Bitcoin Drops to $105,000, Triggers Market Pullback Led by FARTCOIN, SPX, and ALGO - Cryptured.com

Meme currencies with double-digit losses over the past day, such as SPX6900 (SPX) and Fartcoin (FARTCOIN), are leading the market decline. After a 7% decline, Algorand (ALGO) continues its downward trajectory after failing to maintain Tuesday’s robust opening.

The abrupt market retreat might be a reflection of Bitcoin’s (BTC) drop below $106,000, which was indicated by its second consecutive bearish candle. The BTC price action forms a local resistance trendline with three lower highs on May 23, June 11, and June 30.

It is noteworthy that the closing prices of May 12, June 5, and June 22 form a falling channel pattern that is completed by a support trendline. A channel reversal might put Bitcoin on course for the lower boundary line, which is at the psychological support level of $100,000.

Incoming supply, however, might be absorbed by the $102,315 support zone indicated by the mid-May consolidation, suggesting a possible bullish reversal.

FARTCOIN could exit a descending triangle.

At the time of writing, Fartcoin is up 0.50% on Wednesday, maintaining its 10% loss from Tuesday. An evening star pattern, Monday’s Doji candle, and Sunday’s 5% bullish candle are all completed by the abrupt pullback.

A descending triangle pattern with the $0.92 support zone, indicated by the June 7 low, is completed by the highest prices on May 23, June 12, and Monday, which form a lowering trendline.

Near $0.92, Fartcoin is moving toward the base of the triangle as the evening star forms near the resistance trendline. Its slide below $0.71, the lowest price since April 18, might be extended by a possible close below $0.92.

With rapid momentum changes inside the pattern, the Moving Average Convergence/Divergence (MACD) indicator flashes consecutive false signals. On the other hand, a red histogram bar that rises over the zero line can indicate a momentary selling opportunity.

Similar to this, the Relative Strength Index (RSI), which is at 46, indicates a sideways shift in momentum as it hovers close to the halfway mark.

However, Fartcoin may return to the upper trendline, which is close to $1.14, if the price remains above the psychological support of $1.

SPX reverses double top and could drop further lower.

At the time of writing, the SPX was down 1% on Wednesday, continuing its three-day losing streak. The double peak reversal on June 25 is characterized by the negative turnaround from $1.33 on Monday.

The MACD and its signal line drop below the zero line, causing the MACD indicator to flash a spike in selling pressure. Adding support to the sell signal are the red histogram bars that rise from the same line.

Despite this, the RSI at 45 remains pretty neutral, hovering close to the midway.

To support an upward trend, a reversal must close above $1.15 if the SPX recovers from the 50% Fibonacci retracement line at $1.02. Under those circumstances, SPX might aim for the $1.33 ceiling.

Algorand falls short of the trendline, and further declines are anticipated.

Following a 7.82% decline the day before, Algorand is up 0.35% at press time on Wednesday. The May 11 high and the May 23 close produced a resistance trendline beneath which the drop is accompanied by another lower high formation.

If it closes below Friday’s low of $0.1591, it may continue to decline to $0.1518, which is the lowest price since June.

As the green histogram bars become less intense, the MACD indicator indicates a reduction in bullish strength. The MACD line crossing below its signal line is a sell indication that investors should be aware of.

The selling pressure is difficult to overcome as the RSI at 43 slides flat below the halfway line.

In order to support a positive trend, Algorand needs to close above the $0.1830 resistance trendline.