Bitcoin To Reach $11,000
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 26.08.2020
While the cryptocurrency market struggled to move higher and continued to move in a sideways fashion, Bears were plotting their next move and it was time they acted according to that plan. The result was a move lower, breaking through important supports and establishing a new trend. At the very least, it’s a decent correction from the highs the market has been experiencing. With that said, let’s find out what today holds for the Cryptocurrencies on August 26th, 2020.
Cryptocurrency Recap
Our Cryptocurrency trio — Bitcoin, Ethereum, and Ripple are done with their upward movements, for the time being. They’ve reached lows that’ll make it very hard for the Bulls to stay in control. So, the control is transferred over to the Bears whose prime objective is to move the Bulls even lower. Bitcoin failed to hold the movement at $11,500 as the Cryptocurrency fell towards the $11,100, but managed to move higher from there. Ethereum’s prime support at $380 managed to prove its worth, but the price action did break below that level for a time, yet the closing stayed above it. Ripple’s $0.2800 support failed to keep things in check as the price action broke through it and reached the $0.2700; it’s currently trading just marginally above that level.
Bitcoin (check out the chart below you’ll find that Bitcoin is the purple line) fell from the consolidation zone it had reached to record a performance of 17.20% on a month-to-month basis*. Ethereum’s (red line) performance fell as well, considering where it was and where it’s currently trading, we have to say that it’s quite the move lower as performance has declined to 27.10% on a month-to-month basis. Ripple (orange line) followed its older cousins and fell as well mirroring the intensity of Ethereum. Ripple’s performance records 25.83% 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 the Bears have finally taken control of the market? Or do you believe that this whole move is a deep correction for the Bulls to gather enough momentum to move higher? Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin To Reach $11,000
The move towards $11,000 wasn’t totally out of the blue, there’ve been signs of a move lower. However, the timing of the move is what actually caught most traders off guard. At the beginning of the week, the Cryptocurrency king was seen targeting the $12,000, however, buyers failed to gather the right amount of volume to sustain gains. This was music to the Bears’ ears as they sought to gain traction, forcing Bitcoin below critical support areas like $11,600 and $11,400.
Bitcoin explored levels around $11,000, however, the Bulls made sure that they left the support at $11,000 untested. Bitcoin has managed to keep those levels in check and bounced back a bit. This has led some of our CryptoAltum Analysts to believe that the move towards $12,000 is still possible, but the right volume and momentum must be available to achieve that feat.
The RSI (Relative Strength Index) has definitely hit the oversold area of the indicator as it prints around the 35-level. This means two contradictory things, the first is that the bullish momentum that we’ve been seeing has vanished and we should expect even more downward movements. The other thing is that there’s going to be a bounce from the current levels in order to elevate some of the downward pressure to continue with the current move.
The $380 Keeps Ethereum in Check
The $400 has been the unattainable level for Ethereum. As the Cryptocurrency continues to try to sustain a break above, the Bears are quick to intercept and force Ether lower. This time a downward reversal from the weekly high traded at $411 on Monday has seen Ether plunge to $369. However, with the buyer congestion zone between $360 and $380, Bulls were able to reestablish the $380 as the support to beat.
Meanwhile, ETH/USD has recovered slightly and stepped above $380. It’s flirting with $385 amid the push by the Bulls for highs above $390. Consolidation is still quite out of the questions especially as the RSI is printing around the 40-level indicating slightly bearish momentum.
Technical indicators are showing that a move back towards the $360 can’t be ruled out just yet. However, the sharp and nerve-shattering declines are unlikely owing to the fact that the 50-day SMA is still extending the gap lower than the longer-term 100 SMA. It’s apparent that gains above $390 would open the door for action beyond $400.
Ripple Breaks Below $0.2800
The downward move that was discussed in the previous blog has extended its move below the $0.2800, as Ripple follows with the same movement that we’ve seen on Bitcoin and Ethereum. XRP Bears have finally cracked the $0.2800, after an entire month of attempting to move past it and failing. This was only a matter of time especially after the Bulls failed to grab a solid position above the $0.3000.
The move lower extended towards the $0.2700 which has held the downward movement for now and has managed to create a small bounce as it tries to take the $0.2800 once again. If this actually happens, it would be considered a great blow to the Bears as it means that they still don’t have enough momentum to move lower.
The RSI is showing signs of increasing bearish pressure especially after that move higher which was capped by the 50 and the move lower that extended to the 30, meaning that bearish pressure is mounting on this instrument and it means that we can expect even more movements lower. The question now is whether or not the $0.2700 would be able to hold, and what would be the new skirmish line for Bulls and Bears after the $0.2800 has been overtaken.
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