Key points:
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Bitcoin’s drop has resulted in net outflows from BTC ETFs on Tuesday, but buyers are likely to step in and arrest the decline near $110,530.
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Ether bulls are trying to flip the $4,094 level into support, indicating a positive sentiment.
Bitcoin Shows Signs of Recovery as Market Sentiment Shifts
Bitcoin (BTC) is currently navigating a challenging phase as it attempts to rebound from the immediate support level close to $112,000. However, any upward movement may face selling pressure. On Tuesday, Bitcoin’s weakness led to net outflows totaling $523.3 million from U.S. spot BTC exchange-traded funds, according to data from Farside Investors. This suggests that institutional investors are exercising caution in the short term.
Blockchain analytics firm Santiment highlighted that BTC’s dip below $113,000 has sparked the most bearish sentiment on social media since June 22. Retail cryptocurrency traders have shifted to a bearish outlook, but Santiment views this as a positive sign for patient traders, as markets often move contrary to public sentiment.
BTC’s decline has also impacted several altcoins, affecting investor sentiment. Google Trends data reveals that global search interest in the term “alt season” dropped to 45 on Tuesday, down from its peak of 100 on August 13.
Bitcoin Price Analysis
BTC fell below the neckline of the inverse head-and-shoulders pattern, hitting near the robust support level of $112,000.
The bulls are expected to defend the $110,530 to $112,000 zone vigorously. If the price rebounds from this support zone, the BTC/USDT pair might reach the 20-day exponential moving average (EMA) at $116,687, signaling potential range-bound action between $110,530 and $124,474. Conversely, a downward break below $110,530 would indicate persistent selling, potentially driving Bitcoin’s price to $105,000 and eventually to the significant psychological support at $100,000.
Ether Price Analysis
Ether (ETH) has rebounded from the breakout level of $4,094, demonstrating that the bulls are attempting to establish this level as support.
The ETH/USDT pair could climb to $4,576 and subsequently to $4,788. Sellers are likely to defend the $4,788 to $4,868 zone vigorously. If buyers succeed, Ether’s price could surge to $5,000 and possibly to $5,662. Conversely, a sharp decline below $4,094 would suggest that bulls are exiting, potentially sinking the pair to the 50-day simple moving average (SMA) at $3,593.
XRP Price Analysis
XRP (XRP) experienced a downturn from the 20-day EMA at $3.07 and broke below the 50-day SMA at $2.97 on Tuesday.
Bears aim to strengthen their position by pulling the price to the solid support at $2.73. Buyers are expected to defend this level as a close below it could lead to a drop to $2.20. The first sign of strength will be a break and close above the 20-day EMA, indicating reduced selling pressure. If successful, the XRP/USDT pair may climb to the downtrend line, presenting a significant barrier. Buyers will need to overcome this line to signal the end of the correction.
BNB Price Analysis
BNB (BNB) turned down from the $861 resistance but is finding support at the 20-day EMA at $813.
Bulls will attempt to push the price above the $861 to $869 resistance zone. If successful, the BNB/USDT pair could rally to the psychological level of $1,000. This positive outlook will be invalidated if the price turns down and breaks below the 20-day EMA, potentially sinking BNB to $794 and later to the 50-day SMA at $757. This suggests the pair could consolidate within the large range of $732 to $861 for some time.
Solana Price Analysis
Solana (SOL) fell below the 20-day EMA at $181, reaching the 50-day SMA at $173 on Tuesday.
Bulls are striving to retain the price above the 20-day EMA. If successful, the SOL/USDT pair could attempt a rally to the overhead resistance at $210. Sellers are expected to defend this level, but if bulls prevail, Solana’s price could surge toward $240. Conversely, a break and close below the 50-day SMA could sink the pair to the solid support at $155.
Dogecoin Price Analysis
Dogecoin (DOGE) has declined to the firm support at $0.21, where buyers are anticipated to step in.
If the price rebounds off the $0.21 level with strength and breaks above the 20-day EMA at $0.22, it suggests a range formation in the near term. The DOGE/USDT pair could oscillate between $0.21 and $0.26. Conversely, if the price turns down and breaks below $0.21, it suggests that bears are attempting to take control, potentially driving Dogecoin’s price to $0.19 and then to $0.16, bringing the large $0.14 to $0.29 range into play.
Cardano Price Analysis
Cardano (ADA) turned down sharply on Tuesday, falling to the 20-day EMA at $0.84, indicating that bulls are losing their grip.
The 20-day EMA is a critical near-term support to monitor, as a close below it could sink the ADA/USDT pair to the 50-day SMA at $0.77. A deeper correction could delay the next leg of the uptrend. Conversely, a solid rebound off the 20-day EMA indicates positive sentiment, with bulls attempting to drive Cardano’s price toward the $1.02 overhead resistance. A close above $1.02 opens the doors for a rally to $1.17.
Related: Bitcoin analysts point to ‘manipulation’ as BTC price falls to 17-day low
Chainlink Price Analysis
Chainlink (LINK) pulled back from the overhead resistance of $27, but bulls held firm against bears.
Bulls are attempting to push the price above the $27 resistance. If successful, the LINK/
