Analysis of prices for 6/5 SPX, DXY, BTC, ETH, BNB, XRP, ADA, DOGE, SOL, MATIC.
Bitcoin and other cryptocurrencies experienced a significant drop in value following news that the United States Securities and Exchange Commission (SEC) had filed a lawsuit against Binance for operating unregistered securities. This legal action could cause further delays in the recovery of Bitcoin (BTC) and other major cryptocurrencies as traders wait for more clarity. Additionally, the Federal Reserve’s meeting on June 14th could also keep investors cautious.
Despite the uncertainty in the short term, data from Glassnode reveals that the largest group of Bitcoin “whales” who own at least 10,000 Bitcoin, have been accumulating more Bitcoin over the past few days. However, all the other major groups have been distributing their Bitcoin.
The article then proceeds to analyze the price trends of the S&P 500 index, the US dollar index, and Bitcoin. It provides support and resistance levels for each asset and discusses potential bullish and bearish scenarios for their price movements.
Analysis of Ether’s Price
Ether (ETH) broke out of the falling wedge pattern on May 28 and successfully passed the retest on June 1. However, the bulls failed to initiate a new up move.
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This gave the bears an opportunity to make a comeback. Sellers pulled the price below the moving averages on June 5, which accelerated the selling. The ETH/USDT pair fell below the resistance line of the wedge pattern. If this level fails to hold, the next stop could be $1,740, then the support line.
This negative view will be invalidated in the near future if the price turns up and breaks above $1,928. The pair could then rise to $2,000 and eventually to $2,200, where the bears may mount a strong defense.
Analysis of BNB’s Price
BNB’s (BNB) narrow range trading resolved downwards on June 5. The sharp selling pushed the price below $300 and the next support at $280.
The BNB/USDT pair could drop to $265, an important level to keep an eye on. If the price turns up from $265 and rises above $280, it will indicate strong buying at lower levels. The pair may then rise to the 20-day EMA ($306), where the bulls are likely to encounter aggressive selling by the bears.
On the downside, a break and close below the $265 support could start a new downtrend. The pair may plunge to $240 and then to $220.
Analysis of XRP’s Price
XRP (XRP) has been oscillating within a large range between $0.56 and $0.30 for the past several months. Generally, in such a well-defined range, traders buy at the support and sell close to the overhead resistance.
The XRP/USDT pair turned down from the overhead resistance on June 4, indicating profit-booking by the bulls and short positions by the aggressive bears.
If the price turns up from the 20-day EMA ($0.49), it will suggest that the sentiment has turned positive and traders are buying on dips. The bulls will then make one more attempt to clear the overhead hurdle.
Alternatively, if the price dips below the moving averages, it will suggest that the pair may remain stuck inside the range for a while longer.
Analysis of Cardano’s Price
The long wick on Cardano’s (ADA) June 4 candlestick shows that the bears successfully halted the relief rally at the 50-day SMA ($0.38).
The ADA/USDT pair turned down sharply on June 5 and plummeted below the uptrend line of the ascending channel pattern. This move invalidated the bullish setup, and the pair may next descend toward the critical support at $0.30.
If bulls want to prevent the downward move, they will have to quickly push the price back into the channel. Such a move will suggest that the pair has rejected the lower levels. The upside momentum could pick up on a break above $0.39.
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Analysis of Dogecoin’s Price
The bulls repeatedly failed to push Dogecoin (DOGE) above the 20-day EMA ($0.07) in the past few days, indicating that the bears are fiercely guarding the level.
The selling increased on June 5th, causing the price to drop below the immediate support level of $0.07. This may have triggered stop-loss orders for many traders, resulting in a further drop to $0.06. However, this level may attract strong buying by the bulls.
On the upside, the $0.07 level may now act as a strong resistance during relief rallies. The bulls will need to push and maintain the price above the breakdown level of $0.07 to indicate the beginning of a potential recovery.
Solana price analysis
Solana (SOL) broke above the 50-day SMA ($21.54) on June 4th, but the bulls were unable to sustain the positive momentum. This suggests that demand is drying up at higher levels.
The bears saw an opportunity and pushed the price below the moving averages. This may have trapped aggressive bulls, causing a sharp drop to the strong support level of $18.70. It is important to keep an eye on this level, as a break and close below it may lead to a potential drop to $15.28.
If the SOL/USDT pair rebounds from $18.70, the bulls will once again attempt to clear the overhead hurdle at the moving averages. Breaking and closing above $22.30 may tilt the advantage in favor of the bulls.
Polygon price analysis
The bulls have been trying to push Polygon (MATIC) above the 20-day EMA ($0.89) for the past few days, but the bears have held their ground.
The selling intensified on June 5th, and the bears brought the price down to the important support level of $0.82. Buyers are expected to defend this level aggressively. A strong bounce off this support will suggest that the pair may remain stuck between $0.82 and $0.94 for some time.
However, if the support at $0.82 fails, the MATIC/USDT pair could begin a decline towards the next major support level at $0.69. The bulls will need to push and maintain the price above the moving averages to signal the beginning of a sustained recovery.