The failure of Bitcoin (BTC) to rise above the critical resistance area of ​​$40,000-42,000 is keeping cryptocurrency traders in trouble. Some analysts see the sharp return from the $31,000 level as a sign of build-up at lower levels, while others believe that the lack of a bullish resistance crossover indicates that Bitcoin hasn’t stopped working yet.

Crypto market analysts at JPMorgan, led by global market strategist Nikolaos Panegirtzoglu, noted that after the recent plunge, the bitcoin futures market has gone from holding back to pulling back for the first time since 2018. Analysts believe this is a warning about a potential bear market. Similar to what was seen in 2018.

Daily performance in the cryptocurrency market. Source: Coin360
While the price of bitcoin remains low, one of the primary reasons for owning bitcoin has taken a major hit as inflation in the US has risen to its highest level since 2008. If inflation remains high, institutional investors may consider investing in bitcoin to protect their portfolios .

Related: Bitcoin Traders See ‘Critical’ Level at $38,000 as BTC Price Action Consolidates Higher

What levels may indicate that the downtrend may be over? Let’s analyze the charts of the top 10 cryptocurrencies to find out.

BTC / USDT
Bitcoin dropped from the resistance line on June 10, but the bears failed to keep the price below the 20-day exponential moving average ($36,604). This indicates that buyers are trying to defend the 20-day moving average.

BTC/USDT daily chart. Source: TradingView
If buyers push the price above the resistance line, it will reflect the developing bearish triangle pattern. The failure of the bearish setup is a bullish signal as it picks up on many bears who are forced to close their short positions, creating a short squeeze.

This could lead to a rise to $42,451.67 and then to the 50-day simple moving average ($45,271). Contrary to this assumption, the BTC/USDT pair could correct up to $31,000 and consolidate in this large area for several days if the price drops from $42451.67.

The trend will turn in favor of the bears if the pair reverses from the current level and breaks the support area between $31,000 and $28,000.

ETH / USDT
Ether (ETH) rose above the 20-day moving average ($2,581) on June 9, but the bulls were unable to develop that strength. The price was rejected again on June 10, indicating that the bears are selling on every small rally.

ETH/USDT daily chart. Source: TradingView
If the bears drop and keep the price below the triangle, ETH/USDT could see a renewed sell-off that could push the price lower to $2,079 and then to $1,728.74.

However, the 20-day EMA has flattened and the Relative Strength Index (RSI) is supporting near 40, which indicates a short-term movement.

If the price breaks through today’s level, the pair may rise to the 20-day moving average and then extend its stay inside the triangle for a few more days. A breakout and a close above the 50-day moving average ($2929) indicates that the downtrend may be over.

BNB / USDT
On June 9, Binance Coin (BNB) rose above the 20-day moving average ($358), but the bulls were unable to withstand the outbreak. The bear withdrew the bonus during the 20-day moving average on June 10. On the positive side, the bulls managed to hold the trend line support.

BNB/USDT daily chart. Source: TradingView
Now the bulls will try to push the price above $378.77. If they manage to do so, the BNB/USDT pair could face a maximum resistance of $433. A breakout and the proximity of this resistance could push the price towards the 50-day SMA ($478).

A breakout and closeness above this level will indicate that the downtrend may be over. This positive outlook will be rejected if the price drops from the current level or upper resistance and drops below the trend line. This could bring the price down to $291.06 and then to $211.70.

ADA / USDT
Cardano (ADA) dropped from the 20-day moving average ($1.61) on June 10, indicating that sentiment remains negative. Now the bear will try to go down and keep the price below the trend line support.

ADA/USDT daily chart. Source: TradingView
If they succeed, the ascending triangle pattern becomes invalid. This could lead to a drop to $1.24 and then a critical support at $1. A strong return of $1 could keep the ADA/USDT pair within the range for several days.

Source: CoinTelegraph

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