Top 5 cryptocurrencies to watch this week: BTC, SOL, LTC, LINK, BSV

Bitcoin is flashing some early signs of a relief rally, and SOL, LTC, LINK and BSV could follow if bulls reclaim $20,000 as a support level for BTC.

Bitcoin (BTC) plummeted to $17,622 on June 18. This marked the first time in Bitcoin’s history that it has fallen below its previous cycle high. The United States Federal Reserve’s aggressive monetary tightening, a crisis at crypto lending platform Celsius and liquidity issues at investment fund Three Arrows Capital are creating a sense of panic among traders.

Markets commentator Holger Zschaepitz said that Bitcoin has crashed more than 80% four times in history. That puts the current fall of about 74% within historical standards. Previous bear markets have bottomed out just below the 200-week moving average, according to market analyst Rekt Capital. If history repeats itself, Bitcoin is unlikely to stay at the current depressed levels for a long time.

Coinglass data suggests that Bitcoin’s 39% loss in June of this year is the worst ever since 2013. While several investors expect Bitcoin to bottom out soon, crypto critic Peter Schiff warned that the selling could continue and the largest cryptocurrency may drop to $3,000.

Could bulls arrest the decline in Bitcoin in the short term? If that happens, let’s study the charts of the top-5 cryptocurrencies that may outperform the other coins.

BTC/USDT

Bitcoin plummeted below the crucial support of $20,111 on June 18, indicating the resumption of the downtrend. A minor positive is that the bulls purchased the dip as seen from the long tail on the day’s candlestick.

The buyers are attempting to push the price back above the breakdown level of $20,111. If they manage to do that, it will suggest that the drop to $17,622 on June 18 may have been a bear trap. The BTC/USDT pair could then rally to $23,362 where the bears may again mount a strong resistance.

The relative strength index (RSI) has been trading in the oversold zone for the past few days which suggests a relief rally in the near term.

This positive view could invalidate if the price turns down from $20,111. That will suggest the bears have flipped the level into resistance and increase the possibility of a break below $17,622. The next support on the downside is $16,000.

The positive divergence on the RSI suggests that the bears may be losing their grip. The 4-hour chart shows that the price has recovered to the 20-exponential moving average.

This is an important level for the bears to watch out for because a break and close above it could push the pair to the overhead resistance zone between the 50-simple moving average and $23,362.

Conversely, if the price fails to sustain above the 20-EMA, it will suggest that bears are active at higher levels. The sellers will then again try to pull the pair to $17,622.

SOL/USDT

Solana (SOL) has been in a strong downtrend but the positive divergence on the RSI suggests that the bearish momentum could be weakening.

The bulls will try to push the price above the 20-day EMA ($36). If they succeed, it will suggest that the bulls are on a comeback. The SOL/USDT pair could thereafter rise to the 50-day SMA ($50) where the bears may again mount a strong defense.

On the contrary, if the price turns down from the 20-day EMA, it will suggest that the bears are in no mood to surrender their advantage. The sellers will then again try to sink the price below $25 and start the next leg of the downtrend.

The bulls have pushed the price above the moving averages on the 4-hour chart and will attempt to clear the overhead hurdle at the downtrend line. If they do that, it will suggest that the downtrend may have ended in the short term. The buyers will then try to push the price to $42.50 and…

Read More: cointelegraph.com