The Daily Cryptomenon
30th 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 30.10.2020
The Cryptocurrency market continues to trade in somewhat divergent paths as Bitcoin consolidated at the top of the range testing the current support levels, while Altcoins, Ethereum and Ripple to be specific, continue to falter and move lower.
With that said, let’s find out what today holds for the Cryptocurrencies on October 29th, 2020.
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - are experiencing increased bearish pressure as that forces the trio fall under their respective supports, however the question remains whether or not this support will be able to withstand current pressure.
Bitcoin has tested the $13,000 support level twice which is also represented by the 100 SMA on the 2-hour chart indicating that this line is of great importance. However, with the current bearish pressure, things might not be all that rosy for the Cryptocurrency king.
Ethereum tests the $380 level for the fourth time as the bullish momentum is becoming increasingly difficult to maintain. Breaking below that level could spell disaster for the Cryptocurrency.
Ripple didn’t just reach the $0.2400 level as we had discussed previously, in fact, the bearish pressure was so powerful that it broke through that level and continued to move towards the $0.2350 level before finding some support.
Bitcoin’s (check out the chart below; you’ll find that Bitcoin is the purple line) performance is printing at 23.05% on a month-to-month basis*. Ethereum’s (red line) performance is printing at 7.54% on a month-to-month basis. Ripple’s (turquoise line) performance is printing at -1.33% 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? How deep will the correction go? Has the correction turned into a reversal? Or will the Bulls find the needed support to climb back higher?
Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin Battles with Decreased Bullish Momentum
Yesterday, Bitcoin experienced a major downward move, one that had it break the $13,500 level. The pressure didn’t stop there as BTC broke the $13,200 support level and spiked below $13,000, but only briefly. The dips were limited as the 100 SMA on the 2-hour chart has been there to absorb the downward pressure allowing the price to bounce back sharply.
The move back higher broke the $13,200 and $13,380 levels to move back into a positive zone. There was also a break above the $13,500 resistance, however, the $13,650 resistance wasn’t going to allow the Cryptocurrency to continue higher, as we saw BTC falter there and drop back towards the $13,250 support. Bitcoin is now facing a heavy resistance near the $13,650 and $13,700 levels. It already made two attempts to gain strength above $13,650, but failed. The recent high was formed near $13,672 and the price is currently correcting lower, but just how low will it continue to go?
There’s a major support forming on the downside near the $13,200 level and the 100 simple moving average on the 2-hour chart. This moving average is the moving support for the Cryptocurrency. As long as that line remains unbroken, we can expect to see another move higher. However, should there be a break of the 100 SMA, expect the price to continue its fall towards the $12,800 level. If even this fails, there won’t be any meaningful supports until the $12,000.
Ethereum To Test $380 Support
Ethereum Bears are in clear control of this market as they continue to push the Cryptocurrency below the $400 level as it reaches the $380 support. This support level has been acting as a major level for Bulls and Bears alike. Bulls are seeking to defend this level with everything they’ve got, while Bears need to break below for them to continue with their downward pressure.
This support has held out against the bearish pressure four times already and the most recent one is currently being established. When compared to Bitcoin, we saw that the price started a fresh increase from the $13,000 support, but Ether couldn’t gain the needed momentum to duplicate the move and ended up trading within its range. It seems like the price is trading in a range above the $380 support and below the $392 resistance.
Should Ethereum fail to clear the $392 and $395 resistance levels, the risk of a bearish break below the $380 support level would increase. A clear break below that support might open the doors for a massive decline below that might lead towards the $365 level which is currently acting as the critical level for this instrument, breaking below could spell literal disaster.
Ripple Breaks Downward Channel
We’ve explained how the double top formation on Ripple was going to lead towards a massive move lower towards the $0.2400, however, we didn’t anticipate the increased bearish momentum that would lead it below that level towards the $0.2350. Since the beginning of September, XRP has generally been in an upward momentum. But the Cryptocurrency has also not been able to make any significant movement above $0.26. Instead, this level has become a crucial resistance zone that if broken, Ripple could rush towards $0.30.
The descending parallel channel presents immediate resistance to XRP in a bid to prevent declines eyeing $0.20. The RSI (Relative Strength Index) is showing that the Cryptocurrency has entered extreme oversold territory and could pose as a breather for Bulls to try and capitalize on the diminishing bearish momentum.
A break below the $0.2350 would trigger a selloff that will be difficult to stop. However, the $0.2300 should have enough power to absorb some of the selling pressure. Besides, $0.22 functioned as support in September and could also rise to the occasion and save XRP a trip downstream to $0.2000.
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