The Daily Cryptomenon
15th October 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 15.10.2020
The Cryptocurrency market hasn’t been able to keep a hold on the bullish pressure that has been experiencing and it actually fell from the resistance levels and back into regions where the Bulls first started the move higher. There was another attempt to move higher which was thwarted as soon as it started as the first level of resistance quickly rejected the move higher. So where does that leave the Cryptocurrencies? With that said, let’s find out what today holds for the Cryptocurrencies on October 15th, 2020.
The move higher that captured important resistances has faded back into the backend of traders’ mindsets and that left our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - falling back into ranges where the bullish momentum started and have seemed to have entered into consolidation mode. Bitcoin has tried to break higher above the $11,500 resistance level but that level wouldn’t have that as it rejected the bullish momentum and forced BTC to move back lower as it trades around the $11,390, it would seem that the Cryptocurrency is still stuck between the $11,500 on the upper end and $11,250 on the lower. Ethereum moved in a very similar fashion to Bitcoin, as ETH attempted to move higher, essentially to test the $390 but failed and the result was a move to the downside to test the support level at $373 from which a minor bounce has been witnessed. While BTC and ETH were able to enjoy some of the fresh air on the highs, Ripple simply couldn’t break the barrier at $0.2600 even though it attempted it multiple times and each time it was rejected. Now, XRP fell below the 100-SMA (Simple Moving Average) on the 2-hour chart and even reached the support at $0.2450 from where it managed to bounce slightly.
Bitcoin (check out the chart below you’ll find that Bitcoin is the purple line) retreated even further after the $10,500 was rejected and that of course has affected the performance of the Cryptocurrency which records 4.72% on a month-to-month basis*. Ethereum’s (red line) couldn’t sustain the positive momentum as it too has dropped to its own support but that has turned performance negative once again which records -2.60% on a month-to-month basis. Ripple (turquoise line) experienced the biggest drop of all three Cryptocurrencies sending its performance into the negative region, recording -1.97% 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 September till the 1st October.
What’s the strategy you’re going to use when it comes to these cryptos? ? Have the Bears taken over the Cryptocurrency market? Or is this a short-term correction before the Bulls continue with the base uptrend move? Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin's Upward Move in Danger
In the past three sessions, there were mostly range moves in Bitcoin which focused below the $11,560 and $11,500 resistance levels. It seems like BTC made two attempts to surpass the $11,560 level, but it failed to gain the needed bullish momentum to accomplish that. The last swing high was near $11,560 before the price declined below $11,400. It traded as low as $11,302 and it is currently correcting higher. There was a break above the $11,350 level, plus the 23.6% Fib retracement level of the recent decline from the $11,560 high to $11,302 low.
Bitcoin is currently facing an immediate resistance is near the $11,430 level since it is close to the 50% Fib retracement level of the recent decline from the $11,560 high to $11,302 low. The way things are structured for the moment, as long as Bitcoin is unable to properly break above the $11,500, the chance of another move higher dwindles with each passing candle.
Should BTC fail to surpass the $11,500 and $11,560 resistance levels, there is a risk of a bearish break. The triangle support is near the $11,320 level. The main support is near the $11,230 and $11,200 levels, below which the bears are likely to aim for a larger downside correction. The next immediate support could be $11,000, below which the price might slide towards $10,500.
Ethereum’s Move Higher Encounters Strong Resistance
After rising steadily from $335 to $395, the price has encountered resistance and has dropped slightly to $378. Currently, the smart-contract token is attempting to rise back above the 50-SMA on the 2-Hour chart as the drop was followed by a minor bounce. The MACD and RSI are showing that the market momentum is still bullish, so it could be possible that the price is going through a short-term retracement before making another charge towards the $390 resistance line.
If the Bulls break past the $390 resistance line, they should have enough momentum to make a break for the $485 resistance and enter the $500-zone. As per the technical picture, there aren’t any strong resistance levels between $390 and $485.
The Bears can take control if they manage to break below the current support at $373, which is proving itself to be a strong support wall. Breaking below this will throw ETH down to the 100 2-Hour SMA which currently sits around the $365. These two levels should be strong enough to absorb any selling pressure, capping off the downside at $350. Any break below that will drop the price towards the support level at $335.
Ripple’s $0.3000 Move Still in Play
The cross-border token has recently hit a wall at $0.26, as XRP attempted to break above that level multiple times but failed each time. The barrier came after XRP found support at $0.22 and recovered steadily. This has delayed the bullish narrative to $0.3 by the seller congestion at $0.26.
Meanwhile, Ripple has managed to bounce from the support at $0.2450 and currently trades just below $0.2500. Probably, buyers feel exhausted due to the several rejections suffered at $0.26. However, XRP is accorded with immense support, likely to absorb the selling pressure. Not to mention that Swell is right around the corner which is the Ripple virtual conference which usually gives a mighty boost to the Cryptocurrency so one must keep an eye out for that.
XRP is seeking support around the $0.2450 which held the Cryptocurrency for a major move lower. Its immediate upside is capped by resistance at the 100 2-Hour SMA around $0.2525. Consequently, the Relative Strength Index (RSI) emphasizes the ongoing bearish momentum as it dives towards the oversold area. It is worth mentioning that another rejection could come into the picture if buyers fail to gather enough strength to clear the critical hurdle.
No matter what your crypto-related question is, feel free to reach out to your CryptoAltum Account Manager or our outstanding Customer Care Team. Your personal and dedicated Account Manager is on hand ready to help you with any questions. If you don’t have a CryptoAltum trading account yet, get one here. You’ll get your very own Account Manager.
For more market updates go ahead and visit our Blog