Bitcoin has fallen into a zone of interest – will SOL, XRP, KAS and AAVE follow?

Bitcoin (BTC) is in free fall, below the psychological $60,000 support on August 4. Bitcoin has come under heavy selling pressure this week as traders cut risk following a nearly 6% fall on the Japanese stock market, the Nikkei, in August. 2. A weaker-than-expected July jobs report on August 2 didn't help matters and the Nasdaq Composite fell into correction territory, down more than 10% from its record high.

Even after the recent decline, Bitcoin remains stuck in a large range. Although the direction of the breakout is difficult to predict, bitcoin whales remain bullish. Well addresses holding more than 1,000 Bitcoin added 84,000 Bitcoin in July. They also left nearly 64,000 Bitcoin whaling exchanges over the past 30 days, the most since 2015, according to Glassnode's measure of net position change as a whale.

Bitcoin's weakness has sent several altcoins lower, indicating that buyers remain on the sidelines. However, as Bitcoin moves closer to the bottom of the range, buyers may come in. That is expected to start a boom in selected altcoins.

What are the critical levels to expect in Bitcoin before a recovery can begin? Let's take a look at the top 5 currencies that could boost the cryptocurrency markets.

Bitcoin price analysis

In the year After breaking below its moving average on August 2nd, Bitcoin is showing strong selling pressure. The free fall was cut to $60,000 in support on August 4th.

The 20-day exponential moving average ($63,855) has started to decline, and the relative strength index (RSI) is close to oversold territory, suggesting that the bears are in control.

Any attempt at a recovery could be met with strong resistance at the 20-day EMA. A break below the critical support of $55,724 increases the risk if the price breaks down significantly from the 20-day EMA.

Conversely, a break and close above the 20-day EMA indicates that the BTC/USDT pair may remain stuck in the range for some time.

The 4-hour chart shows that the bulls could not stop the decline at the $60,000 level. This means that every small increment is being sold. The next support is at $55,724 and then $53,485. Buyers try to defend this zone with all their might, because failure to do so may initiate a deep correction.

The bulls need to push and hold above the 20-EMA to signal that the bears may lose their grip. The pair may then rise to the 50-easy moving average.

Solana price analysis

Solana (SOL) has been trading in a wide range between $116 and $210 for several months, indicating buying on dips and selling on rallies.

The bears have pushed the price below the moving average, but the SOL/USD pair may find support in the $127 to $116 zone. If the price recovers from the current level or support zone, a sell at the 20-day EMA ($162) is expected.

If the price drops significantly below the 20-day EMA, the pair may retest the support zone. On the other hand, a break and close above the 20-day EMA opens doors to 188 for a rally.

The 4-hour chart shows a sharp decline, pulling the price into the oversold territory. The pair is expected to find support in the $135 to $121 zone. If that happens, the pair may rise to the 20-EMA. This is a critical level to watch out for as a break above it could push the pair towards $165.

On the contrary, if the rally fails to cross above the 20-EMA, it indicates that the bears are selling on every minor rise. The pair can retest critical support at $121.

XRP price analysis

The bulls failed to sustain XRP (XRP) above $0.64, attracting heavy selling, pushing the price towards the 50-day SMA ($0.52).

If the price recovers from the current level, the bulls will try to drive the XRP/USDT pair above the 20-day EMA ($0.57). If they can do that, it suggests that the pair could start a rally towards $0.64.

If the price continues lower and breaks below the 50-day SMA, this optimism will be nullified. The pair may drop to the $0.46 to $0.41 support zone, which may attract strong buying by the bulls.

Downward moving averages and an RSI near oversold territory indicate that bears are dominant. The minor support is at $0.52, but the bears will try to maintain the momentum and sink the pair to $0.46.

If bulls want to protect the downside, they need to quickly break the price above the 20-EMA. That opens the doors to a 50-SMA retracement, where bears will try to stop the upward move.

RELATED: Bitcoin Price Loses $60K, But Ripening Wyckoff Signal Offers Hope

Caspa cost analysis

Kaspa (KAS) fell sharply from $0.21 on August 1, but the bulls are trying to find support at the 50-day SMA ($0.17).

Buyers should drive the price above the 20-day EMA ($0.18) to signal the start of a recovery. The KAS/USDT pair will try to clear the barrier at $0.19. If that happens, the pair may start rallying towards $0.24.

Alternatively, if the price continues lower and breaks below the 50-day SMA ($0.17), it will indicate that the bulls are rushing to the exit. That deeper correction could start to $0.16 and later to $0.14.

The 4-hour chart shows that the pair tried to break out at $0.17, but the bears are selling at the $0.18 level. If the $0.17 level is breached, the pair may move down to the upper line, which could act as a strong support.

If the price recovers from the uptrend line, the bulls will make another attempt to push the pair above the 20-EMA. Conversely, a break below the uptrend line indicates the start of a deeper correction to $0.14.

Aave price analysis

On August 1, buyers pushed Aave (AAVE) above the $115 overhead resistance but failed to sustain higher levels.

The bulls tested a support rally from the 20-day EMA ($101) on August 4, but the long wick on the candlestick indicates oversold. If the price is below the 20-day EMA, the next stop would be the 50-day SMA ($93).

If the price breaks out of current levels and breaks above $115, this negative view is worthless in the near term. Such a move shows that the sentiment remains positive and traders are buying dips. The AAVE/USDT pair may rise to $130.

The bulls pushed the price above the moving averages on the 4-hour chart but could not sustain the highs. The bears sold aggressively and pulled the price back below the moving average.

There is strong support in the $96 to $102 range. If the price recovers from this zone and continues above the 20-EMA, it indicates that the correction is over. Conversely, a break below the zone could sink the pair to $85.

This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.