Bitcoin (BTC) fell below the immediate support level of $31,000 Wednesday, resulting in heavy offloading across several major altcoins.

Coincidentally, the new downward pressure on the crypto comes just barely 24 hours after the much-touted unlocking of shares worth around 16,000 BTCs from the Grayscale Bitcoin Trust.

Still on the downslope

The cryptocurrency sell-off could also be attributed to a general risk-aversion reaction to rising COVID-19 cases. The Dow Jones Industrial Average fell more than 800 points on Tuesday, putting it on track for its worst loss of the year.

Let’s take a look at the top cryptocurrencies to identify the critical levels on the downside that may entice buyers.

The long wick on the July 18 candlestick indicated that Ether’s (ETH) recovery attempt had hit a wall at the 20-day EMA ($2,034). This indicates that bears are selling on rallies to the 20-day EMA, indicating that negative sentiment prevails.

ADA down

On July 16, Cardano (ADA) fell below the $1.19 support level. On July 18, the bulls attempted to trap the bears and push the price back above $1.19, but the higher levels were not sustained. This implies that bears will continue to sell during rallies.

On July 17, Dogecoin (DOGE) bounced off the $0.15 support, but the bulls couldn’t break through the $0.21 resistance. The day’s candlestick has a long wick, indicating that bears are aggressively defending the $0.21 level.

The failure of Litecoin (LTC) to recover from the $118 support level in recent days indicates a lack of demand from bulls. Today, the bears took advantage of the situation and dragged the price below $118.

Image courtesy of Cointelegraph News/YouTube

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Source: https://bitcoinerx.com/bitcoin/cryptocurrency-price-update-btc-eth-ada-doge-ltc/