more attempt to clear the overhead hurdle at the 50-day SMA. If they succeed, the pair could rally to the breakdown level of $0.74, which may again act as a resistance.
Ripple Price Analysis
Ripple (XRP) had been trading close to the downtrend line for the past two days. The failure to push the price above the overhead resistance may have attracted profit-booking from the short-term traders.
The XRP/USDT pair has dipped to the strong support of $0.38 where the buyers may attempt to stall the decline. If the price rebounds off the support and rises above the downtrend line, the pair could rally to $0.46.
On the contrary, if bears sink and sustain the price below $0.38, it will complete a bearish descending triangle pattern. That could intensify the selling and pull the price down to $0.33. A break below this support could signal the resumption of the downtrend.
Solana Price Analysis
Solana (SOL) is trading between the 20-day EMA ($44) and $37 for the past few days. The buyers tried to push the price above the 20-day EMA on June 9 but the bears held their ground.
The positive divergence on the RSI indicates a minor advantage to buyers while the downsloping moving averages suggest that bears have the upper hand. This uncertainty is unlikely to continue for long. If bears sink the price below $35, the SOL/USDT pair may resume the downtrend The next stop on the downside could be $30.
Contrary to this assumption, if bulls propel the price above the 20-day EMA, the pair could rally to $50 and then to the overhead resistance at $60.
