Price analysis 8/18: BTC, ETH, BNB, XRP, ADA, SOL, DOGE, DOT, MATIC, LTC
A tight range usually resolves with a range breakout and that is what happened in Bitcoin (BTC) on Aug. 17. Bitcoin fell sharply, resulting in a $1 billion liquidation for derivatives traders, the biggest 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 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 markets 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’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 ($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 (ETH) turned
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