Crypto price analysis 8/3: $11,500 is the key to push Bitcoin back into a bullish zone plus ETH, XRP, ADA
Bitcoin’s rally above the $ 10,000 – $ 10,400 area has attracted some traders who are waiting for a trend move to begin. Yusuke Otsuka, the co-founder of Japanese crypto exchange Coincheck, said that a number of inactive Japanese traders started trading again this week.
Monex Group CEO Oki Matsumoto also said that many traders have missed buying gold at lower levels of interest in Bitcoin because it has just begun an uptrend.
However, it should be noted that traders have different goals, and they trade different time frames. After a sharp move in the past few days, some short-term traders have hit the sell button when Bitcoin tops the $ 12,000 mark.
The next few days are very important as they will provide more insight into whether Bitcoin has started a sustained growth move, or is this a giant bull trap.
Bitcoin soared above $ 11,000 and $ 11,500. It even broke the $ 12,000 level and traded to new highs for months above $ 12,100.
A high was formed near the high of $ 12,115 before the price dropped more than $ 1,500. It has broken many key supports near $ 11,500 and $ 11,000. Despite sinking below the support of $ 10,850, the price remains above the key $ 10,500 support zone.
A low formed near $ 10,591, and the price is currently correcting higher. There is a break above the $ 11,000 resistance level, plus the Fib 23.6% retracement of the recent decline from the $12,115 high to $10,591 low.
However, the price appears to be struggling to clear resistance at $ 11,200 and $ 11,250. The 100-hour SMA is set near the $ 11,300 level to prevent price breakout. There is also an important contract triangle formed with resistance near $ 11,200 on the hourly chart of the BTC / USD pair.
The pair must clear triangle resistance and the 100-hour SMA to start a new rise. The next major resistances are near $ 11,450 and $ 11,500. It is close to the Fib 50% retracement of the recent decline from the $12,115 high to $10,591 low.
A successful close above $ 11,500 is likely to push prices back to the upside. In the case mentioned, the price is likely to rebound to the $ 12,000 resistance level.
ETH and the entire cryptocurrency market are currently trying to stabilize after unprecedented volatility witnessed overnight.
This comes after Bitcoin soared to a high of $ 12,000, while ETH reached a peak of $ 415. From here, the strength of the market began to decline, with BTC finally returning to the low area of $ 11,000 while Ethereum fell to $ 300.
Both have recovered slightly, but they are still in precarious positions.
As for ETH, an analyst is currently noticing that he is expecting it to see further downside in the coming days and weeks.
Source: TraderXO/ Twitter
According to the chart, the ETHBTC price he is trying to accumulate exists at around 0.026 BTC while it is currently trading at 0.034 BTC.
Another analyst explained that he now believes that ETH can pull back a bit against the USD before finding any meaningful support.
Source: Cactus/ Twitter
As seen in the chart above, the area below $ 300 is historically important for Ethereum, and the overnight decline here further confirms this.
Over the past week, XRP has surged sharply above $ 0.3, following the rally of Bitcoin and ETH. The price even rose above the resistance of $ 0.312 and stabilized above 100 SMA (4 hours).
It traded to new multi-week highs at $ 0.3255 before it collapsed more than 20%. There is a sharp decline below the $ 0.3 support zone. The price even sunk below the $ 0.28 support but is still well supported near the $ 0.25 level.
There is also a major uptrend line forming with support near $ 0.278 on the 4-hour chart of the XRP / USD pair. A swing low is formed near $ 0.2401, and recently the price began to rally. There is a break above $ 0.28, plus the Fib 50% retracement of the recent breakdown from the $0.3255 high to $0.24 low.
Price is currently testing the Fib 61.8% retracement of the recent breakdown from the $0.3255 high to $0.24 low. On the upside, there is a strong resistance near the $ 0.3 level. A successful close above the $ 0.3 resistance can open up opportunities for greater profits.
The next major resistance level is near the $ 0.312 level, above which the price is likely to rise to $ 0.32 and $ 0.325 levels in the coming sessions.
Cardano (ADA) is currently in 8th place, with a market capitalization of 3.5 billion USD.
At $ 0.1136, ADA is stuck in sideways trading with no proper destination insight.
The price can move in 3 directions: up, down, or sideways. However, whichever direction is used depends primarily on Bitcoin because Bitcoin dominates the market.
Considering the flash crash of Bitcoin yesterday, there will be a more in-depth retreat, and a close above $ 11,500 will be extremely up. Therefore, if Bitcoin rises higher, the ADA will undoubtedly move higher. However, with the situation going on right now, if the ADA fails to close above $ 0.1387 and test it as a support, it looks like the price will drop to $ 0.0936 after testing the intermediate support at $ 0.1207.
Looking at the RSI, it recently tested the overbought area and is heading lower; therefore, it is likely to decline more. To confirm the decline, the price on the daily time frame must close below the 21-DMA (orange) at 0.1311, and a close below the intermediate support of $ 0.1207 will be a great condition to open a short position.
Good targets are 50 DMA (gold) at $ 0.1098 and $ 0.0936, equivalent to a decline of 17% and 29% compared to the current price. Another point to consider is that verification is required.
The worst scenario will happen if Bitcoin faces another crash that fills the CME gap at $ 9,600. This will completely destroy the aforementioned supports and move towards 100 DMA (pink) at $ 0.0842 and 200 DMA (purple) at $ 0.0648.
Also, the weekly chart looks bad because the price seems to face a decline at Fib 0.5 (coinciding with $ 0.1551). The RSI on the weekly time frame has blown out the overbought area and is likely to reverse to the average value. Therefore, a short position for ADA seems to be more favorable.
- Bitcoin crashed $1,500 in 10 minutes after breaking $12,000
- Bitcoin could reach $17,000 in the next few weeks base on this fractal