On Friday, Bitcoin fell below $55,000 for the first time since February. The drop indicated that investors were panic selling. However, some crypto gurus were not fazed by the downturn. In an X post, Blockstream founder Adam Back said the downtrend was “normal” in a bull market and urged people to purchase the dip.
But what’s causing panic among Bitcoin investors? Well, German authorities have been blamed for accelerating selling pressure after they began dumping seized BTC worth billions. Also, there was fear that creditors of fallen crypto exchange Mt.Gox would cash out their BTC claims immediately after reaching their wallets.
Friday’s downtrend caused massive liquidations. Data from CoinGlass showed that Bitcoin traders who opened long positions lost more than $660 million collectively. Meanwhile, some analysts expect Bitcoin to hit $50,000 before starting a solid rally.
That said, it’s time to analyze the price charts to identify key levels that need to be monitored closely in the coming days.
Bitcoin Price Analysis
As mentioned earlier, Bitcoin broke below the $56,000 – $73,770 range to trade at $54,050 on Friday. The bears, however, failed to sustain BTC at lower levels as the bulls intensified buying activity, propelling the coin to $57,798 on Sunday afternoon.
The Relative Strength Index (55.78) suggests that Bitcoin might experience a relief rally soon, which could face massive resistance at the 20-day Exponential Moving Average of $62,459.
If BTC reverses from $62,459, the bears are likely to try and pull the coin below $56,000 again to increase the possibility of driving the price to $50,000.
Ethereum Price Analysis
Despite the hype around Ethereum spot Exchange-Traded Funds, ETH hasn’t rallied, suggesting a lack of buying interest. The coin almost dropped below key support ($2,854) on Friday, but the bulls held their ground, driving it to $3,037 as of this writing.
With the Relative Strength Index now above 50, it indicates that we may witness a relief rally over the next few days. As such, Ethereum could surge to the 20-day Exponential Moving Average of $3,374, where strong resistance is expected.
On the negative side, the chances of a move to the $2,290 support will increase significantly if ETH bulls allow the bears to sustain the coin below $2,854.
BNB Price Analysis
BNB broke below $535.87 on Thursday, signaling intense selling activity. The coin was changing hands for $506.09 at press time after the bulls defended the $495.44 support on Saturday. If BNB crosses $535.87, the prospects of a positive move to the 20-day Exponential Moving Average of $571.08 will grow. However, the Binance Coin may see its price drop to $420 if $495.44 gives way.
Solana Price Analysis
The bulls couldn’t thrust Solana above the 50-day Simple Moving Average of $155.19 earlier this week, leading to selling activity that has pulled SOL’s price to $140.48 as of this writing. The current price is below the 20-day Exponential Moving Average of $142.02. This boosts the chances of a drop toward the $116.38 support and even to $100.
From a bullish point of view, Solana could cross above $183 and then rally to $205.43 if the bulls overpower the bears at $155.19.
Dogecoin Price Analysis
DOGE has traded below $0.129700, a key support level, since July 3rd, giving the bears a slight advantage. If the bulls do not fuel a relief rally in the coming days, Dogecoin will likely plunge to $0.108372 and later to $0.089051.
However, if the meme coin crosses $0.129700, a solid rally toward the 50-day Simple Moving Average of $0.142466 is likely.
Avalanche Price Analysis
AVAX bulls have failed to thrust the coin above $29.65 this week, suggesting that the bears have turned that price into a solid resistance. Avalanche is priced below the 20-day Exponential Moving Average ($27.67) at price time, giving the bears an edge to drag the token to $23.
Conversely, if AVAX crosses $29.65, it may grow toward the 50-day Simple Moving Average of $32.15.
SureTradeGroup.com is not responsible for the content, accuracy, quality, advertising, products or any other content posted on the site. Some of the content on this site is paid content that is not written or posted by our writers or editors and the opinions expressed do not reflect the opinions of this website. Any disagreement you may have with brands or companies mentioned in articles will need to be taken care of directly with those specific brands and companies. The responsibility of anyone who may click links in our articles and ultimately sign up for that product or service is their own. Forex, Stocks, Cryptocurrencies, NFTs and Dogital Tokens are all a high-risk asset, investing in them can lead to losses. Readers should do their own research before taking any action.