Bitcoin and Top Cryptocurrencies Struggle as Recession Fears Mount

Bitcoin and other top cryptocurrencies are likely to struggle in the short term. With that said, let's find out which key support areas the buyers must

Bitcoin made a notable recovery last week, moving from $49,584 to $61,000. This showed that buyers deemed lower levels ideal for buying the dips. Despite the rally, many traders remain on the edge, according to the Crypto Fear & Greed Index, which is now in the extreme fear zone.

Moreover, reduced inflows into Bitcoin spot ETFs since the start of August suggest uncertainty among traditional investors. The current trend has been fueled by a recent job report in the US, which has increased the possibility of a recession. Last week, the American government reported that the unemployment rate had hit 4.3%.

The uncertainty around crypto appears to have discouraged institutions from buying more stablecoins. According to prominent crypto analytics firm LookonChain, companies that have been buying USDT from Tether in recent months have halted the purchases over the past few days.

Based on the information above, Bitcoin and other top cryptocurrencies are likely to struggle in the short term. With that said, let’s find out which key support areas the buyers must protect to prevent a deeper correction.

Bitcoin Price Analysis

Bitcoin failed to cross the 50-day Simple Moving Average of $61,895 on August 11, signaling that the sellers were unwilling to give up easily. The coin is currently changing hands for $58,893. If it continues dropping, $55,764 will be a vital support to keep an eye on. If that level crumbles, it would mean that sentiment around BTC is still negative and that traders are booking profits after every recovery rally. Increased selling pressure might pull Bitcoin to $49,005.

Conversely, If the buyers push BTC above $61,895, it could fuel a march toward $69,478 and later to $73,653, where significant resistance is anticipated.

Ethereum Price Analysis

Pushing ETH above the 20-day Exponential Moving Average of $2,846 has been challenging for buyers over the past few days. The positive thing is that the second-largest digital currency by market valuation hasn’t dipped below the $2,508 vital support. It is priced at $2,636, according to data from CoinGecko.

If the bulls push Ethereum above $2,700, the barrier at $2,734 is likely to collapse, thus allowing the token to march toward $2,846 and even to the 50-day Simple Moving Average of $3,147.

On the contrary, a reversal from $2,846 will indicate that this level has become a key resistance point. As such, Ethereum might plummet below $2,508 and move toward $2,334.

BNB Price Analysis

Binance Coin’s recovery rally faces a tough hurdle at the 20-day Exponential Moving Average of $531. If it retests the level and fails to make it crumble, it will suggest that the sellers are on a mission to pull BNB to lower prices.

A reversal from $531 may enable the bears to drive BNB toward the support at $494.76 or even $459.89.

On the positive side, thrusting and maintaining BNB above $531 could help the bulls cause a rally to $600.54, where the bears are expected to mount a defense.

Solana Price Analysis

Over the past seven days, the bears have been strong above the 20-day Exponential Moving Average of $155.34, preventing the bears from starting any significant rally. Solana has now plunged to $144.29.

The sellers are aiming to tug the token below $128. A break below this price could enhance the possibility of a downtrend toward $100.39 or even $83. From a positive point of view, SOL is likely to reach $188.97 if the bulls push and maintain it above $155.34.

Dogecoin Price Analysis

The bulls pushed Dogecoin above the 20-day Exponential Moving Average of $0.11298 on August 11, but they could sustain the meme coin at higher prices due to increased selling activity by the bears.

A minor edge for the buyers is that Dogecoin hasn’t dipped below the $0.09908 support, indicating that the dips are being bought. If the obstacle at $0.11298 finally crumbles, a move to $0.16004 could happen.

On the other hand, a break below $0.09908 might cause DOGE to plummet to $0.090 and then to $0.08394.

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