The Daily Cryptomenon
21st 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 21.10.2020
It’s all about Bitcoin today, no one is talking about anything else. Bitcoin has finally, and we do mean finally, broken through the $12,000 barrier and continued to move higher even hitting a high of $12,320. While that is nice and dandy, we do have to mention that Ethereum and Ripple did not join in the festivities as the move higher doesn’t seem to affect them all that much. With that said, let’s find out what today holds for the Cryptocurrencies on October 21st, 2020.
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - have seen some bullish momentum as they all tested their respective highs. Except for Bitcoin who didn’t only test, but effectively broke above its resistance at $12,000 and managed to continue to move higher.
The Bullish momentum that’s evident for Bitcoin continues to play a dominant role in pushing the Cryptocurrency higher as we can expect it to continue another push into new weekly (or even monthly) highs after a brief correction, as the RSI (Relative Strength Index) is showing extreme overbought signals.
Ethereum fell below the $370 level reaching the $363 before it was able to find buyers. ETH managed to rise back above the $370 support. This was due to the move in Bitcoin, which unfortunately didn’t translate well into ETH.
Ripple seems to be living in a world on its own as the movements in the market don’t seem to be affecting it all that much as there might be some divergence between this Cryptocurrency and the rest of the market. Bitcoin’s move did help XRP move higher but it remains underperforming the market.
Bitcoin’s (check out the chart below; you’ll find that Bitcoin is the purple line) performance is printing at 11.75% on a month-to-month basis*. Ethereum’s (red line) performance is printing at 1.19% on a month-to-month basis. Ripple’s (turquoise line) performance is printing at 0.32% 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 Finally Breaks Above $12,000
Bitcoin gained a huge boost in momentum when it was able to break above the $11,560 resistance, however, the King of Cryptocurrencies didn’t stop there. BTC kept on moving higher, breaking through the $11,800 resistance. From there, Bitcoin was able to gain enough strength to push the price above the $12,000 resistance. A new weekly high is formed near $12,320 and the price is currently showing a lot of positive signs.
A trend is forming and seems to be close to the 50% Fib retracement level of the recent rise from the $11,870 low to $12,072 high. On the upside, the $12,350 and $12,400 levels are initial barriers for the Bulls. The first major resistance is near the $12,500 level. A successful close above the $12,500 level could open the doors for a decent increase towards the $13,000 resistance level.
If Bitcoin starts a downside correction, which is very likely with RSI (Relative Strength Index) heavily over extended into overbought territory, the Cryptocurrency might find bids near the $12,050 and $12,000 levels. If there is a downside break below the trend line support and a close below $12,000, there could be an extended downside correction. The next major support is near the $11,880 level, followed by the key $11,800 support level, which is the recent breakout zone.
Ethereum’s Fall and Rise
Ethereum price found support above $360 and recovered above the $375 resistance. The rise was helped by the move in Bitcoin. However, ETH was unable to replicate the momentum that the King exhibited as it remained trapped between the $375 support and $385 resistance. As of this writing, ETH is trading around $380 and is showing signs of more bullish pressure that might lead it to break above that resistance. Should that happen, expect the $385 level to act as a resistance to the Cryptocurrency.
The upside potential is quite high on this Cryptocurrency especially with the RSI printing at the 60-level indicating that there’s still room for Ether to move higher. However from the way the price action is acting, there is the chance that the bullish momentum is fading and might lead to a downside move. On the downside, the $375 level might act as a short-term support, should that level fail to keep things in check then the Cryptocurrency might fall towards the $360 support zone.
Ripple Remains Trapped Under $0.2500
Ripple has had a very rough time in recent weeks. At first it couldn’t manage to break above the $0.2600, while it’s cousins have managed to keep on printing positive returns, then after the fall beneath the $0.2500 support, it hasn’t been able to break above that level. The whole situation seems to be calling for more downside on XRP, should the Cryptocurrency be unable to post a break above $0.2500.
Three times Ripple has tested the $0.2500 and three times rejected, the most recent time is just today after Bitcoin showed the big move higher. What’s even more disconcerting is that the RSI is showing a decrease in the bullish momentum and even a bit of a divergence between the price action and itself. Overall, things are not looking too good for Ripple.
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