The Daily Cryptomenon
4th 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 04.08.2020
The Bulls keep on charging as their momentum doesn’t seem to be dwindling anytime soon, much to the dismay of the Bears. The movements that we’ve been seeing all contribute to the fact that there are just more buyers in the market than sellers, enough to push the prices higher. With that said, let’s find out what today holds for the digital currencies on August 4th, 2020.
After our Cryptocurrency Trio (BTC, ETH, & XRP) established another wave higher and the subsequent correction, these three instruments weren’t remotely stratified with the gains that they managed to achieve. They’ve opted for another run higher, well at least ETH and XRP, as they’re both currently testing their respective yearly highs, while BTC is simply enjoying a bit of consolidation until the next move becomes apparent.
Bitcoin (check out the chart below you’ll find that Bitcoin is the purple line) stays on the consolidation line with a performance of 24.50% on a month-to-month basis*. Ethereum (red line), attempts a move higher as it prints a performance of 74.16% on a month-to-month basis. Ripple (orange line) is the best performer for the first time in quite some time as it takes the upper hand away from ETH with a performance of 75.93% on a month-to-month basis. This makes BTC the worst performer of the three.
*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 Bulls are taking breaks in between the moves higher? Or do you believe that the Bulls will lose their momentum sooner than later as you sit and wait for the opportunity? Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin Moves Sideways
After the drop towards $10,600, the cryptocurrency has managed to recoup some of the losses as it had printed around $11,260, as the Bears can’t seem to keep the instrument down for too long. More importantly, this move has landed BTC back into familiar ranges, which it’s trying to break above.
Bitcoin is currently battling the break above the $11,500 resistance level, and there seems to be enough bullish pressure and momentum brewing for such a move. Note that the 50 SMA (Simple Moving Average) has been acting as a moving support for the digital asset and there’s been more buyers than sellers in the market forcing the instrument higher. However, for the meantime, it seems that some horizontal (sideways) movement will be the name of the game until a clear break of the mentioned resistance level is seen.
The RSI (Relative Strength Index) is giving another confirmation that sideways movement can be expected from Bitcoin. The indicator is printing right at the 50-level which is a clear sign of consolidation. Add to this the fact that there doesn’t seem to be any trend being established on the indicator nor on the price action further confirming the theory of consolidation.
Ethereum Attempts Another Run Higher
The anticipation of Ethereum 2.0 continues to rise as the activity on the network is surging. One of the CryptoAltum Analysts has recently said that ETH 2.0 will play a key role in the growth of the network. According to this analyst, every phase of ETH 2.0 over the next couple of years will bring Ethereum closer to its final stage and will be “catalysts for ETH.”
This can be seen as Ether moved higher after falling only yesterday towards the $325. That hasn't stopped the bullish momentum, not one bit, as the digital asset rallied higher towards the $400 level, as of this writing, and is attempting another test of the recently established yearly high of $415. Breaking above the $400, which isn’t considered as an important resistance level, will be enough for the Bulls to attempt, and possibly break above, the $415.
The RSI (Relative Strength Index) is showing some upward momentum ever since the correction from the 90-level to the 55-level. Small gradual increases can be spotted on the indicator which is giving Ethereum the needed push higher, not to mention the overwhelmingly positive news that’s surrounding this cryptocurrency. It seems that as long as the drawn trendline in the above image doesn’t break, we can expect another move towards the yearly high sometime soon.
Ripple Seeks $0.3200
XRP/USD Bulls seem to stay in control of the market for the second day straight as the price rose from $0.31 to $0.3181. They were attempting to break above the $0.3200 but failed, forcing Ripple to fall back towards the $0.3085.
Currently, the Bulls are still aiming for the $0.32 level, where they have, and will continue to, encounter heavy resistance. On the downside, there’s a healthy support level at $0.29, meaning that it should be enough to stop any kind of adverse movement against the digital asset. However, the eye of the Bulls is set on $0.3200.
The RSI (Relative Strength Index) is showing increased momentum higher, as the indicator is showcasing an upward moving trendline. More importantly, if one was to look closely enough, they’d find that the 70-level on the RSI and the $0.3200 on the price chart seems to be acting in the same manner showing strong resistances. If the RSI breaks the 70-level, it would stand to reason that a break above the $0.3200 isn’t too far behind.
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