Originally published on: August 07, 2024
As Bitcoin experienced a recent decline, trading firm QCP Capital sees it as a potential opportunity to accumulate BTC and ETH. However, some analysts suggest that the ideal entry point for Bitcoin may be around the low $40,000 zone for a potential rally.
Despite the positive outlook for Bitcoin, some indicators are signaling a bearish trend. The Bitcoin bull-bear market cycle indicator recently flashed a bear signal for the first time since January 2023, indicating a possible sustained bear phase.
In the midst of these market dynamics, the recovery of Bitcoin will play a crucial role in pulling altcoins higher. Let’s delve into the price analysis of the top 10 cryptocurrencies to gain insights into their potential movements in the near term.
Bitcoin is currently undergoing a recovery phase after a sharp decline on Aug. 5. If the price fails to maintain above $55,724, it could signal a negative sentiment leading to a potential drop towards the crucial support level at $49,000.
Ethereum’s relief rally is facing resistance near the 38.2% Fibonacci retracement level of $2,602. A sustained decline below $2,400 could lead to further downside towards the $2,111 support level.
Binance Coin (BNB) saw a solid buying interest on dips, pushing the price above $495. However, a breakdown below $460 could trigger a retest of the Aug. 5 low at $400.
Solana managed to defend the support level at $116 and is currently facing resistance near the 20-day EMA at $157. A breakthrough above this level could signal a potential rally towards $189.
XRP has been trading within a range between $0.41 and $0.74, with buying on dips and selling on rallies. A break above the 50-day SMA at $0.52 could pave the way for further gains towards the 20-day EMA at $0.55.
Dogecoin is struggling to maintain momentum above $0.10, with a potential drop below $0.08 leading to a tumble towards $0.06. Alternatively, a breakout above $0.10 could signal reduced selling pressure.
Toncoin bounced off the $4.72 level, indicating strong support at this level. A breakthrough above the 50% Fibonacci retracement level of $5.81 could signal further upside towards the 20-day EMA at $6.38.
Cardano is attempting a relief rally from $0.27, with a potential upside target at the downtrend line. However, a failure to sustain above this level could lead to downside towards $0.24.
Avalanche fell below the $21.80 support but is currently struggling to maintain lower levels. A breakout above $21.80 could signal a potential rally towards the moving averages.
Shiba Inu rebounded from the $0.000010 support level, indicating strong buying interest. A breakthrough above the moving averages could signal a potential uptrend towards $0.000020.
In conclusion, the cryptocurrency market is witnessing a mix of bullish and bearish signals, with Bitcoin’s recovery playing a crucial role in determining the direction of altcoins in the near term. Keep a close eye on key support and resistance levels for potential trading opportunities.