The Daily Cryptomenon
10th 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 10.09.2020
We know that we keep talking about the move downwards and how it has messed up all the Bulls plans to record new levels higher, but that’s just because it was such an important move that we couldn’t not talk about it. Just like how the current move in the Cryptocurrency market is seeing a resurgence in the bullish energy after the current supports have been able to hold the downtrend in place as we see Cryptocurrencies begin to rise. With that said, let’s find out what today holds for the Cryptocurrencies on September 10th, 2020.
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple seem to be on the verge of breaking outside their respective ranges and probably on the cusp of starting a whole new move higher. To say that this wasn’t expected wouldn’t be a total lie, as the markets have been pushed down pretty heavily lately, but as the old science quote goes “What goes down must go up” Wait that’s not what the saying is… Anyway, Bitcoin has managed to break above the resistance levels at $10,200 and $10,300 as it tests the current resistance at $10,400. Ethereum has broken through the $360 level as it currently trades at the 50 SMA (Simple Moving Average), which is acting as a moving resistance line. Ripple can’t have moves as impressive as either Ethereum or Bitcoin, but it has managed to break above the resistance at $0.2440 as it turns its gaze towards the $0.2500 level.
Bitcoin (check out the chart below you’ll find that Bitcoin is the purple line) begins an upward movement that could mean that bullish pressure is back in the game, however, it’s too early to tell especially with a current performance of -13.68% on a month-to-month basis*. Ethereum (red line) is experiencing a huge prop higher from its previous levels as it managed to recoup some of the losses it had faced, currently reaching a performance of -6.20% on a month-to-month basis. Ripple (orange line) remains the runt of the family as it tries to move alongside its cousins. Ripple is currently showing a performance of -16.63% 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? Have the Bulls found the weak link in the Bear’s armour? Or are the Bears letting Bulls think that they stand a chance? Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin Tests $10,400 Resistance
After Bitcoin suffered a downward move from levels above $12,000 to below $9,900, the Cryptocurrency king has been able to redeem some of the losses as it prints just below the current resistance level of $10,400. Looking to the downside, $10,000 is mostly considered as a strong support. On some occasions, however, Bitcoin dipped to lower levels as far as $9,800. Currently, with upward pressure increasing, it’s doubtful that there’ll be another incident where the $10,000 is broken.
On the daily chart, things aren’t looking all that well for BTC as there seems to be some difficulty in the current recovery of the Cryptocurrency. Despite the effort put in place by the Bulls, the problem falls with volume, as it seems that BTC is unable to actually garner the needed volume to make this recovery a complete success. There’s actually a chance of $10,400 rejecting the upward move.
It’s quite difficult for us to really predict how Bitcoin is going to move as it sits just below the $10,400, which has proven itself as a worthy resistance. It all depends on the volume that the Bulls can gather to push BTC above $10,400 and kick this recovery up a notch. RSI (Relative Strength Index) is showing signs of increase in momentum and specifically to the upside. Hence, we can assume that there’s at least some bullish pressure happening.
Ethereum Eyes $380
The smart contract Cryptocurrency, Ethereum, has been able to break above the pivotal resistance at $360, a level that’s stopped Ether from moving any higher ever since the fall happened, but not anymore. The clean break higher has come in contact with the 50 SMA which is currently acting as a moving resistance for the instrument. The current target for the instrument is seen at $380, which would confirm that the Cryptocurrency is changing the colours from Red to Green.
At the time of writing, Ether is teetering at $370 amid strong bullish bias as shown by the RSI. The Relative Strength Index is printing just below the 60-level indicating that bullish momentum is currently increasing. It has even more room to grow, which indicates a break above $380 is more than likely.
Ether is at a crossroads especially after breaking above the $360, as a rejection at $380 would mean that volume and bullish pressure were actually a trap that can cost traders quite a bit. If the short term bullish momentum continues to build towards $380 and breaks above the key resistance, then the next stop would be $400 and $450.
Ripple To Outperform BTC and ETH?
Ripple has become among the more sombre stories of the crypto market since the bubble burst. The once third-ranked asset has fallen down the list of top crypto assets, due to nearly three years of underperformance compared to the rest of the market.
However, that underperformance could turn into an underdog story, where Ripple roars past Bitcoin and Ethereum and beats the rest of the crypto space. Here’s what technicals are possibly saying about a powerful new XRP uptrend.
The Cryptocurrency total market cap was up over 80% year to date at the 2020 high, but has since taken a breather after an especially hot summer. At the start of the breakout in July, XRP beat out other altcoins and the top-ranked Cryptocurrency in week-over-week performance.
Once again, things have cooled off for Ripple, but it could be the calm before the storm. XRPBTC and XRPETH price charts both are potentially signalling a repetition of Ripple leading the way for the crypto market.
Technically, Ripple seems to be on the verge of breaking above the 50 SMA which is currently acting as a potential resistance with the first target after that being the $0.2550. All eyes are now whether or not XRP will be able to satisfy millions of market participants and reach those levels. To help it out, the RSI is actually showing bullish pressure as the indicator is printing above the 50-level and reaching the 60. Bullish pressure is mounting.
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