Well-Known Cryptocurrencies and Main findings

Numerous factors have the potential to affect cryptocurrencies such as bitcoin. When a sentiment in the market turns bearish, even a minor news, pulls the price down as traders panic sell. This is what happened after social media giant Weibo suspended a number of crypto-related accounts. While the news may be negative in the short term, it is unlikely to alter the long-term of bitcoin. As the price corrects, several institutional investors are likely to consider cryptocurrency investments to hedge their portfolio against the possible surge in inflation in the U.S.

Let’s get back to the price of bitcoin. It turned down from the 20-day exponential moving average ($39,127) on June 3. But it is finding support near the trendline of the triangle. This shows that bulls are buying on dips, as well as bears are selling on rallies.

The next trending line is likely to start after its price escapes from the triangle. If the bulls propel as well as sustain the price above the resistance line, the BTC/USD pair could rally to the 50-day simple moving average ($47,198) and then to the pattern target at $52,622.90.

If the price of bitcoin turns down and breaks below the trendline in the triangle, it will imply that supply exceeds demand. That could result in a decline to the $30,000 to $28,000 support zone. If this zone cracks, the selling could intensify as several traders who bought recently may exit their positions. That may drag the price down to $20,000.

Cryptocurrencies and risk factors

The list of interesting cryptocurrencies is quite long, but it is hard not to mention ether. It turned down from the 50-day SMA ($2,908) on June 4 and re-entered the symmetrical triangle. Nonetheless, the positive thing is that bulls did not give up much ground, indicating strong buying near $2,550.

If the buyers push its price above the resistance line of the triangle, the ETH/USDT pair may again challenge the 50-day SMA. A breakout and close above this resistance line could clear the path for a move to the 61.8% Fibonacci retracement level at $3,362.72.

On the contrary, if the price falls from its 50-day SMA once again, it will suggest that bears are defending the resistance vigorously. A break below $2,550 could drag the price down to the support line of the triangle. A break below the triangle will be the first signal that bears are back in the driver’s seat.