The Daily Cryptomenon
19th 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 19.10.2020
Friday was a hectic day for the Cryptocurrency market after OKEx came out with the announcement that no withdrawals will be processed until further notice, not even providing any kind of explanation which forced the market lower. However, since then there has been some improvement as we saw most Cryptocurrencies rise. With that said, let’s find out what today holds for the Cryptocurrencies on October 19th, 2020.
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - are still struggling with the effects of last Friday as investors worry about the implication of new regulations on the Cryptocurrency market. However, it would seem that BTC and ETH were able to shrug off some of the negativity and rise, hitting their respective resistance. They weren’t able to fully break higher. Ripple on the other hand simply continued to fall lower.
Bitcoin had managed to rise to the occasion as it reached the $11,500 resistance level, but the overwhelming bearish presence at that level forced the Cryptocurrency to fall back towards the $11,450. The momentum remains rather bullish, since the RSI hasn’t broken below the 40-level as we might see some corrections before another attempt higher.
Ethereum was also feeling better over the weekend as the Cryptocurrency managed to rise towards $380 but encountered the resistance and fell towards $375. Just like BTC, ETH is simply showing slight bullish momentum as the RSI still prints above the 50-level. This is actually indicating that there might be another push higher.
Ripple has continued to fall towards the $0.2400 support level, very unlike Bitcoin and Ethereum. This Cryptocurrency is actually showing bearsih pressure as the RSI is printing below the 50 and 40 level.
Bitcoin’s (check out the chart below; you’ll find that Bitcoin is the purple line) performance is printing at 4.22% on a month-to-month basis*. Ethereum’s (red line) performance is printing at -2.42% on a month-to-month basis. Ripple’s (turquoise line) performance is printing at -3.37% 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? Are the Cryptocurrencies going to continue higher? Or is there more bearish pressure surrounding them? Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin on Route to $28,000
It came as a surprise to everyone when OKEx froze all kinds of withdrawals with no viable explanation to excuse their decision, this had caused all Cryptocurrencies to fall heavily as the fear of regulation began to seep through the investor psyche. Bitcoin was of course affected falling from the $11,800 towards $11,200 before consolidating around that level. From that point, the Cryptocurrency was able to rise back higher to test the $11,500 but wasn’t able to sustain a break above it.
At the time of writing, BTC is trading at $11,450 after the recovery from $11,200 and the failed break of $11,500. The 2-hour chart shows the formation of a triangle pattern likely to culminate in a breakout to $12,000. Bitcoin's short-term and medium-term bullish outlook is emphasized by the Relative Strength Index (RSI) 's recovery from the midline. However, with this recovery, the bullish momentum might face some correction after the RSI hit the 70 mark. Notably, trading above $11,800 might call for more buy orders, creating Bitcoin's volume to jump above $12,000.
It’s worth mentioning that the massive bullish outlook may be invalidated if Bitcoin doesn’t get to new yearly highs, let alone the all-time high at $20,000. Moreover, some indicators are showing a temporary decline in network growth, which may affect Bitcoin's performance in the short term.
Ethereum Might Still See $400
The smart contract token experienced an incredibly eventful week, starting with a ballistic rise to $395 and ending with a slump to $360. Investors were expecting a move towards the $400 in the near-term, however, that was invalidated at the beginning of the week, when the $395 rejected the move higher. The downward move was halted due to the support between $375 and $380. On the other hand, the final leg to $360 was triggered by the news regarding OKEx suspending withdrawals on Friday.
At the time of writing, Ether is trading around the $375 after a shallow recovery from the short term support. The Cryptocurrency was able to recover from the supports as mentioned and even reached the $380 resistance, however, the bullish momentum couldn’t be sustained and fell below the 100-SMA (Simple Moving Average) on the 2-hour chart. It’s very important that Ether manages to stay above the 100-SMA, because if this moving average is turned into support, Ether will crank the engines again for the journey to $400.
On the downside, the most important support is the $365 level. Since the beginning of October, ever since Ether managed to bounce from the $335 support, the Cryptocurrency managed to break above the $365 and turn that resistance into a support. As long as Ethereum holds above this zone, gains to $400 are likely to materialize.
Ripple Might Ascend to $0.2560
The positive momentum on Ripple seems to be fading as it falls towards the $0.2400. While BTC and ETH were both able to gain some traction after hitting their respective supports, Ripple still struggles to move higher. We can’t say that this is very surprising especially since BTC and ETH were both breaking resistances on their way higher while Ripple was stuck beneath the $0.2600 unable to capitalize on the bullish momentum.
One of CryptoAltum’s Analysts has highlighted a consolidation range for the Cryptocurrency between the $0.24 and $0.27 levels in which the price is currently in. The range is supported by the 300-Day Exponential Moving Average, while its resistance is the 100-Day Exponential Moving Average. The coin is trading inside a massive descending channel, in the meantime, this accumulation channel has formed towards the upside of the channel. A possible retest of the lower boundary of the accumulation zone may cause a price bounce that will eventually lead to an upward breakout from the huge channel.
The bottom of the trade lies at $0.22, while the wedge’s support was marked at $0.23. The Analyst believes that this Cryptocurrency will break above the wedge pattern soon and extend towards the upside, breaking and testing through a number of higher resistances until it reaches the $0.256 level.
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