Bitcoin price is showing some early signs of a relief rally, and SOL, LTC, LINK, and BSV could be next if the bulls retake $20,000 as support for BTC.
As already reported, the price of Bitcoin (BTC) fell to $17,622 on June 18. It is the first time in the history of Bitcoin that it has fallen below its previous cycle high. The aggressive monetary tightening of the US Federal Reserve, the crisis of the cryptocurrency lending platform Celsius and the liquidity problems of the investment fund Three Arrows Capital are creating a sense of panic among traders.
Could the bulls stop the short-term Bitcoin price decline? In this article, we will study the charts of the top 5 cryptocurrencies that could outperform all other coins.
BTC/USDT
The Bitcoin price crashed below the crucial support of $20,111 on June 18, signaling the resumption of the downtrend. A small silver lining is that the bulls bought during the dip.
Buyers are trying to push the price back above the breakout level of $20,111. If they manage to do so, it will suggest that the drop to $17,622 on June 18 may have been a bear trap. The BTC/USDT pair could then rally to $23,362, where the bears could once again mount major resistance.
SOL/USDT
Solana (SOL) has been in a strong downtrend, but the positive divergence on the RSI suggests that the bearish momentum might be weakening.
The bulls will try to push the price above the 20-day EMA ($36). If they do, it will suggest that the bulls are back. Thereafter, the SOL/USDT pair could rally to the 50-day SMA ($50), where the bears could once again mount a major defense.
Conversely, if the price turns below the 20-day EMA, it will suggest that the bears do not want to give up their advantage. Then the sellers will again try to push the price below $25 and start the next leg of the downtrend.
LTC/USDT
The bears attempted to drop Litecoin (LTC) below the important $40 support on June 18, but the bulls are defending the level aggressively.
The relief rally has reached the 20-day EMA ($55) which is an important level to watch as a breakout and close above it could suggest a potential trend reversal. The LTC/USDT pair could rally to the 50-day EMA ($68) thereafter.
Contrary to this assumption, if the price turns down from the 20-day EMA, it will suggest that the trend remains negative and traders are selling on rallies. Then the bears will make another attempt to drop the pair below $40 and resume the downtrend.
LINK/USDT
Chainlink (LINK) is in a downtrend but trying to establish a bottom near $5,50. The bears pushed the price below this level on June 13, June 14, and June 18, but they were unable to sustain the lower levels. This suggests that the bulls are buying the dips.
The positive divergence on the RSI suggests that the bearish momentum may be weakening. The buyers will try to push the price towards the downtrend line, which is likely to act as a major resistance.
If the price breaks out of the downtrend line, the bears will again attempt to drop and sustain the LINK/USDT pair below the $5,50 support. If this happens, it will suggest a resumption of the downtrend.
BSV/USD
Bitcoin SV (BSV) has formed a widening pattern and the buyers are trying to push the price above the resistance of the setup. The RSI is showing a positive divergence, indicating that the bearish momentum is weakening.
The BSV/USD pair could rally to the resistance line, where the bears could try to stop the rally. If this happens, it will suggest that the bears are still selling on the rallies. This could keep the pair stuck inside the widening formation for a while longer.
Conversely, if the bulls break out of the resistance line, the pair could make a bottom. Then the pair could start a new move higher that could take it to $80 and then to $87.
By Audy Castaneda
