Technical Analysis on August 19: SPX, DXY, BTC, ETH, XRP, BNB, SOL, DOGE, ADA, LINK

Bitcoin (BTC) continues its adjustment trend in the first session of the week, reflecting the take profit actions of short term investors. Analyst Captain Faibik states that, in the "extreme shakeout" scenario, the price of BTC could very well retreat to the important psychological zone of 98,000 – 100,000 USD.

Nevertheless, the medium-term outlook is still viewed positively by analysts. Steven McClurg, CEO of Canary Capital, stated in an interview with CNBC that there is more than a 50% chance that Bitcoin will break through to the zone of 140,000 – 150,000 USD this year, before the market enters a correction cycle next year.

From another perspective, data from Santiment shows that retail investors continue to maintain optimism towards BTC, but are less enthusiastic about Ether (ETH), despite ETH having recorded outstanding performance over the past 30 days. Santiment suggests that this sentiment disparity could create a more attractive upside potential for ETH compared to BTC.

The question is: Can Bitcoin establish a higher bottom to strengthen the momentum for a new upcycle? And can altcoins benefit from BTC's upward momentum? Let's dive deep into the price chart analysis of the top 10 cryptocurrencies to find the answer.

Technical Analysis SPX

The S&P 500 (SPX) index continues to maintain a strong upward trend, reflecting the advantage belonging to the bulls.

Daily SPX chart | Source: TradingViewA minor drawback is that the RSI indicator is forming a bearish divergence, indicating a possibility of correction or accumulation in the short term. If it breaks and closes below the 20-day EMA at (6.370 points), selling pressure may increase, pulling the index down to the 50-day SMA at (6.237 points).

Conversely, if buying pressure pushes the price above 6,500 points, the SPX may enter a new upward phase towards 6,696 points.

Technical analysis DXY

The USD Index (DXY) is witnessing a fierce struggle between the bulls and the bears around the moving average lines.

DXY daily chart | Source: TradingViewThe 20-day EMA (98.23 points) is slightly sloping down with the RSI index below the neutral threshold indicating a slight advantage for the bears. If it breaks the 97.62 level, DXY could plunge to 97.10.

On the contrary, if it breaks and closes above the 20-day EMA, this reflects buying demand at lower price zones. At that point, the bulls may push the index up to 99.32, and further to 100.25. In this scenario, the DXY is likely to fluctuate within the range of 96.37 – 102 for some time.

Technical analysis BTC

BTC has fallen below the 50-day SMA (115.702 USD) on Monday, but the price is currently supported at the neckline of the inverted head and shoulders pattern.

BTC/USDT daily chart | Source: TradingViewThe nearest resistance level is 118,575 USD. If broken, the BTC/USDT pair may break out to 120,000 USD, before challenging the historical peak of 124,474 USD.

However, it should be noted that the RSI is forming a bearish divergence - a sign that the bulls are weakening. If BTC breaks through the neckline, the price could drop to 110,530 USD. This is an important support level, as losing this level could see BTC continue to decline to 105,000 USD, or even 100,000 USD.

Technical analysis of ETH

ETH continued to adjust on Monday after falling below the support zone near 4,368 USD, indicating a take profit move from short term investors.

ETH/USDT daily chart | Source: TradingViewThe 4.094 USD mark is currently an important support zone. If ETH bounces back strongly from here, it means that the bulls are trying to turn this level into support. At that point, the ETH/USDT pair could recover to 4.788 USD; if it breaks through, the price will open up momentum to rise to 5.000 USD.

On the contrary, if it breaks through and closes below 4,094 USD, ETH could enter a deeper correction phase, down to 3,745 USD, even the 50-day SMA at 3,523 USD.

Technical analysis of XRP

In recent days, XRP has been unable to break above the 20-day EMA (3.10 USD), indicating that buying pressure in the high price zone remains weak.

XRP/USDT daily chart | Source: TradingViewCurrently, the price has retreated to the 50-day SMA (2.94 USD), which is expected to act as strong support. If it bounces back from here, the bulls will try to push the XRP/USDT pair above the downtrend line. Success will pave the way for XRP to rise to 3.40 USD, then 3.66 USD.

On the contrary, if the 50-day SMA is broken, the price could drop to 2.73 USD. From here, a strong bounce could bring the price back to the downtrend line. If the trend line is broken, XRP is likely to fluctuate in the zone of 2.73 – 3.66 USD for some time.

Technical analysis BNB

BNB (850.32 USD) has continuously failed to maintain above the 861 USD threshold, causing many short term investors to tend to take profit.

BNB/USDT Daily Chart | Source: TradingView The BNB/USDT pair may adjust towards the 20-day EMA (808 USD) – a key support zone. If it strongly rebounds from here, the prospect of breaking the 861 USD level will increase, thereby paving the way for BNB to reach the psychological milestone of 1,000 USD.

On the contrary, if the price breaks and closes below 794 USD, the most likely scenario is that BNB will fluctuate within the range of 732 – 861 USD for a while.

Technical analysis of SOL

Solana (SOL) has surged from the 185 USD mark on Saturday, but the bulls could not maintain the upward momentum at higher levels.

Daily chart of SOL/USDT | Source: TradingViewCurrently, the price has dropped to the 20-day EMA (182 USD), which is expected to attract strong buying pressure from the bulls. If the price rebounds from the moving averages, the bulls will once again try to push the SOL/USDT pair up to the resistance zone of 210 USD. If the level of 210 USD is breached, the uptrend could extend to 240 USD.

On the contrary, if the price of Solana continues to weaken and breaks below the 50-day SMA (172 USD), the next stop could be the uptrend line.

Technical analysis of DOGE

Dogecoin (DOGE) has been "trapped" in a narrow range from 0.26 USD to 0.21 USD over the past few days.

Daily DOGE/USDT chart | Source: TradingViewThe 20-day EMA line is almost flat (0.22 USD) along with the RSI hovering around the neutral zone indicates no clear advantage for both bulls and bears. If the price breaks through the support level of 0.21 USD, the DOGE/USDT pair risks plummeting to 0.19 USD, or even 0.16 USD.

On the contrary, the bulls need to push the price of Dogecoin above 0.26 USD to signal a strengthening of power. At that point, this pair could challenge the strong resistance zone at 0.29 USD. If it breaks and closes above 0.29 USD, DOGE could pave the way for a spike up to 0.35 USD.

Technical analysis of ADA

The Cardano bulls (ADA) have maintained the support level of 0.90 USD but are struggling to push the price past the resistance of 1.02 USD.

Daily ADA/USDT Chart | Source: TradingViewBoth moving averages are trending upwards, indicating an advantage still lies with the bulls. However, the negative divergence on the RSI indicator warns that the upward momentum is gradually weakening. If the support level of 0.90 USD is breached, the ADA/USDT pair could slide down to the 20-day EMA at (0.84 USD). The bulls are expected to defend this EMA line, as a break below this level could see Cardano's price continue to drop to the 50-day SMA at (0.75 USD).

On the contrary, if the price rebounds from the 20-day EMA, it indicates buying pressure at the low zone. At that point, the bulls will try to resume the uptrend by pushing the price above 1.02 USD. If successful, the ADA/USDT pair could break out strongly to 1.17 USD.

Technical analysis LINK

Chainlink (LINK) has maintained an upward trend in recent days, but bears are looking to curb the rise at the 27 USD level.

Daily chart of LINK/USDT | Source: TradingViewThe upward moving averages indicate that the advantage still belongs to the bulls, but the negative divergence on the RSI shows that the upward momentum is weakening. To regain control, the bears need to pull the price below the 20-day EMA (21.13 USD).

The first support level is at the zone of 24.31 USD, followed by the 20-day EMA. If the price rebounds from the 20-day EMA, the bulls will once again attempt to push the LINK/USDT pair above 27 USD. If successful, the price of Chainlink could accelerate to the level of 31 USD.

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