A tight range usually resolves with a range breakout, and that is what happened in Bitcoin on Aug. 17. Bitcoin (BTC) fell sharply, resulting in $1 billion in liquidations for derivatives traders, the biggest amount since the FTX collapse in 2022.
It is difficult to pinpoint any specific reason for the sell-off, but analysts believe that the confusion arising from the alleged write-down of SpaceX’s $373 million i Bitcoin holdings may have been one of the potential triggers.
Whatever the reason, the decline has started. The next major question troubling investors is how low could Bitcoin fall. Several analysts have turned bearish and expect Bitcoin to continue its downtrend in the near term.
Will Bitcoin continue to drop, dragging the rest of the cryptocurrency market with it? What are the important support levels to keep an eye on? Let’s study the charts of the top 10 cryptocurrencies to find out.
Bitcoin price analysis
Bitcoin’s narrow range resolved to the downside on Aug. 17, triggering a long liquidation, which pulled the price to $25,166.
The bulls are expected to defend the $24,800 level with vigor. The oversold level on the relative strength index (RSI) suggests that the BTC/USDT pair may witness a pullback or a consolidation in the near term.
If the price rebounds off $24,800 with strength, it could reach the 20-day exponential moving average (EMA) of $28,786. This is an important level to keep an eye on. If the price turns down from the 20-day EMA, it will suggest that bears are selling on rallies. That could increase the likelihood of a break below $24,800. If that happens, the pair may nosedive to $20,000.
The first sign of strength will be a break and close above the 20-day EMA. That will point to a possible consolidation in the near term.
Ether price analysis
Ether (ETH) turned down and broke below the immediate support at $1,816 on Aug. 16, indicating that the bears are in control.
The selling momentum picked up on Aug. 17, and the ETH/USDT pair plummeted below the critical support at $1,626. Buyers bought the dip but are struggling to build upon the rebound. This indicates a lack of demand at higher levels.
The sharp fall has sent the RSI into the oversold territory, indicating that the selling may have been overdone in the near term. The pair may witness a consolidation or a short-term recovery in the next few days. That could keep the pair stuck inside the large range between $1,626 and $2,000.
This view will be invalidated if the price turns down and plunges below the support at $1,550. That could open the doors for a possible decline to $1,368.39.
BNB price analysis
The selling picked up on Aug. 17, and the BNB/USDT pair plunged below the decisive support at $220. If the bulls fail to push the price back above $220, the bears will attempt to sink the pair to the pattern target of $196 and then to $183.
Instead, if buyers drive the price back above $220, a recovery to the 20-day EMA ($236) is possible. A break above this level will suggest that the breakdown below $220 may have been a bear trap. That could keep the pair stuck inside the $220 to $265 range for a while longer.
XRP price analysis
The fall in the XRP/USDT pair completed a 100% retracement of the entire rally that happened on July 13. However, a minor positive is that the bulls purchased the dip near the strong support zone of $0.45 to $0.41.
The recovery is likely to hit a roadblock at $0.56 and again at the 20-day EMA ($0.61). If the price turns down from this overhead zone, it will signal that bears are selling on rallies. That may put the $0.41 support at risk of breaking down.
Cardano price analysis
Cardano (ADA) dropped below the descending channel pattern on Aug. 17, indicating that the selling has accelerated.
The bulls successfully protected the crucial support at $0.24, indicating strong buying at lower levels. Buyers will try to push the price back into the channel. If they manage to do that, the ADA/USDT pair will attempt to rally to the resistance line of the channel.
The rise may not be easy because the bulls are likely to face selling at the 20-day EMA ($0.28). If the price turns down from this level, the pair may again retest the strong support at $0.24. A break below this level will signal the resumption of the downtrend.
Solana price analysis
Solana (SOL) broke below the moving averages on Aug. 16 and the horizontal support at $22.30 on Aug. 17. This suggests that the price may oscillate inside the large range between $14 and $27.12 for some time.
The bulls are trying to start a recovery, which is likely to face resistance at the moving averages. If the price turns down from the 20-day EMA ($23.53), the possibility of a fall to $18 and eventually to $14 increases.
On the contrary, if buyers drive the price above the moving averages, it will suggest that the break below $22.30 may have been a bear trap. That could propel the SOL/USDT pair toward the $26 to $27.12 overhead zone.
Dogecoin price analysis
Dogecoin (DOGE) slipped below the support line of the ascending channel pattern on Aug. 15. That may have hit stops on the long positions and attracted selling by the bears.
The DOGE/USDT pair closed below the breakout level of $0.07 on Aug. 16, signaling that the bears are in the driver’s seat. The selling continued on Aug. 17, and the bears yanked the price below the essential support at $0.06. A minor saving grace for the bulls was the strong buying at lower levels.
The price rose back above $0.06, and the bulls will attempt to push the price toward the overhead resistance of $0.07.
Sellers are likely to have other plans. They will try to sink and sustain the price below $0.06. If they do that, the pair may plummet toward $0.05.
Polkadot price analysis
The bulls will try to fiercely defend the $4.22 support, but the recovery is likely to face strong selling at the 20-day EMA ($4.91). If the price turns down from this level, the bears are expected to attack the $4.22 support once again. If this level cracks, the DOT/USDT pair may start the next leg of the downtrend.
Alternatively, if the price turns down from the 20-day EMA but rebounds off $4.22, it will suggest that the pair may consolidate for a few days. The bulls will gain momentum after the price rises above the moving averages.
Polygon price analysis
Polygon’s (MATIC) break below the $0.65 support attracted aggressive selling, which tugged the price below the next strong support at $0.60 on Aug. 17.
The bulls bought the dip near $0.50, indicating strong demand at lower levels. However, buyers may face selling at $0.60 and again at the 20-day EMA ($0.66). If the price turns down from the overhead resistance, the MATIC/USDT pair may retest the vital support at $0.50.
If this support gives way, the pair could slip to $0.45 and then to $0.42. On the upside, the bulls will have to kick the price above the moving averages to indicate that the downtrend could be ending.
Litecoin price analysis
Litecoin (LTC) went into a tailspin after breaking below the support at $81 on Aug. 15. The price crumbled to $56 on Aug. 17.
The sharp descent of the past few days has sent the RSI into oversold territory. This suggests that a minor recovery or consolidation is likely in the near term. The relief rally could face selling in the zone between the 50% Fibonacci retracement level of $70 and the 61.8% retracement level of $74.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.