Price Analysis for August 7: BTC, ETH, BNB, SOL, XRP, DOGE, TON, ADA, AVAX, SHIB

Bitcoin is showing signs of a weakening recovery, suggesting that bearish sentiment is still present at elevated price levels.

Market Overview

Recently, Bitcoin’s (BTC) significant decline on August 5 has led to a liquidation of many leveraged positions. The trading firm QCP Capital believes this may have resulted in a short-term market bottom for Bitcoin and Ether (ETH). In communication with its subscribers, QCP indicated that it could be a favorable time to consider accumulating BTC and ETH.

On the flip side, other market analysts hold differing opinions. Markus Thielen from 10x Research suggests that a stronger entry point for Bitcoin might be in the low $40,000 range, where a notable price jump could materialize.

Additionally, David Gokhstein, founder of Gokhstein Media, expressed on X that a drop to either $50,000 or $40,000 would present an ideal opportunity to acquire more Bitcoin.

However, the market isn’t entirely optimistic. According to CryptoQuant’s head of research, Julio Moreno, the Bitcoin bull-bear market cycle indicator is signaling bearish conditions for the first time since January 2023. Should this indicator remain bearish for two weeks, it may indicate a prolonged bear phase.

The critical question remains: Can Bitcoin’s recovery sustain itself and uplift the altcoin market? Let’s analyze the leading cryptocurrencies for insights.

Bitcoin Price Analysis

Following the sharp fall on August 5, Bitcoin is currently in recovery mode. The price rebounded above the crucial breakdown level of $55,724 on August 6, indicating strong buying interest at lower prices.

This relief rally is expected to test the moving averages, which may pose a challenge for further advances. A turnaround from either the current level or the moving averages would suggest negative sentiment, prompting traders to sell on rallies. Should this occur, a decline towards significant support at $49,000 might follow.

Maintaining price above $49,000 could indicate a solid bottom, whereas a drop below could open the path toward $42,000.

Ether Price Analysis

Ether’s recovery is facing strong selling pressure near the 38.2% Fibonacci retracement level of $2,602, which indicates active bears.

A sustained price fall below $2,400 could push the ETH/USDT pair towards the $2,111 support, an area expected to be vigorously defended by bulls. Falling below this level could further trigger a drop to $2,000 and subsequently to $1,600.

If the price manages to climb above $2,602, it would indicate that minor dips are being bought up, potentially leading to a rally towards the breakdown level of $2,850.

BNB Price Analysis

BNB (BNB) dropped below the $460 level on August 5 but was unable to maintain these lower levels, indicating resilient buying on dips.

Bulls are striving to push the price above $495. Success in this endeavor could set the BNB/USDT pair up for a rise towards the moving averages, which are predicted to provide stiff resistance. A failure to maintain such levels could lead the pair to retest the August 5 intraday low of $400, and a breach below could lower it to $360.

Solana Price Analysis

Solana (SOL) faced pressure from bears trying to drop it below the $116 to $210 range on August 5, but buying interest defended this level vigorously.

The price has approached the 20-day EMA ($157), where bears will likely attempt to halt the recovery. A significant drop from this level could see the SOL/USDT pair target the $116 support once more.

Alternatively, if the price breaks above the 20-day EMA, it would indicate bullish momentum, with buyers aiming for a move to $189, which would face further resistance from bears.

XRP Price Analysis

XRP (XRP) has been oscillating within the range of $0.41 to $0.74 for several months, reflecting a buy-on-dip and sell-on-rise strategy from traders.

A rebound from the $0.46 to $0.41 support zone is currently facing resistance at the 50-day SMA ($0.52). If the price falls below $0.48, a retest of the support zone could occur, but buyers are expected to jump in here. Conversely, breaking above the 50-day SMA could push the price to the 20-day EMA ($0.55), which acts as another resistance point.

Dogecoin Price Analysis

Dogecoin (DOGE) is experiencing a recovery from the $0.08 support, but the bulls are struggling to hold prices above $0.10.

The downsloping 20-day EMA ($0.11) and a near-oversold RSI suggest bears remain in control. If a minor bounce occurs, it may lead to a potential dip below $0.08, which would drop the pair to around $0.06. However, surpassing $0.10 could indicate a decrease in selling pressure, allowing the price to approach $0.12.

Toncoin Price Analysis

Toncoin (TON) bounced from the $4.72 level, indicating steadfast support from buyers.

The relief rally faces resistance at the 50% Fibonacci retracement level of $5.81. If the price drops further, bears will aim to pull the TON/USDT pair below $4.72, potentially leading to a plummet to $4. On the other hand, a breakout above $5.81 could signal buyer enthusiasm, prompting a rally towards the 20-day EMA ($6.38), another critical resistance level to watch.

Cardano Price Analysis

Cardano (ADA) has been in a downtrend recently, with bulls attempting to initiate a relief rally from $0.27 as of August 5.

The moving averages represent the first hurdle on the upside. Should buyers manage to surpass this, the ADA/USDT pair might reach the downtrend line, a level where sellers are anticipated to mount a strong defense. A downturn from either the moving averages or the downtrend line could see the price slide towards $0.24. This bearish outlook would change if bulls push the price above the downtrend line.

Avalanche Price Analysis

Avalanche (AVAX) fell beneath the $21.80 support but bears are finding it tough to keep prices down.

The AVAX/USDT pair has responded with an upward momentum from $17.29, nearing the previous support level at $21.80. If bears solidify this level as resistance, a subsequent drop below $17.29 could occur, potentially leading to a low of $16. Conversely, climbing over the $21.80 resistance could suggest a diminishing grip from bears and allow for a rally towards the moving averages, a significant obstacle to observe.

Shiba Inu Price Analysis

Shiba Inu (SHIB) has bounced back from solid support around $0.000010, indicating robust buying at lower levels.

The recovery could encounter resistance at the moving averages, where bears may try to reverse the trend. A sharp decline from this point could increase the chances of falling below the $0.000010 support. However, breaking above the moving averages would suggest the downtrend might be reversing, potentially leading to a climb up to $0.000020.

This analysis does not constitute investment advice. All investment decisions carry risks, and it is crucial for each reader to conduct thorough research before making investment choices.