The Daily Cryptomenon
3rd 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 03.08.2020
Volatility was the name of the game during the weekend trading sessions as Cryptocurrencies climbed to their new respective yearly highs and broke through important resistances. However, that was short-lived as the Bears punched the Bulls forcing them to fall back. With that said, let’s find out what today holds for the digital currencies on August 3rd, 2020.
Cryptocurrency Recap
Each of our Cryptocurrency Trio (BTC, ETH, and XRP) reached important yearly-highs during the weekend sessions. The Bulls were ecstatic from the move, so much so that they failed to see the growing selling pressure at some of these levels, which was triggered directly when these instruments hit their respective levels. The aftermath was devastating for the Bulls as all the positive gains that were garnered recently were almost eradicated.
Bitcoin (check out the chart below you’ll find that Bitcoin is the purple line) managed to keep some of the positive performance as it prints 22.58% on a month-to-month basis*. Ethereum (red line), keeps climbing higher despite the recent move lower as it prints a performance of 67.79% on a month-to-month basis. Ripple (orange line) must be the surprise mover because, at some point in the weekend, it managed to take the first position away from ETH, for just a moment, as it prints a performance of 66.95% 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 June till the 29th of July.
What’s the strategy you’re going to use when it comes to these cryptos? Do you believe that the Bulls have lost control? Or do you believe that this is only a speed bump on what’s a rather smooth upward move? Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin Touches $12,000 and Falls
On the 2nd of August, the crypto market turned bearish and the major coins made significant downward movements on their charts.
One of them was Bitcoin, whose price fell towards the $10,600 level after it had moved past the $12,000 mark at the start of the day’s trade. Our CryptoAltum Analyst Team has noticed quite the move for the Cryptocurrency King, as Bitcoin settled back into familiar ranges after the run higher. It’s currently trading between the $11,400 resistance level and $10,900 support level after it had reached a low around the $10,600.
The RSI (Relative Strength Index) is showing increased bearish momentum as the indicator is printing below the 50-level. This same level seems to be acting as a barrier for any upwards move, which is being translated into the price action around the $11,400 resistance level. Furthermore, the 50 SMA (Simple Moving Average) is acting as an important support for BTC. What does that mean? Strong supports and resistances cover Bitcoin on each side, making it quite hard for the instrument to pick a side and move, hence more consolidation can be expected from it.
Ethereum Plummets After Hitting $415
Ethereum is back in the $300 range briefly after trading above $400. The tremendous price action occurred in tandem with Bitcoin’s surge above $12,000. On the other hand, Ether ascended to new 2020 highs above $400, $415 to be precise, trading at a yearly high before the devastating plunge occurred.
Ether is currently trading at $382.86 which is above the 2019 high at $361. Support at this level is expected to continue to hold as buyers focus on making the bullish case to $400. More importantly, the 50 SMA (Simple Moving Average) is the most significant support in the meantime as it managed to keep the Bears from wiping out all the gains the instrument has accumulated. Resistance is expected at $390 but if broken, gains above $400 are likely to materialize.
From a Technical standpoint, Ethereum can still be considered in the hands of the Bulls as seen with the RSI (Relative Strength Index) position above 60. The reversal from the levels above $400 is reflected in the RSI drop from 90 to 65.
Ripple Breaks $0.3250 Before Correcting
What a move on the fourth-largest cryptocurrency during the weekend session! A move that has sent Ripple moving all the way towards the $0.3250 and effectively breaking it, creating a new important resistance on the way at $0.3275. From there, the momentum was a bit too much for the Bulls to handle as they slowed down, giving the Bears a chance to take over and that’s exactly what they did.
Currently, Ripple is trading near the $0.3000 resistance level which has been a previous target for this instrument but it kind of seems to be a rather short-term speed-bump. However, an important speed-bump, failing to break above the mentioned resistance, would force XRP to re-evaluate the current trajectory, as the Bears would have a field day knowing that they can hold such an important level.
The RSI (Relative Strength Index) is currently still showing bullish pressure as it prints near the 60-level, meaning that the overboughtness pressure that was building up, has finally let loose and another wave of bullishness is in the pipeline. As mentioned earlier, though, breaking above the $0.3000 is crucial for the continuation of the bullish pressure, otherwise, we might see XRP fall back towards the $0.2400 around the 50 SMA (Simple Moving Average).
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