Bitcoin drops below 58,000! Analyst: But “these 4 coins” have potential
After once reaching $65,000 at the end of August, Bitcoin ($BTC) has continued to fluctuate and fall recently. As of this morning (2nd), it has fallen below $58,000 and is currently quoted at $57,350.
In the face of Bitcoin's decline, "Cointelegraph" senior analyst Rakesh Upadhyay pointed out that in the past few months, Bitcoin has continued to form lower highs, which is a negative signal. To return to the upward trend, bulls need to defend the support of $55,724. Bit.
Bitcoin’s weakness hurts the overall sentiment in the cryptocurrency market. Several altcoins have given up recent gains, and some have even moved lower, indicating a lack of demand.
Upadhyay pointed out that only a few altcoins have shown hope of rebounding in the short term amid Bitcoin’s weak trend. If Bitcoin can rebound at the support level in the future, the following four currencies are expected to usher in a big rebound from the bottom.
Litecoin ($LTC) Price Trend Analysis
Upadhyay noted that Litecoin ($LTC) has been in a downtrend over the past few weeks, but bulls are trying to make higher lows and higher highs.
Looking at the daily trend, $LTC’s two moving averages are flattening and the relative strength index (RSI) is close to the midpoint, indicating that supply and demand are in balance.
If the downtrend is to change, $LTC bulls must push and hold the price above $68 to stand a chance of a further climb towards $76.
On the other hand, if the price declines from the 50-day EMA ($66) and breaks below $59, it will mean that the bears have not given up yet and a drop to the key support level of $55 is possible.
Chart source: Cointelegraph Litecoin ($LTC) price trend analysis
Fetch.ai ($FET) Price Trend Analysis
Upadhyay pointed out that on August 23, US time, Fetch.ai ($FET) broke through the 50-day moving average ($1.116), indicating that the bears are losing control. On August 27, $FET encountered resistance at $1.51 and fell back to the 50-day EMA, becoming an important level for bulls to defend.
With $FET currently holding above its 50-day EMA for the time being, bulls will once again attempt to push $FET above $1.51. If successful, $FET will form a bullish head and shoulders bottom pattern with a price target of $2.32.
Conversely, if $FET loses its 50-day EMA again, the outlook is likely to continue to trade sideways between $1.51 and $0.70.
Figure source: CointelegraphFetch.ai ($FET) price trend analysis
Mantle ($MNT) Price Trend Analysis
Upadhyay noted that Mantle ($MNT) has been consolidating near the 20-day EMA ($0.61) in recent days, with bulls and bears engaged in a tug-of-war.
If the bulls are able to push and hold the price above the 20-day EMA, it could initiate a stronger rally towards the 50-day EMA ($0.68), where the bears are likely to seek resistance. However, if the bulls prevail, a further climb to $0.90 is expected.
However, if $MNT pulls back from current levels and breaks below $0.56, a drop to $0.47 is possible.
Source: CointelegraphMantle ($MNT) price trend analysis
Aave ($AAVE) Price Trend Analysis
Upadhyay noted that Aave ($AAVE) recently rebounded strongly from $118 but encountered resistance near the 50% Fibonacci retracement level of $133.
Looking at the daily chart, $AAVE’s 20-day EMA ($123) is trending upward and the RSI is just above the midpoint, indicating that bulls have a slight advantage. $AAVE is currently quoted at $119.82, representing bulls’ efforts to convert $118 into support.
Upadhyay predicts that if $AAVE manages to break out and close above $135, further gains to $149 may be possible; however, if $AAVE pulls back and falls below $118, it may test the 50-day EMA ($109).
Source: CointelegraphAave ($AAVE) price trend analysis
[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice. The analysts’ views are for reference only. Users should consider whether any opinions, views or conclusions in this article are consistent with their specific circumstances. Invest accordingly and do so at your own risk.
