The Daily Cryptomenon
2nd 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 02.09.2020
The cryptocurrency market seems to have continued to play host to the Bulls of the market as we see another wave of upward pressure make its way into this market and help these digital assets climb higher retesting important supports although many market participants said this won’t happen. We believe that they must be feeling pretty vindicated right about now, but what about the downside? With that said, let’s find out what today holds for the Cryptocurrencies on September 2nd, 2020.
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple seem to have found enough positive momentum, especially due to the presence of the Bulls in the market. These Bulls have played an important role in pushing the markets to test those levels that were thought to have had their chance. Bitcoin has finally reached $12,000 in overnight trading, but seller congestion forced the cryptocurrency back below that level as it trades around $11,870. Etherum has finally broken through the $450 level which has been acting as the ceiling of the instrument. The cryptocurrency continued to move higher reaching $490 but getting regretted and falling only slightly from that level. Ripple wasn’t left out of the action either as it moved past $0.2950 after testing multiple times, now the digital asset is attempting to continue moving past $0.3000, however, that’ll be a tough battle.
Bitcoin (check out the chart below you’ll find that Bitcoin is the purple line) continues to move. Technically, that’s considered to be a consolidation matter as it has barely registered a 4.00% on a month-to-month basis*. Currently, the Cryptocurrency prints a performance of -1.06% as it attempts to enter the positive region again. Ethereum (red line) continues to zoom past all of its competitors higher leaving everyone in its dust as it records a performance of 16.76% on a month-to-month basis. Ripple (orange line) is showing signs of a recovery after the fall from the highs during August as it currently records a performance of -7.60% 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 reached their target and it’s time for them to take a break? Or are the Bears going to take back what they can get their hands on from the Bulls? Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin Briefly Visits $12,000
The upward momentum of Bitcoin, that’s gone head-to-head with the greatest guardian, Gold, has been put on hold for the time being. Interestingly enough, this correlation between BTC and XAU grew significantly after BTC’s dive to its lowest price of the year in March ($3,800).
On the other hand, the correlation between Bitcoin and the traditional market has dwindled. For instance, as Bitcoin stalls, the stock market in the US records massive gains mainly supported by a series of favouring political and economic developments. So there seems to be a divergence between markets and Bitcoin, while a convergence between Bitcoin and XAU. We’re left with no chance but to believe that we might be looking at the next safe-haven as Bitcoin elevates its status as a safe asset.
Instead of Bitcoin leading the pack, it seems the Ethereum has been the trigger as Bitcoin followed Ether higher. This time, BTC rallied past the resistance at $11,800, briefly stepping above $12,000. Unfortunately, an immediate reversal saw it plunge to retest support at $11,800, where it currently trades around $11,890.
Buyers have their eyes on $12,000. A move beyond this key zone is supposed to boost BTC above the next critical zone at $12,200. The uptrend still has potential, but the price action would most likely be limited. Our CryptoAltum Market Analysis Team predicts that Bitcoin will close the year trading above $18,000. This means that the Bulls must ensure that they break above a formed rising wedge pattern resistance. Otherwise, a reversal under $11,000 would kick start a free-fall to $10,000 in the coming weeks.
Ethereum Breaks $450 and Targets $500
Ethereum has for the first time since mid-2018 traded close to $500 (currently a psychological resistance). What makes this rally so special is that it’s completely independent of Bitcoin's move above $12,000. In fact, it was the trigger that helped Bitcoin reach that level. Ethereum’s growth is reflective of the surge in the value of Decentralized Finance (DeFi) protocols such as Yearn.finance and Band Protocol.
The trading on Tuesday saw ETH bring down several seller strongholds such as $450 and $470. The Bulls extended the price action upwards, eying $500 but a barrier at $490 temporarily paused the breakout. The Bulls remain in control of this crypto asset as it’s not every time a new leader of cryptos emerges.
At the time of writing, Ethereum is teetering at $480, following a minor retreat from the highs not seen since July 2018. Support is seen around $450 in order to give the Bulls time to stage another attack on $500. Further up, the next target after $500 is $550; a prediction that depends on technical levels remaining intact in the short term.
Ripple Moves Past $0.2950
Ripple’s price is currently hovering just below $0.30, this movement came after it was able to break above that level, but was met with sellers that defended it. The move higher comes after a significant growth pattern from the weekend lows at $0.26. There was an extreme struggle at $0.29 but the generally up-trending Cryptocurrency market made it achievable. Over the course of the past month, XRP spiked above $0.30 several times but failed to hold above $0.3250 (monthly high). This dented the Bulls’ morale because containing the gains above $0.30 became a big challenge.
The surge above this critical level comes amid Tether (USDT) expanding its market share. This isn’t the first time XRP is losing its predominantly third position to the largest stable coin. At the time of writing, data by CoinMarketCap shows USDT’s market capitalization at $13.432 billion. It’s marginally higher than that of XRP; $13.430 billion.
The technical picture is in support of the bullish trend experienced from the support provided by the 61.8% Fibonacci level of the last swing high at $0.3469 to a swing low of $0.1109. For now, buyers will remain at the helm of the price actions but in case of a reversal below $0.2950, the 50 and 100 SMA (Simple Moving Average), on the 4-hour chart, will come in handy.
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