The Daily Cryptomenon
24th 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 24.08.2020
After the cryptocurrency market experienced an increase in volatility over the past week, we find ourselves within an opposite scenario where that same volatility has seemed to simply die down. All the major cryptocurrencies have had their share of movements, whether higher or lower, but as things currently stand, they seem to be content in waiting things out and consolidating until the next catalyst moves them. With that said, let’s find out what today holds for the Cryptocurrencies on August 24th, 2020.
Cryptocurrency Recap
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple have stayed within their consolidation zones as the sideways movement seems to be the dominant force for the time being. Bitcoin has established a support around $11,500 as it trades marginally above that. Ethereum falls below the crucial level of $400, establishing a support around $380. Ripple continues to trade between $0.2800 and $0.2950 as consolidation sets in.
Bitcoin (check out the chart below you’ll find that Bitcoin is the purple line) keeps things as steady as possible recording a performance of 22.05% on a month-to-month basis*. Ethereum (red line) continues its fall from grace as it records a performance of 43.50% on a month-to-month basis. Ripple (orange line) follows the lead of Ethereum and continues to fall as it records a performance of 37.70% 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? Do you believe that volatility will rise back up and move the market? Or do you believe that consolidation and sideways movement has set in? Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin Struggling Against $12,000
Bitcoin continues to struggle to reclaim the lost ground above $12,000. In fact, the weekend session saw the bearish dominance strengthen, sending the cryptocurrency towards the $11,300 area. Support at $11,500 failed to hold just like the support at $11,400. But since then, the crypto asset has managed to reclaim both of those supports as it trades around $11,680.
Despite this recovery, Bitcoin Bulls are having quite the difficult time building enough momentum to take on the $12,000 resistance level. Many CryptoAltum Analysts have believed that should BTC manage to break above $11,600 and maintain that level, it would have a clear path towards $12,000, however, that doesn’t seem to be happening any time soon.
On the downside, Bitcoin is embracing support at the $11,500. Note that, if the bearish leg extends below that level, BTCUSD would eventually dive under $11,400 in a bid to retest the support at $11,200. Besides, $11,000 is still within reach, however, to trade this move, you must be careful, make sure that you have all the needed information at your disposal. On the upside, a confirmed price action above $11,800 would hint the growing potential for hitting levels $12,000.
Ethereum Falls Below $400
Ethereum has revisited the support at $380 on Saturday following an extended breakdown under $400. The rest of the weekend trading remained mundane with attempts to break above $400 falling short again and again. Ether has already climbed to highs above $390 at the time of writing and trading at $392. However, some technical indicators are showing that the upside is somewhat limited. Should those indicators break, the path would be clear to retake the $400 again.
Despite the seller congestion zone being in the way, Ethereum technicals paint quite a positive picture in the near term. For instance, the RSI is showing some signs of bullish momentum building, that is in no way ready to attempt another move higher as the indicator is still sitting between the 40 and 50. Should the RSI find itself above the 50 level, that would signal to Bulls that it’s time for another leg higher.
On the downside, support is envisioned at the $380 level which seems to have slowed down the descent of ETH. Should that level break, Bulls can expect extended losses reaching the support level at $360 as well. However, for now, consolidation is likely to take precedence before buyers build the threshold speed for the flight to $420 and beyond.
Ripple Establishes Support at $0.2800
The third largest cryptocurrency has managed to keep things from spiralling out of control as it established a support at $0.2800. This was the level which Bulls have defended ferociously after Ripple tested $0.3275 the first time and failed to break above. After rising to that level again, establishing a double top, and falling, the $0.2800 was there again to keep things in check.
It is quite important that the $0.2800 is maintained as that is the bottom line of the double top formation that we have discussed previously on this blog. The Bears would be looking to break below the $0.2800 and maintain a level below that, as it would open up the door for additional losses that could reach $0.2530 and $0.2460 by extension. Resistances on the other hand seem to be located at $0.2950, which is quite strong as it converges the 50 and 100 SMAs (Simple Moving Averages), so Bears would be looking to defend that level.
The RSI (Relative Strength Index) is showing consolidation as the indicator is printing at the 50 level meaning that neither the Bulls nor the Bears have a clear advantage just yet. A sideways movement is to be expected going forward.
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