After years of observing and analyzing the cryptocurrency market, I have learned that fear often precedes opportunity. With the recent slide in Bitcoin’s price, it seems like we are standing at the precipice of such an opportunity.
Given the current dip in Bitcoin‘s value, it’s likely that some investors and traders might feel anxious. But, this downturn could present an opportunity to invest for the long term. The more secure bets seem to be Ethereum ($ETH), Binance Coin ($BNB), and Solana ($SOL). Will we see a rebound in these assets?
Is this the time to buy?
In just two days, Bitcoin has dropped by around $6,000, causing a wave of apprehension among investors. The Fear and Greed Index, which measures market sentiment, plunged to 30, following a Neutral value of 48 the day before. Given this situation, some may be wondering if now is a good time to purchase Bitcoin.
Could $ETH repeat its previous 30% gain?
Over the past 2 days on the 4-hour chart, it’s clear that Ether ($ETH), the second-largest cryptocurrency by market cap, underperformed Bitcoin ($BTC) as its value decreased by 13%, while Bitcoin only dropped by 9.6%.
The cost of Ether (ETH) has nearly reached the 0.618 Fibonacci level, marking a possible rebound point. Examining the Stochastic RSI indicates that short-term momentum is about to be validated, while on the RSI, an extremely oversold situation is evident. If we look back to the similar circumstances during the early August Japanese stock market crash, Ether’s price skyrocketed by more than 30% over the subsequent days.
$BNB reaches confluent supports
Binance Coin (BNB) ranks as the second most prominent cryptocurrency after Ethereum ($ETH), excluding Tether ($USDT). As you can see in the daily chart, BNB has recently tested the triangle’s breakout and is currently bouncing from that point. A dip down to the 0.382 Fibonacci level suggests a bullish trend if this rebound persists.
Potential high points for BNB lie around:
$SOL must break the downward trend
The $SOL price is in a tall range stretching from $126 up to $202. The latest downturn brought the $SOL price back to $143, which was a perfect touch of the upward trend line and the 0.382 fibonacci. $SOL has some work to do now, in order to reverse the series of 3 lower highs. The last high was rejected at the midpoint of the range (dashed blue line).
Looking at the same daily time scale, it’s noticeable that the recent peak has also hit a declining trend line, which started on April 1st. If Solana (SOL) returns to this trend line, a potential breakout may align with the midpoint of its range. Should this happen, a return to the top of the range might follow. However, this could be setting up as a descending triangle, a bearish chart pattern. Consequently, an upward breakout is crucial to preserve Solana’s bullish trend.
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2024-08-28 14:06