On August 20, 2024, the cryptocurrency market saw strong gains during Asian trading. However, things took a different turn when the US stock market opened, causing a wave of selling pressure as both the S&P 500 and the Dow Jones fell significantly.
So what should you expect? Read on.
Gold hits record high, cryptocurrencies fall
Along with the stock market crash, the recent surge in gold prices to record highs may also have contributed to the decline in cryptocurrencies. Major assets like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) have suffered as a result.
Before the US market opened and gold surged, BTC, ETH, and SOL were trading at $61,350, $2,690, and $148.29, respectively, according to CoinMarketCap. But when the market reversed direction, these values fell to $58,600, $2,560, and $142.
Bitcoin Technical Analysis and Key Levels
This sharp decline suggests that the cryptocurrency market is still struggling. Technical analysis shows that BTC, ETH, and SOL are all trading below the 200 exponential moving average (EMA) on longer time frames, signaling bearish momentum. If BTC breaks out of its current consolidation zone, it could fall further to $54,000.
Ethereum (ETH) Technical Analysis and Key Levels
Ethereum’s chart also looks concerning, with bearish patterns like the rising wedge and head and shoulders formations in play. If ETH falls below $2,500, it could soon slide further towards $2,300 or $2,200.
Solana (SOL) Technical Analysis and Key Levels
However, on the daily time frame, Solana (SOL) is sitting at a crucial support level of $140 and is also receiving support from the 200 Exponential Moving Average (EMA). If SOL breaks below the 200 EMA, there is a strong possibility that it will drop to the $130 level in the coming days.
Despite the declines, open interest for BTC, ETH, and SOL remained stable, showing that traders and investors are still active in the market.
Also read: Analyst identifies undervalued altcoins after cryptocurrency flash crash, lists top 3 discounted picks
Will the downward trend continue or do you see a possible recovery? Let us know what you think.
