The crypto market started the month with a bearish move, with several major cryptos, including Solana, XRP, and DogWifHat, suffering losses.
Liquidations reached $225 million in the past 24 hours, with Bitcoin and Ethereum accounting for most of it.
Bitcoin is testing its crucial 99-day EMA, and a break below could signal further declines.
Ethereum is retracing towards the $3,000 support, with a break below confirming bearish dominance.
Akash (AKT) is showing signs of recovery after rebounding from a support level.
Kaspa is bucking the market trend, but a breakout or rejection from a channel formation is about to happen.
The crypto market started on a bearish note in August, with a decline of around 3.5% and Bitcoin price below the $65,000 resistance.
The crypto market’s heatmap
Source: CoinMarketCap
The crypto market has now turned completely red, with some of the biggest casualties being Solana, which suffered a 7.5% dip; XRP, which suffered a 5.35% dip; and DogWifHat, which suffered a crash of around 13%. Others include ENS, THORChain, Jupiter, Gala, PEPE, SAND, and more.
The crypto market's liquidations have been harsh in the last 24 hours, with a collective $225 million taken from leveraged traders overall.
Interestingly, the worst liquidations came from Bitcoin and Ethereum, both of which collectively account for around $123 million of the lost funds.
As shown by the chart below, Bitcoin has moved further down in its rejection from the $70,000 zone and is now testing its 99-day EMA around $63,694.
This EMA is highly important and is likely heavily guarded by the bulls. It is worth mentioning that Bitcoin traded above this moving average throughout most of 2023 and never stayed long underneath.
However, the last time we saw a break below $54,000 was in late June, and Bitcoin eventually hit the $54,000 zone in the decline that followed.
Because of this, it is very important that Bitcoin stays above $63,694. A sustained break and close below would be a strong warning sign of further declines to come.
Ethereum, which was originally on track to hit the $3,500 zone, has reversed course after being rejected by its 99-day EMA.
The cryptocurrency now appears to be on its way to retesting the $3,000 zone and currently trades at around $3,172.
This means that investors need to keep an eye out for the $3,000 zone and Ethereum's behaviour around it.
If we see a sustained break below, it would constitute a lower low and bearish control.
This would make the cryptocurrency poised to retest $2,850 or even lower.
According to the charts, Akash rebounded successfully off the lower trendline of the ascending channel shown below:
The cryptocurrency has now started a slow but steady upward grind and is even trading atop an ascending trendline.
This might turn out to be one of the signs that Akash is recovering ahead of the market.
However, investors should also note that a break below $2.59 would invalidate this outlook, and we might see another Akash decline before a rebound.
Considering the ongoing decline across the market, Kaspa is trading within an ascending channel and is, therefore, bullish overall.
The chart above shows that the cryptocurrency has been reaching for the channel's upper trendline, explaining its 2% intra-day price increase.
Investors can expect the bull versus bear action around this price level to intensify around this price level, considering how close Kaspa is to retesting the upper border of this formation.
Investors can expect either a breakout or a rejection around $0.226. In the case of a breakout, investors can wait for the pullback and consolidation before making a decision.
In the case of a rejection on the other hand, Kaspa presents a valid shorting opportunity, with a possible retest of $0.13.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.