Bitcoin (BTC) falls intensify market pullback: FARTCOIN, SPX, ALGO lead the decline

Today (2), Bitcoin has slightly rebounded to around 106,100 USD, but has not recovered the losses from overnight. Meme coins like Fartcoin (FARTCOIN) and SPX6900 (SPX) have led the market pullback in the past 24 hours, with declines reaching double digits. Algorand (ALGO) also failed to maintain its strong opening on Tuesday, continuing the downward trend, with a big dump of 7%.

The sudden pullback in the market may be similar to the trend of Bitcoin (BTC) dropping below $106,000 last night, marking the appearance of the second consecutive bearish candlestick chart for Bitcoin.

The price trend of BTC formed three lower highs on May 23, June 11, and June 30, creating a local resistance trend line.

It is worth noting that Bitcoin has formed a descending channel pattern, completed by the support trend line connecting the closing prices on May 12, June 5, and June 22. With the reversal within the channel, BTC may aim for the lower boundary, approaching the psychological support level of 100,000 US dollars.

However, the support area marked at $102,315 during the mid-May consolidation may absorb the incoming supply, thus achieving a potential bullish reversal.

FARTCOIN is at risk of falling below the descending triangle

FXStreet analyst Vishal Dixit stated that as of Wednesday's press release, Fartcoin rose slightly by 0.50%, recovering the 10% fall from Tuesday. This sudden pullback, along with Monday's doji candlestick and Sunday's 5% bullish candlestick, formed a evening star pattern.

The highest prices on May 23, June 12, and Monday formed a descending trend line, completing a descending triangle pattern, with a support area at 0.92 dollars, marked by the low point on June 7.

As the Evening Star forms at the resistance trend line, Fartcoin is moving towards the triangle bottom at $0.92. If the closing price falls below $0.92, it may continue the fall to $0.71, which is the lowest price on April 18.

The Moving Average Convergence Divergence (MACD) indicator continuously issues false signals due to the rapid switching of momentum within the pattern. However, a rising red histogram above the zero line may indicate a short-term selling opportunity.

Similarly, the Relative Strength Index (RSI) is at 46, hovering around the midpoint, indicating that momentum is moving sideways.

However, if the price continues to stay above the psychological support level of 1 dollar, Fartcoin may rebound to the upper trend line, close to 1.14 dollars.

(Source: Trading View)

SPX has formed a double top reversal, facing further downside risk

As of Wednesday's press release, the SPX fell slightly by 1%, marking a third consecutive day of decline. The bearish reversal from $1.33 on Monday coincided with the reversal trend on June 25, forming a double top reversal pattern.

On Tuesday, a 9% fall broke below the neckline of $1.15, gradually approaching the 50% Fibonacci level of $1.02, which is from a drop from $1.80 on January 19 to $0.25 on March 11. If the daily closing price decisively breaks below this level, the downtrend may continue to the level of the low of $0.91 on June 21.

As the MACD and its signal line break below the zero line, the MACD indicator shows a surge in selling pressure. The increasing red histogram rising from the same line enhances the credibility of the sell signal.

However, the RSI is at 45, hovering around the midpoint, maintaining a relatively neutral stance.

If SPX rebounds from the 50% Fibonacci pullback at 1.02 USD, the reversal trend must close above 1.15 USD to solidify the upward trend. In this case, SPX may target the upper limit of 1.33 USD.

(Source: Trading View)

ALGO failed to surpass the trend line, and more falls are expected

As of Wednesday's press release, the price of ALGO rebounded by 0.35%, after a pullback of 7.82% the previous day. This drop marks the formation of a lower high below the resistance trend line established between the high on May 11 and the closing price on May 23.

If the closing price falls below Friday's low of 0.1691 USD, it may continue to pullback to 0.1518 USD, which is the lowest trading price in June.

The MACD indicator shows that bullish momentum is weakening, with the intensity of the green bars declining. When the MACD line crosses below the signal line, investors should pay attention to sell signals.

RSI is at 43, steady below the midpoint level, struggling to overcome selling pressure.

To solidify the bullish trend, Algorand must close above the resistance trend line of 0.1830 USD.

(Source: Trading View)