Crypto Brief on June 07: Bitcoin price could plunge to $6,200 after correction plus ETH, XRP, ADA, LTC, ETC
Bitcoin is in danger of falling to $ 6200 if it does not get above the upper trend line with a decisive break above $ 10,000 while some leading altcoins are approaching their critical levels.
Kraken Intelligence, the research arm of the Kraken exchange, concluded that the Bitcoin price could drop to $ 6,200 without mentioning a specific time frame.
However, if the bulls attempt to break out of a key resistance level, there may be significant volatility in the opposite direction.
The surprise rally on June 1 brought Bitcoin to a multi-month high of $ 10,432 but it was all fleeting. BTC price fell 14% the next day, erasing all profits.
Trader John Bollinger has described the move as a ‘fake head’ to alert other traders of the potential for a potential bearish reversal.
The chart posted by Kraken Intelligence shows that Bitcoin is currently stuck in a large pennant model from Bitcoin’s all-time high of nearly $ 20,000.
If BTC fails to break above its upper trend line with a decisive break above $ 10,000, it is likely to return to the multi-year support level of $ 6,200.
*NEW* #bitcoin IS BACK BELOW $10K. WHAT’S NEXT?
The price may seem psychological, but it coincides with a major multi-year pennant.
So, while $BTC could climb, a dive to $6K remains possible.
Here’s the view from our latest Intelligence report 👇🧵https://t.co/LTHTCTFTtp pic.twitter.com/Z9Odt6SVWn
— Kraken Exchange (@krakenfx) June 6, 2020
However, this simple technical breakout pattern could trigger the new Bitcoin rally.
Over the past week, Bitcoin has begun to correct the downside from the $ 10,360 area. The price of BTC broke out of the $ 10,000 support zone and it even slipped below the support of $ 9,500.
However, the bulls can defend the $ 9,300 area and the 100 SMA (4 hours). A low formed near the $ 9,308 level and it recently started a new high.
There was a break above the Fib 23.6% retracement level of the downward move from a high of $ 10,361 to a low of $ 9,308. Bitcoin has even climbed above $ 9,500 and $ 9,600. On the downside, the $ 9,800 area appears to act as strong resistance.
The 50% Fib pullback of the downward move from a high of $ 10,361 to a low of $ 9,308 also prevented further price increases. The price is currently trading in a range above $ 9,600.
There is also an important contract triangle formed with resistance near $ 9,700 on the 4-hour chart of the BTC / USD pair. If there is a clear break above the triangle resistance near $ 9,700 and then $ 9,800, the price could rise faster to $ 10,000.
Over the past week, Ethereum has soared above the $ 250 resistance level. The price of ETH was trading as high as $ 253 and then began to fall below the support of $ 240.
The price slipped below $ 235 and $ 230. However, it found a strong support near $ 225 and the 100 SMA (4 hours). Ether has bounced back above $ 235 and recovered most of its losses.
ETH traded above the Fib 50% retracement of the move down from a high of $ 253 to a low of $ 230. It is also struggling to clear the $ 244 and $ 245 resistance levels. There is also a major contract triangle formed with resistance near $ 245 on the 4-hour chart of ETH / USD.
The 61.8% Fib retracement level of the move dropped from a high of $ 253 to a low of $ 230 also near $ 245. Therefore, if ETH clears the $ 245 resistance, it can continue to rise above the $ 250 resistance.
An immediate resistance near the high of $ 253. Above this level, it is highly likely that the index will sustain to move to $ 260 and $ 265 in the near future.
LTC is trading at $ 46.27 at the time of writing. Although its efforts to break $ 50 have not been successful, it has long been consolidated under this area. LTC may be approaching an important resistance.
Looking at the daily chart, the price candle has followed the ascending triangle pattern, the completion could lead to a bullish breakout.
Further confirming the presence of future price increases is the location of the daily moving averages. 50 DMA (Pink) is below 200 DMA (Purple) after a death cross. However, with 200 DMA falling and 50 DMA increasing, it can basically imply a positive reversal in the trend and a potential golden cross in the offing.
The MACD has undergone a bullish cross, in which the signal line slips below and describes a positive trend for LTC. Besides, the RSI is also far beyond the 50 line, showing the increasing buying sentiment among investors.
If LTC tries to overcome the major resistance of the trend, it can rally to $ 58.18 in the long term. Moreover, if the positive trend continues and gains the necessary momentum, it could target $ 70.64, an unprecedented level since the February rally.
ADA is back in the top 10 with a market capitalization of $ 2.23 billion after defeating XTZ with a market capitalization of $ 2.16 billion.
The price charts of ADA show the formation of a descending channel, a chart that can mean price increases. Bollinger bands indicate that ADA has noticed a period of declining volatility, while the RSI indicates the neutral between buying and selling pressure.
ETC slipped to 20th place in the top cryptocurrency asset after rising to 15th place at the end of last year. The token has maintained a sideways movement for the past few days with a slight 1% decline recorded over the past 24 hours.
Surprisingly, the token also recorded a high volume of transactions over the past 24 hours of $ 896 million, slightly lower than its $ 792 million market capitalization.
Despite the correction, ETC remained green when Chaikin Money Flow (CMF) proposed a higher inflows than the outflows. Moreover, MACD also indicated a bullish report, with the blue line above the signal line.
Ripple CTO David Schwartz believes that a complaint about Gemini listing not listing XRP, released by many community members last month, was ‘dumb’.
(For the record, I still think it’s a pretty dumb complaint. Sorry, but I cannot tell a lie.)
— David Schwartz (@JoelKatz) June 6, 2020
He stated that the U.S. Securities and Exchange Commission (SEC) is not the appropriate governing body for trading venues listing low-market cap cryptocurrencies.
Twitter user “galgitron” tagged SEC to look into Gemini, the exchange was regulated to be owned by the Winklevoss twins, after they refused to list XRP at the time.
The Winklevoss listed LINK and other smaller tokens before the XRP community got angry and made baseless accusations.
Eventually, Tyler Winklevoss decided to solve the problem himself and criticized the ‘dumb’ XRP trolls for unknowingly treating their beloved cryptocurrencies as securities by tagging the SEC.
To keep up his face, “galgitron” said it was simply a ‘successful’ troll attempt to attract more attention to the pro-Ripple blog.
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