Bitcoin — on the verge of breaking out (big time)?
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 20.08.2020
Continued bearishness is the what the current cryptomarket is experiencing. Ever since the cryptoassets managed to move higher, they’ve been struck by a Bear claw and have continued moving lower, so much so, that the gains they managed to make during the rise have all been gone and the markets have reentered consolidation zones, however, downward bias is clearly written all over them. With that said, let’s find out what today holds for the Cryptocurrencies on August 20th, 2020.
Our Cryptocurrency trio — Bitcoin, Ethereum, and Ripple, have continued to move lower, removing all the gains they managed to make and have entered into previous zones that will be hard to get out of with the current downward bias looming over everything. Bitcoin seems to be holding its own around the $11,700, however, how long will that level last is the question. Ethereum still struggles to bounce higher as the current support of $400 seems to be the level to beat for Bears to continue their trek lower. Ripple fell below the $0.2900 level as the downward bias has become too much for this cryptocurrency to handle.
Bitcoin (check out the chart below you’ll find that Bitcoin is the purple line) manages to keep things steady for the moment as it records a performance of 27.18% on a month-to-month basis*. Ethereum (red line) continues to bow to the pressure of the Bears falling even further as it records a performance of 69.37% on a month-to-month basis. Ripple (orange line) is just like Ethereum in terms of performance, as the downward pressure continues to move the instrument lower to record a performance of 44.19% on a month-to-month basis.
- Please note that we mention month-on-month we mean the same day, one month ago, e.g. the 1st of July till 1st August.
What’s the strategy you’re going to use when it comes to these cryptos? Do you believe that the Bears have finally took control of the market? Or do you believe that the Bulls are looking for that meaningful support before another leg higher? Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin Stays Below $12,000
The cryptocurrency king finds itself stuck under $12,000, again. This comes after sharp declines on Wednesday that saw Bitcoin spiral massively from levels above $12,200. Before that, BTC had advanced higher to test the key level at $12,500.
Bitcoin Bulls have been looking for a meaningful support and seem to have finally found a level, which they fully embraced, around the 38.2% Fibonacci retracement taken between the last swing high of $12,495.18 to a swing of $11,119.14, this level comes in at $11,570.
Amidst all of this, Bitcoin did manage to stage a very small recovery, it’s nowhere near enough to stage a complete comeback and don’t even think about breaking above $12,000 were seller congestion is at its highest.
The way RSI (Relative Strength Index) is currently behaving signals that there might be a chance for some consolidation, however, the downward bias still remains as BTC is firmly in the hands of Bears. Bulls have been trying to stage a meaningful comeback, but as long as they are unable to break above $12,000, they will lack the needed momentum to perform any meaningful moves higher.
Ethereum Manages to Find Support
Ethereum appears to have found some kind of support above and around the $400 mark. This comes after a devastating slump from the highs close to $450. The Bulls attempted to take advantage of supports at $430 and $420, however, they failed to rise to the occasion following a BTC-triggered selloff on Wednesday. Ether followed closely in Bitcoin’s footsteps, this time plunging slightly under $400, but managed to recover later on.
Even though ETH has already made a shallow recovery above $400, the presence of a minor resistance at $410 has proven difficult for the Bulls to have a clean move higher. Technical analysis on the daily chart of ETH suggests that the cryptocurrency is not yet done with the levels under $400. We expect to see more downward movements when it comes to Ethereum.
The Bulls are trying their best to keep the cryptocurrency from a continued fall below the $400 level, as well as trying to provide enough momentum to break above the $410 minor resistance. The RSI is also painting a somewhat similar picture as the indicator has reached the oversold territory around the 30 level and bounced back, indicating that Bulls are still in this game, however if they fail to keep the price movement in check, we can see ETH fall back below the $400, and this time it will be hard for the Bulls to stage any kind of meaningful recovery.
Ripple Remains Controlled by Bears
Bears remained in control of Ripple, as the price continued to fall further reaching $0.2870. This bearish price action saw the price dip below the $0.3000 level as well as breaking below both the 50 and 100 SMAs (Simple Moving Averages).
It is quite clear at this point that the market is bearish and seems to continue with this current movement. XRP has two strong resistance levels at $0.2970, which is the convergence between the 50 and 100 SMAs, as well as $0.3100. On the downside, we have healthy support at $0.2800. This gives the impression that the path of least resistance is downwards, so it’s best to keep an eye out for $0.2800, as a break below that level indicated more hardship for the cryptocurrency.
A growing bearish grip is highlighted by the RSI as it currently holds around the 40 level but could drop lower if the technical picture remains unchanged. As things stand, Ripple is going to take a much longer time to rise back above the $0.3000. In fact, the support at $0.2800 and $0.2700 could first be tested before buyers begin to build momentum for a massive breakout like the one on Tuesday.
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