Bitcoin And Altcoins Bounce Off Daily Lows As Bulls Buy Dips

Key points:

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.

Ether bulls are trying to flip the $4,094 level into support, indicating a positive sentiment.

Bitcoin (BTC) is attempting to bounce off the immediate support near $112,000, but higher levels are likely to attract sellers. BTC’s weakness triggered net outflows of $523.3 million from the US spot BTC exchange-traded funds on Tuesday, per Farside Investors data. That suggests the institutional investors are turning cautious in the near term.

Blockchain analytics firm Santiment said in a post on X that BTC’s dip below $113,000 resulted in the most bearish sentiment on social media since June 22. The firm said the retail cryptocurrency traders have flipped bearish, but that is a good sign for patient traders as markets move in the “opposite direction of crowd’s expectations.”

BTC’s fall has pulled several altcoins lower, hurting investor sentiment. Google Trends data shows that global search interest for the term “alt season” fell to 45 on Tuesday, down from the peak of 100 on Aug. 13.

What are the important resistance and support levels to watch out for in BTC and the major altcoins? Let’s analyze the charts of the top 10 cryptocurrencies to find out.

Bitcoin price prediction

BTC fell below the neckline of the inverse head-and-shoulders pattern on Tuesday and reached near the solid support of $112,000.

The bulls will try to aggressively defend the $110,530 to $112,000 zone. If the price rebounds off the support zone, the BTC/USDT pair could reach the 20-day exponential moving average ($116,687). A close above the 20-day EMA signals a range-bound action between $110,530 and $124,474.

Alternatively, if the price turns down from the 20-day EMA and breaks below $110,530, it indicates that the bears are selling on rallies. The Bitcoin price could nosedive to $105,000 and eventually to the psychological support at $100,000.

Ether price prediction

Ether (ETH) rebounded off the breakout level of $4,094, signaling that the bulls are trying to flip the level into support. 

The ETH/USDT pair could rise to $4,576 and then to $4,788. Sellers will mount a vigorous defense in the $4,788 to $4,868 zone, but if the buyers have their way, the Ether price could soar to $5,000 and, after that, to $5,662.

Contrary to this assumption, if Ether’s price turns down sharply and breaks below $4,094, it indicates that the bulls are rushing to the exit. That could sink the pair to the 50-day simple moving average ($3,593).

XRP price prediction

XRP (XRP) turned down from the 20-day EMA ($3.07) and broke below the 50-day SMA ($2.97) on Tuesday.

The bears will try to strengthen their position by pulling the price to the solid support at $2.73. Buyers are expected to defend the $2.73 level with all their might because a close below it could open the gates for a fall to $2.20.

The first sign of strength will be a break and close above the 20-day EMA. That suggests the selling pressure could be reducing. The XRP/USDT pair may then climb to the downtrend line, which is likely to act as a stiff barrier. Buyers will have to pierce the downtrend line to suggest that the correction may be over.

BNB price prediction

BNB (BNB) turned down from the $861 resistance but is taking support at the 20-day EMA ($813). 

The bulls will try to push the price above the $861 to $869 resistance zone. If they can pull it off, the BNB/USDT pair could rally to the psychological level of $1,000. 

This positive view will be invalidated in the near term if the price turns down and breaks below the 20-day EMA. The BNB price could then sink to $794 and later to the 50-day SMA ($757). That suggests the pair could consolidate inside the large range between $732 and $861 for some time.

Solana price prediction

Solana (SOL) fell below the 20-day EMA ($181) and reached the 50-day SMA ($173) on Tuesday.

The bulls are trying to retain the price above the 20-day EMA. If they manage to do that, the SOL/USDT pair could again attempt a rally to the overhead resistance at $210. Sellers are expected to defend the $210 level, but if the bulls prevail, the Solana price could surge toward $240.

On the other hand, a break and close below the 50-day SMA could sink the pair to the solid support at $155. 

Dogecoin price prediction

Dogecoin (DOGE) has declined to the solid support at $0.21, where the buyers are expected to step in.

If the price rebounds off the $0.21 level with strength and breaks above the 20-day EMA ($0.22), it suggests a range formation in the near term. The DOGE/USDT pair could oscillate between $0.21 and $0.26 for some time.

Instead, if the price turns down and breaks below $0.21, it suggests that the bears are trying to take charge. The Dogecoin price could slump to $0.19 and then to $0.16. That brings the large $0.14 to $0.29 range into play.

Cardano price prediction

Cardano (ADA) turned down sharply on Tuesday and fell to the 20-day EMA ($0.84), indicating that the bulls are losing their grip.

The 20-day EMA is the critical near-term support to watch out for because a close below it could sink the ADA/USDT pair to the 50-day SMA ($0.77). A deeper correction could delay the start of the next leg of the up move.

Contrarily, a solid rebound off the 20-day EMA signals a positive sentiment. The bulls will then try 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 prediction

Chainlink (LINK) pulled back from the overhead resistance of $27, but the bulls did not cede much ground to the bears.

The bulls are again trying to drive the price above the $27 resistance. If they manage to do that, the LINK/USDT pair could start the next leg of the uptrend to $31 and subsequently to $36.

Contrarily, if the Chainlink price turns down sharply from $27 and breaks below $23.36, it suggests that the bulls are booking profits in a hurry. The pair could then reach the 20-day EMA ($21.86), which is likely to attract solid buying by the bulls.

Hyperliquid price prediction

Hyperliquid (HYPE) plunged below the moving averages on Tuesday, indicating that the bears have maintained the pressure.

The bulls will try to push the price back above the moving average, but are expected to face stiff resistance from the bears. If the price turns down from the moving averages, the HYPE/USDT pair could descend to $36.

Buyers will have to push and maintain the price above the moving averages to signal strength. The Hyperliquid price could then climb to the overhead resistance at $50.

Stellar price prediction

Stellar (XLM) is witnessing a tough battle between the bulls and the bears at the 50-day SMA ($0.39).

The 20-day EMA ($0.41) has started to turn down gradually, and the relative strength index (RSI) is in the negative territory, indicating a slight advantage to the bears. If the price maintains below the 50-day SMA, the XLM/USDT pair could plunge to $0.36. This is an important level for the bulls to defend because a break below $0.36 could sink the Stellar price to $0.29.

The first sign of strength will be a break and close above the 20-day EMA. If they manage to do that, the pair could climb to $0.47 and later to $0.52.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.