The global stock market sell-off impacts the cryptocurrency markets, indicating potential short-term weakness.
Bitcoin has retreated to the midpoint of its $55,724 to $73,777 range after bulls could not sustain the price above the significant $70,000 mark. Historical data from Coinglass shows that August has typically been a weak month, with an average increase of only 2.24% since 2013, offering little assurance to those anticipating a breakout.
The global equity market downturn is creating uncertainty for risk assets. Notably, Japan’s Nikkei index experienced a 6% drop on 1 August, its steepest decline since the “Black Monday” crash of 1987. Bitcoin’s $60,000 support level may face significant pressure if this trend continues.
Irrespective of the near-term weakness, analysts remain positive on the long-term prospects of Bitcoin. Popular analyst Willy Woo said in a post on X that a 3% portfolio allocation by financial institutions could propel Bitcoin to $700,000.
Could buyers defend Bitcoin’s $60,000 level or will the support crumble, dragging select altcoins lower? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin (BTC) Market Analysis
The bulls defended the 50-day simple moving average ($63,130) on Aug. 1 but could not propel and maintain the price above the 20-day exponential moving average ($65,046).
BTC/USDT daily chart. Source: TradingView
Selling picked up on Aug. 2, and the bears are trying to sink the price below the 50-day SMA. If they succeed, it will signal the start of a fall to psychological support at $60,000 and then to $55,724.
Buyers are expected to defend the $55,724 level fiercely. If the price sharply rebounds off it, the BTC/USDT pair may remain in sideways price action for some more time. The next trending move will likely begin on a break above $73,777 or drop below $55,724.
Ether (ETH) Market Analysis
The bulls tried to stall Ether’s fell to $3,080 on Aug. 1, but the bears are not releasing the selling pressure.
ETH/USDT daily chart. Source: TradingView
The bears have yanked the price below $3,080 on Aug. 2, opening the gates for a collapse to the critical support at $2,850. The bulls have successfully held the level for several months and will try to do it again.
If the price rebounds off $2,850 but turns down from the moving averages, it will signal that the bears are in control, increasing the likelihood of a drop below $2,850.
This negative view will be invalidated soon if the ETH/USDT pair turns up and breaks above the moving averages. The pair may then attempt a rally to the downtrend line.
BNB Market Analysis
The BNB market has been trading inside an extensive range between $495 and $635 for several days, indicating a balance between supply and demand.
BNB/USDT daily chart. Source: TradingView
If the price dips below $550, it will open the doors for a fall to the crucial support at $495. The bulls are expected to defend the zone between $495 and $460 with all their might because a break below it could intensify selling.
If the price rises from $550, the bulls will try to push the BNB/USDT pair above the moving averages. If they do that, the pair could rally to $600 and later to stiff overhead resistance at $635.
Solana (SOL) Price Analysis
Solana plunged and closed below the 20-day EMA ($168) on Aug. 1, indicating that the price remains stuck inside the $116 to $210 range.
SOL/USDT daily chart. Source: TradingView
The price has reached the 50-day SMA ($152), which is necessary support to watch out for. If the price rises from the 50-day SMA, the bulls will again try to propel the SOL/USDT pair above the 20-day EMA.
On the contrary, if the price continues lower and breaks below the 50-day SMA, it will suggest that the bears are at an advantage. The pair could then plunge to the solid support at $116.
XRP Price Analysis
XRP rose above the $0.64 resistance on July 31, but the long wick on the candlestick shows aggressive selling at higher levels.
XRP/USDT daily chart. Source: TradingView
The price slipped below the 20-day EMA ($0.58) on Aug. 1, indicating that the bulls are rushing to the exit. The selling continued on Aug. 2, and the bears pulled the price below the $0.57 support. This suggests that the XRP/USDT pair will likely swing between $0.41 and $0.64 for a while.
Alternatively, if the price rises from $0.54, the bulls will attempt to push the pair above the 20-day EMA. The pair may start its journey toward $0.64 if they can pull it off.
Dogecoin (DOGE) Price Analysis
Dogecoin fell below the moving averages on July 31 and followed that with a break below the $0.12 support on Aug. 1.
DOGE/USDT daily chart. Source: TradingView
The 20-day EMA ($0.12) has started to turn down, and the RSI has slipped into negative territory, suggesting that the bears have the upper hand. If the price maintains below $0.12, the DOGE/USDT pair could tumble to $0.10.
Time is running out for the Bulls. To make a Theykly, shove the price back above the moving averages. If they make a comeback, demand will be signaled at lower levels. The pair may then rise to $0.14.
Toncoin (TON) Price Analysis
Toncoin turned down from the 20-day EMA ($6.87) on Aug. 1, indicating that the sentiment remains negative and traders are selling on rallies.
TON/USDT daily chart. Source: TradingView
The bears will try to strengthen their position further by pulling the price below the $6.36 support. If they manage to do that, it will signal the start of a deeper correction. The TON/USDT pair may plummet to $6 and $5.50.
Buyers must swiftly push the price above the 20-day EMA if they want to prevent the downside. Such a move will open the doors for a rally to the 50-day SMA ($7.26) and keep the pair inside the $6.36 to $8.29 range for some time.
Cardano (ADA) Price Analysis
Cardano fell below the $0.38 support on Aug. 1, but the bulls purchased the dip, as seen from the long tail on the candlestick.
ADA/USDT daily chart. Source: TradingView
However, the bears stalled the recovery at the moving averages on Aug. 2, indicating they are in no mood to give up their advantage. The bears have pulled the price below $0.38, clearing the path for a slide to $0.33.
Any recovery attempt is likely to face solid selling at the moving averages. Buyers must push and maintain the ADA/USDT pair above the moving averages to signal that the downtrend could end.
Avalanche (AVAX) Price Analysis
Avalanche rose from the strong support at $24 on Aug. 1, but the bulls failed to build upon the momentum.
AVAX/USDT daily chart. Source: TradingView
The bears will try to maintain the price below $24, and if they succeed, the AVAX/USDT pair is likely to drop to the $21.80 support. This level is expected to attract buyers, but if the bears prevail, the next stop maybe $18.90.
If the price rises from $24 or $21.80, the bulls will again try to kick the pair above the moving averages. If they do that, the pair may climb to $29, where bears will likely sell aggressively.
Shiba Inu (SHIB) Price Analysis
Shiba Inu has gradually decreased, indicating that the bears maintain their pressure.
SHIB/USDT daily chart. Source: TradingView
There is minor support at $0.000015, but if the price sustains below it, the SHIB/USDT pair could plummet to $0.000013. The downsloping moving averages and the RSI in the negative territory increase the risk of a breakdown.
This negative view will be invalidated soon if the price rises and breaks above the moving averages. That will open the doors for a possible rise to $0.000020, where the bears are again likely to mount a strong defence.
