The Daily Cryptomenon
8th 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 08.09.2020
After the devastating moves of the cryptocurrency market, it wasn’t totally irregular that we see some sort of correction higher or a consolidation around the current levels of the markets. The bearish pressure that almost wiped out all the gains that Bulls made during the past 2 months, has somewhat decreased, but the presence is still very much alive. With that said, let’s find out what today holds for the Cryptocurrencies on September 8th, 2020.
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple have managed to limit their losses to their current levels as we didn’t experience any major drawdowns during the overnight session and things were relatively normal without major changes. It would seem that the momentum downward has somewhat decreased and our trio are stuck in unfamiliar ranges. Bitcoin has attempted to rise above $10,400 but failed only to drop back towards $10,280 as seller congestion on every level seems to have made its way back into the market. Ethereum attempts another go above $360, but the bearish pressure forces the instrument back towards the $345. Ripple’s dreams of another move above $0.2550 seem to be going up in flames as $0.2440 is acting as an interim resistance, one that Bears fully intend to keep as it establishes a foothold for them against any upward movements.
Bitcoin (check out the chart below you’ll find that Bitcoin is the purple line) seems to be consolidating its losses around a performance of -11.08% on a month-to-month basis* as Bears and Bulls take stock for the next move. Ethereum (red line) hasn’t had any better luck then the rest of the cryptos as it too has continued to experience a massive loss with a performance of -8.51% on a month-to-month basis. Ripple (orange line) continues to be the one that takes the frontal attack as it continues its losing streak with a performance of -17.79% 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? Will the Bears continue to force the Cryptomarket lower? Or is this a deep correction and a jump from the Bulls is on the way? Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin Settles at Lower Bound
Caught between two important levels, Bitcoin trades between the recently established support at $9,900 and the current resistance level at $10,600. This comes into effect after the cryptocurrency king took a right hook across the face sending it tumbling down from the highs around $12,000. However, this move wasn’t unique to BTC since all cryptos, both majors and minors, lost key positions and explored lower levels.
With that said, Bitcoin is facing a tough challenge to rise back higher as three acute resistance at $10,400, $10,500 and $10,600, stand in the way, not to mention the increased number of sellers at those levels. Our CryptoAltum Analyst Team believes that once BTC is able to cleanly break above all of those levels, the price would easily elevate to areas higher than $11,000. On the other hand, support is seen around the $10,200, $10,000 and $9,900. Should Bears manage to break below that last support, we can expect further losses which would be eyeing $9,000.
Looking at the RSI (Relative Strength Index) we see that the indicator has gone higher reaching the 50 level. According to traditional analysis of the indicator, this move tells us that the downward momentum is actually losing steam and the next course of action is to consolidate at current levels. However, this doesn’t rule out the probability of another move lower to test the bottom of the range at $9,900.
Ethereum Attempts Move Higher
Ethereum was able to establish a strong support around $310, and has been looking to move higher since then, it has gone as far as to recover above the $320 and $335 resistance levels. This move gives ETH the right to say it has entered into a short term positive move. Furthermore, there was a break above the 50% Fib retracement level of the downward move from the $360 swing high to $323 swing low.
More importantly, there was a break above a major bearish trend line with resistance near $351 on the hourly chart of ETH/USD, all of this is giving Ether the needed fuel to try to move higher when the right moment comes along.
On the upside, there is a strong resistance forming near the $360 level and the 50 SMA (Simple Moving Average). A clear break and close above that level would indicate the Bulls have regained their mojo and the next target would be the resistance at $490. The next stop for the bulls is near the $360 as that is the major resistance level that Bears are looking to defend.
Ripple Holds on to Strong Support
From the peak price of 33 cents per XRP to a local low of 22 per token, it represents a 30% fall within just three weeks. The abrupt and severe crash sent sentiment shifting toward fear, but not quite yet to the pandemic panic levels of Black Thursday.
After an over 200% rally from 2020 lows, any correction may have simply been profit-taking and is nothing more than a healthy correction. It’s just due to how fast it happened that has crypto investors shaken. Our CryptoAltum Analysts are calling the recent crypto market price action a bullish retest of resistance turned support. And according to the Ichimoku indicator, that is exactly the case for XRPUSD.
The RSI is showing signs of decreased momentum as the indicator is simply rising towards the 50 level and that tells us that momentum is actually decreasing. Furthermore, when you compare the price action to the RSI we notice that there is a slight divergence still present and that would indicate a major shift in how either RSI is operating or how the price action will move.
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