The Daily Cryptomenon
22nd 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 22.10.2020
The top news for today comes from the online payment platform PayPal. This platform has finally allowed users to pay using Cryptocurrencies offering Bitcoin, Bitcoin Cash, Ethereum, and Litcoin as the available means of payment through Cryptocurrencies, this spurred another impressive rally in the Cryptocurrencies market as some resistance were broken and some were tested. With that said, let’s find out what today holds for the Cryptocurrencies on October 22nd, 2020.
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - have all seen an increase in bullish momentum. This time around none were left behind as BTC, ETH, and XRP all broke through some tough resistances and rose towards even tougher resistances.
The Bullish momentum continued on Bitcoin as the king of Cryptocurrencies rose past the $12,500 resistance level and even tested the $13,200 is a wonderful display of bullish pressure, however, following that impressive jump, the fall of $600 within minutes was just a testament to the power of that level and selling pressure that is evident on that price.
Ethereum was able to break above the $395 resistance level that halted a move to the $400 previously. However, ETH was finally able to break above that level and continued to move to test the $400 level, but selling pressure forced a move lower, basically rejecting a sustained move higher.
Ripple must be ecstatic after it finally broke above the $0.2500 which has been a thorn in the side of XRP for quite some time, just like $0.2600, which Ripple is currently trying to reach and test.
Bitcoin’s (check out the chart below; you’ll find that Bitcoin is the purple line) performance is printing at 21.76% on a month-to-month basis*. Ethereum’s (red line) performance is printing at 14.54% on a month-to-month basis. Ripple’s (turquoise line) performance is printing at 9.98% 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? Will the bullish momentum on the Cryptocurrencies continue? Or will that momentum lose steam and force a move lower? Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin Rallies to $13,200 and Drops $600
Bitcoin has seen an absurd amount of intraday volatility over the past day amid the best price action in many months. The coin currently trades for $12,750, a few hundred dollars shy of the daily and year-to-date high set just minutes ago at $13,250. Bitcoin plunged as low as $12,600 on futures platforms during that move lower. That meant from the daily highs, the Cryptocurrency retraced $600.
This volatility is expected as the Cryptocurrency remains up around 9% in the past 24 hours, or over $1,000. Analysts are taking note of Bitcoin’s recent price action after the news was published that PayPal will be supporting Cryptocurrencies in its app and within Venmo.
Bitcoin’s $600 crash in the span of about six minutes has been expected by many analysts. With many being caught off guard by this move, it’s no surprise there’s a lot of movement under the hood. No data has been published yet about the anatomy of this crash, though some have suggested it was a series of cascading longs on futures exchanges. Many crypto traders have publicly longed for this move higher, suggesting some may have been caught off guard by the first spike, then the subsequent sell-off. This $600 pullback marks the biggest drop Bitcoin has seen today. Even still, the coin remains up 9% on the trading session.
Ethereum Tests the $400 Level
Ethereum assumed the $370 to $388 price range on the 10th of October, and the Cryptocurrency has been testing the boundaries of this range ever since. On the 20th of October, the price observed a pullback towards the support level near $370. On the 21st of October, when the crypto market turned bullish, the leading altcoin moved towards the $388 resistance and broke past it. The price currently holds above the $396 level. If Ethereum can hold this newly formed support, the altcoin will test higher resistances soon.
The bullish momentum was strong enough to allow the price to cross multiple resistances towards the upside. Currently, the price rests above $396, and if it holds this support, it will retest the $400. The bullish momentum was strong enough to overcome the initial bounce-off that the coin experienced at the beginning of the 24-hour trade.
Even though the bullish momentum is pretty high on this Cryptocurrency, it faced a strong selling interest near USD 400, resulting in a sharp downside correction. The price is back below the USD 395 level, but there are many supports on the downside. The first key support is at USD 388, followed by the USD 385 pivot level.
Ripple to Test $0.2600
The analysis of Ripple suggests that the coin will test $0.26 very soon. After observing a pullback on the previous day, the Cryptocurrency saw an uptrend on the 21st of October and moved towards the $0.256 level. On the 21st of October, the altcoin market observed a bullish momentum, and the price broke past the resistance near $0.2500. A horizontal resistance was placed in this region, while a descending resistance crossed below the same resistance zone shown in the chart above.
The price touched the $0.256 level during the 24-hour day while breaking through both of these resistances. If the price stabilizes above these resistances, Ripple will see a continuation in its uptrend.
The current setup on this Cryptocurrency suggests that XRP will face some downward pressure, but the bullish momentum will remain intact enough to provide another rally higher towards the $0.2600. However, with the selling pressure that might be expected there, there’s going to be rejection and a fall, but to which level is still not quite clear.
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