On Monday, Bitcoin dropped below the $50,000 mark as crypto traders panicked due to the Japanese stock market crash. Data published by CoinGlass showed that over 270,000 Bitcoin traders were liquidated, collectively losing over $1 billion.
The question that remains unanswered following Monday’s price drop is whether Bitcoin will continue trading downward or start a relief rally in the coming days. Crypto analyst Rekt Capital wrote on X that BTC’s downtrend could last until early October.
Another crypto analyst, Alex Kuptsikevich, said on Tuesday morning that Bitcoin’s price might correct even further this month, predicting a bearish move to $42,000.
Meanwhile, Cointelegraph market analyst Rakesh Upadhyay has argued that the recent breakout below the $50,000 – $73,773 trading range could be fake and that we might see Bitcoin reversing, trapping short traders.
All said, Let’s study the charts to find out the key support levels that Bitcoin bulls must protect to trap the bears.
Bitcoin Price Analysis
Bitcoin bulls couldn’t guard the $60,000 support on August 4th, allowing the bears to tug the digital coin below $55,000 and later to $49,931. However, Bitcoin has reversed to $56,034 as of this writing, and the long-wicked candlestick on the chart suggests that the sellers are struggling to keep the token at lower prices.
If the buyers sustain Bitcoin above $55,000, the possibility of a price increase to the 20-day Exponential Moving Average of $62,512 will be enhanced. Meanwhile, the sellers must drag Bitcoin below $55,000 to gain the advantage. If they achieve this, the $49,000.53 support could break, leading to a fall toward $42,001.90.
Ethereum Price Analysis
After Ethereum dropped below $2,857.22 on August 4th, a descending triangle pattern was completed, signaling that the bears had taken over the market. ETH bottomed at $2,174 on Monday. The buyers purchased the dip, pushing the digital asset to $2,503 at press time.
The Relative Strength Index indicator is in oversold levels, enhancing the possibility of a relief rally in the near term. If the bulls continue exerting pressure, Ethereum could break above $2,857.22 to rally to the 50-day Simple Moving Average of $3,271. However, a reversal from $2,857.22 increases the likelihood of a drop below $2,174. As such, ETH could head toward $2,000.65.
BNB Price Analysis
BNB broke out of the $495.32 – $635.05 trading range on Sunday, with the bears fueling the breakout, which caused the coin to fall below the $450.30 support. However, the bulls have managed to push BNB to $488.74 as of this writing. The Relative Strength Index indicator (29.44) shows that aggressive selling could be over. So, if the bulls begin a relief rally now, BNB might cross $495.32 and move toward the 50-day Simple Moving Average of $561.28.
From a bearish point of view, the Binance Coin is likely to find support at $400.11 if the bears tug and sustain it below $450.30.
Solana Price Analysis
As most of the top cryptocurrencies broke out of large trading ranges on Sunday, Solana kept trading within the $116.02 – $210.47 range, indicating that the bulls were buying the dips while bears sold on relief rallies. SOL has recorded significant gains in the past 24 hours. However, they haven’t been enough to thrust the coin above the 50-day Simple Moving Average of $151.49.
If Solana eventually crosses $151.49, it could rally to the $180.44 resistance. On the negative side, a reversal from $151.49 could motivate the sellers to tug SOL below $116.02 and cause a drop to $100.07.
Dogecoin Price Analysis
The bears took over the market on August 4th, pushing Dogecoin below $0.10249 to $0.08463. However, the lower levels have proven tough for the bears to sustain. As of this writing, Dogecoin has crossed above $0.10. If it breaks the barrier at $0.10249, it could move to the 20-day Exponential Moving Average of $0.11793. Conversely, DOGE risks plummeting to $0.06883 if the bulls fail to defend $0.080.
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