The Daily Cryptomenon
13th 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 13.08.2020
Brace yourselves! It’s going to be a bumpy ride! While the familiar ranges of the cryptocurrencies have held against the Bear assault that led them downwards, it’s still too early to tell whether or not these digital assets will be able to continue to withstand the selling pressure that seems to be mounting higher with every passing day. With that said, let’s find out what today holds for the cryptocurrencies on August 13th, 2020.
Cryptocurrency Recap
Our cryptocurrency trio - Bitcoin, Ethereum, and Ripple, continue to feel the selling pressure that’s being exercised on them, however, they seem able to withstand it so far. That’s because they’re trying to continue to trade within familiar ranges without deviating much from the current narrative. In the last report, we discussed how the Bears are in control of the market, and this is still true, but the Bulls are putting up quite the fight to prevent the Bears from an extended move lower. Time will tell if this will work.
Bitcoin (check out the chart below you’ll find that Bitcoin is the purple line) barely registers any changes in its performance as it continues to print 24.60% on a month-to-month basis*. Ethereum (red line), managed to bounce higher during the overnight session to record 62.70% on a month-to-month basis. Ripple (orange line) continues to trade lower but seems to have managed to level out and print 42.06% 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 will continue to control the markets? Or do you believe the Bulls will strike back sooner or later? Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin Loses Upside Momentum
Bitcoin price could have already said goodbye to the critical level at $12,000. The cryptocurrency was struggling to build momentum above $11,600, at the time of writing, despite recovery from the support at $11,100 on Wednesday. During the overnight session, sellers were there in full force as increased selling pressure was witnessed, especially on the short-term indicating that the Bears are forcing their way back into the market.
Glancing upwards, action towards $10,600 is limited suggesting a possibility for losses under $10,500 coming into the picture in the near term. The 50 SMA (Simple Moving Average) is a key hurdle that must come down to the gains eyeing $12,000 to become actionable. Otherwise, if that line holds the Bulls, we can expect increased selling pressure that could force Bitcoin to revisit the lower levels all over again.
BTC is currently trading between the 50 and 100 SMA where they’re acting as resistance and support respectively. The range is tight, but they’re critical to understanding which way the cryptocurrency is likely to head. If BTC was able to break above the 50 SMS and the $11,700, we can expect more upside momentum, enough to reach the $12,000 all over again. However, a break below the 100 SMA would signal to the Bears that the $11,200 support level is in play and the $10,800 in extension.
Ethereum is Ready for a Break
Not only the CryptoAltum Analysis Team see Ethereum close enough for a break higher, but countless other analysts out there are reading the signals and are coming to the same conclusion. They might have different targets in mind, but the direction is clearly higher. This is surprising considering the massive downside pressure this cryptocurrency is facing. To its benefit, Ether still manages to trade within its familiar ranges.
Ethereum is trading marginally below the coveted $400 level. This comes after an impressive recovery from support confirmed at $370 during the overnight session. Looking to the upside, Ether recently traded new yearly highs at $415. However, it hasn’t been a bed of roses because sustaining the price above $400 is currently out of the Bulls’ grasp. Clearly, the Bears are fighting against them furiously to prevent that from happening.
The technicals for Ethereum don’t show a promising way higher towards the coveted $400 level. This can be observed through the RSI (Relative Strength Index) which is printing below the 60-level. Looking a bit more closely, you’d notice that the 60-level has actually held the index from rising 3 times and this gives them confidence that breaking above it needs significant power from the Bulls. This is translated through the presence of an immense number of sellers at the $400 level and $415 by extension.
Ripple Stays Within Channel
Ripple Bulls are looking to stage quite the comeback, especially after the move lower for the past two days. Buyers are looking at the $0.2900 as the next level of resistance that needs to be taken out in order for the channel to be broken to the upside. With the presence of the 50 SMA, however, it’s going to be quite the battle to even establish a foothold above, let alone a clean break. With XRP currently trading just above the 100 SMA, it gives the Bulls a fall back since this line has been acting as a support ever since Ripple broke the 50 SMA line support.
The presence of 4 support levels compared to 2 resistance levels, signals that the path of least resistance lies higher. The 4 healthy supports are located at $0.2750, $0.2450, $0.2250, and $0.2050. Should there be any downside move, the Bulls have plenty of locations to prevent the Bears from gaining complete and utter control over the crypto asset. On the other side, the 2 strong resistances are located at $0.2900 and $0.3110.
Looking at the RSI, the pressure is definitely downwards for the meantime as the indicator prints near the 40-level indicating that the momentum is to the downside. It seems that this move is translated in the price action with the presence of the 100 SMA which is keeping Ripple from a complete spiral downwards. Should the Bulls be able to increase the RSI back above the 60-level, a move towards the $0.2900 becomes much easier, but for now, it’s an uphill battle for Bulls.
Got any unanswered questions related to trading cryptocurrencies?
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.