The Daily Cryptomenon
20th 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 20.10.2020
It only took the market a couple of days to bounce back from the news from OKEx. The Cryptocurrency market remains steadfast in the current environment and the news dies down and things become a lot more manageable. The current move higher in this market holds up as investors seem to look forward to positive momentum. With that said, let’s find out what today holds for the Cryptocurrencies on October 20th, 2020.
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - have managed to finally shrug off the effects of the OKEx news and are back to trading higher, as both ETH and BTC manage to break above current resistances and attempt to break even higher. However, while Ripple did bounce back, it wasn’t able to break through its resistances. One thing’s for sure, bullish momentum is quite evident in all Cryptocurrencies.
Bitcoin broke through the resistance levels at $10,500 and $10,600, as it continued to move higher towards the $10,800 before stalling and falling slightly towards the $10,750. The bullish momentum still remains strong on this Cryptocurrency as more upside potential can be expected. The RSI (Relative Strength Index) does point to overboughtness, however, as long as the price action is able to consolidate at current levels without a deep correction, the RSI should correct as well and be ready for the next move higher.
Ethereum hit the barrier at the $385 after it managed to break above the $380 resistance level, however, with the overwhelming bearish pressure and seller congestion at that level, the Cryptocurrency found itself on the backfoot as it tries to maintain its strength above the support at $375. The RSI is still showing bullish momentum as the indicator prints around the 60 level, as long as the price action and RSI are in sync, expect more upward pressure.
Ripple continues to find some kind of positive pressure to move higher as it attempts to break above the $0.2500, which has become the level to beat after failing to break above $0.2600. The Cryptocurrency moved higher, but with the current divergence between the RSI and price action indicates that there might be more downside pressure then upside.
Bitcoin’s (check out the chart below; you’ll find that Bitcoin is the purple line) performance is printing at 7.34% on a month-to-month basis*. Ethereum’s (red line) performance is printing at -0.37% on a month-to-month basis. Ripple’s (turquoise line) performance is printing at -0.52% 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? Are the Cryptocurrencies going to break above their resistances? Or are the sellers going to win and force them lower? Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin Breaks Higher Testing $11,800
Bitcoin managed to remain stable above the $11,350 and $11,400 levels, which gave the Cryptocurrency the needed bullish momentum to move above the $11,500 and $11,560 resistance levels. BTC didn’t stop there though; it climbed even above the $11,700 level and moved into a positive zone. It traded to a new weekly high at $11,839 before it started a downside correction. There was a break below the $11,750 level, but it’s only minor as we shouldn’t see any major downside moves.
A successful break above the triangle resistance could increase the chances of a clear break above the $11,800 resistance. In the current case, the price is likely to surge above the $12,000 resistance level in the near term. The next major resistance is near $12,200 and followed by $12,500.
Bitcoin needs to gain enough momentum to break above $11,750 and $11,800 resistance levels, otherwise, the probability of BTC extending the downside correction increases tenfold. The first major support is near the $11,640 level since it is close to the 50% Fib retracement level of the recent rally from the $11,425 low to $11,839 high.
The main support is now forming near the $11,560 level (the recent breakout zone) and a connecting bullish trend line on the same chart. Any further losses could lead the price towards $11,450 or the 100 hourly simple moving average.
Ethereum Whales HODL as ETH 2.0 Draws Near
Ethereum investors are becoming so much confident about the future price of Ether (ETH) as the launch of Ethereum 2.0 draws nearer. Reports note that deep-pocketed investors have been increasingly accumulating the Cryptocurrency, partly for accessing the decentralized finance (DeFi) market. Additionally, these investors have been moving a substantial amount of this Cryptocurrency to non-exchange wallets for HODLing (Hold On for Dear Life).
The increasing rate at which deep-pocketed Ethereum investors move their holdings to external wallets shows they may not be selling anytime soon. Hence, the top Ethereum investors are having price confidence in the Cryptocurrency. It’s worth noting that since the beginning of this year, Ethereum prices have gained 170% from below $140 on New Year’s Day to current levels of around $380.
All investors should hold on to their seats when it comes to Ethereum. The launch of 2.0 is drawing ever nearer and the bullish case for this Cryptocurrency is evident on so many levels. Once the new version of Ethereum is launched and the Genesis date is made official, expect Ether to skyrocket to above $400 with extreme ease, and don’t be surprised when the prices even break above that level and reach $500.
Ripple Whales Look at $0.3000
XRP kicked off the week with a bang, with prices rising over 2% in the past day. Further buying pressure could push Ripple’s Cryptocurrency out of a two-month-long correction, which it has been struggling to do. The Cryptocurrency went through a brutal correction over the past two months relative to the rest of the market. The token saw its price plummet by more than 30% after the coin went from a high of $0.33 in early August to a recent low of $0.22.
If demand continues to rise, XRP may have the strength to break through the overhead resistance and turn the 50-day and 100-day moving averages into support. Under such circumstances, prices might shoot up by more than 20% towards the next area of interest, around $0.30.
Even though data seems to be hinting that XRP’s downtrend is coming to an end, investors must pay close attention to the 50-day and 100-day moving averages. Failing to turn these resistance hurdles into support might be followed by a significant correction. If this were to happen, XRP would likely retrace towards the $0.225 or $0.20.
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