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Following Bitcoin’s price decrease on June 7, most altcoins appeared to be tracking the king coin’s direction. Recovery after the June 4 price decrease was delayed, and the recent downturn has harmed the market much more. Bitcoin Cash, Chainlink, and Monero all experienced severe price drops, with red candles on the 4-hour chart indicating future price declines.
Bitcoin Cash [BCH]
After bouncing between $617 support and $786 resistance since May 20, Bitcoin Cash’s price declined further after hitting the $617 support on June 7. In only one day, the 12th ranked asset on Coin Market Cap had its price plummet by about 15%.
The Relative Strength Index for Bitcoin cash indicated that it was oversold. At press time, a modest increase from the oversold zone might drive the asset into the neutral zone. Furthermore, Awesome Oscillator indicated that the price was being pushed down by a significant negative momentum.
Chainlink demonstrated a solid rebound from the May 24 price dip, gaining over 90% in the days that followed. Since then, however, the asset has remained inside a narrow range, oscillating between $24 support and $32.3 resistance levels. Chainlink challenged the $24 support many times on a 4-hour chart at press time, which might lead to the asset heading towards its next major support at the $16.9 level.
Chainklink’s ROI versus USD during the last 30 days fell by 53.86 percent, with the asset trading at $24.09 at press time. MACD Lines for LINK showed a bearish crossing, which might send its price even down. Chaikin Money flow indicated that capital withdrawals were significant, as the index decreased from -0.07 to -0.13.
At the time of publication, the dotted lines above the candlesticks of the Parabolic SAR indicated a negative momentum. These bearish tendencies may indicate a further price drop, which might send the asset’s price to its next support level of $16.9.
A prior drop sent the pair down to $32,000 before a brief comeback, with that level eventually giving way.
At the time of writing, Bitcoin was trading at levels not seen since the original $30,000 drop in May, with BTC aiming for $31,500.
As previously reported, traders have predicted a new capitulation event across cryptocurrencies, which could take about 20% off the whole crypto market valuation. In such a scenario, Bitcoin may trade for $25,000 in the short term.
“From a technical point of view its difficult not to see $30k being tested and probably break,” said Filbfilb, co-founder of trading package Decentrader.
Moreover, Squeeze Momentum Indicator showed dominant bearish momentum as the red bars increased in length at press time.