Bitcoin market enthusiasts are maintaining the $55,500 support level, yet traders are growing concerned about potential further declines due to a rise in futures open interest and the appearance of a death cross on the BTC chart.
Bitcoin has been trading sideways for several months but hasn’t deterred institutional investors from buying in. Senior analyst Vetle Lunde from K33 Research reported that more than 262 new companies invested in U.S. spot Bitcoin exchange-traded funds (ETFs) during the second quarter of 2024.
It’s worth noting that institutional investors have mostly kept or increased their holdings. Matt Hougan, chief investment officer at Bitwise, mentioned on X that 44% of asset managers have increased their positions in Bitcoin ETFs, while 22% maintained their stakes. Only 13% have exited, and 21% have scaled back their positions. Hougan described these results as “a pretty good outcome, comparable to other ETFs.”
While the long-term remains bullish, analysts are turning bearish in the near term. Cryptocurrency analysis platform Coinglass cautioned in a post on X that Bitcoin’s rising open interest suggests “room to fall.” Additionally, analysts closely watch the death cross as the 50-day simple moving average (SMA) has dipped below the 200-day SMA.
Will Bitcoin plummet below the $55,724 support, starting a fall to $50,000? Are altcoins at risk of breaking down? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin (BTC) Market Analysis
The Bitcoin market turned down from the 50-day SMA ($61,577) on Aug. 14 but bounced off the solid support at $55,724 on Aug. 15, suggesting buying on dips.
BTC/USDT daily chart. Source: TradingView
The bulls will again try to propel the price above the 50-day SMA. If they manage to do that, it will suggest that the selling pressure is reducing. The BTC/USDT pair may then attempt a rally to $65,659 and, after that, to $70,000.
Contrary to this assumption, if the price turns down from the moving averages, it will signal that the bears are active at higher levels. The pair may then consolidate between the 50-day SMA and $55,724 for some time. If the $55,724 support gives way, the pair may tumble to $49,000.
Ether (ETH) Market Analysis
Ether turned up from the support near $2,500 on Aug. 16, suggesting that the bulls are trying to form a higher low.
ETH/USDT daily chart. Source: TradingView
The bulls will try to start a recovery, but the ETH/USDT pair is expected to face strong selling in the 20-day EMA ($2,772) to $2,850 zone. If the price turns down from the overhead zone, it will suggest that the bears are trying to flip the $2,850 level into resistance, increasing the risk of a break below $2,500.
Conversely, a break and close above $2,850 will suggest that the markets have rejected the lower levels. The pair may rise to the 50-day SMA ($3,085) and later to $3,400.
BNB Market Analysis
BNB has been trading near the 20-day EMA ($526) for the past few days, indicating that the bulls are trying to push the price above it.
BNB/USDT daily chart. Source: TradingView
The BNB/USDT pair could reach the downtrend line if they succeed. This is a critical level to watch because a break and close above it will suggest the start of a robust recovery to $605.
On the contrary, if the price turns down from the current level or the downtrend line, it will suggest that the sentiment remains negative. The bears try to sink the pair to the critical support at $460.
Solana (SOL) Price Analysis
Solana dipped below the $141 support on Aug. 15, and the bears continued the fall on Aug. 16.
SOL/USDT daily chart. Source: TradingView
The SOL/USDT pair could drop to $130, which is necessary support to watch out for. If the price rebounds off $130, the bulls will try to push the pair above the moving averages again. The bullish momentum is likely to pick up above $164.
Instead, if the price breaks below $130, it will signal that the selling pressure is increasing. The pair may retest the critical support at $116. The bulls are expected to defend this level with all their might because a break below it may start a new downtrend.
XRP Price Analysis
XRP has been trading near the 20-day EMA ($0.57) for the past few days, indicating a tough battle between the bulls and the bears.
XRP/USDT daily chart. Source: TradingView
A break and close above $0.58 will tilt the short-term advantage in favour of the buyers. The XRP/USDT pair could then rally to the overhead resistance of $0.64. The bears have previously defended the level aggressively and will try to do the same again.
This short-term optimistic view will be negated soon if the price turns down and breaks below the 50-day SMA ($0.54). That could increase the selling pressure, pulling the pair toward $0.46.
Dogecoin (DOGE) Price Analysis
The bears are trying to sustain Dogecoin below the $0.10 support, but the bulls have held their ground.
DOGE/USDT daily chart. Source: TradingView
The bulls will again attempt to push the price above the 20-day EMA ($0.11). If they succeed, the DOGE/USDT pair is likely to pick up momentum and reach the downtrend line.
On the downside, if the price remains below $0.10, it will indicate that the bears are trying to take control. Minor support is at $0.09, but if this level fails to hold, the next stop is likely to be the support line.
Toncoin (TON) Price Analysis
Toncoin rose above the 50-day SMA ($6.89) on Aug. 14, but the bulls could not sustain the higher levels as seen from the long wick on the candlestick.
TON/USDT daily chart. Source: TradingView
If the price breaks below the 20-day EMA ($6.45), it will suggest that the higher levels are attracting sellers. Strong support is at $6, but if this level breaks down, the TON/USDT pair may tumble toward $5.25.
Alternatively, if the price rebounds off the 20-day EMA or $6.05, it will suggest that the sentiment has turned positive and traders are buying on dips. A close above the 50-day SMA will open the doors for a possible rally to $7.65.
Cardano (ADA) Price Analysis
The bulls struggle to push Cardano above the 20-day EMA ($0.35), indicating higher-level selling.
ADA/USDT daily chart. Source: TradingView
A minor positive in favour of the bulls is that they have not allowed the price to slip below $0.31. The bulls will again try to drive the price above the 20-day EMA. The ADA/USDT pair may climb toward the downtrend line if they can pull it off. The bulls must push and retain the price above the downtrend line to signal a potential trend change.
This optimistic view will be invalidated soon if the price continues to fall below $0.31. That could start a slide to the vital support at $0.24.
Avalanche (AVAX) Price Analysis
Avalanche has been trading inside the descending channel pattern for the past few days, indicating a bearish trend.
AVAX/USDT daily chart. Source: TradingView
However, the sellers are finding it difficult to sink the price below the $19.50 support. This suggests that the bulls are trying to form a higher low. A break and close above the 20-day EMA ($22.46) will be the first sign of strength. The AVAX/USDT pair may rise toward the resistance line.
Contrarily, if the price turns down and breaks below $19.50, it will signal that the bears have asserted their supremacy. The pair may then slump to the support line of the channel.
Shiba Inu (SHIB) Price Analysis
Shiba Inu remains below the moving averages, but the bears have failed to sink and maintain the price below $0.000012.
SHIB/USDT daily chart. Source: TradingView
The bulls will try to make a comeback by pushing the price above the moving averages. If they succeed, the SHIB/USDT pair could reach the breakdown level of $0.000020. This level is likely to attract selling by the bears.
Another possibility is that the price turns down from the moving averages. If that happens, it will suggest that the bears remain in control. The first support on the downside is $0.000012. If this level cracks, the selling could pick up, and the pair may drop to $0.000010.
