The Daily Cryptomenon
3rd 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 03.09.2020
Just yesterday were we talking about the downside of the market and how the Bulls have extended their run higher without any major resistance from Bears to keep them in check, however, as they reached critical levels, the Bears retaliated with major damage to the Cryptocurrency market as we see the market falter and seem in a tough position. After what’s done, we can’t say that the Bulls have finished their job, at least not yet. With that said, let’s find out what today holds for the Cryptocurrencies on September 3rd, 2020.
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple had found the bullish momentum they were looking for, but at the same time, they seemed to have lost it when they reached critical levels as all of them turned to the downside and fell heavily. Bitcoin had finally reached $12,000, but that quickly turned ugly for Bulls because the Bears drove BTC back towards $11,300 eliminating the entire move to that point. Ethereum attempted to reach the $500 level, however, the $490 level was in the way and delivered such a blow to the positive momentum which sent ETH tumbling down to $435 removing almost half of the run higher. Ripple has also fallen quite heavily, enough to break below the support at $0.2800, although it had held pretty well previously.
Bitcoin (check out the chart below you’ll find that Bitcoin is the purple line) falls as the bullish momentum seems to have evaporated but remains to print a positive performance of 1.45% on a month-to-month basis*. Ethereum (red line) meets a similar fate as the $490 was too strong for the momentum sending the digital asset falling, but remains in positive territory in terms of performance with 14.76% on a month-to-month basis. Ripple (orange line) deepens its negative move as it spirals out of control showing a performance of -7.97% on a month-to-month basis.
*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? Have the Bulls bitten off more than they can chew and the downward move will continue? Or is it too early to count the Bulls out just yet? Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin Moves Back Towards $11,000
Once again we’ve seen the price of Bitcoin drop back towards the $11,000. After reaching $12,000, BTC couldn’t hold on to any level above it and went on a support crashing spree that saw it break below all the important levels. It seems that the Bears have the upper hand in the market with respect to other major digital assets like Ethereum and Ripple posting similar losses.
If the Bulls increase their entries, they might create more volume in turn pushing Bitcoin above the next key levels at $11,600 and $11,800. The chances of this happening look pretty slim as far as our Analysis desk is concerned. It’s now clear that $12,000 is the most critical level in Bitcoin’s recovery journey.
The Relative Strength Index (RSI) suggests that Bitcoin might be seeing more downward pressure as the indicator is printing below the 40-level showcasing some oversoldness. This suggests that any price action towards $12,000 will remain limited in the coming sessions. Moreover, some technical patterns are showing that if BTC fails to rise back above the previous supports in the upcoming weeks, the bearish pressure will continue driving the crypto downwards, possibly below $11,000.
Ethereum Rejects $500 and Falls
Ethereum advanced above $450 this week and even extended the price action closer to $500, $490 to be exact. A new yearly high was traded at $490 before the second-largest cryptocurrency succumbed to widespread bearish pressure that started a huge fall. The fall from $490 was steep enough that Ether smashed below supportive areas at $460 and $440.
The good thing is that the buyer congestion at $420 gave the Bulls a push that managed to boost the crypto higher, but at the time of writing, ETH had fallen back from $440.The current way this crypto is trading gives reason to believe that another attempt at $420 isn’t out of the question as more bearish pressure is mounting.
The downturn is highlighted by the RSI, as the indicator shows how the crypto has fallen from the overbought territory to the consolidation as it holds just below the 50. If the RSI clings to this level throughout the European session on Thursday, we can expect ETH to spike above the next hurdle at $460. For now, the Bulls have a task to overcome the short term seller congestion at $450.
Ripple Falls To $0.2670
Bears continue to take control of XRP for the second day straight after the Cryptocurrency moved higher towards $0.3050 but failed to maintain any kind of meaningful support as the result was one heck of a move lower reaching the current support at $0.2670. Furthermore, the way Ripple is acting is showing that the downward pressure is far from over and might even extend lower towards the $0.2550.
When looking at the resistances and supports for this instrument, we can notice that the resistances are located around $0.2830, $0.2860 (SMA 20) and $0.2960. On the downside, we have three healthy support levels at $0.2670 (SMA 50), $0.2550, and $0.2440.
The RSI is showing signs of bearishness, not unlike Bitcoin and Ether, as it too has succumbed to the failed bullish momentum that left investors wanting more with no safety net to deter Bears from killing the momentum. With the indicator printing at the 40-level, it basically showcases the extent of the bearish pressure. We can easily deduce that Ripple is more likely to consolidate along with current levels but with some downward bias thrown into the mix.
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