In this article, I will be going over five different cryptocurrencies — Bitcoin, Ethereum, Ripple, Litecoin, and Bitcoin Cash — that traders may want to keep their eyes on.
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July was a strong month for crypto as prices saw double-digit growth. The chatter on Twitter was all about how the bull market had arrived, how crypto was on its way to the moon, and how everyone was going to become millionaires.
However, sentiment reversed by the end of August. With the Federal Reserve making its intent to raise interest rates very clear, the crypto market felt the burn as it lost more than $100 billion in value.
Bitcoin (BTC-USD)
Bitcoin was down more than 15% in August. At the time of this writing, it can be clearly seen that Bitcoin is trading above the major support area of $19,000. This is an area on the chart where buyers in the past have come in and pushed the price higher.
If the bulls remain in control, they might be able to push the price back up to the next resistance level at around $25,000. This is an area on the chart where sellers usually come in and push the price lower.
If the buyers lose control at the $19,000 region, traders can expect to see another dip to the next major support area at around $18,000. This will be a very important area where buyers have previously entered the market.
Ethereum (ETH-USD)
Ethereum, which is the second largest cryptocurrency, is roughly flat over the past month. In July, with the anticipation of the upcoming Merge, Ethereum took off from the level of $1,500 and shot up by 30% all the way to the key psychological level of $2,000, only to end up falling all the way back down again.
Ethereum is forming a “Head & Shoulders” pattern, which is considered to be a bearish pattern where sellers are stronger than the buyers and are hoping to push the price lower. This is something that traders must watch closely, as a break below this level can possibly lead to the cryptocurrency plummeting down to the next support level at $1,000.
However, the bulls came back into the game at $1,400 and are now holding strong above this level. If the buyers can remain strong enough to break and close a daily candle above the $1,600 zone, then there might be enough positive momentum to push the price above $2,000.
Ripple (XRP-USD)
With the verdict of the SEC trial still a long way from being determined, Ripple and its XRP native token have felt it hard. XRP has dropped more than 74% over the past year. Currently, the price of Ripple seems to be holding above the key support area at around $0.32-$0.33.
If the selling pressure continues and the price breaks below this key level, there is a chance that XRP will drop all the way down to the major weekly support at around $0.25-$0.27.
On the flip side, if there is a fresh wave of buying in the general crypto market or a positive outcome from the ongoing trial, XRP will need to break above the $0.50 weekly resistance level before discussing further upside targets.
Litecoin (LTC-USD)
Litecoin, one of the oldest cryptocurrencies that was created by Charlie Lee, a former Google employee, is also having a rough time at the moment. The cryptocurrency is down more than 74% this past year and is approaching a key monthly support area at around $45, which held strongly back in late 2020 before shooting up to its all-time high at $413.
As of now, traders are keeping a close eye on whether or not the buyers will come in as expected or if there will be more selling pressure to break below this support and crash the price to the next support area at around $35.
Bitcoin Cash (BCH-USD)
Bitcoin Cash is a peer-to-peer electronic cash system that offers faster transaction settlements and lower fees than the Bitcoin network. The Bitcoin Cash network resulted from a hard fork in the Bitcoin network in 2017.
Bitcoin Cash is down more than 80% in the last year, but unlike the other cryptocurrencies covered in this article, BCH broke into a new all-time low at around $90.
As of now, the buyers have come in and managed to push the price slightly higher into the $120 region. Still, by looking at the chart, the cryptocurrency still seems bearish, with the possibility of falling even further to a new all-time low.
Conclusion: Crypto Markets are Still in a Bearish Trend
The crypto markets are still in a bearish trend where the market prints lower highs and lower lows. As long as this trend continues, I will be looking to short-sell every bounce. Once I can clearly see higher highs and higher lows being formed, I’ll change my strategy and start buying the dips more aggressively.
