The Daily Cryptomenon
9th 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 09.09.2020
Markets remained in their current ranges as no major moves higher or lower were observed, however, there’s been a change in the momentum of the markets. It’s not that the initial downward trend has been reversed, but where it died down a bit yesterday, we see it increasing again today. If we didn’t know any better we’d say that it’s all part of the consolidation phase, but we do, and we think that the bearish momentum is increasing and threatening another move lower. With that said, let’s find out what today holds for the Cryptocurrencies on September 9th, 2020.
Cryptocurrency Recap
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple have remained inside their respective ranges, the ones they’ve established after falling from their respective highs. The overall negative performances that these Cryptocurrencies have recorded doesn’t bode well for how things are shaping up in the near-term. After failing to break above $10,400, Bitcoin has deepened the bearish performance as it sits just above the crucial $10,000. Ethereum seems to have suffered the same fate, in terms of inability to break above $360 for which the result was a drop back below $340 as it trades just below that level. Consolidation within Ripple continues as the digital asset failed to break above $0.2440 and hence it has dropped back to the crucial support at $0.2300. Currently trades marginally above that level.
Bitcoin (check out the chart below you’ll find that Bitcoin is the purple line) has become the best performing crypto out of the three, or at least it isn’t the worst. The Cryptocurrency is currently printing a performance of -14.13% on a month-to-month basis* as the Bears seem to be building steam for another leg downwards. Ethereum (red line) has lost the number one spot, when it comes to performance, as it dropped below Bitcoin to print a performance of -15.01% on a month-to-month basis. Ripple (orange line) retains the title of worst-performing Cryptocurrency as it prints a performance of -19.97% 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? Will the Bears continue to force the Cryptomarket lower? Or will consolidation keep things under control until both Bears and Bulls have had a chance to strategize and take a breather? Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin Bulls: Do or Die
The time has come for Bitcoin Bulls to either act and speak up or forever hold their peace (well, not forever forever, you know what we mean!). After the cryptocurrency king attempted to break above $10,400 and failed, the resulting move was lower back towards the $10,000 and $9,900 support levels.
To avoid a sharp decline, the price must break the resistance and then gain strength above the $10,300 level. The next major resistance is near the $10,400 level, above which the Bulls might attempt a clean break above the $10,500 resistance. So this is the chance for the Bulls to establish a foothold above the current levels so they don’t suffer at the whims of the Bears. If the Bulls were to fail in this task, the Bears will capitalize in every way they can and send Bitcoin below $9,900; which is somewhat of a scary thought.
If Bitcoin fails to break above the current resistance at $10,300, the risk of a massive breakdown multiplies exponentially. However, a move lower doesn’t create a breakdown since the Bears would need to break below the main support at $9,900 and $9,850. If the Bears are actually able to break below $9,850, the breakdown would intensify enough that gravity might take over and force Bitcoin towards the $9,500 and $9,200 in the near term.
Ethereum Bears Remain in Control
Ethereum has been acting in a very different way than its cousins, while Bitcoin and Ripple (which you’ll see in a moment) have been trading close to their respective crucial supports, Ethereum has been able to trade at the current resistance level at $360. The battle between the Bulls and the Bears on this instrument has been heating up. Eventually, the winner will decide the movement of the instrument for the mid-term.
The current trend is somewhat unclear at the moment, as Ethereum has been facing multiple strong selloffs throughout the past few days, but each dip has been followed by a swift rebound. The key level that the Bulls have been defending exists between $325 and $330. It did visit these lows earlier this morning before it was able to see a sharp rebound back up to highs of $345. It’s interesting to note that one of our CryptoAltum Market Analysts is seeing that Ethereum will remain quite weak until the $370-$380 has been broken and a foothold established, what are your thoughts on the matter?
If we were to look at the technical aspect of Ether we’d notice that the RSI (Relative Strength Index) is actually printing right at the 40-level. This signals something of importance as the Bears are still in control, however, the direction of the Cryptocurrency is leaning more sideways with some bearish bias. It would be interesting to see how things are going to proceed from this point on.
Ripple flashing Signs of Dip
Ripple, the self-proclaimed cross-border blockchain solution provider, fell in tandem with the rest of the Cryptocurrency market after a bearish wave swept across the digital space. Bitcoin and Ethereum were forced below key areas of support where BTC tested $9,900 while ETH hit pause above $300. XRP on the other hand, tumbled from highs above $0.30 to test support at $0.23.
Following the establishment of support at $0.23, XRP Bulls have been on a mission to correct the negative gradient on the chart and stage recovery above $0.30. The 4-hour chart shows that all instances of recovery have not managed to bring down the resistance at $0.24. Besides, sustaining gains above $0.24 has also been an uphill task.
The ongoing breakdown is reflected by the RSI. Support at $0.23 is expected to come in handy amid the drop. Another bounce from the support with the appropriate volume would pave the way for gains above the resistance level at $0.2400 and would pave the way for even more upside gain. It’s important to keep the RSI under watch as growth above the midline would signal a significant price reversal.
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