Bitcoin’s recovery faces hurdles as the bulls and bears engage in a fierce battle. To ignite a rally in Solana (SOL), Polkadot (DOT), NEAR Protocol (NEAR), and Kaspa (KAS), buyers must maintain Bitcoin above $53,500.
Bitcoin Price Analysis
Bitcoin is grappling with a tug-of-war between buyers and sellers. While buyers aim to keep the price within the $56,552 to $73,777 range, bears are pushing for lower prices. On July 5, sellers drove the price near $53,500, but the dip attracted bullish buying.
Farside Investors reported net inflows of $143.1 million into US-based Spot Bitcoin ETFs on July 5, marking the largest inflow in a month. Hunter Horsley, CEO of Bitwise Asset Management, highlighted on X that this dip presents a buying opportunity, emphasizing that Bitcoin’s outlook has never been stronger.
Bitcoin’s fall has led to increased selling in several altcoins, but a few, like SOL, DOT, NEAR, and KAS, have held strong at support levels. These altcoins could spearhead a recovery if Bitcoin rallies towards $60,000.
Key Resistance Levels for Bitcoin and Altcoins
Bitcoin (BTC)
Bitcoin dipped below the $56,552 support on July 5, but bulls defended this level.
BTC/USDT daily chart. The bears are expected to make another attempt to break this support. If successful, BTC/USDT could slide to $53,485 and eventually find solid support at $50,000. The downsloping 20-day EMA ($61,231) favors bears, but a positive divergence on the RSI suggests that bearish momentum may be waning. Buyers need to push the price above the 20-day EMA to maintain the range-bound action between $56,552 and $73,777.
BTC/USDT 4-hour chart. The 4-hour chart shows the 20-EMA flattening, with the RSI just below the midpoint, indicating reduced selling pressure. A break above the downtrend line could signal the end of the correction, allowing the pair to climb to $64,602. Conversely, a break below $56,552 could risk a slide to $53,485.
Solana (SOL)
Solana is forming a bearish descending triangle pattern, which will complete if the price breaks below $116.
SOL/USDT daily chart. The RSI shows a positive divergence, suggesting reduced selling pressure. If bulls push the price above the 20-day EMA ($141), the SOL/USDT pair could rally to the 50-day SMA ($153) and the downtrend line. However, a break below $116 could see the pair plummet to $80.
SOL/USDT 4-hour chart. A solid pullback from $121 indicates strong defense at the $116 support. If the price rises above $145, it could reach $155, with potential to rise further if this barrier is overcome. Bears gain the upper hand if the price falls below $130, risking a drop to $121 and then $116.
Polkadot (DOT)
Polkadot saw a plunge to $4.91 on July 5, but strong buying at lower levels was evident from the long tail on the candlestick.
DOT/USDT daily chart. Bulls pushed the price above the 20-day EMA ($6.08) on July 6, indicating weakening bear control. Clearing the 50-day SMA ($6.54) could lead to a rally to $7.29 and $7.77. If the price falls below the 50-day SMA, it suggests active bears at higher levels, with intensified selling below the $5.38 to $4.91 support zone.
DOT/USDT 4-hour chart. The 4-hour chart shows a V-shaped recovery from $4.92, with the 20-EMA turning up and RSI in positive territory, indicating a bullish comeback. A rise above $6.60 could see momentum pick up towards $7.29. Failure to hold above the 20-EMA could see a retest of the $4.91 support.
NEAR Protocol (NEAR)
NEAR Protocol has been trading between $4.28 and $8.58 for days. Bears briefly pulled the price below support on July 5 but couldn’t sustain lower levels.
NEAR/USDT daily chart.Downsloping moving averages favor bears, but a positive RSI divergence suggests weakening selling pressure. A break above the 20-day EMA ($5.17) could lead to a rise to $5.63. Overcoming this level completes a short-term double bottom pattern with a $6.11 target. A drop below $4 signals a new downtrend towards $3.50 and $3.
The 4-hour chart shows a flattening 20-EMA and a balanced RSI. A push above the 50-SMA could see a rise to $5.63, potentially starting a journey to $6.71. Bears take control if the price drops below $4, starting a downtrend towards $3.50.
