Following Fitch’s move to downgrade the US credit rating to AA+ from AAA at the start of this month, stocks and cryptocurrencies recorded sell-offs until Wednesday, when the selling pressure appeared to have cooled down. Retail crypto traders are now keeping an eye on the news around Bitcoin spot ETF (Exchange-traded Fund) applications. ETF analyst Eric Balchunas released a report on Tuesday suggesting the chances of a Bitcoin spot ETF getting approved by the US Securities and Exchange Commission had increased to 60% from 1% a few months ago.
The founder of MicroStrategy, Michael Saylor, seems to have seen Balchunas’ report. On Wednesday, he announced his company’s plans to buy more BTC after selling its stake in various firms. MicroStrategy, the largest institutional holder of Bitcoin, already has 152,780 BTC, estimated to be worth $4.6 billion.
Whether Saylor’s announcement will cause more investors to start accumulating Bitcoin is unclear. But in case they do, this may cause a price surge across the entire market. That said, here are the major resistance levels to look out for in the top 10 cryptocurrencies.
Bitcoin Price Analysis
When Fitch released its statement on Tuesday, Bitcoin briefly crossed below $29,000, reaching the $28,846 support, a level that the bulls found perfect for buying the dip. However, their attempts to clear the tough hurdle at the 20-day EMA (Exponential Moving Average) of $29,497 were met with resistance. This suggests that the bears do not want to give up their advantage. But with the Relative Strength Index at 49.78, Bitcoin could trade within a tight range of $28,846 and $30,100 over the next few days.
If $28,846 cracks, a downward movement to $27,687 and subsequently to $26,050 becomes possible. On the other hand, If Bitcoin rises above $30,100, a price increase to $30,210 is likely.
Ethereum Price Analysis
ETH finally broke below the $1,883 – $1,856 trading range on Tuesday morning to reach $1,824.62 later that day. However, the bears didn’t have the capabilities to maintain the token at lower levels. Ethereum began rising on Wednesday morning, reaching $1,839.87 as of this writing. The $1,856 level is now a new resistance point to watch. If the crypto asset goes above that price, it may rally to $1,873, the 20-day EMA. Conversely, Ethereum may slide to $1,800.08 in case it reaches $1,856 and then reverses.
BNB Price Analysis
BNB has been behaving like a stablecoin over the last seven days. That’s because the token has not been subject to high volatility. The Relative Strength Index on its price chart has settled in the middle, meaning BNB may continue trading between $240.14 and $244 for a while. The crypto asset will only experience volatility when the current trading range is broken. If it breaks below $240.14, a drop to $219.87 is likely. And if the $244 barrier is cleared, a rally to $264.71 is another possibility.
XRP Price Analysis
On Tuesday, we predicted that XRP would continue plummeting if it crossed below the 20-day EMA of $0.6902. It’s now trading at $0.6696, below the $0.6734 support level. It’s clear that the bears are gaining strength and may likely drag XRP toward the $0.5724 support level. If the token reaches this price and the bulls stage a recovery, it may grow again to retest the $0.7425 resistance level. However, if $0.5724 is not protected, the chances of a further plunge to $0.5100 will increase.
Polygon Price Analysis
Bears managed to tug MATIC below the 50-day Simple Moving Average of $0.6920 on the last day of July, causing the token to reach $0.6785 as of this writing. With the Relative Strength Index at $42.98 and the Polygon’s price far below the 20-day EMA of $0.7280, a further price drop is highly likely. The token will first retest the immediate support at $0.6538. If the bulls cannot defend it, MATIC is expected to touch $0.5987.
On the contrary, if buyers thrust Polygon above $0.7280, it would mean they have regained the advantage and may push the token to $0.8349.
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