The Daily Cryptomenon
17th 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 17.08.2020
There have been some minor upward movements during the weekend session as the Cryptocurrency market moved higher and touched upon major resistances, in some cases, it even broke through them. Technically speaking, it’s a minor move because the distance crossed was rather small compared to the achievements they have previously made. The fun now is observing if they’ll manage to hold onto these levels or not. With that said, let’s find out what today holds for the Cryptocurrencies on August 17th, 2020.
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple, have all set a move higher. However, as previously mentioned, the moves were minor compared to the previous ones they’ve established. Bitcoin remains below $12,000 even though it has managed to rally higher to that level. Ethereum established a new high before faltering a bit and falling. Ripple, however, managed to break outside of the channel higher and consolidated at those levels.
Bitcoin (check out the chart below you’ll find that Bitcoin is the purple line) has managed to consolidate its performance around 29.75% on a month-to-month basis*. Ethereum (red line) has managed to hit a performance of 90% during the overnight session only to give some of these gains back and finally record a performance of 81.86% on a month-to-month basis. Ripple (orange line) has broken the downward trend performance and goes back to recording a performance of 55.83% 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 volatility is creating interesting opportunities? Or do you believe that things are way too hectic and you’d rather wait for a clear sign? Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin Attempts $12,000 and Fails
Bitcoin’s price movements have been mundane, to say the least. Why? Mainly due to its inability to overcome the seller congestion at $12,000. While the momentum stepped above $11,900, Bitcoin traded a weekend high of $11,945 before the sellers took hold of the Cryptocurrency and proceeded to move lower.
At the time of writing, Bitcoin is trading at $11,819, meaning that the Bulls are on the hunt for a higher support, preferably the $11,800. However, the current support for BTC can be found with the double support line of the 50 and 100 SMA (Simple Moving Average). Both of these lines have held back the Cryptocurrency from any further declines and it would be prudent to keep them in mind for the time being.
The Relative Strength Index (RSI) is also in the middle of a retreat from the weekend high at 57. If the movement under the midline continues and the RSI draws near to 30 (which is considered to be the oversold territory), we can expect BTC/USD to extend the bearish leg under $11,800.
Ethereum Records New 2020 High
Ethereum recently hit a two year high following the sustained breakout above $400, and now the Cryptocurrency has climbed multiple resistance zones to record the new 2020 high around $446. Unfortunately, the journey to $500 was short-lived with the current new high acting as a temporary resistance capping any kind of upward movement. Since then, ETH has narrowed down with losses testing a support at the 32.80% Fibonacci retracement level which comes in at $412.
At the time of writing, Ethereum is dancing around $423 amid the search for support, preferably above $420. The sharp declines dominating the market at the moment come after Ether briefly stepped above $430 but failed to sustain gains towards $440.
The RSI is reflecting the free-fall with a sharp drop towards the oversold. In other words, the path of least resistance is downwards. For now, the 50 and 100 SMA are providing immediate support, only that chances of support holding at $420 are growing slimmer as the bearish momentum heightens. The most important supports for the time being appear to be at $410, $400 (former resistance) and $380. Breaking below them would signal the start of a reversal.
Ripple Exits in a Downward Channel
Ripple has remained lethargic in the past few days, as its mundane trading activities around $0.30 come after Ripple ascended to highs around $0.3250. Approximately two months ago, the third-largest Cryptocurrency has performed relatively well, considering where it started back in June at around $0.1700. The bullish action continued over the month of July with XRP breaching the hurdle at $0.30 in the first week of August.
At the time of writing, XRP is trading at $0.3011 following a weak recovery from the short term 50 SMA and the 100 SMA convergence point around $0.2915, which also happened to be a buyer congestion zone and helped avert any kind of further downside movement. The current resistance around the $0.3100 is going to be hard to crack after the several attempts to break higher had failed. Until recently, Ripple has been trading in a downward channel and with the current move higher and the consolidation around $0.3070, we can safely assume that consolidation is back on the menu for the time being.
Ripple Bulls are tasked with several important things; the first is to hold onto the support at $0.30 as this will help shift the attention back to $0.3250 and $0.35 respectively. Secondly, buyers must focus their effort on breaking the resistance above $0.3100 in anticipation of a rally massive enough to boost action above $0.40. Thirdly, any downward movement must be controlled to ensure that losses under $0.30 do not nullify the progress made in the last four weeks.
No matter what your crypto-related question is, feel free to reach out to your CryptoAltum Account Manager or our outstanding Customer Care Team. Your personal and dedicated Account Manager is on hand ready to help you with any questions. If you don’t have a CryptoAltum trading account yet, get one here. You’ll get your very own Account Manager.