The Daily Cryptomenon
28th 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 28.08.2020
The bearish pressure continues to implement its goals; to see everything fall back into certain ranges and probably even lower. This is where we find the Cryptocurrency market as we experience another wave of downward pressure forcing crypto instruments to fall below their important supports, or at the very least, another test to see if breaking them would happen. With that said, let’s find out what today holds for the Cryptocurrencies on August 28th, 2020.
Cryptocurrency Recap
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple have had a mixed bag of movements during the past couple of days. Our trio has seen some serious downward pressure, however, while some have reacted quite heavily to this, others have simply taken things in stride and remained in previous zones without much change. We see Bitcoin attempting to break into the support zone between $11,100 and $11,000, but bouncing higher to reach $11,380. Ethereum remains heavily dependent on $380, as that’s the level which holds all the cards for another move lower. Bears are trying their all to break below that level in order to continue with the downward pressure. Ripple has broken through the $0.2700 support reaching $0.2550 but bouncing from that level towards the $0.2660.
Bitcoin (check out the chart below you’ll find that Bitcoin is the purple line) remains in consolidation mode, however, there seems to be a clear downward bias as the Cryptocurrency records a performance of 3.67% on a month-to-month basis*. Ethereum’s (red line) performance is reacting to every little thing that the price action is doing. While the price action is showing little to no change, performance-wise, things aren’t looking all that well as the cryptocurrency records 21.23% on a month-to-month basis. Ripple (orange line) continues to move lower, especially after the break of an important support as the gains it has garnered seem threatened to be gone. The Cryptocurrency records a performance of 19.73% 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 Bears have finally taken control of the market? Or do you believe that this whole move is a deep correction for the Bulls to gather enough momentum to move higher? Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin Bears Attack $11,000
Bitcoin was overcome by Bears as the Cryptocurrency king was driven back towards the $11,100 level. The dive back to this support level comes after a failed attempt at a rally which saw BTC reach the $11,500 but ultimately failed to hold to any kind of gains forcing Bears to send a message to the Bulls through the dive towards $11,000.
Because of the way the current chess board is set up between the Bulls and the Bears, it seems that $11,500 is the line which Bulls want to cross but Bears are in the way, while the zone between $11,100 and $11,000 is the Bears so desperately want to cross but Bulls are doing all they can to prevent that from happening. It wouldn’t be out of the question to say that the current formation suggests a growing consolidation (at least for the time being) between the $11,500 and $11,000.
When we look at how the RSI (Relative Strength Index) is working, it shows that there’s more downward pressure being exerted on BTC, especially as the indicator is currently printing below the 50-level and above the 40. Traditional analysis of this tells us that there’s more downward pressure to come. However, an interesting point to note is that the 30-level is correspondent with the $11,100 on the price chart indicating that if a move below the $11,000 happens, things will become more chaotic for this instrument.
Ethereum Kissing $400 Goodbye
Ethereum is showing some slight bullish signs especially after the test of the support around $370. Bulls have managed to keep that level in check, however, the road to $400 has been tarnished and it’s going to take a lot of work for that level to be reclaimed. The Analyst Team at CryptoAltum doesn’t really see that happening.
The price is also trading below the 50 and 100 SMAs (Simple Moving Averages) as a show of strength from Bears. This means that Ethereum will have potential resistance levels in the event of sudden bullish momentum. The RSI on the instrument is showing consolidation as the indicator approaches the 50-level indicating neither bullish nor bearish momentum prevailing, so we can expect more of a sideways movement for the time being.
Based on the prevailing technical picture, a move above $400 seems quite unlikely for Ether. However, if the Cryptocurrency is able to rise above said level, buyers would encounter resistance at $402, $406 and $410, which are so close to each other that Bulls will need to break through all 4 levels in one go in order for the bullish momentum to return.
On the downside, there’s an immense distribution of support levels starting at $380, as well as other key support areas including $378, $374 and $366. If push comes to shove, much lower support areas are highlighted at $350 and $345.
Ripple Breaks Below $0.2700
The overall bearishness surrounding this instrument is quite evident with the break below the important support at $0.2700. Ripple didn’t only break below that level but it extended the losses to reach the $0.2550, a level not seen since the beginning of the month, this just goes to show you the extent of the bearish pressure on this instrument.
In fact, the danger of whipping out the gains Ripple has managed to do over the course of the month is quite real. Ever since the double top around $0.3300, the downward pressure has intensified and it’ll only get stronger. The technical aspect of all of this suggests that the downward pressure will continue towards the $0.2400 as that’s the next meaningful support for Ripple. RSI is also proving the same point of increased bearish pressure as the indicator has broken below the 30-level and entered oversold territory.
On the top side, Ripple is facing strong resistances at $0.2700 (Support-turned-resistance) followed by the coveted $0.2950, $0.3100 and $0.3300. This implies the presence of an incredible amount of seller congestion at those levels making it quite hard for Ripple to stage any kind of meaningful comeback. On the downside, apart from the current $0.2550 and $0.2400 supports, there aren’t any levels which show buying presence indicating that the path of least resistance is to the downside.
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