June was an interesting month for the cryptocurrency market, marked by significant gains and new yearly highs across the board. BeInCrypto takes a look at the crypto predictions for the coming month of July.
The month of June was decidedly bullish for the cryptocurrency market. On average, Bitcoin (BTC) outperformed the altcoin market, although there were some exceptions.
Below are the biggest crypto predictions for July regarding Bitcoin, altcoins and the possibility of a minor altseason.
A little Altseason will begin
The Bitcoin Dominance Rate (BTCD) has risen 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 area soon after.
The escape was crucial as the area had previously been on site for 763 days. Therefore, breaking such a long-term resistance level often leads to significant upward moves. As expected, BTCD reached a high of 52.20% in June.
While there is a clear lack of overhead horizontal resistance, there are signs that a local top may be present.
First, the weekly RSI is deep in overbought territory and is close to a new all-time high. By using the Relative Strength Index (RSI) as a momentum indicator, traders can determine whether a market is overbought or oversold and decide whether to accumulate or sell an asset. The last time it reached these levels (red circle) led to a sharp downward move.
Second, the BTCD was rejected by the 0.382 Fib retracement resistance level at 52%. The principle behind Fibonacci retracement levels suggests that after a significant price move in one direction, the price will retreat or partially return to an earlier price level before continuing in its original direction.
So, BTCD may drop again to the 48% level, this time as support. This, in turn, would mean that altcoins will outperform Bitcoin. Since the crypto market is bullish, the most likely scenario would be altcoins rising faster than BTC.
This prediction will be invalidated if BTCD reaches a weekly close above 52%. In that case, a surge to the next major Fib resistance of 60.33% is likely.
Litecoin (LTC) follows in the footsteps of Bitcoin Cash (BCH)
Bitcoin Cash (BCH) was one of the biggest gainers in June, up 170%. Litecoin (LTC) price action suggests that the altcoin could pull a similar rise in July.
Between April and June (highlighted), LTC price completed a corrective ABC structure (red). This was likely the second wave in a five-wave (black) upward move.
Using the Elliott Wave theory, technical analysts examine long-term price patterns and investor psychology that recur to determine the direction of a trend.
If the count is correct, LTC price has entered its third wave, as evidenced by the decisive breakout above the $95 resistance area.
While there is strong resistance at $135, the most likely level for the completion of the entire upward move is $195, created by the 0.618 Fib retracement resistance level.
Despite this bullish LTC price prediction, a close below USD 95 means the count is incorrect and the trend is still bearish. In that case, the LTC price could fall towards the long-term ascending support line which is located at USD 80.
Chainlink (LINK) will clear the 420 day range
The final crypto 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 both the support and resistance areas of this range have been touched multiple times, the price has not broken out or fallen from it.
This seemingly all changed in June when LTC price reached a weekly close below $5.75. However, this turned out to be an anomaly (green circle) as the LINK price reclaimed the territory shortly after. Since then it has increased.
Such deviations are often followed by sharp upward movements. Therefore, LINK price may break out of the $9.20 resistance area and rise towards the next $13 resistance.
This bullish outlook will be invalidated if the LINK price closes below $5.75. In that case, a drop to $4 is expected. This would represent a new annual low.
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In accordance 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, unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult a professional before making any financial decisions.