Buyers defended the support line of the ascending channel on August 19th and started rebounding but the recovery stalled at $21800. This indicates that the bears are posing a strong challenge near the moving averages.
BTC/USDT daily chart. Source: TradingView
The simple positive is that the long tail of the August 22 candlestick shows that the bulls are trying to defend the support line aggressively. If the bulls push the price above $21,800, the BTC/USDT pair could rise to the 20-day exponential moving average (EMA) ($22,725).
If the price drops from this resistance, it will indicate that sentiment has turned negative and traders are selling on rallies. This could increase the possibility of a breakout below the channel. If that happens, the selling momentum could pick up and the pair could drop towards the June 18 low at $17,622.
Conversely, if the buyers push the price above the 20-day moving average, it will indicate that the pair may extend its stay inside the channel for a few more days. The bulls will then try to push the price towards the channel resistance line.
ETH / USDT
Ether (ETH) fell below the 20-day moving average ($1,718) and the breakout level at $1,700 on August 19, indicating that traders who bought at lower levels were exiting their positions.
ETH/USDT daily chart. Source: TradingView
The bulls tried to stop the decline at the 50-day simple moving average (SMA) ($1549) but the weak bounce suggests that there is no strong buying at this level. This increases the possibility of a break below the support.
If that happens and ETH/USDT breaks below $1,500, the selling may intensify as the bulls may wait for the price to reach the next strong support before buying again. Thus, the pair could drop to $1,280.
Conversely, if the price bounces off the current level and rises above the 20 day moving average, then traders who have not bought into the 50 day simple moving average may buy aggressively for fear that they miss the bullish move. That price could fetch around $2000.
BNB / USDT
Binance Coin (BNB) is bouncing off the strong support at $275 and facing heavy resistance at the 20-day EMA ($301) but the small positive is that the bulls have not ceded ground to the sellers. This indicates that buyers expect the recovery to continue further.
BNB/USDT daily chart. Source: TradingView
If the price rises above the 20-day moving average, the BNB/USDT pair could rise to the general resistance at $338. This is an important level to watch because a breakout and closing above it will complete the bullish inverse head and shoulders pattern. This setup has a pattern target of $493.
It may not be a direct rally to the target as the bears may try to stop the rally at $420 and then again at $460.
Conversely, if the price breaks below the current level and breaks below $275, the pair will complete a short-term head and shoulders pattern. This could start to decline towards the pattern target at $212.
It is best to wait for either form to complete before creating a position because settings tend to break very often.
XRP / USDT
Ripple (XRP) is still stuck within the $0.30-$0.39 range. The bulls are trying to defend the support at $0.33 but are facing stiff resistance at higher levels.
XRP/USDT daily chart. Source: TradingView
If the price drops and breaks below $0.33, the probability of a drop to $0.30 increases. This level was previously a strong support; Thus, traders may buy on the dip, anticipating a rise to $0.39.
Another possibility is that the price bounced back from $0.33 and broke above the moving averages. If that happens, the XRP/USDT pair could rise to the strong resistance at $0.39.
It is difficult to predict the direction of the breakout from the range. Therefore, traders may wait for the breakout to occur before opening new positions.
ADA / USDT
Cardano (ADA) fell below the 50-day simple moving average ($0.49) on August 19, indicating that the bears have the upper hand. Buyers tried to start a recovery on August 20th, but the weak bounce shows a lack of demand at higher levels.
ADA/USDT daily chart. Source: TradingView
The bears will now attempt to sink the price to the strong support level at $0.40. This is an important level to watch as the bulls have successfully defended the level since May 12th. A breakout and a close below this support could signal the beginning of the next phase of a downtrend.
Conversely, if the price bounces below $0.40, buyers will try to push the ADA/USDT pair above the moving averages. If they manage to do so, the pair may rise to the downtrend line.
SOL / USDT
Solana (SOL) broke below the moving averages on August 19, indicating that the bears have the upper hand in the near term. Sellers will attempt to bring the price down to the immediate support level at $32.
SOL/USDT daily chart. Source: TradingView
If the price bounces below $32, the bulls will try to push the SOL/USDT pair above the moving averages. If they succeed, it will indicate that the husband has p