June was an interesting month for the cryptocurrency market, marked by significant increases and new year-to-date highs across the board. BeInCrypto takes a look at the cryptocurrency forecast for the month of July.
June was a decisively bullish month for the cryptocurrency market. On average, Bitcoin (BTC) has outperformed the altcoin market, although there are some exceptions.
Here are the biggest cryptocurrency predictions for July regarding Bitcoin, altcoins, and the possibility of a little change.
Altseason Minor will begin
Bitcoin Dominance Rate (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 from the 48% resistance area shortly thereafter.
The breach was crucial because the area had previously been in place for 763 days. Therefore, a breakout from this long-term resistance level often leads to significant upward movements. As expected, the BTCD reached a high of 52.20% in June.
While there is a distinct lack of overhead horizontal resistance, there are signs that a local top may be in the works.
Firstly, the weekly RSI is deepening into the 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 the market is overbought or oversold and decide whether to accumulate or sell an asset. The previous time it reached these levels (red circle) it led to a sharp downward movement.
Secondly, the BTCD was rejected at the 0.382 Fibonacci retracement resistance level of 52%. The principle behind Fibonacci retracement levels suggests that after a significant price move in one direction, the price will retrace or partially return to the previous price level before continuing in its original direction.
Therefore, the BTCD may drop to the 48% level again, and this time it will prove to be supportive. In turn, this could mean that altcoins will outperform Bitcoin. Since the cryptocurrency market is bullish, the most likely scenario is for altcoins to increase at a faster rate than BTC.
This forecast will become invalid if BTCD reaches a weekly close above 52%. In this case, a sharp rise to the next important Fibonacci resistance at 60.33% is likely.
Litecoin (LTC) will follow in the footsteps of Bitcoin Cash (BCH)
Bitcoin Cash (BCH) was one of the biggest winners in June, up 170%. Litecoin (LTC) price action suggests that the altcoin could pull a similar increase in July.
Between April and June (highlighted), LTC price completed an ABC corrective structure (red). This is probably the second wave of a 5 (black) bullish move.
Using the Elliott Wave theory, technical analysts examine long-term price patterns and investor psychology that recur to determine trend direction.
If the count is correct, then LTC price has started the third wave, as evidenced by the decisive break above the $95 resistance area.
While there is a strong resistance at $135, the most likely level to complete the entire bullish move is at $195, which was created by the 0.618 Fibonacci retracement resistance level.
Although a bullish LTC price is expected, closing below $95 would mean that the count is incorrect and the trend is still bearish. In this case, LTC price could drop to the long-term ascending support line located at $80.
Chainlink (LINK) will scan a 420 day range
The ultimate cryptocurrency prediction has to do with Chainlink. Over the past 420 days, LINK price has been trading in a horizontal range between $5.75 and $9.20. While the support and resistance areas in this range have been touched many times, the price has never broken through or lowered from them.
All of this apparently changed in June when LTC price reached a weekly close below $5.75. However, this turned out to be an aberration (green circle) since the LINK price retook the area shortly thereafter. It has increased since then.
Sharp upward movements are often followed by such deviations. Therefore, LINK price may break out from the $9.20 resistance area and increase to the next resistance at $13.
This bullish view will be invalidated if LINK price closes below $5.75. In this case, a drop to $4 is expected. This would amount to a new annual low.
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In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.