The Daily Cryptomenon
27th 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 27.08.2020
The battle for dominance over the Cryptocurrency market continues between the Bulls and the Bears. Last we left them, the Bears had managed to seize some grounds against the Bulls as we saw major cryptos fall from their levels and break important supports, however, the Bulls couldn’t let this move continue as they stepped up and succeeded in holding the move downwards. This back and forth movement has brought consolidation back into the mix as the sideways action continues to be the most prominent feature of these markets. With that said, let’s find out what today holds for the Cryptocurrencies on August 27th, 2020.
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple have experienced the downside and the Bulls have tried to contain the damage as much as possible, however, some damage has been dealt. Bitcoin’s move higher from the support zone between $11,100 and $11,000 was met with resistance at $11,500 as it currently trades below that level. Ethereum still trades above $380, but just barely, as the downward momentum seems adamant on testing that level yet again. Ripple continues to trade in a sideways motion ever since the $0.2700 held the instrument from experiencing any further declines, while the $0.2800 has turned into a resistance and preventing the instrument from any further upside gains.
Bitcoin (check out the chart below you’ll find that Bitcoin is the purple line) entered into consolidation once again as it records a performance of 10.89% on a month-to-month basis*. Ethereum’s (red line) performance recorded a 26.76% on a month-to-month basis, after the fall that it experienced yesterday. Ripple (orange line) consolidated as well as it records a performance of 18.02% 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 To Consolidate Further
Bitcoin’s price is hovering below $11,500 following another failed attempt at sustaining gains above $11,500. However, it’s impressive that the largest Cryptocurrency is holding above $11,300 following the recent slump that tested $11,100.
BTC’s immediate upside is limited by the 50 Fibonacci retracement level taken between the last swing high of $12,488 to a swing low of $10,542. Also standing in the way of movement is a descending trendline resistance.
From the technical levels observed in the 4-hour range, the prevailing downward trading is likely to last longer. The Relative Strength Index confirms the bearish narrative with its downward motion at 27. This follows a recovery from levels around 30 (reminiscent of the drop to $11,100).
Downward Momentum Prevailing on ETH
Ethereum settled above the 61.8% Fibonacci retracement level after spiralling from levels above $400. Earlier this week, Ethereum recovered from weekend support at $380 and hit a high at $411. Upon losing the steam for sustaining gains eyeing $420, Ether dived towards $400. The bearish leg continued on Tuesday, where ETH/USD held tightly onto the support at $370.
Meanwhile, a shallow recovery has sent Ethereum above $380, with the second-largest digital asset teetering at that level. Indicators such as the RSI show that consolidation is most likely to take over ahead of another breakout eyeing $400.
The RSI is moving horizontally at 52.63 after slowing down the downtrend from the overbought region. If the levelling motion continues, then investors should expect Ethereum to spend some time below $400 while holding unto the support at $380. With that in mind, Bulls would be keen to defend the support at $380 and focus on building the strength to bring down the resistance at $400.
Ripple Consolidates Between Levels
XRP/USD Bulls have eked out an advantage for a second day straight as the price went up slightly from $0.2765 to $0.2772. XRP/USD is presently consolidating in a flag formation and faces strong resistance levels at $0.287, $0.291 (SMA 20) and $0.302. On the downside, there are three healthy support levels at $0.258, $0.2549 (SMA 50) and $0.2448.
The RSI is showing signs of further downward pressure as it falls below the 40-level indicating that the bearish momentum is increasing. The level to beat right now is $0.2700 for the Bears to extend their reach lower, however with the buyer congestion below and at the mentioned level, things will be hard-fought to move any lower.
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