With the recent slide in the $BTC price, many investors and traders are probably fearful. However, this could be the time to go long. The bigger and safer plays are $ETH, $BNB, and $SOL. Will they see a bounce?
Is this the time to buy?
Bitcoin has just lost $6,000 in only 48 hours, and market sentiment is fearful. The Fear and Greed Index dipped back into a Fear value of 30, and this after a Neutral value of 48 only the previous day. Is this the time to buy?
Could $ETH repeat its previous 30% gain?
Source: TradingView
Looking at the short term 4-hour chart for $ETH, it can be noted that the number two cryptocurrency by market capitalization did even worse than $BTC over the same 48 hour period. $ETH recorded a loss of 13% compared with $BTC’s 9.6%.
This took the $ETH price down almost to the 0.618 fibonacci, where the start of a potential bounce has taken place. Looking at the Stochastic RSI, short term momentum is about to be confirmed, while on the RSI, a very oversold reading is showing. If one looks back to the last time this was the case, in the early August Japanese stock market crash, the $ETH price rocketed more than 30% over the next several days.
$BNB reaches confluent supports
Source: TradingView
Binance Coin (BNB) is the next biggest cryptocurrency behind $ETH (disregarding $USDT). It can be seen in the daily chart above that $BNB has retested the breakout of the triangle, and is bouncing from there. A wick down to the 0.382 fibonacci is very bullish, should this bounce continue.
Upside targets for $BNB are the top of the last high at $599, which coincides with the 0.618 fibonacci, and then horizontal resistance at $632, before the 0.786 fibonacci at $653. The all-time high isn’t far above at $722.
$SOL must break the downward trend
Source: TradingView
The $SOL price is in a tall range stretching from $126 up to $202. The latest downturn brought the $SOL price back to $143, which was a perfect touch of the upward trend line and the 0.382 fibonacci. $SOL has some work to do now, in order to reverse the series of 3 lower highs. The last high was rejected at the midpoint of the range (dashed blue line).
Source: TradingView
Zooming out on the same daily time frame, it can be observed that the last high made another touch point on a downward trend line, which began back on 1 April. If $SOL can head back to the trend line, a breakout could coincide with the midpoint of the range. If this were successful, a continuation back to the top of the range could be forthcoming. That said, this could be the formation of a descending triangle, which is a bearish chart pattern. Therefore, an upside breakout is critical to maintaining $SOL’s bullish trajectory.
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.
