Crypto Market Analysis for June 7: BTC, ETH, BNB, XRP, ADA, DOGE, MATIC, SOL, DOT, LTC
The cryptocurrency market experienced volatility over the past two days as major digital currencies, including Bitcoin (BTC) and altcoins, reacted to the actions taken by the United States Securities and Exchange Commission (SEC) against two leading crypto exchanges, Binance and Coinbase.
Following the initial knee-jerk reaction and subsequent rebound, the markets are now expected to enter a consolidation phase as traders evaluate the uncertainty surrounding the lawsuits. The fact that the markets did not collapse in the face of these challenges indicates the increasing maturity of the cryptocurrency space.
According to data, Bitcoin’s exchange balances decreased by 12,600 BTC on June 5 and 6. This decline suggests that traders remained calm and did not panic sell, unlike during the FTX incident in November.
To understand the market dynamics, let’s analyze the charts of the top 10 cryptocurrencies.
Bitcoin (BTC) Analysis
Bitcoin showed resilience by bouncing back from the crucial support level of $25,250 on June 6. The recovery, however, is currently facing selling pressure near the moving averages. Traders should closely monitor the $25,250 level as a break and close below it could potentially lead to a decline toward $20,000. On the upside, if buyers manage to push the price above the resistance line of the channel, it could signal the end of the corrective phase and pave the way for a rally toward $31,000.
Dogecoin (DOGE) Analysis
Dogecoin broke below immediate support at $0.07 on June 5 but rebounded sharply from the support near $0.06. The bulls attempted to push the price above the 20-day EMA ($0.07) on June 6 but were met with selling pressure from bears. The downsloping moving averages and the negative relative strength index indicate that bears have an advantage. To stage a comeback, bulls need to push the price back above the 20-day EMA, potentially triggering a rally toward $0.08.
Ether (ETH) Analysis
Ether dipped below the resistance line of the falling wedge pattern on June 5 but found support at lower levels. Although the bulls pushed the price back above the moving averages on June 6, they faced significant selling pressure from bears. If the bears succeed in pushing the price back into the wedge, the ETH/USDT pair could extend its decline toward the support line of the wedge. On the other hand, a rebound from the resistance line of the wedge would indicate bullish strength, with potential targets at $1,928, $2,000, and $2,200.
Cardano (ADA) Analysis
Cardano broke below the uptrend line of the ascending triangle pattern on June 5, invalidating the bullish setup. Despite a dip-buying attempt by the bulls on June 5, the price failed to reenter the channel, indicating the bears’ attempt to turn the uptrend line into resistance. On June 7, the bears dragged the price below $0.33, signaling a potential descent towards the strong support at $0.30. To demonstrate strength, a close inside the channel would suggest the break below might have been a bear trap. The pair could see strong buying above $0.39.
Litecoin (LTC) Analysis
Litecoin plunged below the moving averages on June 5 but rebounded sharply on June 6. However, the bulls failed to sustain the price above the 20-day EMA ($90), indicating selling pressure from bears. Bears will attempt to drag the price to the uptrend line, and a break and close below it could signal a potential downward move toward $75 and $65. Conversely, if the price turns up from the current level or the uptrend line, it would suggest a continuation of the triangle pattern, with bulls needing to push the price above the triangle to initiate the next leg of the up move.
Polygon (MATIC) Analysis
Polygon slipped below the $0.82 support on June 6 but saw aggressive buying at lower levels. Buyers attempted to sustain the price above the breakdown level but faced selling pressure on June 7, pushing the price below the previous day’s low. This suggests a resumption of the downtrend, with the MATIC/USDT pair potentially dropping to the strong support at $0.69. Bulls would need to quickly push the price back above $0.82 to prevent further decline and potentially initiate a short squeeze towards $0.94.
Solana (SOL) Analysis
Solana rebounded from the strong support at $18.70 on June 5 and 6, but the bulls failed to clear the hurdle at the 20-day EMA ($20.50). This indicates that bears remain active at higher levels. If the price breaks below the $18.70 support, the SOL/USDT pair may start a downward move toward the next support at $15.28. Alternatively, a rebound from the current level or $15.28 would suggest demand at lower levels, with bulls aiming to drive the price above $22.30 and potentially toward $24 and $27.12.
Polkadot (DOT) Analysis
Polkadot collapsed below the crucial support level at $5.15 on June 5 but experienced a sharp recovery on June 6, surpassing the breakdown level. However, the subsequent recovery lacked momentum, as bears sold the minor rally on June 7. Sellers will aim to push the price below $4.90, potentially leading to a drop to $4.22. The first significant resistance to monitor is the 20-day EMA ($5.29). A rally above this level would suggest a reduction in selling pressure, with the pair potentially gaining momentum above $5.56.
Disclaimer: The above analysis should not be taken as financial advice. It is purely for educational purposes and is based on historical data. Remember to do your own research before investing in any cryptocurrency.