The top cryptocurrency, bitcoin (BTC), was still below the crucial $20,000 support.
Volatile market conditions and BTC’s minor price upticks gave way to certain altcoin recoveries.
ETH, SOL, LTC, and ETC could be some altcoins to watch over the coming week closely.
While the global crypto market cap was still below the $1 trillion mark, there was some optimism in the market in the early trading hours of the Asian session on 20 June. The global crypto market cap stood at $899.00 billion, noting an 8.97% increase over the last day.
Bitcoin, the top cryptocurrency by market capitalization, traded at $20,379 noting a 9.81% rise in the 24-hour window. In tandem with BTC’s momentum, altcoins like ether (ETH), Solana (SOL), Litecoin (LTC), and Ethereum Classic (ETC) enjoyed decent gains in the short-term window.
Seemingly, top altcoins such as ETH, SOL, LTC, and ETC could be worth watching in the coming week.
On 18 June, bitcoin’s price fell below $20,000, which has acted as a historic long-term support. The $20,000 mark was also the all-time high price of the last cycle when BTC made a new all-time high at that price range in the year 2017.
Bitcoin’s price drop came alongside the larger market correction, which resulted in most cryptocurrencies trading deep into the negative territory. Bitcoin’s price fell to the lowest price level since December 2020.
At press time, BTC traded at $20,379, noting a 9.81% rise in the 24-hour window. However, over the last 24 hours, the asset tested lower $18,926 levels before rebounding marginally above.
Last week, the US stock market started to show a minor recovery as the three major US stock indexes finished higher, marking an end to their longest weekly losing streaks in decades. S&P 500, Dow Jones Industrial Average, and Nasdaq Composite were closed higher, making investors optimistic.
From a price perspective, BTC’s current short-term trajectory favored bulls as the price established above the crucial $20,000 psychological support.
BTC’s recent pullback below the $20,000 mark disproved the market theory about bitcoin’s price not falling below its previous cycle’s highs. The last cycle ATH theory held true during the 2018 drawdown but has now been disproven for the current cycle.
With the short-term relative strength index (RSI) noting a significant recovery, the same presented a rise in buyers. Higher buying pressure in the market could fuel BTC for gains in the near term.
However, looking at technicals, it could be said that the upside would be limited for BTC unless bulls take control and a price action like July 2021 takes place.
All in all, the top cryptocurrency’s price action would be crucial to watch in the coming week and could direct the larger market’s trajectory.
The king altcoin, ether (ETH), was one of the top gainers in the top 20 coins by market cap at press time, noting close to 20% gains on the daily chart. In the bigger picture though, ETH’s price chart didn’t look pretty.
While ETH was still down 76.49% from its all-time high, the coin managed to push itself above the crucial $1000 mark over the last 24 hours. ETH’s price made a parabolic recovery above the $1000 psychological price barrier.
As we advance, if bulls can push ETH’s price above the $1200 mark, a recovery could be confirmed from the lower lows. At press time, ETH’s price traded at $1,131.63 as the coin’s RSI presented a rise in buying pressure.
In tandem with BTC’s price rise, altcoins, too, saw a decent price recovery on their short-term chart. Solana’s four-hour price chart presented the asset’s recovery above the $30 mark.
In the near term, if buyers are able to push SOL above the $35 mark and then above the $40 resistance, a recovery could be confirmed for the altcoin.
That said, the market looked largely volatile, and a price push in either direction could be seen in the short-term depending on BTC’s price action.
Litecoin (LTC) and Ethereum Classic (ETC)
In a bear market, when shorter periods of bullish price action take place, generally, coins with a high correlation with bitcoin do well. Both LTC and ETC have been highly correlated with the top cryptocurrency.
Additionally, the two coins often see lower volatility swings in a largely volatile market.
Litecoin’s price tested the $55 resistance, trading above the level briefly. At press time, the coin traded at $54.83, noting a 23.16% rise on the daily and a 9.21% rise on the weekly chart.
In the near term, if LTC bulls can push the coin above the $60 mark, the same could fuel further gains. On the contrary, a pullback to the $50 level could be expected if bears take control.
ETC’s price action could take some interesting turns if BTC bulls support bitcoin’s positive momentum in the coming week.
In the short term, if buying pressure pushes ETC’s price above the $18.5 mark, further gains could be expected. Furthermore, a push to the $24 mark could reignite positive momentum for the coin.
While the downside for ETC looks limited, further downward momentum could bring the coin down to the $10 mark if another set of sell-offs follows.
This article was originally posted on FX Empire