The Daily Cryptomenon
28th 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 28.10.2020
The Cryptocurrency market has exploded upwards after some correction and consolidation. This is all because of Bitcoin, which was able to break above its resistance levels. This sparked a new motivation in the other Cryptocurrencies to move higher. Unfortunately, they lacked the drive Bitcoin had.
With that said, let’s find out what today holds for the Cryptocurrencies on October 28th, 2020.
Cryptocurrency Recap
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - have all exited their respective correction/ consolidation zones, at least Bitcoin did, as the other two seemed to have exploited the move that Bitcoin made and jumped up themselves. However, they couldn’t hold on to their gains for too long.
Bitcoin has broken through the established quadruple top at the $13,250 level and continued to trade higher reaching a new resistance level at $13,860. From there the sellers seemed to converge around the Cryptocurrency and moved it lower, back towards the minor support at $13,650
Ethereum took complete advantage of the move in Bitcoin as it rallied higher towards the $410 level, but failed to establish a foothold above that level and fell back towards the $400 support level.
Ripple didn’t bask in the same bullish presence that ETH and BTC had. The Cryptocurrency failed to sustain its break above the resistance level and fell back harshly showing that signs of bullish and bearish pressure are competing on this.
Bitcoin’s (check out the chart below; you’ll find that Bitcoin is the purple line) performance is printing at 26.27% on a month-to-month basis*. Ethereum’s (red line) performance is printing at 13.19% on a month-to-month basis. Ripple’s (turquoise line) performance is printing at 3.23% 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? Will there be another move higher in the near term? Or will the Bears control the market for another move downwards?
Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin Continues its Explosive Movement Higher
Over the past week, since October 22nd of this year until October 27th, Bitcoin has been held in a consolidation zone between $12,800 and $13,250. However, that all changed when the Cryptocurrency managed to clear the $13,500 resistance zone and keep its positive momentum going. BTC managed to settle nicely above the $13,500 level which has opened the doors for more gains.
What’s even more important is that Bitcoin managed to gain enough momentum to break the $13,800 resistance, for a short while only. This time was enough for the Bears to step in and correct the Cryptocurrency. A high is formed near $13,851 and the price is showing no major signs of trend exhaustion. If there’s a downside correction, the $13,700 level is an initial support.
On the upside, the $13,860 level is a short-term resistance. The main resistance is near the $14,000 level, above which the Bulls are likely to gain strength for another rally. The next stop could be $14,200 or even $14,400. However, should Bitcoin fail to climb above the $13,850 or $14,000 resistance levels, there’s a risk of a short-term downside correction. An initial support is near the $13,700 zone. The main support is near the $13,600 and $13,500 levels, below which there are chances of a larger decline towards the $13,000 support level (the previous breakout zone).
Ethereum Breaks Above $400 Resistance
Bitcoin was not alone in the rally, as Ethereum was also affected by the move in the Cryptocurrency king. Ether gained traction and climbed above the $395 and $400 resistance levels. The move was so powerful that ETH managed to settle above the $400 establishing a foothold. This movement has opened the doors for more gains above $405, but the Cryptocurrency struggled to clear the $410 resistance zone, forcing a correction to be made.
A high is formed near $410 and the price is currently consolidating gains. There was a minor correction below $408, but the price remains quite bullish with the presence of enough supports to deter any downward move. If there’s a clear break above the $408 and $410 resistance levels, ETH could continue its rally higher as it targets the $418, above which the Bulls might aim a new monthly high above $422.
If Ethereum fails to clear the $408 and $410 resistance levels, there’s a risk of a fresh decline. An initial support on the downside is near the triangle trend line at $400. A clear break below that level would force the Cryptocurrency to continue moving towards the next level of support around $395. Should there be another break lower, Ether could revisit the $385 support zone.
Ripple Reaches $0.2570 Resistance
Ripple wasn’t left out of Bitcoin’s rally, as the fourth-largest Cryptocurrency also climbed higher briefly breaking above the $0.2550 resistance level, reaching the $0.2570 but couldn’t maintain the momentum. Sellers stepped in on $0.2570 and forced XRP to correct lower as it dropped back towards the $0.2500 support level, breaking below the 100 SMA on the 2-hour Chart.
And yet, bullish momentum is still evident in the Cryptocurrency. One of our CryptoAltum Market Analysts believes that the price will ascend above the $0.264 mark soon. As long as Ripple manages to stay above the $0.243, this situation might pan out. Ripple is expected to continue moving higher towards the $0.264. The Cryptocurrency has been testing and falling back from this resistance ever since mid-September.
The current support level for Ripple is seen at $0.245. The Cryptocurrency confirmed this support after falling on the 26th of October. After this fall, the Cryptocurrency returned above the $0.25 mark and has been trading there ever since.
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