The Daily Cryptomenon
7th September 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 07.09.2020
The downwards trend seemed to continue well into the weekend as we see the cryptocurrency market continue to move even lower, effectively eradicating most, if not all, of the positive momentum and gains that it had made during the months of July and August. As September properly kicks off, it seems that the Bears have had their summer vacation and now it’s back to the markets to work; we see them going back in earnest. With that said, let’s find out what today holds for the Cryptocurrencies on September 7th, 2020.
Cryptocurrency Recap
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple have continued to spiral even lower as we see them struggling to hold on to whatever positive momentum they have for dear life. However, even this is no longer an option because the Bears have complete and utter control over the markets for the time being. Bitcoin has extended its negative run below $10,000 indicating just how powerful the Bears are at the moment. It seems to have managed to pull back a tiny bit towards $10,160. Ethereum, on the other hand, breaks below the previous strong support and reaches $310 since a bounce back from that level seems to be underway, with the Cryptocurrency trading around $345. Ripple extends it’s losing streak to reach $0.2300, which isn’t all that bad considering where it had started; $0.1700. As long as XRP is able to maintain a level above $0.2000, Bulls will manage to make another comeback higher.
Bitcoin (check out the chart below you’ll find that Bitcoin is the purple line) continues to print in the negative regions of performance at -14.10% on a month-to-month basis*, the Bears are really taking control with all the power they’ve got. Ethereum (red line) has also been assaulted by Bears as it too suffers quite heavily with a performance of -12.66 % on a month-to-month basis. Ripple (orange line) is the worst-performing of the three with -21.91% on a month-to-month basis, however, with the price action above $0.2000, it can still breathe somewhat easily.
*Please note that we mention month/on/month we mean the same day, one month ago. For example, 1st August till the 1st September.
What’s the strategy you’re going to use when it comes to these cryptos? Will the Bears continue to force the Cryptomarket lower? Or is this a deep correction and a jump from the Bulls is on the way? Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin falls below $10,000
While the Cyptocurrency King managed to trade above $10,000 during the weekend, there wasn’t much upside momentum going on to really kick things up a notch. Support at $10,000 faltered when price action breached it to reach $9,800, however, that was remedied and now Bitcoin trades above around $10,165. The $10,400 remains the level to beat in the current situation just in case BTC wants to move back higher towards $11,000. To be fair, the crypto asset has traded above $10,300 quite a few times over the weekend, however, it didn’t even come close to touching the current resistance, showcasing the power of the Bears at the moment.
The pioneer digital asset suffered a massive blow to the uptrend it had sustained for more than a month towards the end of last week. Before the breakdown, Bitcoin was pivotal between the broken support at $11,100 and the critical $12,000. Gains above $12,000 became unsustainable, exhausting the buyers, hence the freefall to levels slightly under $10,000.
It seems that the overall trend for Bitcoin will continue lower, as it trades below the mean line of the Bollinger Bands and it has tested the lower bound for quite some time now. What’s this though? Is that divergence between the Relative Strength Index (RSI) and the price action we see? Why Yes! Lower highs and lower lows on the price action, but higher highs and higher lows on the RSI indicating that there’s going to be a sharp correction higher for the Bitcoin. However, will it be enough to reach the 50 SMA (Simple Moving Average) at $11,000?
Ethereum Extends Losses
The way Ethereum is currently trading suggests that the second-largest digital asset might be holding on to current levels for the time being. After moving towards the support at $310, buyers and Bulls managed to hold on to that level with strong buying pressure as they attempted to push the instrument back higher.They failed and faltered at $360, with $400 as the level to be beaten in order to have some strong ground for another push higher.
As long as the Bears are able to keep the Bulls from breaking above $400, the downward spiral will continue, the lack of any meaningful support, other than $310, is proving quite the challenge for the Bulls as they need to establish a foothold above $400, as not to continue moving ever lower. However, with ETH trading below the mean line of the Bollinger Bands, it’s hard for the Bulls to attempt another move above $360.
With all this bearish pressure going around, the divergence between the RSI and price action was eventually going to happen. And would you look at that, while the price action is showing a lower higher, the RSI is actually showing a higher high, indicating that a divergence is happening. It’s still in early stages to fully tell if things are going to continue as they are or a correction is going to happen, but it’s an important indicator to take into consideration when planning your next trade.
Ripple Remains Above $0.2300
We’ve always seen Ripple take the worst beating out of all three cryptocurrencies, however, it seems that while performance-wise, it has taken a huge beating, it’s still considered relatively okay price action-wise. Remember, when all of this upward trend started, Ripple was trading at $0.1700 and with all this bearish pressure happening, it still hasn’t broken below the $0.2000. We’d call that a draw as neither the Bulls nor the Bears were really able to make much of a dent into this digital asset.
Currently, $0.2000 is considered to be the line of a skirmish between the Bears and the Bulls when it comes to XRP. Just the idea of Ripple not breaking back towards previous lows when the other two assets were revisiting them has a lot to say about the current resilience of Ripple. However, the bearish pressure is still on this instrument as both the price action and the RSI are showing signs of more downward pressure coming up.
The price action is currently trading below the mean line of the Bollinger Bands indicating more downward pressure mounting on this instrument. Furthermore, RSI has been printing between the 40 and 30 levels indicating that the price action is going to be ranging downwards. This begs the question whether or not the $0.2300 will be able to hold on to this downward pressure.
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