Bitcoin Caught Between Rock and Hard Place
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 14.08.2020
Volatility is the looming vibe over the Cryptomarket, that’s for sure! Markets don’t act the way the cryptocurrency market is acting unless there’s an increase of volatility that’s driving them higher. Volatility also makes them prone to random spikes higher or lower as we’ve seen has been happening in the past few weeks. August was supposed to be a dead month for all markets, not just for the forex market, however, during this month we’ve seen these digital assets record higher highs and lower lows completely disregarding the lack of market participants. With that said, let’s find out what today holds for the cryptocurrencies on August 14th, 2020.
Our cryptocurrency trio — Bitcoin, Ethereum, and Ripple, have all set a move higher. While some, yes Ethereum we’re talking about you, managed to extend the upward momentum much higher, others, *cough* Bitcoin *cough*, didn’t even register that major move as a small tick higher on the chart was observed. With this evident presence of volatility, we might find ourselves at the mercy of Bears or Bulls any time of the day. Best keep your eyes and ears open!
Bitcoin (check out the chart below you’ll find that Bitcoin is the purple line) manages to print just a tab bit higher, with a performance of 27.46% on a month-to-month basis*. Ethereum (red line), rockets even higher as Bulls manage to extend the already impressive gains to 77.77% on a month-to-month basis. Ripple (orange line) prints higher as well, however, the downward trend remains in focus. Its performance is 49.47% on a month-to-month basis.
What’s the strategy you’re going to use when it comes to these cryptos? Do you believe that volatility is creating interesting opportunities? Or do you believe that things are way too hectic so you’d rather wait for a clear sign? Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin Caught Between Rock and Hard Place
Bitcoin has been showing resilience ever since the start of the week when it started with a move above $12,000. However, the cryptocurrency hit a wall at $12,084, which led to a reversal, forcing BTC into the $11,000’s range. The largest cryptocurrency struggled to hold on to the critical level, $12,000 then lost traction and pulled the entire market into a fresh selloff.
Bitcoin explored levels close to $11,000 but support at $11,100 gave the Bulls a chance for a reversal. The recovery in the last 24 hours has been steady and consistent except for the fact that the selling pressure is present. For instance, Bitcoin pushed above $11,500 and the resistance at $11,600 but couldn’t rise past the seller congestion at $11,800.
Currently, the cryptocurrency king is trading above the 100 SMA (Simple Moving Average), which has been acting as a support ever since the 50 SMA was broken, and below the $11,800 resistance level. Furthermore, the 60-level on the RSI has been holding any upward momentum at bay. When all of these factors are combined, the picture becomes a bit clearer. Basically, the presence of sellers is quite immense and the Bulls will have a hard time reaching the coveted $12,000. BTC will have to break above the $11,800 cleanly (with no reversal) in order for the upward momentum to be reestablished, or else the Bears will force Bitcoin back down.
Ethereum Breaks Higher
Ethereum has established a new 2-year high around the $433 ($432.93 to be exact). This move was a clean break after the cryptocurrency has been trying to break above the $400 resistance level since the beginning of the month of August. Being caught underneath that resistance, testing it over and over again has got on the nerves of the Bulls, enough to force a major break higher, clearing the previous high and establishing a whole new one.
With the current stance of things, it’s safe to assume that the Bulls are in control of this market despite the presence of sellers at every step of the way. Looking at the levels of resistance, there aren’t any strong or healthy levels to the top side that could prove a big challenge like the $400 level. It could be smooth sailing higher for ETH, while there are plenty of supports for the cryptocurrency, first among them is the resistance-turned-support $400 level.
The RSI (Relative Strength Index) has broken through the 60-level which was keeping any kind of positive momentum at bay and reached all the way to the 70-level. This movement indicates that the force of Bulls is quite strong and might be here to stay for the time being as there seems to be enough bullish momentum to keep pushing ETH higher.
Ripple Attempts to Break Above $0.3000
Ripple has been trading with the downward channel for quite some time now. The cryptocurrency has created quite the impressive rally from the July lows of $0.1740, and the consequent move above $0.30 was music to the investors’ ears. Unfortunately, Ripple soon hit a barrier at $0.3250.
The lock-step trading over the last couple of weeks has mainly been in favour of the Bears because XRP has explored lower levels under $0.3000 and closer to the support at $0.2600. The establishment of credible support at $0.2800 gave buyers the opportunity to push for gains above the 50 SMA, however, the $0.3000 remained a solid resistance that’s tough to beat.
Ripple is on the verge of this channel breakout even as the 50 SMA provides immediate support as Bulls focus on overcoming the upper bound of the channel. If the breakout comes into the picture and is supported by a substantial trading volume, there would be a chance that XRP will extend the price action not only above $0.30 but also beyond $0.32.
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