Bitcoin (BTC) slipped below $60,000 on Sunday, going below even the $59,000 price level as markets tumbled over the weekend. BTC hit an intra-day high of $61,970 before turning bearish and falling to a low of $58,395.
The BTC price chart shows that the 50-day SMA has dipped below the 200-day SMA. Buyers have also been struggling to build upon BTC’s sharp recovery on August 8, unable to get beyond $62,000, indicating sellers are highly active at upper levels.
Sunday’s drop also saw a decline of 3.18% in the broader crypto market, dragging its value down to just over $2 trillion. Long positions also took a significant tumble on Sunday.
Sunday Blues
Besides the crypto market recording a drop of 3.18%, Bitcoin (BTC) also registered a decline of almost 3.8%, dropping to a low of $58,395 on Binance. Global crypto trading volume registered an increase of 7.53% compared to Saturday. However, these numbers remain subdued compared to the previous week, with the latest drop in the price of BTC adding to a 13.9% decline in the value of BTC against the US Dollar compared to the last two weeks. Other major cryptocurrencies also dropped, with Ethereum (ETH) falling to a low of $2,543.
Toncoin (TON) dropped by almost 8%, while XRP is down by just over 4%. Solana (SOL) also saw its upward trajectory halted over the weekend after registering an 8% drop on Sunday and losing the $150 level. Selling pressure on all major cryptocurrencies registered a notable increase as the weekend came to an end.
The crypto derivatives market also faced considerable pressure on Sunday, with a number of long positions wiped out. According to data taken from Coinglass, almost 55,000 traders faced liquidations. Long positions worth almost $102 million were wiped out, of which $26 million were BTC trades. ETH long positions accounted for nearly $23 million in losses, while SOL long positions saw liquidations worth $8.4 million on Sunday.
Whales Still Bullish
While the 50-day SMA fell below the 200-day SMA in a bearish signal, a death cross has had a mixed track record. According to an analyst, historical data suggests traders don’t have much to worry about. Instead, the analysts stated he believed it to be a bear trap before BTC entered into a super bull rally. A death cross occurs when the 50-day SMA dips below the 200-day SMA. It often indicates that BTC’s short-term momentum could underperform the long-term price impetus. However, the Death Cross has historically had a poor record in accurately predicting price trends.
“# Bitcoin’s’ death cross’ is not so deadly. This has happened only 8 times since 2015. What happens next? 60 days later, Bitcoin was up 62% of the time. The median return was +18%.”
Pseudo-anonymous trader Tardigrade seemed to support the bear trap hypothesis, suggesting that BTC’s recent drawdown to $49,000 marked the beginning of a new super bull rally for the cryptocurrency. The trader’s analysis demonstrated how BTC made a similar move in 2016, which marked the beginning of a parabolic surge that peaked in 2017.
Bitcoin whales also sensed a bullish outlook and made aggressive purchases last week. However, spot Bitcoin ETFs saw significant outflows. In fact, both Bitcoin and Ethereum ETFs registered notable outflows.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) experienced a considerable selloff over the weekend, dropping its price below the $60,000 level. The asset has continued its bearish momentum into the new week and is down by just over 4% in the past 24 hours. According to one analyst, the crypto markets lack a clear anchor and are susceptible to adjustments based on the traditional markets. Bitcoin ETFs were also in the red, losing around $89 million to outflows. BTC could see a further decline this week due to technical weaknesses. However, the release of upcoming traditional market data could alleviate selling pressure.
“Crypto prices will likely be rangebound with a bias to the weak side. However, the technical damage and sentiment drag remain, with on-chain cost models and MVRV models suggesting further possible shake-out before Jackson Hole. Crypto markets lack a clear anchor and are susceptible to continued position adjustments. We continue to see muted ETF inflows for BTC and ETH over the past few sessions.”
Retail giants Alibaba and Walmart are set to release earnings on Thursday, while Taiwan and Hong Kong will publish their updated GDP numbers on Friday. As shown in the price chart below, BTC saw a huge rally on Thursday, as it rose by 12% to surge past $60,000 and settle at $61,763. However, sellers were active at these levels, defending the moving averages. As a result, BTC fell on Friday, dropping by 1.34% to $60,932. Saturday did not see much movement, with the price registering only a marginal increase. Buyers attempted a move past the moving averages on Sunday as BTC reached an intra-day high of $61,970.
Source: TradingView
However, the price turned bearish and fell considerably, eventually registering a drop of almost 4% to slip below the $60,000 level and settle at $58,775, ending the weekend on a bearish note. The current session sees BTC marginally down, trading just below the $58,500 level. If BTC continues to drop, we could see a drop to $55,000 before the price stabilizes. However, if buyers can withstand the selling pressure and prevent BTC from dropping drastically, it means buyers are purchasing the dip, boosting the likelihood of a quick recovery.
Ethereum (ETH) Price Analysis
Ethereum’s (ETH) price struggles continued over the weekend and into the current week as it struggles to stay above $2,500. ETH faces a strong level of resistance around the $2,850 level. While there is strong demand at lower levels, upper levels of ETH’s price range have seen demand dry up as bulls lose momentum in the face of selling pressure. As you can see in the price chart, ETH rebounded quickly after hitting a low of $2,131 last Monday. After recovering on Tuesday, ETH fell back once again on Wednesday, dropping to $2,343. However, buyers regained control on Thursday, allowing ETH to surge by almost 15% and settle above the $2,500 mark at $2,684.
Source: TradingView
However, demand dried up at higher levels, with ETH facing strong resistance above $2,800. As a result, ETH fell back on Friday, dropping by just over 3% to $2,601. The price did not register any meaningful movements on Saturday but fell on Sunday after a failed attempt by buyers to push towards $2,800. As buyers lost strength, ETH fell back, dropping to $2,556. The current session sees ETH down by 0.50% as sellers look to drive ETH below $2,500. If ETH continues to drop, it could slide to $2,300. A further drop could bring the $2,100 support level into focus. If buyers can keep ETH above the $2,100 level, ETH will oscillate between its support and resistance levels for the foreseeable future.
While ETH’s price has continued to struggle, spot Ethereum ETFs concluded the second week of August on a positive note, recording the first positive week since the launch of spot Ethereum ETFs.
Solana (SOL) Price Analysis
Solana (SOL) crashed over the weekend, erasing gains made on Thursday, as its recent upswing peaked after reaching a high of $163 on Thursday. However, it fell back in the red on Friday after encountering strong resistance at higher levels, with the 20-day SMA adding to it. As a result of demand drying up at higher levels, SOL fell by 4.18% to $156.41. The price continued to drop over the weekend, falling by 1.47% on Saturday to settle just above the 50-day SMA. Bears were able to drag SOL below the 50 and 200-day SMAs on Sunday as SOL fell by over 8% to go below $150 and settle at $141.
Source: TradingView
SOL has made a strong recovery during the current session and is up by almost 4% as buyers look to reclaim the $150 price level and push above the 200-day SMA. So, where does SOL go from here? If buyers can sustain momentum, SOL could reclaim $150 and move above the 200-day SMA. A push above the 50-day SMA could see SOL retest the resistance at $160. However, if sellers can retake control of the session, SOL could drop to $130. If bears can breach this level, it could open the doors for a drop to $110.
Polkadot (DOT) Price Analysis
Last week’s struggles saw Polkadot (DOT) slip to its multi-year support of $3.60 on August 5, slipping below the crucial $5 mark. However, the price quickly recovered and pushed back above $4. By Thursday, DOT was trading at $4.88 after registering a jump of almost 7% on the day. However, the price encountered strong resistance at this level and fell back on Friday, dropping by almost 2% to $4.79. After a marginal drop on Saturday, selling pressure intensified on Sunday, pushing the price down by 5.46% to $4.50. The current session has recovered, with DOT up by 1.33% and trading at $4.56.
Source: TradingView
DOT is facing significant resistance at $5, keeping the price down. While there is strong demand at lower levels ($3.60 and $4), bulls are losing steam at higher levels as demand dries up. For DOT to make a substantial recovery, buyers must push the price back above $5. Should they fail to do so, DOT could trade between $4.20 and $5 for the foreseeable future.
Ripple (XRP) Price Analysis
Ripple (XRP) faced a dramatic drop over the weekend as its price fell after reaching a high of $0.64 on Wednesday, although it eventually settled at $0.599. Buyers attempted a push above $0.65 on Thursday as well, pushing XRP to $0.643. However, once again, sellers were able to push the price back down, and XRP eventually settled at $0.61. Bearish sentiment prevailed on Friday, with XRP dropping by almost 6% to $0.58. This drop also pushed the price below the 20-day SMA.
Source: TradingView
Buyers attempted a recovery on Saturday, but with demand drying up at higher levels, XRP could not push above the 20-day SMA and could only register a marginal increase. Sunday saw another significant drop as XRP fell by 5.34% to $0.55. However, the price rebounded from this level and is up by almost 4% in the current session, trading at $0.57. With XRP’s support level of $0.55 holding firm, buyers could make another attempt to push above $0.60. If they cannot, XRP could return to its support level. A breach of this level could open the doors for a drop to $0.50 or below. The MACD is currently bearish but could flip to bullish if buyers can breach $0.60.
Toncoin (TON) Price Analysis
Toncoin (TON) made an impressive recovery after the market meltdown last week which saw the price hit a low of $4.86 on Monday. With the 200-day SMA acting as a dynamic level of support, TON quickly rebounded, rising by almost 10% on Tuesday and moving to $5.81. The price fell back on Wednesday, dropping to $5.43 before picking up again on Thursday. TON registered a staggering increase of 15.24% on Thursday as markets made a strong recovery, surging past $6 and settling at $6.26. One reason for TON’s stunning performance on Thursday was the confirmation of the altcoin’s Binance listing.
Source: TradingView
TON’s bullish performance continued on Friday, rising by 5.39% to push above the 20-day SMA and $6.50 to settle at $6.60. However, bulls lost momentum over the weekend as TON registered only a 1.35% increase on Saturday before sellers took control on Sunday. As sentiment turned bearish, TON dropped over 7% on Sunday to settle at $6.20. Sellers attempted to drive TON below $6 during the current session. However, demand picked up as the price hit a low of $6.08. TON is currently up by 1.24% and trading at $6.28.
Dogwifhat (WIF) Price Analysis
Dofwifhat (WIF) has dropped by almost 8% in the past 24 hours, as it registered a considerable drop over the weekend. WIF had surged by over 19% on Thursday and settled at $1.91, as many expected the popular meme coin to push above $2. However, with sellers actively defending the price level, WIF fell back on Friday, dropping by almost 5% to $1.82. The price remained in the red on Saturday, recording a marginal drop and then plummeting by 10% on Sunday to $1.62. WIF has recovered during the current session, and is up by 5.33% to trade at $1.71.
Source: TradingView
As mentioned earlier, WIF faces resistance around the $2 price level. If buyers can retain momentum, we could see buyers retest that level. However, should sentiment turn bearish, WIF could slip below $1.50.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
