The failure of the bears to sink Bitcoin (BTC) below the support of the $56,552 to $73,777 range led to a recovery. Within ranges, prices often fluctuate between support and resistance levels. The price action in between is random and unstable.
One small positive for the bulls is that they made a higher low at $58,402 on June 24. Bitcoin's recovery could accelerate in July if history repeats itself. CoinGlass data shows that after a negative monthly close in June, there was a strong rebound in each of July.
However, some analysts warn that the rally could face headwinds. This could come from Mt.Gox paybacks, which began in early July. Creditors may rush out to profit as Bitcoin has gained so much from the Mt.Gox hack. This could create selling pressure, which could drag BTC prices lower.
Could Bitcoin rally in July, pulling altcoins higher or will the Mt.Gox payouts drag the market lower? Let's analyze the charts to find out.
SPX technical analysis
The S&P 500 Index (SPX) hit a new all-time high on June 28, but the bulls could not sustain the higher levels. This shows that short-term traders are taking profits.
SPX Daily Chart | Source: TradingView
The first support to watch on the downside is the 20-day exponential moving average (5,418). If the price rebounds from this level, it will signal that traders are viewing the dip as a buying opportunity. That will increase the likelihood of a continuation of the uptrend. The index could rise to 5,600 and then move towards 6,000.
Conversely, if the price turns down from the current levels and breaks below the 20-day EMA, it will signal that the bulls are in a hurry to exit. This move could drag the price down to the 50-day simple moving average (5,279).
DXY technical analysis
The bulls pushed the US Dollar Index (DXY) above the 105.74 resistance on June 26, but the bears dragged the price below the breakout level on July 1.
Daily DXY Chart | Source: TradingView
The strong rebound from the 20-day EMA (105.43) shows that sentiment remains positive and bulls are buying on dips. There is a minor resistance at 106.13, but a break above this could see the index move towards 106.50.
If the bears want to stop the rise, they will have to quickly drag the price below the channel's support line. The index could then plummet to 104, where buyers are expected to step in.
BTC technical analysis
Bitcoin's narrow range trading resolved to the upside when it broke above the $62,500 level on June 30. The bulls are attempting to consolidate their position further by pushing the price above the $64,602 resistance .
BTC/USDT Daily Chart | Source: TradingView
If successful, the BTC/USDT pair could reach the 50-day SMA ($66,476) and then attempt a move to $72,000. The bears are expected to strongly defend the $72,000 to $73,777 zone.
If the price turns down sharply from $64,602, it will show that the bears are attempting to flip this level as resistance. The pair can drop to $60,000 and then to $56,552. A strong rally from this zone would signal that the pair could extend its stay within the range for a few more days.
ETH technical analysis
Ether (ETH) bulls are attempting to initiate a mild recovery, likely facing stiff resistance at the moving averages.
ETH/USDT Daily Chart | Source: TradingView
If the price turns down from the 50-day SMA ($3,538), the bears will make one more attempt to drag the ETH/USDT pair to $3,200 and then to the psychological support at $3,000.
On the other hand, if the price rises above the 50-day SMA, this will signal that the correction may have ended. The pair could rise to $3,730, which is again expected to act as a solid resistance. However, if the bulls prevail, the pair is likely to start moving towards the overhead resistance at $4,094.
BNB technical analysis
The failure of the bears to drag BNB (BNB) below the $560 support suggests that selling is exhausted at lower levels.
BNB/USDT Daily Chart | Source: TradingView
The bulls will attempt to push the price above the moving averages and pave the way for a potential rally to the overhead resistance at $635. A break above this resistance will show that the bulls are back on top.
Conversely, if the price turns down from the overhead resistance, the BNB/USDT pair could fluctuate between $635 and $560 for some more time. The short-term advantage will be with the bears if they drag the price below $560. The pair could then slide to $536 and finally to $495.
SOL technical analysis
The bears dragged SOL price below the 20-day EMA ($143) on June 28, but could not sustain the lower levels.
SOL/USDT Daily Chart | Source: TradingView
The bulls bought into the dip and once again attempted to push the price above the resistance line. If they succeed, it would suggest that the correction may be over. The SOL/USDT pair can then rally to $175 and above it to $188.
Instead, if the price declines sharply from the resistance line, this will signal that the bears remain active at higher levels. The bears will then make one more attempt to push the pair down to the strong support at $116.
XRP technical analysis
XRP (XRP) has been trading below the 20-day EMA ($0.48) for the past few days, but the bears have been unable to drag the price below the $0.46 support.
XRP/USDT Daily Chart | Source: TradingView
The bulls will try to push the price above the 50-day SMA ($0.50), an important level to watch. If the buyers overcome this barrier, the XRP/USDT pair can move to $0.53 and lower to $0.57.
The key level to watch out for on the downside is $0.46. If this level breaks, selling could increase and the pair could drop to $0.41. Buyers are expected to aggressively defend the $0.41 to $0.46 zone.
TON technical analysis
Toncoin (TON) bounced off the 20-day EMA ($7.45) on June 29, showing that bulls are buying on a slight dip.
TON/USDT Daily Chart | Source: TradingView
The 20-day EMA is gradually sloping up and the RSI is in the positive zone which shows that the bulls have a small advantage. There is a minor resistance at $7.87, but if this level breaks, the TON/USDT pair can rally to $8.29.
Contrary to this assumption, if the price turns down and breaks below the 20-day EMA, it will signal that the bulls are booking profits. That could open the door for a drop to the 50-day SMA ($7.04) and then to $6.60.
DOGE technical analysis
The bears have been unable to sink Dogecoin (DOGE) below the $0.12 support, showing that the bulls are fiercely defending the level.
DOGE/USDT Daily Chart | Source: TradingView
The buyers will try to push the price above the 20-day EMA ($0.13) and consolidate their positions. If they do, the DOGE/USDT pair could rise to the 50-day SMA ($0.14). That suggests the pair could remain within the $0.12 to $0.18 range for a while longer.
This bullish view will be invalidated in the near term if the price continues to decline from current levels and breaks below $0.12. The pair could then start to decline towards the psychological support level of $0.10.
ADA technical analysis
Cardano (ADA) has been trading near the $0.40 resistance for the past few days, showing that bulls maintain buying pressure.
ADA/USDT Daily Chart | Source: TradingView
The flat 20-day EMA ($0.40) and RSI near the midpoint show that the bears are losing strength. If the price sustains above $0.40, the ADA/USDT pair can rally to the 50-day SMA ($0.43) and then to $0.51.
Conversely, if the price turns down sharply from the current levels, this will signal that the bears have flipped the $0.40 level as resistance. The pair could then drop to the critical support at $0.35.
Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
