Key Takeaways:
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After a recent dip, Bitcoin showed resilience Wednesday, but analysts anticipate significant selling pressure near the $117,500 mark.
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While many alternative cryptocurrencies (altcoins) might encounter resistance during price increases, Binance Coin (BNB) and Avalanche (AVAX) demonstrate the potential to continue their upward momentum.
Bitcoin (BTC) climbed past $113,900 on Wednesday, a sign that investors are buying the dips. Michael Saylor, Strategy Executive Chairman, mentioned on CNBC that ongoing large-scale purchases of Bitcoin exchange-traded funds (ETFs) by institutional investors, coupled with more businesses integrating Bitcoin, may revive the Bitcoin rally later this year.
A recent Glassnode report echoed this sentiment, suggesting Bitcoin could achieve a new peak value. However, the report also indicated this bull run is maturing, sharing characteristics with the 2015–2018 and 2018–2022 cycles. Historically, record highs in these cycles appeared approximately “2–3 months beyond our current position relative to the cycle’s low point.”
Conversely, opinions on Bitcoin’s future are not universally bullish. CryptoQuant’s head of research, Julio Moreno, posted on X (formerly Twitter) that large Bitcoin holders (whales) have sold off 147,000 BTC since August 21st. This represents the “fastest monthly decline in whale holdings” of the current cycle.
Can Bitcoin overcome bearish pressure and reach $117,500? Will altcoins follow Bitcoin’s potential rise? Here’s a technical analysis of the top 10 cryptocurrencies.
Bitcoin Price Analysis
Bitcoin is experiencing a temporary recovery, but resistance is anticipated at the moving averages.
If the price reverses direction sharply from the moving averages, a decline toward $107,000 becomes more likely. Buyers are expected to fiercely defend the $107,000 support level, as a break below it would confirm a bearish double-top pattern. This could trigger a drop to $100,000 and potentially the pattern’s target of $89,526.
However, if buyers manage to push through the moving averages, the BTC/USDT pair could rally towards $117,500. Significant resistance is expected at $117,500, but a successful break above this level could lead to Bitcoin reaching $120,000.
Ether Price Analysis
Buyers are working to maintain Ether (ETH) above $4,060, but rallies are likely to face strong selling pressure.
If the price falls from the 20-day exponential moving average (EMA) ($4,393), it strengthens the possibility of breaking below the $4,060 support. If this occurs, the ETH/USDT pair could decline to $3,745 and then to the pattern’s target of $3,426.
Alternatively, if the price reverses upwards and breaks above the 20-day EMA, it may signal a consolidation phase. Ether’s price could fluctuate between $4,060 and $4,957 for a period.
XRP Price Analysis
XRP (XRP) is trading within a descending triangle, which often indicates a potential price top.
Sellers need to push the price below $2.69 to validate the bearish setup. A successful break below this level could accelerate selling, potentially pushing the XRP/USDT pair down toward $2.20.
To prevent this decline, buyers must quickly drive the XRP price above the descending trendline. This would negate the bearish setup and pave the way for a rally to $3.40.
BNB Price Analysis
Binance Coin (BNB) (BNB) rebounded from the 20-day EMA ($957) on Tuesday, suggesting positive market sentiment and dip buying.
Buyers will aim to strengthen their position by pushing the price above the $1,083 resistance. If successful, the BNB/USDT pair could begin the next phase of its uptrend towards $1,187.
Conversely, if the price reverses from current levels or the overhead resistance and falls below the 20-day EMA, it indicates that sellers are active on rallies. This increases the likelihood of a decline toward the 50-day simple moving average (SMA) ($882).
Solana Price Analysis
Solana (SOL) slipped below the uptrend line on Wednesday, but buyers are attempting to halt the pullback at the 50-day SMA ($206).
Sellers are unlikely to yield easily and will attempt to push the price below the 50-day SMA. If they succeed, the SOL/USDT pair could decline to $185, followed by $175. This suggests Solana’s price may remain within its established $110 to $260 range for longer.
On the other hand, a break and close above the 20-day EMA indicates strong buying activity on dips. Buyers will then attempt to drive the price to $260, where strong selling pressure is anticipated.
Dogecoin Price Analysis
Dogecoin (DOGE) is finding support at the 50-day SMA ($0.23), suggesting buyers are actively defending this level.
The current rebound is expected to encounter resistance at the 20-day EMA ($0.25). If the price reverses sharply from the 20-day EMA, a drop to $0.21 becomes more probable. This indicates the DOGE/USDT pair may remain within its large $0.14 to $0.29 range for some time.
Contrary to this outlook, a break above the 20-day EMA signals demand at lower price levels. Buyers will then attempt to push Dogecoin’s price to $0.29. This is a crucial level for sellers to defend, as a break above it could trigger a rally towards $0.35 and then $0.44.
Cardano Price Analysis
Buyers are trying to defend the $0.78 support level in Cardano (ADA), but rebounds are likely to be met with selling.
If the price reverses from the 20-day EMA ($0.86), sellers will make another attempt to push the ADA/USDT pair below $0.78. If they succeed, Cardano’s price could fall to $0.68.
However, buyers are likely to have alternative plans. They will attempt to push the price back into the triangle pattern and trap aggressive sellers. An upward move is expected to gain momentum above the resistance line, potentially leading to a rally to $1.02.
Related: XRP price prepares for ‘major trend shift’ with $4 in reach: Analyst
Hyperliquid Price Analysis
Hyperliquid (HYPE) fell below the uptrend line on Tuesday, indicating that buyers are reducing their positions.
The 20-day EMA ($50.67) has begun to decline, and the relative strength index (RSI) is near 41, suggesting the HYPE/USDT pair may have peaked in the short term. Sellers will attempt to halt any recovery attempt at the 20-day EMA. If they are successful, Hyperliquid’s price could reverse downward and decline to $40, followed by $35.
This bearish view will be invalidated if buyers push and sustain the pair above the 20-day EMA. The pair may then retest the all-time high of $59.
Chainlink Price Analysis
Buyers have successfully defended the uptrend line in Chainlink (LINK) but are struggling to initiate a significant bounce from it.
The moving averages have formed a bearish crossover, and the RSI is in negative territory, indicating an advantage for sellers. Any recovery is expected to face resistance at the 20-day EMA ($23.11). If the price reverses from the 20-day EMA and falls below the uptrend line, it suggests sellers are regaining control. The LINK/USDT pair may then decline to $18.
Buyers will need to drive Chainlink’s price above the descending trendline to gain the upper hand. The pair may then climb towards the $27 overhead resistance.
Avalanche Price Analysis
Avalanche (AVAX) rebounded sharply from the 20-day EMA ($30.71) on Monday, but buyers failed to overcome the $36.17 resistance on Tuesday.
A minor positive sign for buyers is their ability to hold ground against sellers. The rising 20-day EMA and the RSI in overbought territory suggest an upward bias. If buyers push and maintain the price above $36.17, the AVAX/USDT pair could rise to the pattern’s target of $39.49 and then to $45.
The first sign of weakness will be a break and close below the 20-day EMA. This suggests short-term traders are taking profits, and Avalanche’s price could then decline to $27.38.
This analysis is for informational purposes only and should not be considered financial advice. Cryptocurrency investments involve risk, and individuals should conduct thorough research before making any decisions.
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