Price analysis 8/7: BTC, ETH, BNB, SOL, XRP, DOGE, TON, ADA, AVAX, SHIB
Bitcoin’s ( BTC ) recent fall on Aug. 5 flushed out several leverage trades. Trading firm QCP Capital believes that the panic selling could have resulted in a short-term bottom in Bitcoin and Ether ( ETH ). QCP told its Telegram channel subscribers that it was “possibly time to start thinking about accumulating BTC and ETH spot.”
However, a few other analysts have a different view. According to 10x Research head of Research Markus Thielen, a good entry point for Bitcoin could be in the low 40,000 zone from where a major rally is likely to be attempted.
Similarly, Gokhstein Media founder David Gokhstein said in a post on X that a drop to $50,000 or even to $40,000 in Bitcoin “would be a perfect opportunity to scoop up some more.”
It is not all positive for the cryptocurrency market. The Bitcoin bull-bear market cycle indicator is flashing a bear signal for the first time since January 2023, according to CryptoQuant head of research, Julio Moreno. If this indicator remains bearish for two weeks, it could signal a sustained bear phase, said CryptoQuant founder Ki Young Ju in a post on X.
Will Bitcoin’s recovery sustain, pulling the altcoins higher? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin price analysis
Bitcoin is recovering after the sharp fall on Aug. 5. The bulls pushed the price back above the breakdown level of $55,724 on Aug. 6, indicating aggressive buying at lower levels.
The relief rally is likely to reach the moving averages, where the bears will try to stall the up move. If the price turns down from the current level or the moving averages, it will signal that the sentiment has turned negative and traders are selling on rallies. The BTC/USDT pair could then drop toward the crucial support at $49,000.
If the next fall maintains above $49,000, it will signal that a bottom has been made. Instead, if the price slips below $49,000, it will open the gates for a fall to $42,000.
Ether price analysis
Ether’s ( ETH ) relief rally is facing strong selling near the 38.2% Fibonacci retracement level of $2,602, signaling that bears are active at higher levels.
If the price sustains below $2,400, the bears will try to drag the ETH/USDT pair toward the $2,111 support. The bulls are expected to defend this level with all their might because if they fail in their endeavor, the pair may plunge to $2,000 and then $1,600.
On the other hand, if the price turns up and rises above $2,602, it will suggest that every minor dip is being purchased. The pair may then attempt a rally to the breakdown level of $2,850.
BNB price analysis
The bears pulled BNB ( BNB ) below the $460 level on Aug. 5 but failed to sustain the lower levels. This suggests solid buying on dips.
The bulls are trying to push the price above $495. If they do that, the BNB/USDT pair could rise to the moving averages, which are likely to act as a stiff resistance. However, if the bulls prevail, it will signal that the pair may oscillate between $460 and $635 for a while.
This positive view will be invalidated if the price turns down and breaks below $460. If that happens, the pair may retest the Aug. 5 intraday low of $400. A break below this support could sink the pair to $360.
Solana price analysis
The bears tried to pull Solana ( SOL ) below the $116 to $210 range on Aug. 5, but the bulls successfully defended the level.
The price has reached the 20-day EMA ($157), where the bears will try to halt the recovery. If the price turns down sharply from the 20-day EMA, the bears will again try to pull the SOL/USDT pair below $116.
On the contrary, a break above the 20-day EMA will suggest that the bulls are trying to make a comeback. Buyers will try to push the price to $189, where the bears may again mount a strong defense.
XRP price analysis
XRP ( XRP ) has been trading inside the large range between $0.41 and $0.74 for several months, indicating buying on dips and selling on rallies.
The XRP/USDT pair started a rebound from the $0.46 to $0.41 support zone, which is facing resistance at the 50-day SMA ($0.52). If the price slides below $0.48, the pair could retest the $0.46 to $0.41 support zone, where the buyers are expected to step in.
On the upside, a break above the 50-day SMA could push the pair to the 20-day EMA ($0.55). Buyers will have to pierce this resistance to signal that the pair’s range-bound action may continue for some more time.
Dogecoin price analysis
Dogecoin ( DOGE ) started recovering off the $0.08 support, but the bulls are struggling to drive and maintain the price above $0.10.
The downsloping 20-day EMA ($0.11) and the RSI near the oversold territory signal that the bears have the upper hand. A shallow bounce will increase the likelihood of a drop below $0.08. If that happens, the DOGE/USDT pair may tumble to $0.06.
Alternatively, if the price rises above $0.10, it will suggest that the selling pressure is reducing. The pair may then climb to the breakdown level of $0.12, which is likely to act as a strong barrier.
Toncoin price analysis
Toncoin ( TON ) bounced off the $4.72 level on Aug. 5, indicating that the bulls are fiercely defending the level.
The relief rally is facing resistance near the 50% Fibonacci retracement level of $5.81. If the price continues lower, the bears will again try to yank the TON/USDT pair below $4.72. If they succeed, the pair may plummet to $4.
Contrary to this assumption, if the price turns up and breaks above $5.81, it will suggest that traders are buying the dips. The pair may then rally to the 20-day EMA ($6.38), which remains the key resistance to keep an eye on.
Related: BTC price eyes $58K CME gap as analysis flags 2 Bitcoin 'death crosses'
Cardano price analysis
Cardano ( ADA ) has been in a downtrend for several days. The bulls are trying to start a relief rally from $0.27 on Aug. 5.
The first obstacle on the upside is the moving averages, but if buyers overcome this, the ADA/USDT pair could reach the downtrend line. Sellers are expected to vigorously defend the downtrend line. If the price turns down sharply from the moving averages or the downtrend line, the pair may slide toward $0.24.
This negative view will be invalidated in the short term if the bulls push and maintain the price above the downtrend line.
Avalanche price analysis
Avalanche ( AVAX ) fell below the $21.80 support on Aug. 4, but the bears are struggling to sustain the lower levels.
The AVAX/USDT pair turned up from $17.29 and has reached the breakdown level of $21.80. If bears flip the $21.80 level into resistance, it will increase the possibility of a drop below $17.29. The pair could then drop to $16.
Contrarily, if the price rises above the $21.80 resistance, it will suggest that the bears are losing their grip. The pair may then climb to the moving averages, which is an important level to watch out for.
Shiba Inu price analysis
Shiba Inu ( SHIB ) rebounded from the strong support near $0.000010 on Aug. 5, indicating solid buying at lower levels.
The recovery could reach the moving averages, where the bears are expected to mount a strong defense. If the price turns down sharply from the moving averages, it will signal that the bears continue selling on rallies. That will increase the likelihood of a drop below $0.000010.
Instead, if buyers drive the price above the moving averages, it will signal that the downtrend could be ending. The SHIB/USDT pair could then climb to $0.000020.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Base hit a record of 106.26 TPS, up nearly 28% since November 23
220 WBTC transferred from Wintermute to unknown wallet, worth over $20 million
Hut 8 CEO: The current balance sheet Bitcoin holdings are 9,100
ARK Invest sold 20,552 Tesla shares yesterday
Trending news
MoreCrypto prices
More
