According to a recent survey, the investor’s trust in crypto is still strong despite the long bear market. This tells us that the general public is still optimistic about cryptocurrencies and the blockchain industry in general. With that out of the way, it seems that the technical setup in Bitcoin is still pointing towards an additional downside.
So it would not be a shock if some more traders exit their altcoins ahead of the nearest resistance levels. In turn, this will lead to a cycle of selling where the altcoins continue to dwell low and low. However, positively in BTC can lead to a different scenario where all the altcoins will find support from Bitcoin!
This week, the price action in BTC was mixed, and the range was only 5% which means nothing major happened. If we look around, similar sentiment and price action were seen in the altcoins as well. So without wasting time, let’s get to it!
Weekly Open: $19,555.61
Weekly High: $20,576.25
Weekly Low: $19,540.00
During the week, Bitcoin (BTC) is struggling to find direction, as seen in the charts above. We have bounced off from the $19,600 – $19,550 support a total of 3 times. On the upside, the resistance at $20,500 has sent the price lower a total of 2 times. So in a sense, it is more of a stalemate between the bulls and the bears.
Furthermore, the movement during the week was only around 5% which is an indication of lower volatility. Those who have been trading BTC and other altcoins for a while will know that a 5% price movement for a whole week is nothing in the crypto markets.
Based on the current technical setup, the short-term technical view of Bitcoin (BTC) is neutral. A break of the $ 19,600 – $19,500 support will send the BTC lower. On the other hand, a break of the $20,500 resistance could lend some support to the bulls.
If we talk about the long-term view, things are really bad for the Bitcoin (BTC) bulls as it is now marginally trading below the $20,000 mark, which was a major source of support for the bulls. Whether we will stage a comeback above the $20K level or continue to the descent lower will become clear within the next few days.
Weekly Open: $1426.76
Weekly High: $1650.00
Weekly Low: $1422.08
From its opening price of $1426.76 (29 August 2022), ETH gained almost 15% for the week, which is quite impressive given the weak performance of Bitcoin (BTC). Right now, Ethereum (ETH) is still trading 10% above its weekly open, which is a sign of strength.
If you look at the charts, Ethereum (ETH) is in a bullish channel. If you look at the channel, you will notice that there are two trendlines on the lower half of the bullish channel. This tells us that there was a fake break below the lower channel (the first trendline), but it was contained by the second trendline. Furthermore, the slope of the 2nd trendline was similar to the first one, which assures us that it was a fake break.
Based on this price action, we believe that ETH is positive for the near term but remains negative for the long term. Going ahead, the support at $1520 and the area around $1560 will remain important for the bulls.
Weekly Open: $276.5
Weekly High: $292.0
Weekly Low: $270.7
Binance’s (BNB) opening price was $276 on 29 August 2022 (Monday session), from where it witnessed a low of $270.7 and a high of $292. For now, BNB is trading inside a bearish channel which is the exact opposite of ETH’s bullish price channel.
We believe that the support zone around the $273 – $271 region will be significant for the bulls and bears alike. If that breaks, it would mean that the bearish trend in BNB will intensify. On the other hand, some bullish pressure around that level will be an indication that we see a break of this bearish price channel for good.
For now, our view of BNB is bearish, but still, there is some chance that we may see a pullback from the $273 – $271 support zone.
Now some people may say that why we always mention the support/resistance zones in terms of different price ranges (for example $273 – $271 support zone). In our experience, viewing support/resistance as price zones (with a higher and lower limit) is better than relying on a single price level and can yield better forecasts.
Weekly Open: $0.3223
Weekly High: $0.3359
Weekly Low: $0.3186
Nothing major is going on with XRP in terms of technical readings. The weekly open was at $0.3223, while the weekly high and low were located at $0.3359 and $0.3186, respectively. The price action of XRP during the week was similar to Bitcoin (BTC) in the sense that nothing happened.
If you look at the H1 charts of Ripple (XRP), you can see that an interesting bullish formation is in place. We have a slight bullish trendline which is slowly exerting pressure at the resistance zone located at $0.3340 – $0.3350. If we get a break of that resistance zone, there is a chance that XRP may gain an additional 5%.
So, for now, our view of XRP is mildly bullish in the short-term while the long-term view is bearish, which is in line with the general cryptocurrency market.
Weekly Open: $30.43
Weekly High: $33.16
Weekly Low: $30.00
It seems that it was the week of channels for the crypto market, as Solana (SOL) is also trading inside a price channel. If you look at the above H1 chart of Solana (SOL), you will notice a bearish price channel containing the price movement.
So far, the price has bounced three times from the upper limit of the channel, while the downside has only 2 touches. So it makes sense to consider that we may see another touch of the lower limit of the price channel.
So, for now, our view of Solana (SOL) is bearish for the short-term and even the long-term. On the upside, the resistance, at $32.60, is $32.80, and the $33 will continue to cap any bullish attempts.
Except ETH and a few other altcoins, the market was mixed to bearish, and nothing major happened. Looking ahead, we may see some meaningful action in the markets next week!
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