Bitcoin is currently testing its 50-day simple moving average (SMA), a critical support level that has previously led to price rebounds. The cryptocurrency’s ability to maintain this support is crucial to avoid further selling pressure.
Bitcoin’s Critical Support Test
Bitcoin’s price has returned to the 50-day SMA, which has acted as a support twice this month, resulting in price increases. The latest test of this average offers bulls a chance to establish a trend where the 50-day SMA supports further gains. However, failing to hold this support could lead to increased selling pressure, potentially pushing the price below $100,000.
Market Sentiment and Indicators
Currently, the bearish sentiment appears strong, as indicated by recent weak rebounds from the 50-day SMA. The initial test on June 5 saw a price increase from approximately $100,500 to over $110,000. The second test on June 17 resulted in a smaller bounce from $103,000 to $109,000. Additionally, a Doji candle from the past week suggests bull fatigue above $100,000. A high-volume move above $110,000 is necessary to revive the bullish outlook.
XRP’s Bearish Momentum
XRP, a cryptocurrency focused on payments, is trading near the lower boundary of the Ichimoku cloud, a momentum indicator. Crossovers above and below this cloud indicate shifts in momentum. A drop below the cloud, as seen with Dogecoin earlier this month, typically signals a bearish trend. XRP’s 50-day SMA has already moved below the 200-day SMA, confirming a death cross, a bearish signal. A move below the Ichimoku cloud could lead to a decline below $2.
Support Levels and Market Trends
On the charts, support for XRP is visible at $1.60, the low from early April. Other cryptocurrencies like Dogecoin, Cardano, and Chainlink have also fallen below their Ichimoku clouds recently, resulting in price declines.
Investors are closely watching these support levels, as their outcomes could significantly impact market trends.
