Bitcoin is showing some early signs of a recovery rally and SOL, LTC, LINK and BSV could follow if the bulls return $20,000 as a support level for BTC.
Bitcoin (BTC) crashed to $17,622 on June 18th. This was the first time in the history of Bitcoin that it fell below its previous cycle high. Aggressive monetary tightening by the US Federal Reserve, a crisis on crypto lending platform Celsius, and liquidity issues at Three Arrows Capital mutual fund are causing panic among traders.

Market commentator Holger Zschepitz said that bitcoin has fallen over 80% four times in history. Thus, the current decline of about 74% is in line with historical standards. Previous bear markets bottomed just below the 200-week moving average, according to market analyst Rekt Capital. If history repeats itself, bitcoin will most likely not stay at its current low levels for long.

Daily view of cryptocurrency market data. Source: Coin360
Coinglass data shows that Bitcoin’s 39% drop this June is the worst since 2013. While some investors expect bitcoin to bottom soon, crypto critic Peter Schiff has warned that sales could stall and the biggest cryptocurrency could drop to $3,000.

Can bulls stop bitcoin from falling in the short term? When that happens, let’s explore the charts of the top 5 cryptocurrencies that can outperform other coins.

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Bitcoin/US dollar
On June 18, Bitcoin fell below the critical support of $20,111, signaling a resumption of the downtrend. On a small plus, the bulls bought a fall, as evidenced by the long tail of the daily candle.

BTC/USDT daily chart. Source: Trading View
Buyers are trying to push the price back above the $20,111 breakout level. If they succeed, it suggests that the drop to $17,622 on June 18 could be a bear trap. The BTC/Tether (USDT) pair could then rise to $23,362 where the bears could once again put up tough resistance.

The Relative Strength Index (RSI) has been trading in an oversold zone for the past few days, signaling a short-term rally.

This bullish view could be invalidated if the price drops from $20,111. This suggests that the bears have turned the level into resistance and are increasing the chance of a break below $17,622. The next support on the downside is $16,000.

4-hour BTC/USDT chart. Source: Trading View
A positive divergence on the RSI suggests that the bears may lose ground. The 4-hour chart shows that the price has rebounded to the 20 exponential moving average (EMA).

This is an important level for bears as a break and close above it could push the pair into an upper resistance zone between the 50x Simple Moving Average (SMA) and $23,362.

On the other hand, if the price fails to hold above the 20-EMA, this indicates bearish activity at higher levels. The sellers will then try again to bring the pair to $17,622.

Solana (SOL) is in a strong downtrend, but the positive divergence on the RSI suggests that the bearish momentum may be waning.

SOL/USDT daily chart. Source: Trading View
The bulls will try to push the price above the 20-day EMA at $36. If they are successful, this indicates the return of the bulls. The SOL/USDT could then rise to the 50-day SMA of $50 where the bears could once again create strong protection.

On the contrary, if the price deviates from the 20-day EMA down, this will mean that the bears are not in the mood to give up their advantage. The sellers will then try again to push the price below $25 and start the next leg of the downtrend.

SOL/USDT, 4-hour chart. Source: Trading View
The bulls have taken the price above the moving averages on the 4-hour chart and will try to break the upper barrier on the downtrend line. If they do, it suggests that the downtrend may end in the near future. Buyers will then try to lower the price to $42.50 and then to $45.

Conversely, when the price reverses down from the current level or downtrend line and breaks below the moving averages, this indicates that

Source: CoinTelegraph