June was an interesting month for the cryptocurrency market, characterized by considerable increases and new yearly highs in all areas. BeInCrypto takes a look at the crypto predictions for the upcoming month of July.
June was a decidedly bullish month for the cryptocurrency market. In average terms, Bitcoin (BTC) has outperformed the altcoin market, with a few exceptions.
Below are the biggest crypto predictions for July regarding Bitcoin, altcoins, and the possibility of a minor secondary season.
A minor secondary season will begin
The dominance rate of Bitcoin (BTCD) has increased significantly since its low of 39% in September 2022. The rate of increase accelerated in February 2022 and the price broke out of the 48% resistance zone shortly After.
The breakout was crucial since the area had previously been in place for 763 days. Therefore, a breakout of such a long-term resistance level often leads to significant upward moves. As expected, BTCD hit a high of 52.20% in June.
Although there is a clear lack of overhead horizontal resistance, there are signs that suggest a local top may be in place.
First, the weekly RSI is deep in overbought territory and has almost reached a new all-time high. Using the Relative Strength Index (RSI) as a momentum indicator, traders can determine whether a market is overbought or oversold and decide whether to build or sell an asset. The previous time it reached these levels (red circle) led to a strong downward move.
Second, BTCD was rejected by the resistance level at the 0.382 52% Fib retracement. The principle behind Fibonacci retracement levels suggests that after a considerable price move in one direction, the price will retrace or partially retrace to a previous price level before continuing in its original direction.
Thus, BTCD may fall back to the 48% level, this time validating it as support. In turn, this would mean that altcoins will outperform Bitcoin. Since the crypto market is bullish, the most likely scenario would be for altcoins to rise at a faster rate than BTC.
This prediction will be invalidated if BTCD reaches a weekly close above 52%. In this case, a sharp rise in the next major Fib resistance at 60.33% will be likely.
Litecoin (LTC) will follow in the footsteps of Bitcoin Cash (BCH)
Bitcoin Cash (BCH) was one of the biggest gainers in June, rising 170%. Litecoin (LTC) price action suggests that the altcoin could see a similar rise in July.
Between April and June (highlighted), LTC price completed a corrective ABC pattern (red). This was likely the second wave of a five-wave upward move (black).
Using Elliott Wave Theory, technical analysts look at long-term price patterns and recurring investor psychology to determine the direction of a trend.
If the count is correct, LTC price has started the third wave, as evidenced by the decisive break above the $95 resistance zone.
Although there is a strong resistance at $135, the most likely level for the completion of the whole upward move is at $195, created by the resistance level at the 0.618 Fib retracement.
Despite this bullish LTC price prediction, a close below $95 will mean the count is incorrect and the trend is still bearish. In this case, the LTC price could fall to the long-term ascending support line located at $80.
Chainlink (LINK) will clear the 420 day range
The final crypto prediction is for Chainlink. Over the past 420 days, LINK price has been trading in a horizontal range between $5.75 and $9.20. Although the support and resistance areas of this range were repeatedly hit, the price did not break out or drop.
Everything seemingly changed in June when LTC price hit a weekly close below $5.75. However, this turned out to be a gap (green circle) as the LINK price recovered the area soon after. It has since increased.
Sharp upward movements often follow such deviations. Therefore, the LINK price may break out of the $9.20 resistance zone and rise to the next resistance at $13.
This bullish outlook will be invalidated if the LINK price closes below $5.75. In this case, a drop to $4 will be expected. This would equate to a new yearly low.
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Disclaimer
In accordance with Project Trust guidelines, this price analysis article is provided for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased reports, but market conditions are subject to change without notice. Always do your own research and consult a professional before making financial decisions.