The Daily Cryptomenon
1st 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 01.09.2020
Things seem to be looking up for the crypto market after the mid August meltdown that it witnessed, causing all cryptocurrencies to drop back to levels they haven’t seen in quite some time. However, this move was the needed kick for Bulls to get off their couches and take control over from Bears, in an attempt to keep the momentum going higher. With that said, let’s find out what today holds for the Cryptocurrencies on September 1st, 2020.
During the month of August, our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple have been in a consolidation / correction phase as they rose to new highs but fell shortly after, where there has been a steady move lower all through this month. Bitcoin has attempted to break above the $11,800 level but failed to do so as it trades just below that level. Ethereum kept the momentum running as it moved higher in an effort to test the $450 level. Ripple manages to break above the 100 SMA (Simple Moving Averages) as it attempts to break the next target at $0.2950.
Bitcoin (check out the chart below you’ll find that Bitcoin is the purple line) seems to have settled into somewhat of a consolidation zone even though the Bulls are in control of the market as it prints a performance of 2.90% on a month-to-month basis*. Ethereum (red line) continues to separate itself from its cousins as it skyrockets higher printing a performance of 26.36% on a month-to-month basis. Ripple (orange line) barely moves from its current position as the disconnect between it and its cousins continues to widen. The cryptocurrency prints a performance of 8.46% 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? Have the Bulls regained control of the market and things are going to continue moving higher? Or do you believe that Bears will try and put an end to this constant rally? Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin Continues to Test $11,800
Bitcoin has managed to break above $11,500 as the resistance didn’t put up much of a fight against the Bulls assault. It traded as high as $11,784 and recently started a downside correction, as the momentum that was shown wasn’t enough to break above the $11,800 as seller congestion proved too much for the Bulls to handle. Even though the correction sent the cryptocurrency falling towards the $11,550 around the 50 SMA, Bitcoin managed to jump straight back up towards the $11,700 which seems to hold BTC for now.
Currently all the focus is on the current resistance around $11,725. Our CryptoAltum Analysts are saying should Bitcoin manage to break and sustain a move above that level it would mean that the $11,800 is in danger of falling and that means Bitcoin could be on its way to testing the coveted $12,000 all over again.
The RSI (Relative Strength Index) is showing some consolidation pressure mounting but with some bullish bias as the indicator is printing around the 60 level indicating that the Bulls are in charge, but don’t have the needed momentum to perform any kind of move higher hence they consolidate on the highs and slowly but surely move to meet the important resistances.
Ethereum Attempts to Break $450
Ethereum has been moving higher and higher breaking through resistances for this instrument. Ether moved higher breaking through the $430 level which was the first resistance on the way to $450, that move came in after $430 rejected the bullish momentum, but Bulls did not give up easily as they gathered themselves and pushed through that level and continued higher reaching $445 as of this writing, mere inches away from $450.
The bullish momentum is clearly the one that is driving this cryptocurrency higher as the $420 has been designated as the support should Bears wish to break the momentum. However, with such a strong move higher, one that is being supported by the RSI, we doubt that the Bears stand a chance of breaking the current momentum unless the $450 seller congestion proves much tougher than anticipated.
The RSI is printing above the 70 level clearly in overbought territory, however, that also means that the Bulls are in clear control of the market as we have established. The only way that this momentum can be undone is if Bears are able to break and sustain a move below the $420 and the 100 SMA, other than that, any movement lower will only be considered a minor correction, something to fuel the Bulls to keep trying to break above $450.
Ripple Eyes $0.2950
The Bulls are in control of Ripple as of this writing after consolidating between the 50 and 100 SMAs, the instrument has managed a break above the upper bound (100 SMA) and seems to be testing the resistance at $0.2950. It is currently printing above $0.2900 in a clear sign of bullishness. Should the $0.2950 fall the next target for Ripple is seen around $0.3100.
On the other hand, the 100 and 50 SMAs will be considered as important supports that will handle any kind of downward pressure along with $0.2700 which has acted as an important support for quite some time and it just happens to be the level that Bears are looking for in order to change the momentum to their favour.
The RSI is clearly showing bullish momentum as the indicator prints close to the 70 level indicating some overboughtness, but not enough to deter the Bulls from capitalizing on whatever movement higher remains.
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