The Daily Cryptomenon
10th August 2020
Your daily Cryptocurrency Market Analysis News brought to you by the CryptoAltum Cryptomenon Team.
This analysis was written at 9:00 am GMT +3, on 10.08.2020
It seems that the weekend session did more for the Cryptocurrencies than expected. They managed to continue moving higher despite the overwhelming negative pressure. To be fair, we did see a drop in their movement, but it was marginal as the resulting move higher overshadowed any downward pressure that had happened. With that said, let’s find out what today holds for cryptocurrencies on August 10th, 2020.
Our cryptocurrency trio - Bitcoin, Ethereum, and Ripple, pulled a bit during the Friday session as the overwhelming bearish pressure didn’t push them to fall back. However, the drop was marginal compared to the gains they’ve achieved over the course of last month. The resulting move proved to be the catalyst needed for our Trio to begin their next move higher, as we saw our cryptocurrencies rise back to their upper range and target new areas to test.
Bitcoin (check out the chart below you’ll find that Bitcoin is the purple line) has managed to enhance its performance after the drop to record 30.15% on a month-to-month basis*. Ethereum (red line), has experienced much more volatility over the weekend as it fell and rose quite a few times to end up with a performance of 64.96% on a month-to-month basis. Ripple (orange line) seems to have taken the brunt of the attack of Bears as the cryptocurrency fell recording a performance of 46.60% on a month-to-month basis.
*Please note that we mention month/on/month we mean the same day, one month ago. For example, 29th of July till the 29th of August.
What’s the strategy you’re going to use when it comes to these cryptos? Do you believe this was the first wave of Bearishness? Or do you believe the Bears aren’t strong enough to stage a comeback? Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin Rises Back
Bitcoin has managed to finally reach the $12,000 after it’s been lurking around the $11,800 resistance level for quite some time. We were starting to believe that it’s never going to happen. BTC, however, had to break the resistance eventually and continue higher reaching the $12,000 for the first time this month as it had already tested that level last month.
The cryptocurrency also managed to eke out some positive gains as it made it to the yearly high at $12,135 but failed to actively break it, indicating that Bears won’t relinquish their control of this crucial resistance anytime soon. What’s even more interesting is that there are many support levels on the downside that are poised to prevent any further downside, just like the $11,500 prevented the Bears from any further downside move.
If we were to divert our attention towards the RSI, we can notice something quite interesting; how the 50-level is acting as a pseudo-support for the indicator. Several times over the past weeks, BTC tried to fall, but support and Bullish investors were in the way to prevent that from happening, this caused the 50-level to hold back any further downside movement. Clearly, the bullish momentum on the digital asset is still much in play. The only way the Bears will be able to take hold is if there was a sustained movement below the mentioned level.
Ethereum Breaks Bullish Momentum
The second largest cryptocurrency - in terms of market capitalization - has broken the positive momentum that it’s been working on for the past weeks, ever since the cryptocurrency started the move higher back in July. What’s even more troubling, isn’t that there’s this major move downwards that erased all the gains, but the fact it was a minor one compared to the gains.
Ether fell towards the $360 support level during the weekend session, a move that broke through two important supports at $380 and the 50 SMA (Simple Moving Average). This move caused quite the commotion in markets, however, Bulls were able to step in at the right time to prevent any further downside risk. They even managed to push Ethereum back into familiar ranges. We sort of believe the damage might have been done already.
Our CryptoAltum Analysis Team noticed that the RSI (Relative Strength Index) has reached the 40-level and even managed to break below it. This tells us that the bullish momentum that’s dominated Ethereum for quite some time, might be at the end of its rope. The only way the momentum higher can be reestablished is if the price action finally breaks above the $400 level which is represented by the 60-level on the RSI. That’s the only possible way that the bullish momentum gets reestablished on this digital asset.
Ripple Breaks Wedge Lower
Where Ethereum was able to establish some sort of comeback after the fall, Ripple didn’t. The cryptocurrency broke through the wedge that we’ve been talking about for the past couple of days, not to the upside, but the downside. The overwhelming Bearish pressure on Ripple finally broke the dams of the Bulls and forced it to move lower, breaking through the lower bound of the wedge as well as the 50 SMA (Simple Moving Average).
Breaking below the 50 SMA obviously isn’t a good sign for the Bulls because it signals they will have to break above it for the bullish momentum to continue, otherwise, we can expect more downside from this cryptocurrency. So far, the current support at 0.2830 is handling the extra pressure from the Bears, but for how long it will last is a question for another time.
The RSI (Relative Strength Index) is showing more and more downside movement and reinforcing the idea of a loss in bullish momentum. Currently, the indicator is printing near the 50-level after reaching the 40. Technically speaking, the Bears are currently in control of this market, as evident by the move below the 50 SMA and breaking the previous support at $0.2950. For the Bulls to regain some control over this digital instrument, they absolutely need to move above the 50 SMA to stand any chance.
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