The Daily Cryptomenon
27th 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 27.10.2020
Corrections and consolidations were the name of the game as the Cryptocurrency market experienced downside pressure. This movement was, of course, expected given how the market exploded to the topside without much of a hitch, however, will the market continue in the current trajectory?
With that said, let’s find out what today holds for the Cryptocurrencies on October 27th, 2020.
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - have entered into a correction/consolidation mode of operation as we saw the bullish momentum fade out after reaching their respective resistance levels. Bitcoin was able to withstand the bearish pressure and traded sideways after failing. ETH and XRP, however, didn’t get so lucky.
The Cryptocurrency King has established a quadruple top at the $13,250 level after it attempted to break above it and failed. The last one cultivated a move back below the $13,000 but the $12,800 support level was able to stop the bearish pressure. The subsequent move resulted in a move back above the $13,000 as Bulls attempted another move higher.
Ethereum faced bearish pressure after it broke below the $400. That level was supposed to be acting as a support to stem the move lower, however, that didn’t happen and the downward pressure extended towards the $385 support which stopped the bearish pressure for now.
Ripple witnessed immense selling pressure after the Cryptocurrency failed to continue moving higher, barely reaching the $0.2600 resistance level. From there on, the Cryptocurrency fell hard, breaking through the $0.2550 and $0.2500, only stemming the bleeding at $0.2450.
Bitcoin’s (check out the chart below; you’ll find that Bitcoin is the purple line) performance is printing at 21.57% on a month-to-month basis*. Ethereum’s (red line) performance is printing at 9.31% on a month-to-month basis. Ripple’s (turquoise line) performance is printing at 2.17% 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 correction result in a reversal? Or will the supports stop the Cryptocurrencies from continuing lower?
Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin’s Rally Faces $13,200 Resistance
Bitcoin attempted to rally above the $13,200 zone but failed. This triggered a downside correction that led to the breakage of the $13,100 and $13,000 levels. Still, the Bulls were able to defend the $12,800 region. This formed near $12,790 and the price is currently rising. Currently, BTC has been able to rise back above the $13,100 which promises more upside potential. For now, the $13,200 is the resistance to beat. Bitcoin must clear the $13,200 resistance which will give the Cryptocurrency the needed momentum to continue higher. The next major resistance on the upside is near the $13,300 level, above which the price might test $13,500.
In the event that Bitcoin fails to climb above the $13,200 resistance zone, there could be a bearish reaction. An initial support is near the $13,000 zone and should there be a downside break below that level, the bearish pressure could lead the price towards the $12,800 support. There’s also a key bullish trend line forming around that level. A clear break below the trend line support could open the doors for a larger decline in the coming sessions.
Ethereum Faces Resistance at $400
We noted yesterday that the chances of Ethereum breaking below the $400 level are high. Ether failed to clear the $410 resistance which caused the price to decline sharply (much unlike Bitcoin) below the $400 and $395 support levels. The decline gained pace below $395 and tested the $385 support zone and a low is formed near $383. Ether’s price is currently recovering and trading above the $390 level. However, it will be facing serious resistance at the $395 and $400 levels.
In order for Ether to claim the positive momentum again, the price must break the $400 resistance level and establish a credible foothold above it. The next stop on the upside could be near the $410 resistance.
If Ethereum fails to clear the $395 and $400 resistance levels, there’s a risk of more losses. An initial support on the downside is near the $388 level. The main support seems to be forming near the $385 level. A clear break below the $385 support zone could start an extended decline in Ether towards the $368 support level in the coming sessions.
Ripple Looks to Return to $0.2520
The bearish pressure found Ripple after the Cryptocurrency couldn’t break above the $0.2600. This led to a massive downward move which saw XRP break below the $0.2550 and $0.2500 before settling around the $0.2450. From there, the Cryptocurrency seems to have found enough buyers to keep it in check as it rises to test the $0.2500.
Ripple is currently facing two paths. It can either continue to trade higher and break above the $0.2500 to resume the previous upward trend, or the $0.2500 will reject the Cryptocurrency forcing it to fall back down towards the $0.2470.
The current structure of the RSI indicates that the path of least resistance is to the upside, signaling that Ripple might still have a fighting chance to reclaim lost levels. However, that is only possible if the Cryptocurrency is able to break above the $0.2500 and establish a foothold above the 100 SMA on the 4 Hour chart.
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