The Daily Cryptomenon
5th 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 05.08.2020
It seems that the steam has finally run out on the Bulls, the train has reached the station and is now ready for an extended rest. It’s been an incredible move for all Cryptocurrencies involved as the prices soared to new yearly highs when Bulls were taking charge of the markets and driving them higher, much to the disdain of Bears. However, the current consolidation holds an incredible question, have the Bears had enough? With that said, let’s find out what today holds for the digital currencies on August 5th, 2020.
Our Cryptocurrency Trio (Bitcoin, Ethereum, and Ripple) have finally bled the tank dry as the rocket fuel that was propelling them higher has finally run out. It’s been an incredible run, and the Bulls of the markets will say that it’s not over yet as there’s bound to be another move higher. On the other hand, the Bears must be feeling fed up with the entire Bull run and are looking for good opportunities to short the market, they’re just biding their time.
Bitcoin (check out the chart below you’ll find that Bitcoin is the purple line) stays on the consolidation line with a performance of 23.38% on a month-to-month basis*. Ethereum (red line), attempted to move higher but only ended up consolidating gains with a performance of 70.19% on a month-to-month basis. Ripple (orange line) falls back into second place as it fails to keep the gains it garnered printing a performance of 68.02% 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 that the Bulls are taking breaks in between the moves higher? Or do you believe the Bulls will lose their momentum sooner than later as you sit and wait for the opportunity? Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin Continues Its Sideways Movement
Bitcoin Bears eked out an advantage this Tuesday, following a bullish Monday. The price currently sits just barely above the important 50 SMA (Simple Moving Average) that’s been acting as a support for the digital currency, at $11,247.
Examining the chart, the CryptoAltum Analysts see that the $11,550 is considered to be the important resistance at this time while the $10,900 is the important support as they see a lot of sellers and buyers at the levels respectively.
The $11,550-level has the Previous Month high, Previous Week High and one-day Previous High, increasing the likelihood of sellers wanting to defend it. While the $10,900 support level has the 4-hour Bollinger Band lower curve and one-month Fibonacci 23.6% retracement level, giving the Bulls likely targets to enter the market.
The idea of consolidation is really cemented by the movement of the RSI (Relative Strength Index) which is currently printing right at the 50-level indicating neither bullish nor bearish momentum that exists for this instrument. So the best play has to be a wait-and-see approach until something moves the needle in either direction.
Ethereum Gets Rejected at $400, Again
The price of Ethereum hasn’t changed much during the past couple of days despite the massive crash down to $330 suffered on August 2. It’s still fighting to break above the $400 level which is offering quite a bit of resistance as twice now it has tried to break above it (after the crash) and twice it has failed, earning it enough brownie points with Bears to be categorized as a resistance.
Furthermore, Ether has broken through the trendline that was drawn yesterday, but not in the manner Bears hoped for, as the movement was sideways. Technically, it wasn’t a clean break. This indicated that the Bulls still have some power with this digital asset to counteract any Bearish momentum, much to the disdain of sellers.
Adding insult to injury, while the price action is showing some kind of consolidation with its sideways movement, the RSI (Relative Strength Index) is telling us a different story. While both seem to be moving in a sideways manner (price action and RSI), the RSI is printing around the 60-level instead of the 50, meaning that the bullish momentum hasn’t gone and the possibility of a retest of the $400 level isn’t out of question.
Ripple drops Below $0.3000
Ripple Bears remain in control for the second day straight, dropping the digital currency below the $0.3000, which has been acting as a line of skirmishes between the Bulls and Bears. The analysis shows that the currency has only one strong resistance level at $0.3215, which has the one-day Previous High and one-month Pivot Point resistance-two.
However, on the downside, we have two healthy support levels at $0.29 and $0.26. $0.29 has the one-day SMA 5 and one-month Pivot Point resistance-one, while the $0.26-level has the Previous Month high, Previous Week high and one-day SMA 10, giving these two levels enough ammunition to stop any further declines.
The RSI (Relative Strength Index) is showing a lot of Bearish pressure building up on XRP, as it continues to move lower towards the 50-mark. If the indicator breaks below that level, it would signal that a reversal of the digital asset has occurred and we can expect more downside momentum to prevail. Bears seem to be ecstatic with this news.
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