The recent decline in Bitcoin (BTC) on August 5 has wiped out several leveraged trades. Trading firm QCP Capital believes that Bitcoin and Ether (ETH) may have bottomed out in the short term due to panic selling. “It may be time to think about accumulating BTC and ETH spot,” QCP told subscribers to its Telegram channel.
However, some other analysts have a different view. According to Markus Thielen, head of research at 10x Research, a good entry point for Bitcoin could be in the low 40,000s, where a major rally is likely to be attempted.
Likewise, David Gokhstein, founder of Gokhstein Media, wrote on X that if Bitcoin fell to $50,000 or even $40,000, “it would be a perfect opportunity to accumulate more.”
It’s not all positive for the crypto market. According to CryptoQuant’s head of research, Julio Moreno, Bitcoin’s bullish-bearish market cycle indicator is showing a bearish signal for the first time since January 2023. CryptoQuant founder Kiyoung Joo wrote in a post on X that if the indicator remains bearish for two weeks, it could signal a sustained bearish phase.
Will Bitcoin’s recovery continue and altcoins head higher? Let’s analyze the charts of the top 10 cryptocurrencies.
Bitcoin Price Analysis
Bitcoin is recovering from the August 5 crash. The bulls have pushed the price back above the August 6 crash level of $55,724, suggesting aggressive buying at lower levels.
The relief rally is likely to reach the moving average, and the bears will try to stop the uptrend. If the price breaks down from the current level or the moving average, it will be a signal that sentiment has turned negative and traders are selling the rally. Then, the BTC/USDT pair can fall to the important support level of $49,000.
If the next decline is sustained above $49,000, it will be a signal that a bottom has been formed. On the other hand, if the price breaks below $49,000, it opens the door for a drop to $42,000.
Ether Price Analysis
Ether (ETH)’s rebound rally is facing strong selling near the 38.2% Fibonacci retracement level of $2,602, which signals that the downside is active at higher levels.
If the price remains below $2,400, the bears will try to push the ETH/USDT pair down to the $2,111 support level. The bulls are expected to defend this level with all their might, as if they fail in their efforts, the pair could fall to $2,000 and then $1,600.
On the other hand, if the price were to rise and break above $2,602, it would suggest that every minor dip is being bought. Then, the pair could attempt a rally to the breakdown level of $2,850.
BNB Price Analysis
The bears managed to push BNB (BNB) below the $460 level on August 5th but failed to hold the low, suggesting solid buying on the downside.
The bulls are trying to push the price above $495. If they do, the BNB/USDT pair could rise to the moving average, which is likely to act as a strong resistance. However, if the bulls win, it will be a signal that the pair could oscillate between $460 and $635 for a while.
If the price falls below $460, this positive outlook will be invalidated. In that case, the pair may retest the intraday low of $400 on August 5. If it breaks below this support, the pair may fall to $360.
Solana Price Analysis
On August 5, bears tried to push Solana (SOL) price down below the $116 to $210 range, but bulls successfully defended the levels.
The price has reached the 20-day EMA ($157), where the bears will try to stop the recovery. If the price declines sharply from the 20-day EMA, the bears will try to push the SOL/USDT pair back down to $116.
Conversely, a break above the 20-day EMA suggests that bulls are attempting a comeback. Buyers will try to push the price up to $189, at which point bears can mount a strong defense again.
XRP Price Analysis
XRP (XRP) has been trading in a wide range between $0.41 and $0.74 for several months, so it is a signal to buy when it falls and sell when it rises.
The XRP/USDT pair has started a bounce from the $0.46-$0.41 support zone, facing resistance at the 50-day SMA ($0.52). If the price breaks below $0.48, the pair may retest the $0.46-$0.41 support zone, where buyers are expected to step in.
In an uptrend, a break above the 50-day SMA could push the pair towards the 20-day EMA ($0.55). Buyers should look for a break above this resistance as it could signal that the range-bound move of the pair could continue for a longer period of time.
Dogecoin Price Analysis
Dogecoin (DOGE) has recovered from the $0.08 support level, but bulls are having trouble pushing and sustaining prices above $0.10.
The falling 20-day EMA ($0.11) and the RSI near the overheated selling zone are signs that the bears are in the lead. A shallow bounce increases the chances of a drop below $0.08. If that happens, the DOGE/USDT pair could fall to $0.06.
Alternatively, if the price breaks above $0.10, it suggests that selling pressure is decreasing. Then, the pair may head towards the $0.12 breakdown level, which is likely to act as a strong barrier.
Toncoin Price Analysis
Toncoin (TON) bounced off the $4.72 level on August 5, indicating that bulls are strongly defending that level.
The relief rally is facing resistance near the 50% Fibonacci correction level of $5.81. If the price continues to fall, the bears will try to push the TON/USDT pair below $4.72 again. If successful, the pair could crash to $4.
Contrary to this assumption, if the price rises and breaks above $5.81, it suggests that traders are buying the dip. The pair could then rally towards the 20-day EMA ($6.38), which remains a key resistance to watch.
Related: BTC Price, Analysis Finds 2 Bitcoin ‘Dead Crosses’, CME Gap Expected at $58,000
Cardano Price Analysis
Cardano (ADA) has been in a downtrend for several days. The bulls are looking to start a relief rally from $0.27 on August 5th.
The first obstacle to the upside is the moving average, but if buyers overcome it, the ADA/USDT pair can reach the downtrend line. Sellers are expected to defend the downtrend line strongly. If the price breaks down from the moving average or the downtrend line, the pair can fall to $0.24.
If the bulls push the price above the downtrend line and hold it, this negative view will be invalidated in the short term.
Avalanche Price Analysis
Avalanche (AVAX) broke below the $21.80 support level on August 4, but the bears are struggling to maintain the low.
The AVAX/USDT pair rose from $17.29 and reached the breakdown level of $21.80. If the bears turn the $21.80 level into resistance, there is a high chance of a drop below $17.29. Then, the pair can fall to $16.
Conversely, if the price breaks above the $21.80 resistance, it suggests that the bears are losing strength. The pair could then move up to the moving average, which is an important level to watch.
Shiba Inu Price Analysis
Shiba Inu (SHIB) bounced off a strong support level near $0.000010 on August 5, showing solid buying at lower levels.
The recovery may reach the moving average, and the bears are expected to make a strong defense. If the price falls sharply from the moving average, it will be a signal that the bears are continuing to sell in the rally. Then, the possibility of a drop below $0.000010 increases.
Instead, if buyers push the price above the moving average, it will signal that the downtrend may be over. Then, the SHIB/USDT pair can go up to $0.000020.
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.