The Daily Cryptomenon
2nd 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 02.10.2020
After the consolidation that has happened for the past week, it would seem that the Bears have had enough of these high prices and decided to attack which left the market in a stupor trying to fend off this recent attack. Bulls have been struggling to pull past some recent resistances that have diminished their momentum that much more allowing the Bears to capitalize and force prices lower. With that said, let’s find out what today holds for the Cryptocurrencies on October 2nd, 2020.
Cryptocurrency Recap
Consolidation has ended for our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - when the Bears struck first, and struck hard forcing our Cryptocurrencies to fall past their current supports. This comes after the repeated attempts to break above recent resistance and failing. Bitcoin failed to rally above the $11,000 barrier which unwound a lot of the bullish momentum that it was gathering causing the Cryptocurrency to fall past the $10,600 support level. In fact it fell below it, failed to close rallied a bit and broke down below that level as it currently trades around $10,430. While Bitcoin has indeed fallen below its support, Ethereum is currently testing the resilience of its own support which lies at the $340 mark. After it failed to break above the resistance at $370, the fall has taken it to test the support instead. Ripple suffered a similar fate to that of ETH and BTC as the Cryptocurrency fell towards the $0.2300 support level which has held the instrument previously. This comes after the Cryptocurrency failed to capture anything above $0.2500 resistance prompting a fall.
Bitcoin (check out the chart below you’ll find that Bitcoin is the purple line) experiences a major fall after it failed to break above the certain resistance prompting a fall in performance to -11.25% on a month-to-month basis*. Ethereum (red line) fell in performance extending its losses towards the -26.15% on a month-to-month basis. Ripple (orange line) fell as well and reached a performance of -21.41% 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? Has the market turned into a Bear one? Or will the Bulls reserve the trend at the next support? Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin Experiences More Losses
Yesterday, we saw a steady increase in Bitcoin above the $10,800 level against the US Dollar. BTC even climbed above the $10,900 level and the 100 hourly simple moving average. However, the bulls failed to gain strength and there was no upside break above $11,000. As a result, there was a fresh bearish reaction and the price declined sharply below the $10,800 support.
There was also a break below a major bullish trend line with support at $10,600 on the 4-hour chart of the BTC. The pair declined below the $10,500 level and settled well below the 100 hourly simple moving average.
If bitcoin fails to recover above the $10,650 and $10,700 levels, there are high chances of more downsides in the near term. An initial support is near the $10,451 low. The first major support is near the $10,350 level, below which the price could slide towards the main support at $10,250. Any further losses may perhaps call for a test of $10,000.
Ethereum Tests Support at $340
While Ethereum did manage to break the resistance at $360, the breakout did not materialize as expected. Instead, Ethereum hit a wall at $370 and embarked on another retreat. The smart contract token slumped below $360 and even tested the critical support at $345. At the time of writing, Ether has made a minor reversal above $350 and is teetering at $352.
The trend seems to be in favor of the bears even as they focus on sending Ethereum back to $320. However, the second-largest cryptocurrency is holding at the 50 Simple Moving Average (SMA) in the 4-hour range. It is essential that bulls work hard to keep the price above this moving average. Otherwise, the selling pressure in the market still has the momentum to force the crypto down the key levels at $345 and $330 for a revisit to $320.
On the flip side, ETH/USD is trading below a descending trendline, forming part of a triangle pattern. Usually, descending triangle patterns signal the continuation of a bearish trend. A break below $320 would send Ethereum to $300 or even worse, $280. But first, the bears have to break the support at $345.
Ripple Remains Bullish Despite Everything
XRP bulls have refused to abandon the delay in the rally to highs above $0.25. They are prepared to fight to the end despite the bearish camp appearing to win the tug of war. XRP is teetering at $0.2330 while dealing with the seller congestion at the 100 SMA in the 4-hour range. A break and above this zone is likely to kick start the leg up to $0.25.
On the downside, XRP is in place due to the buyer congestion at the 50 SMA. The RSI in the same range is below the 40-level, bringing to light the possibility of more downward pressure. It is essential to wait for a confirmed breakout towards $0.25 before going all-in on XRP.
Data is showing that there is the possibility of a move higher as it shows that the inflow of XRP into exchanges surged on September 30. The influx is still at its peak on October 2, suggesting that XRP is on the verge of a breakout that could take down the resistance at $0.25.
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