BTC, ETH, BNB, XRP, ADA, SOL, DOGE, DOT, MATIC, SHIB
The price of Bitcoin (BTC) has been trying to reverse course while the S&P 500 is still giving up gains on a daily basis. Even though US stock markets have been falling since August 26, Bitcoin has managed to hold the $20,000 mark.
However, investor interest seems to be shifting away from Bitcoin. This led to a reduction in assets under management (AUM) for Bitcoin investment products, which fell 7.16% in August to $17.4 billion, according to a new report from CryptoCompare.
In comparison, the AUM of Ethereum products increased by 2.36% to $6.81 billion over the same period, indicating that investors are positioning themselves in Ethereum products before the merger.
Even though prices are falling across the entire ecosystem, bear markets at least offer some attractive opportunities for long-term investors. To capitalize on this opportunity, Reddit co-founder Alexis Ohanian’s venture capital firm Seven Seven Six is aiming to raise $177.6 million for a crypto investment fund. In a similar vein, former executives from Galaxy Digital and Genesis are seeking to raise a $500 million fund.
Although the short term looks uncertain, long term investors may be looking for bottom fishing opportunities. Could Bitcoin and major altcoins stay above their immediate support levels? Let’s study the charts of the top 10 cryptocurrencies to find out.
BTC/USDT
Bitcoin turned down the downtrend line on August 30, but a small bright spot is that the bulls bought the dip near $19,500. The bulls are again trying to push the price above the downtrend line on August 31st.
If successful, the BTC/USDT pair could rally to the 20-day exponential moving average (EMA) ($21,325), which is an important level to watch. If the price turns down from this level, the bears will attempt to pull the pair towards the strong support zone at $18,910-$18,626. A break and close below this zone could open the doors for a retest of the critical support at $17,622.
Conversely, if the bulls push the price above the 20-day EMA, the pair could reach the 50-day simple moving average (SMA) ($22,333). If the bulls breach this hurdle, the pair could gain momentum and rally towards the overhead resistance at $25,211. Bulls need to overcome this barrier to indicate that bottom may be in place.
ETH/USDT
Ether (ETH) rose from $1,422 on August 29 and rallied above the neckline of the head and shoulders pattern. This suggests that the August 26 outage may have been a bear trap.
Bulls attempt to push the price above the moving averages. If successful, the ETH/USDT pair could hit the overhead resistance at $1,700. This is an important level to watch as a break and close above it could open the doors for a possible rally to $2,000.
This bullish view will be invalidated if the price turns below overhead resistance and breaks below $1,422. Such a decision will suggest that the recovery may be over. The pair could then drop to $1,280 and later to $1,050.
BNB/USDT
BNB bounced off the strong support at $275 on August 29, indicating that the bulls are aggressively defending this level.
The bulls tried to push the price above the 20-day EMA ($292) on August 30-31, but the bears held on. If the price breaks and closes below the $275 support, the BNB/USDT pair will complete a bearish head and shoulders pattern. This might start a decline at $240 and later to the pattern target at $212.
On the contrary, if the price rebounds from $275 and breaks above the 20-day EMA, the pair could reach $308. A break and close above this resistance could pave the way for a rally to $338.
XRP/USDT
Buyers have been defending the $0.32 level for the past three days but failed to pull off a strong rebound. This suggests a lack of demand for Ripple (XRP) at higher levels.
The downward sloping 20-day EMA ($0.34) and the Relative Strength Index (RSI) in negative territory indicate that the bears have a slight advantage. If the price declines from the current level or the 20-day EMA and breaks below $0.32, the XRP/USDT pair could slide towards vital support at $0.30.
Bulls should defend this level with all their might as a break below this support could signal the resumption of the downtrend. Conversely, if the bulls push the price above the moving averages, the pair could rally to $0.39.
ADA/USDT
Cardano (ADA) rebounded from $0.42 on August 29 and reached the 20-day EMA ($0.47) where the bears are mounting strong resistance.
If the price is falling from the current level, it will suggest that the bears are continuing to sell on minor rallies. The bears will then try to drive the price down to the crucial support at $0.40. This is an important level to watch as a breakout and close below could signal the start of the next leg of the downtrend.
On the other hand, if the buyers are pushing the price above the moving averages, it will suggest strong demand at lower levels. The ADA/USDT pair could then rally to the downtrend line.
SOL/USDT
Solana (SOL) rebounded from $30 and broke above the $32 level on August 29, but the bears again drove the price below the August 30 level. This suggests that the bears are selling on every minor rise.
The bulls are again trying to push the price to the 20-day EMA ($35), which is an important level to watch in the short term. If the bulls push the price above this level, the SOL/USDT pair could reach the 50-day SMA ($39).
The 20-day EMA sloping downwards and the RSI in negative territory indicates an advantage for the sellers. If the price declines from the current level or the 20-day EMA and breaks below $30, the pair could fall to the crucial support at $26.
DOGE/USDT
The bulls successfully defended the support at $0.06 for the past few days but failed to pull off a strong rebound. This suggests a lack of demand for Dogecoin (DOGE) at higher levels.
Tight consolidation near strong support increases the possibility of a breakdown. If that happens, the DOGE/USDT pair could start its decline towards the June 18th low near $0.05. This is an important level for bulls to defend as a breakout and close below could resume the downtrend.
Conversely, if the price rises from the current level and breaks above the moving averages, it will suggest that the last leg of the corrective phase might be over. The pair could then attempt a rally to $0.09.
Related: Potential Double Bottom in Bitcoin Price Could Trigger BTC Rally to $30,000 Despite ‘Extreme Scare’
DOT/USDT
Polkadot (DOT) has been trading below the moving averages since August 19, but the bears were unable to drag the price down to strong support at $6. This suggests that selling is drying up at lower levels.
The bulls will again try to push the price above the moving averages. If successful, this will suggest that the DOT/USDT pair may rally to $9.17 and then general resistance at $10. The Bears are likely to mount a solid defense at this level.
Another possibility is that the price drops from the moving averages and falls below $6.79. If that happens, the bears will try to sink the pair at the crucial $6 support. A breakout and close below this level could signal the resumption of the downtrend.
MATIC/USDT
Polygon (MATIC) bounced off the $0.75 support on August 29 and reached the 20-day EMA ($0.83) on August 30, but the Doji candlestick pattern indicates indecision from buyers and traders. sellers.
If the bulls push and hold the price above the moving averages, the MATIC/USDT pair could begin its march north towards overhead resistance at $1.05. This level is again likely to face strong resistance from the bears.
Contrary to this assumption, if the price is falling from the moving averages, it will suggest that the bears are vigorously defending the level. The pair could then decline again towards the strong support of $0.75. If this support cracks, the pair could drop to $0.63.
SHIB/USDT
Shiba Inu (SHIB) rallied above the important $0.000012 level on August 29, indicating that the bulls are buying lower. The buyers attempted to push the price above the 20-day EMA ($0.000013) on August 30, but the bears did not relent.
The price is stuck between the 20-day EMA and $0.000012. This narrow range trading is unlikely to continue for long. If the bears sink and keep the price below $0.000012, the SHIB/USDT pair could drop to $0.000010.
Alternatively, if the price breaks above the 20-day EMA, the pair could rally towards broad resistance at $0.000014. The bulls need to overcome this barrier to open the doors for a possible rally to $0.000018.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Market data is provided by HitBTC swap.
