The Daily Cryptomenon
28th September 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 28.09.2020
After the move higher in the Cryptocurrency market, Cryptocurrencies were able to hold their own and managed to consolidate at the higher levels as the Bears couldn’t push them back lower. However, at the same time Bulls didn’t have the needed momentum to continue moving higher, which led to a consolidation phase taking part over the weekend. With that said, let’s find out what today holds for the Cryptocurrencies on September 28th, 2020.
Cryptocurrency Recap
The Bears failed to keep our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - down for longer as the needed momentum seemed to have faded especially after the bounce from the support levels, which was incentive enough for Bulls to gather their strength and push higher but only a tad. It would seem that neither Bulls or Bears have the needed power to push the market in either direction. Bitcoin has managed to break above the $10800 resistance level and reach the $10,960 as it looks for a way to continue moving higher towards the $11,000 which is the next level in resistance. Breaking above the $350 level, Ethereum Bulls set their eyes on the $360 level which they are trying to break above as we speak. After managing to break above the $0.2350 resistance level, Ripple is now trying to capitalize on the movement higher and attempts to break above $0.2450.
Bitcoin (check out the chart below you’ll find that Bitcoin is the purple line) continues to move higher in both price action and performance as it records a -4.24% on a month-to-month basis*. Ethereum (red line) follows Bitcoin’s lead in this and marches higher as well recording a performance of -7.39% on a month-to-month basis. Ripple (orange line) works in tandem with Ethereum as their performance lines have been moving in a somewhat parallel motion. The instrument records a performance of -8.21% 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 August till the 1st September.
What’s the strategy you’re going to use when it comes to these cryptos? Are the Bulls strong enough to continue pushing this market higher? Or will the Bears retake control of the market and push it lower? Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin Continues Moving Higher
After a close above the $10,550 resistance, Bitcoin started following a positive path enough to clear the $10,650 and $10,700 levels and continue higher. The price gained pace and cleared the $10,800 resistance. During the recent increase, there was a break above a declining channel with resistance near $10,750 on the hourly chart of the BTC/USD pair. It traded to a new weekly high at $10,945 and settled well above the 100 hourly simple moving average.
Bitcoin price is currently correcting lower and trading near $10,900. An initial support is near the $10,860 level or the 23.6% Fib retracement level of the recent rise from the $10,608 low to $10,945 high.
If Bitcoin fails to continue higher above $10,950 and $11,000, it could start a downside correction. The first major support is seen near the $10,800 level. The main support is now forming near the $10,650 level and the 100 hourly SMA, below which there is a risk of more downsides towards the $10,200 support in the near term.
Ethereum Faces Important Resistance
Ethereum recently revisited support at $310, however, the Cryptocurrency was able to bounce back upwards despite calls for losses as far as $250. The weekend session has been positive for Ethereum because buyers managed to bring down the resistance at $350. At the time of writing, Ether is trading around $357 amid building bearish momentum.
Analysts and cryptocurrency enthusiasts believe that the release of ETH 2.0 will act as a significant boost to Ethereum in terms of growth. Trading above $500 remains the most realistic prediction, but when you consider the magnitude and the impact of the new protocol, eyes start to open up towards $1,000.
The momentum appears to have stalled under $360 despite the breakout above the descending triangle pattern. The Relative Strength Index (RSI) in the 4-hour range moves horizontally at the midline, suggesting that consolidation will take precedence in the near term.
Ethereum bulls must take down the hurdle at $360 as soon as possible to open the way for gains heading to $400. However, more resistance is envisaged at $380, the 50 Simple Moving Average (SMA) in the 4-hour timeframe and $400.
Ripple Bullish Momentum Waning
Ripple has been witnessing a bout of increased negative pressure which led it to reach the $0.2200 support level. However, Bulls didn’t let things go without a fight as they used that level as a bouncing board that fueled a move higher back above $0.2400, effectively breaking through some resistances that have been holding this instrument down.
As things currently stand, Ripple is attempting a break even higher above the $0.2470 as the current target for Bulls is at $0.2560. Should the Bulls be able to reach that level and break above it, it would definitely mean that Bears have lost the battle as this move would signal the continuation of the bullish trend that started back in July.
However, RSI is showing some signs of a decrease in the Bullish momentum as the indicator has is printing around the 60 level with a downward tendency showing on the indicator. All of this points to the possibility that the bullish momentum might be waning and it might be a chance for the Bears to find an excuse to keep this instrument down for longer.
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