Last week, Bitcoin began trending downward after breaking out of the tight range. The breakout caused derivatives traders to get liquidated, collectively losing $1 billion. As of this writing, the exact reason leading to the sell-off is yet to be established. Nonetheless, the price drop has begun. The biggest question on the minds of investors and traders is how low BTC could fall.
Many analysts are now bearish and predict Bitcoin’s value to continue declining in the short term. Now, if BTC keeps falling, will it drag the entire market with it, and if so, what are the key support points to monitor? Let’s explore the price charts to get answers.
Bitcoin Price Analysis
On August 19, Bitcoin crossed below $26,000 to trade at $25,856, but the bulls have since pushed the coin to its current price of $26,154. The good news is that the Relative Strength Index has entered the oversold territory, suggesting a rebound over the coming days. BTC may hit the 20-day EMA (Exponential Moving Average) of $28,751 if the buyers mount buying pressure now. If the coin reaches that level and reverses, the chances of a price drop to $24,786 will increase. On the positive side, a break above $28,751 may help Bitcoin touch $30,027.
Ethereum Price Analysis
ETH has been in free fall since sliding below the $1,816.42 key support level. With the token priced at $1,681.97, it is now clear that the bears are in charge. The next support point to watch is at $1,626.50. If the sellers pull ETH below this level, it may continue plummeting to reach $1,551.12 or even $1367.59. Conversely, the chances of a short rally to $1,756.34 have been boosted after the Relative Strength Index touched the oversold zone.
BNB Price Analysis
BNB broke below the $221.27 support level on Saturday to reach $216.23 as of this writing. In case the bulls are unable to thrust the token’s price above that support over the next few days, the bears will be motivated to drag BNB toward $195.97 and later to $182.82. But if buyers succeed, they may push the token’s price to the 20-day EMA of $235.49. Overcoming this barrier could cause BNB to be stuck between the $235.49 and $266.11 range for a while.
XRP Price Analysis
Sellers haven’t stopped mounting pressure since XRP broke below the 50-day Simple Moving Average of $0.62451 last Monday. According to data from CoinGecko, the crypto asset is changing hands for $0.53962 at press time. Whether the bulls will buy the dip when XRP reaches $0.45728 as they did on July 13 remains to be seen. If they do, the recovery could encounter strong resistance at $0.62451.
Polkadot Price Analysis
On Friday, the bulls protected DOT from sliding below the $4.34 support level, pushing its price to $4.51 as of this writing. However, they are struggling to cause further price growth toward the 20-day EMA of $4.93, suggesting that the bears are still not ready to give up easily. In the event Polkadot reaches $4.93 and reverses, it may collapse to retest $4.34 again. A break below this price could fuel another drop to $4.21.
Polygon Price Analysis
The bulls’ failure to defend the $0.6489 support level last Tuesday prompted the bears to sell, tugging MATIC’s price to $0.5744 on August 21. The buyers are likely to purchase the dip when the token reaches $0.5005. Doing so increases the chances of a short rally to $0.6038. But if the buyers show no interest in buying MATIC at $0.5005, the crypto asset could head toward $0.4527 and later to $0.4253.
Litecoin Price Analysis
LTC fell to $62.44 on August 18, a price that attracted buyers who pushed the digital currency to $66.14 at press time. The Relative Strength Index being in the oversold zone means a short recovery is likely. The rally could encounter a sell-off at $74.28. A downturn from this price may lead to Litecoin declining to the $50.43 support level.
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