As Bitcoin continues to head lower on its own downward trajectory, the major altcoins are following suit. What are the best potential levels to catch a bounce for Ethereum ($ETH), Solana ($SOL), and Binance Coin ($BNB)?
$ETH rejected from massive triangle top
Source: TradingView
When looking at the $ETH price on the weekly time frame, it can be seen that a rejection has just taken place at the top trendline of the huge triangle that $ETH has been in since late 2021. That said, the price has been down and touched the bottom of the triangle, which coincided with the 0.618 Fibonacci, thus a bullish bounce.
$ETH bounce or further downside?
Source: TradingView
The 4-hour time frame for $ETH shows the price traversing upwards in a wedge pattern. The price is currently deciding whether to bounce from the bottom of the wedge, which also coincides with the 0.236 Fibonacci ( a very bullish bounce should it happen), or perhaps to fall through the bottom of the wedge and head for one of the lower Fibonacci levels. Any of these levels would likely signal a bullish bounce. Prices can be taken from the chart above. If the price fell all the way down and below $3,000, this would potentially negate the upside trend.
$SOL heading back down to major horizontal support
Source: TradingView
The weekly chart for the $SOL price shows that the latest big surge out of the bull flag succeeded in making a new all-time high. Instead of pushing on upwards, the $SOL price is coming down again. This is much healthier for the price overall, and it looks as though the price may come down either to the lesser support at $210, or the major support at $202. This would have the effect of building price structure on top of the bull flag and also support from the 2021 highs.
$SOL lower low or bounce?
Source: TradingView
The 4-hour chart for $SOL shows how the price is rolling over. In fact, the price is currently in danger of making a lower low on this time frame. It could be that the 0.382 Fibonacci does become the bounce level, but a small slip to the downside and below $222 could mean a further drop. The 5.0 Fibonacci lines up with the support at $210, while the 0.618 Fibonacci is just below the major support level of $202. All could be potentially good levels for entering a position.
$BNB rejects from top of huge range
Source: TradingView
The weekly time frame for $BNB is self-explanatory. The price has been in a huge range since early May 2021. The price looks to have rejected from the top of this range currently, and it just remains to be seen where a bounce could take place from.
Potential entry for $BNB but set tight stop loss
Source: TradingView
The 4-hour time frame for $BNB displays an ascending channel which the price is currently traversing within. An excellent place to open a position could potentially be the bottom of the channel, which coincides nicely with the horizontal support at $610.
Bear in mind that this strong support could fail, and so a stop loss should be employed. Lower lows below this could signal the end of the uptrend, at least for the short to medium term.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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