The Daily Cryptomenon
18th 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 18.08.2020
The only possible way to explain what’s been happening in the cryptocurrency market lately is by saying that the market has been experiencing bouts of extremely bullish behaviour, followed by some consolidation or minor retracement. It’s as if the Bulls are simply emptying their entire clip on a single move, then market participants are stuck waiting for the reload to happen so the shooting can commence all over again. With that said, let’s find out what today holds for the Cryptocurrencies on August 18th, 2020.
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple, continue to move higher as Bitcoin majestically breaks through the $12,000 resistance and is currently trading above that level. That’s not all, Ethereum and Ripple have experienced a move higher with ETH attempting to break above the $445 once again. Then there’s Ripple that reached the $0.3275 resistance but failed to break it. Both of these moves suggest bullishness roaming in the air.
Bitcoin (check out the chart below you’ll find that Bitcoin is the purple line) manages to break above the $12,000 to record a performance of 34.14% on a month-to-month basis*. Ethereum (red line) has managed to hit a performance of 90%, but failed again, only to give some of these gains back and finally record a performance of 83.79% on a month-to-month basis. Ripple (orange line) continues with the upward momentum as the third-largest cryptocurrency records a performance of 62.25% on a month-to-month basis.
What’s the strategy you’re going to use when it comes to these cryptos? Do you believe that the Bulls have enough rounds in the chamber to attempt another move higher? Or do you believe that they’ve fired all their shots and don’t have anything left in the chamber? Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin Majestically Breaks $12,000
Bitcoin was finally able to mark its presence above the royal $12,000 on Monday and even made it all the way higher to $12,492, effectively marking a new yearly high for the cryptocurrency king. This move has finally come after BTC tried everything to get above, but stalled under $12,000 for more than two weeks.
The move to this level is important, as this Crypto has explored the levels above $12,000 twice in August but in both times, the trend culminated in losses into the $11,000’s range. The losses refreshed levels closer to $11,000 where support at $11,100 was embraced before a recovery ensued towards the end of last week.
At the moment, BTC is teetering at $12,266 following a shallow bullish reversal from $12,218. Bulls seem to be still in control of the price action. The next target on the upside is to overcome the resistance at $12,500, which will aid in shifting the attention back to $13,000.
The Relative Strength Index’s (RSI) reversal from the overbought zone at 70, has somewhat slowed down as it currently prints around the 65-level. This move showcases that a horizontal or sideways move is highly probable given the current circumstances. This means that consolidation is likely to occur in the near term before buyers stage the attack on $12,500. If the Bulls lose grasp of the market, they’d definitely try to establish strong support at $12,200, $12,100 and the former resistance at $12,000.
Double Top Emerges on Ethereum
During the past couple of days, Ethereum’s price action has been building on the support established above $410. ETH has been having trouble continuing higher, especially above the $420, however, when Bitcoin broke out to highs of $12,492, Ether found the needed momentum to be carried upwards.
The second-largest Cryptocurrency by market capitalization rose to trade at new yearly highs at $447. Not too long ago, Ether reached the $445 level establishing a previous high, but the sellers couldn’t stop as they rushed in, attempting to have their revenge on this bullish market.
The hurdle at $450 led to the formation of a near-perfect double-top pattern. This pattern usually leads to a reversal from the highs traded. In the same way, Ether plunged to seek (maybe to confirm) support at $420 before buyers plan the next run-up eyeing $500.
From a technical perspective, Ethereum is likely to take up sideways trading especially with the RSI holding around the 50 level. It’s safe to assume that once Ether tests the current support level at $420, we’d have a clearer view of what’s the next move for this cryptocurrency. Judging from the current structure of supports and resistances, the presence of important supports that expand from $420 until $360, we believe that the path of least resistance for this crypto is higher.
Ripple Extends Its Bullish Run
Ripple Bulls have stayed in control for the past three days. The most recent move shows the price going up from $0.3157 to $0.3275 in the early hours of Tuesday. This move shows exactly how the Cryptocurrency has extended the bullish run when it first broke through the downward channel and now when it tested the important resistance at $0.3275 essentially creating a double-top pattern. Just like we explained about Ethereum, a double top pattern usually symbolizes a reversal.
However, just like Ethereum, the composition of supports and resistance gives the impression that there’s more support than resistances; upward move is more likely. Currently the Bears seems to be handling things and leading the Cryptocurrency lower ideally towards the former resistance around $0.3050. The Bulls are likely to step in there and prevent any further downward movement, otherwise, Ripple will enter into the downward channel boundaries all over again.
The relative strength index (RSI) shows that the price is creeping along the edge of the overbought zone as it currently prints close to the 60-level. This indicates that the asset is presently slightly overvalued, however, there’s more sideways or horizontal pressure on this asset than any downward pressure.
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