Bitcoin (BTC) has fallen back to the middle of its range from $55,724 to $73,777 after bulls failed to hold prices above the psychological resistance level of $70,000. For bulls waiting for a range breakout, August’s historical performance does not provide much confidence. According to Coinglass data, August has averaged a modest 2.24% gain since 2013.
The weakness in global stock markets is casting a shadow of uncertainty over risk assets. The Nikkei, Japan’s stock market, fell 6% on August 1, its worst day since the “Black Monday” crash in 1987. If the selloff extends to crypto markets, Bitcoin’s $60,000 support could be seriously threatened.
Despite the short-term weakness, analysts remain positive about Bitcoin’s long-term prospects. Popular analyst Willie Wu wrote on X that a 3% portfolio allocation from financial institutions could push Bitcoin to $700,000.
Will buyers be able to defend Bitcoin’s $60,000 level, or will support give way and some altcoins fall? Let’s analyze the charts of the top 10 cryptocurrencies.
Bitcoin Price Analysis
On August 1, bulls defended the 50-day SMA ($63,130), but failed to push or sustain the price above the 20-day EMA ($65,046).
Selling has been going strong since August 2nd, and the bears are trying to push the price below the 50-day SMA. If they succeed, it will start to decline to the psychological support of $60,000 and then to $55,724.
Buyers are expected to fiercely defend the $55,724 level. If the price bounces sharply, the BTC/USDT pair may maintain a sideways price movement for a while. The next trend move is likely to be a break above $73,777 or a drop below $55,724.
Ether Price Analysis
On August 1, bulls appeared to prevent Ethereum (ETH) from falling to $3,080, but bears are not letting up on the selling pressure.
The bears pushed the price below $3,080 on August 2, opening the door for a breakdown at the crucial support level of $2,850. The bulls have been holding that level successfully for the past few months, so they will try again.
If the price bounces off $2,850 but falls below the moving average, it will be a sign that the bears are in control. This will increase the likelihood of a drop below $2,850.
This negative view will be invalidated in the short term if the ETH/USDT pair breaks above the moving average. Then, the pair may attempt to rally towards the downtrend line.
BNB Price Analysis
BNB (BNB) has been trading within a wide range between $495 and $635 for several days, indicating a balance between supply and demand.
If the price breaks below $550, there is a possibility of a drop to the important support level of $495. The bulls are expected to defend the area between $495 and $460 with all their might, as a drop below that could lead to intensified selling.
If the price rises above $550, the bulls will try to push the BNB/USDT pair above the moving averages. If so, the pair could rally to $600 and later to the strong overhead resistance at $635.
Solana Price Analysis
Solana (SOL) took a nosedive on August 1st and closed below the 20-day EMA ($168), indicating that the price is still stuck in the $116-210 range.
The price has reached the 50-day SMA ($152), which is an important support level to watch. If the price rises above the 50-day SMA, the bulls will again try to push the SOL/USDT pair above the 20-day EMA.
Conversely, if the price continues to decline and breaks below the 50-day SMA, it suggests that the bears have the upper hand. The pair could then plunge to solid support at $116.
XRP Price Analysis
XRP (XRP) broke above the $0.64 resistance level on July 31, but the long wick of the candlestick shows aggressive selling at the upper levels.
The price broke below the 20-day EMA ($0.58) on August 1, indicating that the bulls were rushing for an exit. Selling continued on August 2, with the bears pushing the price below the $0.57 support. This suggests that the XRP/USDT pair is likely to fluctuate in a wide range between $0.41 and $0.64 for a while.
Alternatively, if the price rises above $0.54, the bulls will try to push the pair above the 20-day EMA. If they can do that, the pair can start its journey towards $0.64.
Dogecoin Price Analysis
Dogecoin (DOGE) fell below the moving average on July 31, and then broke below the $0.12 support level on August 1.
The 20-day EMA ($0.12) has started to decline and the RSI has slipped into negative territory, suggesting that the downtrend is dominant. If the price holds below $0.12, the DOGE/USDT pair could drop to $0.10.
The bulls don’t have much time left. If they want to bounce, they will have to push the price above the moving average quickly. If they do, it will signal demand at lower levels. Then, the pair can rise to $0.14.
Toncoin Price Analysis
Toncoin (TON) fell from the 20-day EMA ($6.87) on August 1, indicating that market sentiment remains negative and traders are selling on the upside.
The bears will try to further strengthen their position by pushing the price below the $6.36 support. If they do so, it will signal the beginning of a deeper correction. The TON/USDT pair could crash to $6 and then to $5.50.
If buyers want to stop the decline, they will need to push the price above the 20-day EMA quickly. Such a move would open the door for a rally to the 50-day SMA ($7.26), which would see the pair remain in the $6.36-$8.29 range for some time.
Related: Why did the XRP price drop today?
Cardano Price Analysis
Cardano (ADA) fell below the $0.38 support level on August 1, but as can be seen from the long tails of the candlestick, the bulls bought the downtrend.
However, the bears stopped recovering from the moving average on August 2, indicating that they were not in the mood to give up their advantage. The bears pushed the price down below $0.38, opening the way for a decline to $0.33.
Any recovery attempt will likely be met with solid selling at the moving averages. Buyers will need to push the ADA/USDT pair above the moving averages and hold it there to signal that the downtrend may be coming to an end.
Avalanche Price Analysis
Avalanche (AVAX) rose from strong support at $24 on August 1, but the uptrend failed to continue.
The bears will try to keep the price below $24, and if successful, the AVAX/USDT pair is likely to drop to the $21.80 support. This level is expected to attract buyers, but if the bears win, the next stop could be $18.90.
If the price rises above $24 or $21.80, the bulls will try to push the pair above the moving averages again. If they do, the pair could go up to $29, at which point the bears are likely to sell aggressively.
Shiba Inu Price Analysis
Shiba Inu (SHIB) is showing a gradual downward trend, indicating that the downtrend is continuing.
There is some support at $0.000015, but if the price stays below that, the SHIB/USDT pair could crash to $0.000013. The downward moving averages and the RSI in negative territory increase the risk of a breakdown.
If the price rises and breaks through the moving average, this negative view will be invalidated in the short term. This will open up the possibility of a move up to $0.000020, and the bears are likely to mount a strong defense again.
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.