The Daily Cryptomenon
12th 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 12.10.2020
Over the weekend, the Cryptocurrencies found their missing jetpacks, stole them and decided to use them to move past their respective resistances. However, they only managed to reach certain levels, as the main important resistances remain intact for the time being. With that said, let’s find out what today holds for the Cryptocurrencies on October 12th, 2020.
Upwards and onwards, that must have been the calling card of the Cryptocurrencies over the weekend as the move higher can only be characterized as such. We’ve been talking about a move higher for the past couple of days and our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - finally found the needed momentum to catapult themselves higher. Bitcoin is the most obvious winner of the bunch as the Cryptocurrency had finally broken through that pesky $11,000 resistance and reached a high of $11,500 before retreating slightly, but still close to the mentioned level. Ethereum wasn’t left out of this move higher and was inspired by Bitcoin’s move. The latter found the time being a great time to break above the $360 resistance level and target the $380 as it continues to make its way towards the $400 level. Now while Bitcoin and Ethereum were able to break above their resistance levels, Ripple found it extremely hard to break above it. Ripple reached its previous resistance at $0.2600 and failed to break above it, but hasn’t dropped too far from this level which signals that there might be another move higher
Bitcoin (check out the chart below you’ll find that Bitcoin is the purple line) managed to break above that $11,000 resistance showing that the Bulls are in control and hence its performance rose to 10.00% on a month-to-month basis*. Ethereum (red line) remains the worst performing Cryptocurrency out of the three despite the move higher it witnessed over the weekend. It records a performance of 1.25% on a month-to-month basis. Ripple (turquoise line) wasn’t able to break above the resistance level at $0.2600, but it still managed to maintain second position in terms of performance as it recorded 5.07% 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 the Cryptocurrencies break through the next levels of resistance? Or will the Bears stand their ground and prevent that? Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin Tops at $11,500, Targets $12,000
Bitcoin was finally able to break above the extremely stubborn resistance at $11,000 and continued to move higher in an impressive show of bullish strength that ended when Bitcoin hit $11,500. However, the tremendous bullish pressure appears to have taken a pit stop in the range between $11,200 and $11,500. It would seem that BTC Bulls are taking some time to recover from that impressive run, before they attempt to move higher reaching the elusive $12,000.
Despite bullish action stalling at $11,500, Bitcoin appears to be nurturing an uptrend according to the Relative Strength Index. Another approach at $11,500 could result in a breakout, sending Bitcoin to $12,000.
On the flip side, BTC is sitting on an area with immense support. Therefore, it’s doubtful that a significant reversal will take place in the near term. The primary support holds in the range between $10,370 and $10,712. Here, 1.8 million addresses previously purchased 1.2 million BTC.
Ethereum To Continue Moving Higher
Ethereum has finally managed to break above $360 level and continue higher to reach the $380. Currently, the smart contract giant is trading for $374 where Bulls need to consolidate their position around that level to have enough momentum to break above the $380 and aim for the $485 resistance line.
The bullish outlook is further validated by the RSI, which shows increasing bullish momentum. The Bulls will want to ride the wave and aim to re-enter the $500-level for the first time since June 2018. The Bears can fight back if the price was to fall below the $370. If the Bears manage to break below, they will face a massive support wall at the 100-day SMA ($355). These two walls should be strong enough to absorb any selling pressure, effectively capping the downside at the 100-day SMA.
Ripple’s Bullish Momentum Fades
Ripple’s move higher was capped by the previous and current resistance at $0.2600. This resulted in a failed attempt to push past the resistance and continue higher, and as a consequence the Cryptocurrency seems to be teetering at the current support as the bullish momentum fades.
A rising wedge breakdown confirmed on the hourly chart early Sunday, suggests more room to the downside. The price has managed to hold onto the 50-hourly moving average (HMA) at 0.2544 following a breach of the 0.2564 pattern support. The next support line awaits at the 100-HMA at 0.2512. Any rebound is likely to be tested by the bearish 21-HMA at 0.2561, above which the 0.2580 level, the previous rising trendline support-now-resistance, will come into play. The hourly Relative Strength Index (RSI) has turned flat at the midline, suggesting a lack of clear direction, for now at least.
Despite a somewhat bearish picture painted by the one-hour chart, the broader picture continues to favor the Bulls, as depicted on the daily chart. The spot confirmed a falling channel breakout on Friday while the 14-day RSI point higher in the bullish region. The price has recaptured all of the key daily moving averages (DMAs), further boosting the odds for additional gains in the week ahead.
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