The world’s number one cryptocurrency by market cap is expected to make a key move in the next few days to start a trend that could dictate the direction of price action for a couple of weeks.
After the recent success and traction of Grayscale’s Bitcoin Trust Security over the last few weeks, Wilshere Phoenix applied to the SEC to introduce a publicly-traded Bitcoin Fund. The approval of the application by the SEC would most likely attract institutional investors.
Bitcoin has been struggling to get past the $10,000-$10,500 resistance level for the past few weeks. If the price of BTC drops further, it is plausible to affect altcoins and the other digital currencies, but this could be an excellent opportunity for investors. Let’s look at a few cryptos that might present the bulls and bears with an investment opportunity.
BITCOIN / U.S. DOLLAR
The world’s most popular cryptocurrency, BTC, is seeing a scuffle between bears and bulls. Bulls are trying to push the price of Bitcoin over $10,000–$10,500 in resistance to trigger a positive momentum. On the contrary, bears are trying to create a temporary top in the $10,000 price zone.
On June 10, BTC’s price dropped below $10,000 and plummeted to $9,254 on June 11. These two levels are essential as they signal the direction of the BTC price action once it breaks out of either of the two levels.
Thus, if the BTC price advances past $9,548, Bulls is expected to attempt to push the price up to $10,000. If the price of BTC breaks past the crucial $10,000-$10,500 resistance level, it may indicate the likely start of sustained positive momentum.
On the other hand, if bears can lower the BTC price below $9,254-$8,638.70, then it is likely that the price will fall below $8,130.53. A breakout further below this zone could force investors to sell, triggering a downward surge.
During the March crypto market crash, XLM plummeted from $0.06 to around $0.026. Currently, the XLM/USD pair is trading at $0.071418. This is a good sign as the price of Stellar Lumens has more than recovered from the March cryptocurrency market crash by about 120 percent.
However, looking at the charts, XLM is currently on a red downtrend. However, the current $0.071418 market price is above the 50-day, 100-day, and 200-day moving averages, indicating that there are sufficient support zones at $0.070 and $0.058, respectively. Bitcoin is currently trading below the $9,300, it is likely XLM will test these zones soon.
Cardano’s (ADA) price has dropped below the 20-day moving average, $0.075. This signals a weakened bullish rally for the cryptocurrency. In the meantime, the bulls are attempting to protect the 50 percent Fibonacci retracement zone of $0.0705811. However, if ADA can break off this support level, it can rally up to $0.080 and further to hit $0.0901373. Notably, this support level is a critical factor since, if ADA falls below it, the drop may extend down to $0.0510249.
NEO is currently in an unfavorable situation. The 50-day moving average is surging upwards, suggesting that the midway trend is up. Nevertheless, NEO dropped below this support level back in June 10, signaling a diminishing bullish rally.
Currently, NEO is trading at $10.44, according to coinghecko.com. If bears can push the price down below $10.42133, selling is likely to increase. The support levels to watch out for if the downtrend starts are $9.21399 and then $8.60349.
On the other hand, if the bulls can buy their way up to the 100-day moving average ($11.27), it may escalate the likelihood of a rally towards $12.2839 and then to $12.1711.