The recent slide in Bitcoin’s price, shedding $6,000 in just 48 hours, has sent waves of fear across the cryptocurrency market. The Fear and Greed Index reflects this sentiment, dropping to a Fear value of 30, down from a Neutral value of 48 the previous day. However, with fear often comes opportunity. This might be the moment to consider going long on major cryptocurrencies like Ethereum (ETH), Binance Coin (BNB), and Solana (SOL).
Could ETH Repeat Its Previous 30% Gain?
Ethereum (ETH) has been hit hard, experiencing a 13% loss in the same period that Bitcoin (BTC) dropped by 9.6%. This decline has brought ETH down close to the 0.618 Fibonacci retracement level, where it has started to show signs of a potential bounce. The Stochastic RSI indicates that short-term momentum may be about to turn positive. At the same time, the RSI is deeply oversold, similar to the conditions seen during the early August Japanese stock market crash. At that time, ETH surged over 30% in the following days. If history repeats itself, ETH could be poised for a significant recovery.
BNB Reaches Confluent Supports
Binance Coin (BNB), the third-largest cryptocurrency by market cap after ETH (excluding stablecoins like USDT), has also been navigating a critical juncture. On the daily chart, BNB has retested its breakout from a triangle pattern and is currently bouncing from this level. A wick down to the 0.382 Fibonacci retracement level is typically a bullish signal, especially if the bounce continues.
Upside targets for BNB include the previous high of $599, which aligns with the 0.618 Fibonacci level. Further resistance can be expected at $632 and $653, corresponding to the 0.786 Fibonacci level. Beyond these, the all-time high of $722 comes into play, suggesting significant potential for gains if the bounce is sustained.
SOL Must Break the Downward Trend
Solana (SOL) has been trading within a wide range between $126 and $202. The recent market downturn saw SOL fall back to $143, touching both the upward trend line and the 0.382 Fibonacci level. For SOL to regain its bullish momentum, it needs to break out of its series of lower highs, with the last high being rejected at the midpoint of the range.
Zooming out, the daily chart reveals a downward trend line dating back to April 1, which SOL recently tested. If SOL can rally back to this trend line and break above it, the price could move back towards the top of its range. However, the formation of a descending triangle— a bearish pattern—adds caution. A successful breakout is crucial for maintaining SOL’s upward trajectory.
Conclusion
With Bitcoin’s sharp decline and the ensuing market fear, this could be a strategic time to consider buying into major cryptocurrencies like ETH, BNB, and SOL. Each of these assets has reached critical support levels and could see a bounce if market conditions improve. However, investors should remain cautious and monitor key resistance levels and trend lines to confirm a sustained recovery.
