Originally published on: August 04, 2024
Bitcoin has taken a significant hit, dropping below the crucial $60,000 mark on August 4th. This downward spiral can be attributed to the 6% decline in the Japanese stock market, along with the weak July jobs report and the Nasdaq Composite entering correction territory.
Despite this decline, Bitcoin remains within a wide range. While it’s difficult to predict the breakout direction, large Bitcoin whales remain optimistic. Whale addresses holding over 1,000 Bitcoin added 84,000 BTC in July. Additionally, nearly 64,000 Bitcoin left whale exchange balances in the last month, the highest since 2015.
The recent weakness in Bitcoin has also impacted various altcoins, indicating cautious investors. However, as Bitcoin approaches the bottom of its range, buyers are expected to step in, potentially kickstarting a rally in select altcoins.
Key levels to watch for potential Bitcoin recovery are critical in determining the trajectory of other cryptocurrencies. Let’s delve into the top 5 cryptocurrencies that could lead the market higher.
Bitcoin is currently facing intense selling pressure after breaching moving averages on August 2. With the RSI nearing oversold territory, bears are seemingly in control. A recovery attempt may face strong resistance at the 20-day EMA, hinting at a possible drop below the essential support at $55,724.
Solana (SOL), on the other hand, has been trading within a broad range between $116 and $210. The price slipped below moving averages but could find support around $127 to $116. A rebound from this level could lead to a move towards $188.
XRP struggled to stay above $0.64, resulting in significant selling pressure. A bounce from the current level could push XRP/USDT above the 20-day EMA at $0.57, signaling a potential rally to $0.64.
Kaspa (KAS) faced a sharp downturn but might find support at the 50-day SMA. A break above the 20-day EMA could initiate a recovery towards $0.24, while a drop below the 50-day SMA may lead to a correction to $0.16.
Aave (AAVE) briefly surpassed the $115 resistance but failed to sustain higher levels. A drop below the 20-day EMA could move the price towards the 50-day SMA at $93, while a break above $115 may trigger a rally to $130.
As the market navigates through uncertainty, closely monitoring these key levels could offer insights into potential price movements for Bitcoin and other top cryptocurrencies. Stay informed to make informed trading decisions in the volatile crypto space.