Price analysis 8/17: BTC, ETH, BNB, XRP, ADA, SOL, DOGE, DOT, SHIB, AVAX


Bitcoin (BTC) rebound faded near $24,500 on August 17, indicating that the recovery is still facing heavy resistance from the bears. On-chain monitoring resource Material Indicators said the demand for liquidity on the Fire charts was similar to previous local peaks.

Another reason for caution among crypto investors is that the recovery in the S&P 500 has reached overbought levels in the near term. Jurrien Timmer, global macro manager at Fidelity Investments, an asset manager, said 88% of stocks in the S&P 500 were trading above the 50-day moving average, which is “amazing.”

Some were also cautious, as Michael Perry, the investor best known for shortening the 2008 housing bubble, emptied his portfolio of stocks in the second quarter of this year anticipating a sharp drop in stock markets.

Daily cryptocurrency market performance. Source: Coin360
While the short term seems uncertain, corporate investors who are usually in the game for the long term have increased their investment in the blockchain industry, including the crypto space. The 40 largest publicly listed companies have invested nearly $6 billion in blockchain startups between September 2021 to June 2022, according to the August 17 BlockData blog.

What critical levels on the downside indicate the recovery may falter? Let’s study the charts of the top 10 cryptocurrencies to find out.

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The bulls attempted to push Bitcoin above the upper resistance at $24,668 on August 17, but the long wick on the candle shows that the bears are aggressively defending the level. The price declined and reached the 20-day exponential moving average (EMA) ($23,496). This level is likely to attract strong buying by bulls.

BTC/USDT daily chart. Source: TradingView
The 20-day moving average has flattened and the Relative Strength Index (RSI) has fallen near its midpoint, indicating a balance between supply and demand. If the price continues below the 20-day moving average, the balance may tilt in favor of the bears and the pair may drop to the 50-day simple moving average ($22,160).

Conversely, if the price bounces off the current level and breaks above $25,200, this will signal a return to the leadership of the bulls. The BTC/USDT pair could then rise to $28,000 as the bears may once again build a strong defense.

Ether (ETH) rose from $1,853 on August 16 and the bulls attempted to push the price above $2000 on August 17. However, the long wick on today’s candle indicates that traders may loosen positions on the rallies.

ETH/USDT daily chart. Source: TradingView
The bears will try to take advantage of the situation and try to pull the price to the strong support zone between the 20-day EMA ($1772) and $1,700. This is an important area for the bulls to defend if they want to keep the uptrend intact.

If the price rebounds away from this support area, the ETH/USDT pair could retest the $2030 resistance. A breakout and a close above this level could pave the way for a rally to the downtrend line.

Alternatively, if the $1,700 support is broken, the pair could drop to the 50-day SMA ($1,492). This may delay the start of the next phase of the upward movement and keep the pair range bound for a few days.

Buyers attempted to push BNB higher on August 17th but the long wick on the candle indicates that the bears are active at higher levels. This pulled the price back to the 20-day moving average ($307).

BNB/USDT daily chart. Source: TradingView
If the price drops below the 20-day moving average, BNB/USDT may fall to the 50-day simple moving average ($270). This level may attract buying again and if the price rebounds from it, the pair may consolidate between $270 and $338 for some time.

Another possibility is that the price bounces off the current level aggressively. If it does, it will indicate that sentiment is still positive and that traders are buying on dips. The bulls will once again attempt to clear the upper resistance area between $338 and $350. If they succeed, the pair could start to rise to $383 and then to $413.

The bulls successfully defended the area between the moving averages and tried to push Ripple (XRP) above the upper resistance at $0.39 on August 17. The long wick in today’s candle shows that the bears are not ready to surrender and that they continue to defend the upper resistance aggressively.

XRP/USDT daily chart. Source: TradingView
If the price breaks and closes below the 20-day moving average ($0.37), the next stop could be the 50-day simple moving average ($0.35). This is an important level for the bulls to defend because a breakout and a close below it may indicate that the XRP/USDT pair may continue its range-bound movement between $0.30 and $0.39 for a few more days.




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