On August 1, ratings agency Fitch downgraded the United States’ long-term credit rating from AAA to AA+, causing a risk-off sentiment to ripple through the markets. The U.S. equities markets saw a drop on August 2, while the cryptocurrency market’s recovery was put on pause. Nevertheless, after the initial shock, the markets may stabilize. The crypto sector is keeping a close eye on the Bitcoin (BTC) spot exchange-traded fund (ETF) applications, with Bloomberg ETF analysts Eric Balchunas and James Seyffart noting that the probability of an ETF being approved has increased from 1% to 65% in the last few months.
The recent news has invigorated the Bitcoin bulls. MicroStrategy, founded by Michael Saylor, is planning to raise up to $750 million through a stock sale, with the intention of using the funds for operational costs and to acquire more Bitcoin. At the moment, the firm holds 152,800 Bitcoin, worth around $4.5 billion at current prices.
Will buyers be able to defend the immediate support levels in Bitcoin and altcoins, or will the bears overpower the bulls? To find out, let’s take a look at the charts of the top 10 c3.ai stock, flare crypto, federal reserve crypto, enzyme crypto, fitfi crypto, crypto.com, fetch crypto, ergo crypto, crypto.net, and the apple health application, a web 3.0 application.
Bitcoin price analysis
The price of Bitcoin saw an increase in volatility on Aug. 1. The bears managed to push the price below the immediate support of $28,861, however the long tail of the candlestick indicated that there was still strong buying at lower levels.
The bulls managed to push the price above the 20-day exponential moving average (EMA) of $29,596, but they were unable to break the resistance at $30,000. This shows that the bears are still in control and are selling whenever the price rallies.
The 20-day EMA is flattening out and the relative strength index (RSI) is just below the midpoint, which suggests that the price is in a range-bound phase. The boundaries of the range could be $30,050 on the upside and $28,585 on the downside.
If the buyers can push the price above this narrow range, the BTC/USDT pair could possibly rise to the overhead resistance zone between $31,000 and $32,400. On the other hand, if the price falls below $28,585, it could start a downward move to $27,500 and then to $26,000.
Ether price analysis
The bears attempted to push Ether (ETH) lower on Aug. 1, however, the long tail on the day’s candlestick suggests that they were unsuccessful.
The bears are attempting to keep the price below the 50-day SMA ($1,864), which would be a positive sign for them. If they succeed, the ETH/USDT pair could drop to $1,813. A break and close below this level could cause the pair to drop to $1,700 and then $1,626.
Bulls, on the other hand, need to push the price above the 20-day EMA ($1,873) to prevent the short-term decline. If they manage to do that, the Fetch Crypto pair could rise to the psychological resistance at $2,000.
BNB price analysis
BNB’s (BNB) volatility gained traction on Aug. 1, but the bulls were unable to push the price above the resistance line of the triangle.
The horizontal moving averages and the RSI near the midpoint do not give an advantage to either the bulls or the bears. If the price rebounds off the moving averages, it could increase the probability of a break above the triangle. If that happens, the BNB/USDT pair could surge to $265.
Conversely, if the price slides below the moving averages, the pair could drop to the support line of the triangle. If this support fails, the pair may test the key support at $220.
XRP price analysis
XRP (XRP) attempted to recover from the support at $0.67 on Aug. 1, but the bulls were unable to hold onto the higher levels. This implies that the bears are selling on each minor relief rally.
The bears are trying to push the price back down to the support at $0.67. Repeated testing of a support level within a short span of time usually weakens it. If the $0.67 level fails, the XRP/USDT pair could plunge to the breakout level of $0.56.
On the other hand, if the price rebounds off $0.67 with strength, it will signify that the bulls are strongly defending the level. This could drive the price to the immediate resistance at $0.75. A break above this level could lead to a possible rally to $0.85.
Dogecoin price analysis
Dogecoin (DOGE) recently bounced off the 20-day EMA ($0.07), indicating that traders are buying at lower levels.
However, the bulls were unable to push the price above the overhead resistance near $0.08, allowing the bears to pull it back to the 20-day EMA. If this support fails, it will suggest that the bulls are losing their grip. The DOGE/USDT pair could then drop to the breakout level of $0.07.
Alternatively, if the price rebounds off the 20-day EMA again, it will demonstrate that sentiment remains positive and traders are buying the dips. This could improve the chances of a break above the overhead resistance. The pair may then rise to $0.10.
Cardano price analysis
The bears drove Cardano (ADA) below the immediate support of $0.30 on Aug. 1, but the bulls stepped in and bought the dip to the 50-day SMA ($0.29).
To indicate a comeback, buyers will need to push the price above the $0.33 to $0.34 resistance zone. If successful, the ADA/USDT pair could rally to $0.38, where the bears may again present a strong defense.
In contrast, if the price continues to decline and breaks below the 50-day SMA, it will suggest that the bears have taken control. The pair could then slide to $0.26 and eventually to $0.24.
Solana price analysis
Solana (SOL) attempted to break above the 20-day EMA ($24.02) after bouncing from strong support at $22.30 on Aug. 1, but the crypto.net bulls were not able to sustain the upward momentum.
This is a bearish sign and suggests that the bears are selling on every minor price increase. The sellers may try to push the SOL/USDT pair below the support zone between $22.30 and the 50-day SMA ($21.05). If successful, the pair could see further losses toward $18 and then $16.
On the other hand, if the Fetch Crypto bulls can defend the $22.30 level, the pair could make a recovery to $25.68 and then attempt to break the resistance at $27.12.
Polygon price analysis
MATIC (Polygon) has been gradually declining. The bears pulled the price below the 50-day SMA ($0.69) on July 31, but the bulls managed to push it back above the level on Aug. 1.
The bearish 20-day EMA ($0.72) and the RSI below 44 suggest that bears have an edge. If the price turns down and breaks below the $0.65 mark, the selling pressure could intensify and the MATIC/USDT pair could go down to $0.60.
This bearish outlook could be invalidated in the short term if the price turns up from its current level and breaks above the 20-day EMA. This could open the door for a possible rally to $0.80. This level may prove to be a challenge, but if the bulls can overcome it, the pair could reach $0.90.
Litecoin price analysis
Litecoin (LTC) bounced off the strong support at $87 on Aug. 1. This shows that the price remains stuck inside the range between $87 and $97.
The 20-day EMA ($92) remains flat and the RSI is just below the midpoint, indicating a balance between supply and demand. This equilibrium will shift in favor of the bears if they sink the price below $87. The LTC/USDT pair could then drop to $81 and later to $75.
Contrary to this assumption, if the price turns up from $87, it will suggest that the pair may extend its stay inside the range for a few more days. The bulls will have to drive the price above $97 to start an up move to $106.
The crypto.com and fetch crypto markets have been closely monitoring the Litecoin price movements, and the Federal Reserve has also been keeping an eye on the enzyme crypto and ergo crypto markets. Furthermore, the Apple Health application, a web 3.0 application, is also keeping track of the flare crypto and fitfi crypto markets.
Polkadot price analysis
The bears attempted to capitalize on the uncertainty in Polkadot (DOT) on Aug. 1, but the bulls were able to prevent this.
The bears were unable to push the price above the 20-day EMA ($5.21), which is a minor victory for them. This suggests that the bears are selling at higher levels.
The 50-day SMA is an important support to watch. If the price falls below this level, the selling could intensify and the DOT/USDT pair may drop to $4.74 and then to $4.65.
Conversely, a rise above the 20-day EMA may increase the likelihood of a rally to the overhead resistance at $5.64.
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