Bitcoin’s sharp recovery to $30,000 proves that bulls are buying BTC and altcoins at lower support levels.
Price Analysis
Bitcoin’s rebound off $28,701 on Aug. 7 shows that lower levels continue to attract buyers. The recovery has kept the price stuck inside the range as traders await the start of a new trending move. A recent report by ARK Invest says that “Bitcoin’s volatility dropped to a 6-year low during July.”
Traders who expected a strong move in either direction have been disappointed by the ongoing range-bound action in August. If history repeats itself, then August and September may turn out to be washout months, as their average moves have been 0.73% and -5.01%, respectively.
Although the short-term is uncertain, the long-term continues to look attractive. Galaxy Digital CEO Mike Novogratz, citing sources at BlackRock and Invesco, said that the first spot Bitcoin (BTC) exchange-traded fund in the United States may be approved by the Securities and Exchange Commission in four to six months.
Such a move is expected to be hugely positive for the crypto space. In the meantime, important resistance levels continue to impact Bitcoin and altcoins. Could bulls overcome the roadblock? Let’s study the charts of the top 10 cryptocurrencies to find out.
Bitcoin price analysis
Bitcoin’s strong relief rally from the $28,861 support shows that the bulls have not yet given up and they continue to view the dips as a buying opportunity.
The BTC/USDT pair rose above the 20-day exponential moving average (EMA) of $29,455 on Aug. 8, and the bulls are trying to build upon the momentum by pushing the price above the 50-day simple moving average (SMA) of $29,981. If they manage to do that, the pair could pick up momentum and soar toward the overhead resistance zone between $31,804 and $32,400.
Contrarily, if the price turns down and skids below the 20-day EMA, it will suggest that the bears continue to sell on rallies. That could keep the pair stuck inside a tight range between $28,500 and $30,500 for a few days.
Ether price analysis
Buyers purchased the dip below the $1,816 support in Ether (ETH) on Aug. 7 and followed that up with another strong move on Aug. 8.
The bulls are facing resistance at the 50-day SMA ($1,881), but a minor positive is that they are trying to hold the 20-day EMA. The flattening 20-day EMA and the relative strength index (RSI) near the midpoint suggest that the bears are losing their grip.
If buyers drive the price above the 50-day SMA, the ETH/USDT pair could rally to $1,930 and eventually to the psychologically important level of $2,000. The bulls will have to surmount this level to start the next leg of the up move.
The advantage could tilt in favor of the bears if they yank the price below the crucial short-term support at $1,800.
BNB price analysis
BNB (BNB) turned up from the moving averages and reached the resistance line of the symmetrical triangle pattern on Aug. 8.
The bears are trying to defend the resistance line, but if bulls do not allow the price to slide back below the moving averages, it will increase the possibility of an upside breakout. The BNB/USDT pair could first climb to $265 and then make a dash to the pattern target of $288.
On the contrary, if the price turns down and skids below the moving averages, it will suggest that the pair may extend its stay inside the triangle for some more time. A break below the triangle could tilt the advantage in favor of the bears. The pair could then decline to $220
XRP price analysis
XRP (XRP) reversed direction from the 50-day SMA ($0.60) on Aug. 7 and reached the 20-day EMA ($0.66) on Aug. 9.
If the price turns down from the current level, it will suggest that the sentiment has turned negative and traders are selling on rallies. That will enhance the prospects of a fall to the breakout level of $0.56.
On the other hand, if the price rises above the 20-day EMA, it will suggest that bulls are attempting a comeback. The XRP/USDT pair could then rise to $0.73, which may prove to be a tough hurdle to cross.
Dogecoin price analysis
Dogecoin (DOGE) snapped back from the support line of the ascending channel on Aug. 7, indicating that bulls continue to buy on dips.
Buyers propelled the price above the 20-day EMA ($0.07), clearing the path for a possible rally to $0.08. This level may prove to be a difficult obstacle, but if the bulls surpass it, the DOGE/USDT pair could reach the resistance line of the channel.
This positive view will invalidate in the near term if the price turns down from the current level or the overhead resistance and plunges below the channel. That could sink the pair to $0.07. This is an important level to keep an eye on because if it cracks, the pair may slump to $0.06.
Cardano price analysis
Cardano (ADA) turned up from $0.28 on Aug. 7, indicating buying at lower levels. The price has reached the moving averages, which are just below the downtrend line.
The bears are likely to guard the downtrend line with vigor. If the price turns down from this level, the ADA/USDT pair could retest the support at $0.28. A break and close below this level could pull the pair to $0.26 and then to $0.24.
Contrary to this assumption, if bulls clear the overhead hurdle, the pair could rally to $0.34. This level may again prove to be a barrier, but if bulls overcome it, the pair could reach the overhead resistance at $0.38.
Solana price analysis
The bulls successfully held the support at $22.30, indicating demand at lower levels. Buyers shoved Solana (SOL) above the 20-day EMA ($23.71) on Aug. 8, signaling a comeback.
The flattish 20-day EMA and the RSI in the positive territory indicate a minor advantage to the bulls. The SOL/USDT pair could rise to $25.68 and then to the stiff overhead resistance of $27.12. Sellers may pose a strong challenge at this level.
If the price turns down from the overhead resistance, it will suggest that the pair may consolidate between $27.12 and $22.30 for some time. The bears will gain the upper hand if they tug the price below $22.30.
Related: Why is Shiba Inu price up today?
Polygon price analysis
Polygon (MATIC) bounced off the strong support at $0.64 and reached the moving averages, where the bears are expected to mount a strong defense.
If the price turns down from the moving averages, the MATIC/USDT pair could once again drop to $0.64. A bounce off this level could keep the pair range-bound between $0.64 and the moving averages for some time. The flattish moving averages and the RSI just below the midpoint also suggest range-bound action.
On the contrary, if bulls drive the price above the moving averages, it will suggest the start of a stronger recovery to $0.74 and then to $0.80.
Litecoin price analysis
The bears tried to sink Litecoin (LTC) below the support at $81.36 on Aug. 7, but the long tail on the candlestick shows strong demand at lower levels.
The bulls are trying to start a recovery, which is likely to face strong selling near the 20-day EMA ($87). If the price turns down from this level, it will suggest that the sentiment remains negative and traders are selling on rallies. The bears will then make one more attempt to sink the LTC/USDT pair below $81.36.
If bulls want to make a comeback, they will have to kick the price above the 20-day EMA. If they succeed, it could open the doors for a possible rise to the 50-day SMA ($92) and later to $96.46.
Polkadot price analysis
Polkadot (DOT) has been trading between $5 and $5.65 for many days. Efforts to push the price above and below the range have been unsuccessful, indicating that bulls are buying the dips and bears are selling on rallies.
The bulls are trying to push the price above the moving averages but are facing stiff resistance from the bears. If the price turns down from the moving averages, it will increase the likelihood of a break below $4.83. If that happens, the DOT/USDT pair could descend to $4.60.
Alternatively, if bulls propel the price above the moving averages, it will suggest that the range remains intact. The pair could rise to $5.33 and subsequently to the overhead resistance at $5.64.
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.
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