As a seasoned analyst with over two decades of experience in the financial markets, I’ve seen my fair share of market swings and bottom-ups. The current bearish sentiment in the crypto market is not new to me, but it’s at times like these that the opportunity for savvy investors often lies.
Amidst uncertainty in the crypto market, with U.S. non-farm payroll data due this Friday, there’s a generally pessimistic outlook. Yet, aren’t turning points often seen during such times? Notably, Ethereum ($ETH), Binance Coin ($BNB), and Solana ($SOL) are the key cryptocurrencies poised to capitalize on a potential shift towards market recovery.
Time to go against market sentiment?
At present, Bitcoin ($BTC) is finding it challenging to hold above its critical support level approximately at $56,000. Should Bitcoin, the ruler of cryptocurrencies, fail to maintain this position, it might continue descending until it hits the subsequent horizontal support around $51,000.
The current situation seems grim, causing numerous investors, traders, and even some large institutions, to consider selling their assets with the hope of re-entering the market once conditions improve.
At moments like these, shrewd investors often choose to act against the market’s flow. In other words, buying might seem illogical or even absurd when everyone else appears to be going in another direction, but that could very well be the optimal time.
Absolutely, any investment you’re making needs to have a strong underlying foundation. If you’re a long-term investor, even if its value decreases, consider this as an additional chance to boost your holdings in that asset.
$ETH finds strong horizontal support
In simpler terms, Ethereum, which is second only to Bitcoin in terms of value in the crypto world, has experienced a significant drop of up to 48% during this current downtrend. However, it’s worth noting that the price has just touched a robust support level at approximately $2,300. If Bitcoin recovers and rallies, Ethereum might also bounce back from its current position.
In case of severe economic difficulties, the price of ETH might significantly drop to around $1,900 – a key support level. This point is crucial in a bull market for ETH, so it’s likely to withstand such pressure.
$BNB primed for a bounce
As a researcher, I’m observing that Binance Coin ($BNB) has found its robust horizontal support at a significant level. This level played a crucial role as a strong support during the last bull run of 2021-2022, and it seems to be repeating its role in the current market conditions. Notably, an intraday dip down to around $400 was swiftly recovered in early August, indicating a strong buyer interest at this level.
Considering a strategic move now might be beneficial if you’re optimistic about the future recovery of the cryptocurrency market. However, should the unfavorable scenario occur, the price could plummet as low as the horizontal support level from the previous bull market, which stands at approximately $347.
The Stochastic RSI seems to be almost touching its lowest point. If both indicator lines move above the 20 level and intersect, it suggests a resumption of bullish price movement.
$SOL bottoms in trading range
The $SOL price is in a trading range that it is currently at the bottom of. In addition, there is a big resistance just above, at $138. The price will certainly need to overcome this as a first step towards getting back to the top of the range.
In simpler terms, if we see a pattern of increasing lower highs on the Weekly Stochastic RSI, it might signal that the indicator could potentially move above the 20 level soon, as it’s currently very close to that threshold.
Over to Bitcoin
The upward momentum for the mentioned cryptocurrencies hinges on Bitcoin’s ability to break its current downward trend. However, they are currently resting at strong points that could trigger a rebound. Now, let’s focus on Bitcoin.
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2024-09-06 16:04