Crypto Price Analysis 8-8 BTC, ETH, SOL, TON, DOT, ADA, WIF

As a seasoned crypto trader with years of experience under my belt, I’ve seen market fluctuations like these more times than I can count. However, each dip and rally holds its unique charm, much like the unpredictable dance of a marionette on a whimsical wind.

The momentum in the cryptocurrency market seems to be slowing down, as both Bitcoin (BTC) and Ethereum (ETH) find it difficult to surpass their resistance points. This suggests that there is a significant amount of selling activity happening at higher price levels.

Economic instability is likely to keep markets turbulent, yet experts anticipate any potential downturn might be contained. Certain analysts even propose that recent drops in prominent cryptocurrencies could offer a favorable investment chance for investors.

Matt Hougan, the Chief Investment Officer at Bitwise, advises investors to disregard temporary market fluctuations and price signals, instead emphasizing a long-term investment strategy, particularly in relation to Bitcoin.

Time To Accumulate BTC And ETH?

The decline in Bitcoin’s (BTC) value led to a number of high-leverage trades being liquidated, causing some market observers to speculate that widespread selling may have established a temporary bottom for both BTC and ETH. As per QCP Capital, this could be an opportune moment to consider purchasing BTC and ETH. However, opinions differ, as analysts like Markus Thielen from 10x Research suggest a suitable entry point for BTC might be in the $40,000 range, where it could potentially mount a substantial rebound.

David Gokhstein, creator of Gokhstein Media, expresses his belief that dips to $50,000 or even $40,000 present a fantastic chance to invest in Bitcoin. However, the overall crypto market seems less promising. The Bitcoin bull-bear market cycle indicator has signaled bearishness for the first time since January 2023. If this bearish trend persists for two weeks or longer, as predicted by CryptoQuant’s founder Ki Young Ju, it might indicate a prolonged bear phase.

What Next For The Crypto Markets?

1. Over the weekend and on Monday, a significant drop in cryptocurrency markets caused concern among investors and challenged Bitcoin’s status as a secure investment asset. This crypto market decline demonstrated that Bitcoin is not as isolated from traditional market fluctuations as previously believed. Many began to question its label as “digital gold.” As stock markets plummeted, so did the cryptocurrency markets, with Bitcoin dropping nearly 18% and falling below $50,000. Although it later rebounded to surpass $55,000 again, it still has some distance to go before reaching last week’s prices.

As a crypto investor, I’ve noticed a steep drop in the value of ETH, almost dipping below $2,100. I’m keeping a close eye on signs like forced crypto liquidations, the financial stability of key players in the crypto market, and any inflows or outflows related to spot crypto ETFs, as advised by Michael J. Hougan. Furthermore, according to Zach Pandl, the Head of Research at Grayscale, Bitcoin might see a downturn if there’s a recession in the United States.

From my perspective as an analyst, I believe the potential downsides to token prices are less pronounced compared to the previous cycle. This is chiefly because of the currently low altcoin valuations, restricted credit and leverage within the crypto market, and surging institutional demand for spot Bitcoin and Ethereum Exchange-Traded Products (ETPs).

However, analysts at Bernstein were more optimistic, stating,

“In case traditional methods like interest rate reductions and increased money supply are typically used to address concerns about a U.S. economic downturn, we anticipate that the value of ‘durable’ assets, including Bitcoin (often referred to as digital gold), will likely increase.”

Bitcoin (BTC) Price Analysis

As a researcher studying Bitcoin’s dynamics, I’ve noticed that its recovery has hit a roadblock at roughly $57,000, suggesting there are sellers active at this price point. While it’s reassuring to see BTC bouncing back from its multi-month lows, it’s clear that the journey ahead is fraught with challenges. Short-term predictions remain volatile, but the consistent accumulation of Bitcoin by whales indicates their confidence in the asset’s long-term potential. In fact, data shows these whales have acquired over 358,000 BTC in July alone, a trend that carries into August.

Despite recovering from its prolonged lows, some market watchers are still worried about Bitcoin’s price fluctuations at the $57,100 mark, as sellers have been active there, hindering a continuous price rise. Market analyst Material Indicators suggests that the market could head in either direction due to current buy and sell liquidity. Given this uncertainty, it’s not surprising that Bitcoin traders are adopting a cautious approach, while QCP Capital advises traders to keep an eye on broader market correlations.

Even though the initial surprise has worn off, we anticipate ongoing selling trends over the next few days due to systematic funds adjusting their positions given the increased market volatility. It would be prudent to closely monitor Nasdaq, Nikkei, and USDJPY, as these assets show strong short-term correlation with each other.

Examining the Bitcoin price graph, we notice a significant drop on Monday, with the value plummeting to a low of $49,351. The price subsequently rebounded as buying interest increased at lower prices, causing Bitcoin to close at $54,274 for the day. As markets bounced back on Tuesday, Bitcoin registered a 3.50% increase and surpassed $55,000 to end the day at $56,172. However, its advance came to a halt on Wednesday, suggesting that sellers were still active in the market. The price declined by 1.83% as attempts to reach $60,000 were thwarted, and Bitcoin settled at $55,144. In the current trading session, Bitcoin is up by more than 4%, aiming to stabilize above $57,000 in preparation for another push towards $60,000.

For Bitcoin to continue its upward trend, it needs to stabilize above $57,000. If it manages to close above this point, it might push towards $60,000. Conversely, if the price starts falling, it could dip below $55,000, potentially slumping down to $50,000. If Bitcoin falls but remains above the $49,000 to $50,000 range, it suggests a low point has been reached, and we might witness a significant rebound from these levels. However, bulls need to protect this level, as surrendering it could lead to a slide below $45,000.

Ethereum (ETH) Price Analysis

The upward momentum for Ethereum (ETH) has slowed down, finding resistance near the $2,500 mark after a steep decline of 9.95% at the start of the week. This dip followed a broader market selloff that pushed ETH down to $2,131, but it managed to rebound and reach $2,421 by the end of Monday. A temporary recovery was observed on Tuesday when markets showed signs of improvement, pushing ETH up to $2,554. However, persistent selling pressure halted the rally, causing ETH’s price to drop back below $2,500 and close at $2,464. The situation worsened on Wednesday as sellers continued their push, forcing ETH down to $2,343, marking a 4.9% decrease from the previous day.

In this ongoing period, ETH has climbed by 3.77%, regaining its position above the $2,400 mark. Despite some turbulence for ETH, indicators suggest a bullish outlook. On Wednesday, Ethereum Spot ETFs attracted approximately 44,447 ETH, equivalent to around $110 million. Furthermore, data from Santiment points towards heightened activity in previously inactive wallets. The $2,100 level continues to attract significant buyer interest for Ether. To maintain a bullish trend, it’s important that the price remains above this level, potentially propelling ETH beyond $2,500 and even $2,800. If both these levels are broken, the next potential resistance point lies at $3,000.

In other words, if the value of ETH drops below $2,000, this perspective would no longer hold true. A drop in price could potentially make $2,000 significant again. To avoid a price decline, supporters (bulls) need to ensure that ETH remains above this threshold.

Solana (SOL) Price Analysis

The resilience of Solana (SOL) has been evident as it soared by 39% from its lowest point during the market crash, crossing the $150 threshold. Following the market downturn, SOL dipped to a low of $110, but swiftly rebounded in subsequent trading sessions. The upward trajectory of SOL can be observed on the chart, with the price already back at its pre-weekend prices. Despite falling below $150 over the weekend and experiencing another crash on Monday, bottoming out at $109, SOL began to recover on Monday itself, thanks to increased demand at lower levels which pushed the price up to $129.

On Tuesday, Solana (SOL) experienced a significant increase of approximately 11.33%, closing at $144. However, it showed considerable fluctuation on Wednesday. The price soared as high as $155 due to buyers’ efforts but lost steam at higher altitudes, enabling sellers to regain control and push the price down to $144.77. In the ongoing trading session, SOL has rebounded, surging over 6%, breaking past its 50 and 200-day moving averages as well as the $150 mark. If this upward trend persists, SOL might aim for a price above $160. Nonetheless, sellers are predicted to counterattack at this level. In case of bearish sentiment, they will try to pull down the price to $120. Conversely, surpassing $160 could pave the way for a possible rise towards $180; however, SOL must first close above $150 for that to occur.

Toncoin (TON) Price Analysis

As an analyst, I’ve observed a noteworthy upward momentum in Toncoin (TON). It has successfully breached the resistance at around $6.04, returning to its pre-weekend levels, showcasing a robust recovery even after experiencing a substantial pullback on Tuesday. Initially, TON dipped to a low of $4.86 on Monday, reflecting the general market downturn. However, it swiftly bounced back, indicating that buyers were actively defending this level. The price was pushed back above $5, allowing TON to settle at $5.30. On Tuesday, bulls took charge, causing a surge of nearly 10% that propelled the coin to $5.81. Despite attempts by buyers to push TON above $6, sellers remained active at this level, resulting in a temporary drop below $6 once again.

On Wednesday, a bearish outlook emerged for TON, which fell by 6.51% to reach $5.43. Interestingly, today’s trading has seen TON soar by an impressive 17.56%, with investors targeting $6.50 after breaking through the previous resistance at $6.04. Analysts had anticipated a gradual climb towards $6.50 if TON managed to surpass $6, but this upward trend has exceeded predictions. If the current surge continues, TON might even surpass $6.50 and aim for $7. However, if sellers regain control, there’s potential for a dip back down to $6.

Polkadot (DOT) Price Analysis

On a turbulent Monday, Polkadot (DOT) dropped, reaching its multi-year support level of $3.6. Heavy selling pressure caused DOT to decline by more than 10%, landing at $4.21. Despite this, sellers managed to drive the price below $4 to a low of $3.61 before buyers stepped in. As a result, DOT rebounded and moved back above $4, ending the day at $4.21. As the markets began to recover, so did DOT, experiencing an increase of approximately 7% to finish at $4.51. The price climbed further to $4.58 on Tuesday and has risen by nearly 4% during this session as investors aim to regain the $5 level.

Since October 2020, the support for DOT has remained strong at $3.6, marking a solid foundation for its subsequent 233% surge. The robust demand at this level is evident in Monday’s candle, which shows a long tail, indicating buyers stepping in even when prices dipped below $4. Furthermore, the Relative Strength Index (RSI) for DOT is slightly above the oversold zone, suggesting that the attractive pricing of DOT is drawing in potential buyers. Additionally, data from into-the-block indicates an uptick in network activity on Polkadot, with active addresses on its Relay Chain rising from 5,630 to 7,030.

Cardano (ADA) Price Analysis

Since July 21st, Cardano (ADA) has been on a downward trajectory. This bearish trend intensified during the weekend and Monday as the markets experienced a substantial correction. On Monday, ADA reached a low of $0.277, but buyers managed to push it back up to around $0.312. Bulls tried to initiate a recovery rally on Tuesday, which resulted in an increase of 6.41% to $0.332 for ADA. However, the bullish momentum waned, causing ADA to fall again on Wednesday, decreasing by 2.41% to $0.324. As of now, there’s a 3.40% increase in ADA during this session. If the buyers can maintain their momentum, ADA could potentially move above $0.350.

If ADA reaches a point slightly higher than its current position, it might challenge the resistance near both its 20 and 50-day Simple Moving Averages. But, should the trend become negative, there’s potential for a drop down to approximately $0.300.

Dogwifhat (WIF) Price Analysis

Dog-themed cryptocurrency WIF (WIF) and similar Solana-based meme coins have experienced a significant rebound, mirroring Solana’s remarkable recovery after the crash on Monday. After trading in the negative since July 22, WIF has surged by 22% following several weeks of downward trend. Similar to other alternative cryptocurrencies and meme coins, WIF also dipped significantly on Monday, falling nearly 13%. The popular meme coin came close to losing the $1 mark as sellers pushed the price down to a low of $1.07. However, it bounced back from this level to close Monday at $1.26.

On Tuesday, a positive market trend and SOL‘s recovery boosted WIF significantly, causing it to rise by 12.50%, closing at $1.41. On Wednesday, bullish sentiment peaked, pushing WIF to reach $1.77. Yet, due to increased selling activity at higher levels, WIF dropped back to $1.60, marking a rise of more than 13%. Currently, in the ongoing session, WIF is up by nearly 5%, trading at $1.67. Despite recent gains, WIF’s long-term perspective remains bearish, as it has declined by almost 17% over the last week and seen a decrease in trading volume.

Concerns over a possible fall beneath $1 had been prevalent among analysts, yet the latest upward trend seems to have eased these worries momentarily. Should the bullish forces sustain their energy, WIF might surpass its 50-day Simple Moving Average and challenge the $2 mark.

2024-08-08 15:04