Crypto Price Analysis 6/23: Bitcoin targets surpass $10,000 plus ETH, BCH, XLM, LINK
The S&P 500 and other financial markets have seen a boost. Nasdaq once again set a new ATH as Microsoft and Netflix took it to the next level, despite the pandemic.
The Federal Reserve announced last week that it would buy individual corporate bonds, which some saw as a sign that the Fed could buy individual stocks, thus leading to protests.
Meanwhile, PayPal is looking to allow PayPal and Venmo users to directly buy and sell cryptocurrencies within the app.
This is a confluence of positive trends that pushed Bitcoin’s price to $ 9800 overnight. How long can it last?
Bitcoin
Bitcoin price has been trading in a descending wedge since June 1, having made two unsuccessful breakout attempts until now. On June 22, the price finally broke out of this pattern, doing so in significant volumes.
The price found resistance between the levels of 0.5-0.618 Fib at $ 9,645- $ 9,820 and is currently trading very close to the old level, after backing back a bit and creating an upper-wick.
Source: Tradingview
Looking at the hourly chart, we can see that the major support area is found at $ 9,530 (previous resistance area). This area is also the center of the 0.5 Fib level of the whole move up.
In addition, a bullish cross occurred between the 50- and 200-hour moving averages (MA), which is expected to provide additional support.
Although the volume has declined since the initial breakout, there has been no downward divergence in the RSI, so the upward move may continue, especially after a short-term retrace.
Source: Tradingview
ETH
ETH price gained traction above the $ 240 resistance and stabilized above the 100-hour SMA.
It opened doors to make more profits and the price broke the $ 245 level. ETH is trading near $ 250 and the intraday high is formed near $ 248. The price is currently correcting lower and trading below $ 245.
It broke the Fib 23.6% retracement of the recent rally from the $227 low to $247 high. There seems to be a bullish flag pattern formed with resistance near $ 244 on the hourly chart of ETH / USD.
Source: TradingView
The first major support is seen near the $ 240 and $ 238 levels (recent breakout area). The Fib 50% retracement of the recent rally from the $227 low to $247 high is also close to $ 238.
On the upside, the price of ETH is likely to clear the channel resistance at $ 244. If the bulls succeed in gaining momentum above $ 245, it is more likely to rise above the resistance levels of $ 248 and $ 250. The next target for the bulls could be $ 255 or even $ 262.
BCH
Over the past few days, the BCH price has consolidated in a range above the support levels of $ 224 and $ 225. A low swing level was formed near $ 224 before the price started new gains.
There is a break above the $ 230 resistance zone. The bulls were able to push the price above the Fib 23.6% retracement of the decline from the $260 swing high to $224 low.
However, the BCH price is currently facing an important barrier near the $ 240 resistance area. There is also a major downtrend line forming with resistance near $ 242 on the 4-hour chart of the BCH / USD pair.
The trend line coincides with the 50% Fib retracement level of the decline from the $260 swing high to $224 low. The 100 SMA (4 hours) is also close to the resistance of the trendline and $ 240 to prevent price breakout.
Source: TradingView
If the bulls succeed in erasing the $ 242 resistance level, the price is likely to accelerate further. The immediate resistance is near the $ 246 level, followed by $ 250. A successful close above $ 250 will most likely open the door for a bigger step forward in the next sessions.
XLM
Stellar (XLM) price has dropped along with the descending resistance line since June 4. However, the price broke out on June 18 and may have created a double bottom. The resulting cup and handle pattern are considered an upside move.
Moreover, the price is at the confluence of support levels: the support of 725 satoshis and the 100-day MA, which has been a relatively good predictor of trends since January.
The fall in May below this area and subsequent pump and reclaim support makes the price likely to hold above and soon start moving upwards.
Source: Tradingview
LINK
Chainlink has led the development of the market today, with an increase of nearly 5% in the last 24 hours at the current price of $ 4.54. It is only down about 10% from the all-time highs set earlier and it is possible that buyers will soon target these levels.
Source: Tradingview
It is important to note that the ongoing upside is being driven by fundamental strength.
According to data from the analysis platform Glassnode, the number of LINK transfers has increased by 40% in the past 24 hours.
Source: Glassnode
Another metric signaling that Chainlink’s bullish price action is warranted is its number of daily active addresses.
Data from IntoTheBlock shows that the number of cryptocurrency operating addresses has increased from an annual low of around 1,000 to nearly 4,000 currently.
Source: IntoTheBlock
Read more:
- ETH price only has a 7% chance of seeing any type of intense parabolic rally before the end of the year
- As noted by cryptocurrency traders, a crucial Bitcoin price signal is about to appear