The Daily Cryptomenon
18th September 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 18.09.2020
Yesterday we witnessed how the Cryptomarket was affected by none other than Bitcoin, how this Cryptocurrency was able to hold on to its level while all other Altcoins simply fell. The result was another bout of bullishness from those Altcoins which led them back higher. Today, we are witnessing some of that negative pressure push through especially after all the Cryptocurrencies have attacked their respective resistances but weren’t able to break them. With that said, let’s find out what today holds for the Cryptocurrencies on September 18th, 2020.
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple are feeling the negative pressure creep back into the mix after they all attempted moving higher but failed to break through their respective resistance. However, this doesn’t mean that the bullish momentum is dead, but rather is a taking a breather. Take Bitcoin for example, the Cryptocurrency king seems to fall back from the break above $11,100 and even reached $10,750, however the Bulls wouldn’t let go of gaining a foothold back above $11,000 and the result was a steady climb back to test that every level. Ethereum has finally been able to break through the $380 resistance level and is currently trading just above it. The next level for this instrument is at $400 which is the critical level should Bulls want to aim for higher levels, a repeated failure to break above this level would seriously put a dent into the Bulls ability to move back higher. Ripple is also feeling the bullish momentum as it too is trying to break above the $0.2550 resistance level and as the technicals are showing there’s quite the chance of this happening.
Bitcoin (check out the chart below you’ll find that Bitcoin is the purple line) continues to trade in somewhat of a sideways fashion as it seems to be gaining enough momentum to breakthrough higher levels. It’s current performance is -11.44% on a month-to-month basis*. Ethereum’s (red line) managed to push through second place and take over the primary position which Bitcoin has held for some time with a performance of -1081% on a month-to-month basis. Ripple (orange line) continues to trade at the lower levels as it tries to break above the $0.2550 which should bring on more positive levels for the Cryptocurrency as its current performance is -20.82% 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 August till the 1st September.
What’s the strategy you’re going to use when it comes to these cryptos? Will the positive momentum continue in face of strong resistances? Or are the Bears’ selling pressure will win out and force these Cryptocurrencies back lower? Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin’s Fundamentals are Flashing $20,000
Bitcoin has been acting like a hormonal person and simply giving mixed signs that us normal people can’t simply pick up on, as the Cryptocurrency king keeps bouncing between $10,000 and $11,000. The resistance found at the upper boundary of this trading range has proven to be quite significant, as it has initiated numerous rejections throughout the past few weeks.
Our CryptoAltum Analysts are simply in the dark as you with division in the team on which way Bitcoin is going to go. However, they do agree that the mid-term of BTC depends almost entirely on whether or not it is able to break above $11,000 in the near-term. Despite a foggy technical outlook, the Cryptocurrency’s fundamentals remain incredibly strong, and one indicator is even suggesting that a massive upside move could be right around the corner. This is the on-chain indicator. This indicator has been declining for a while, but just bounced at a historically significant level. In the past, reversals at this level hint that a parabolic rally is imminent.
While looking towards the cryptocurrency’s “short-term holder unrealized profit/loss” (STH-NUPL) indicator, it appears that Bitcoin could be on the cusp of making a strong push higher in the near-term. Rafael Shultze-Kraft – the CTO of analytics platform Glassnode – explained that he believes this indicator is now flashing a signal that is historically only seen before the market enters bull runs. If history repeats itself, or at the very least, rhymes and this indicator continues to maintain its accuracy, this could be a sign that Bitcoin is on the verge of a Nuclear Explosion higher, but enough to land it at $20,000 again?
Positive Momentum Back in Ethereum
Ethereum seems to be consolidating in an ascending triangle formation and is negotiating with the $392 resistance line. However, the relative strength index is still hovering in the neutral zone, so both the bulls and bears have the full license to take control. However, it would seem that the Bulls are actually gaining some momentum as this gives ETH the opportunity to actually reach higher and break above $400.
ETH’s technical indicators are showing an increase in upside potential. There is a moderate resistance level at $403. This level has the daily Pivot Point one resistance-one, however, with the current upside momentum, buyers should be able to break past this level. After that, there is a lack of strong resistance levels to $450.
On the downside, there are three healthy support levels at $375, $367 and $360. The $375-level has the one-month Fibonacci 61.8% retracement level. The $367-level has the previous year high and one-day previous low. Finally, the $360 resistance level has the monthly Pivot Point one support-one.
Ripple Enjoying Bullish Momentum
Ripple has managed to climb above the important $0.2500 and is currently trying to test a break above the $0.2550 which has been acting as important resistance for the time being. A break above this level would signal that Ripple will be able to gather the Bulls around it and force a move higher.
One of our CryptoAltum Market Analysis Team expects that XRP is going to see a major uptrend. The analyst employed the Bollinger Bands on the 1-day chart as the price appeared to move between the midline and the lower Bollinger band with higher lows. This moving pattern suggests an uptrend.
The Relative Strength Index (RSI) depicts bullishness for the cryptocurrency as it was recorded near 60.00. This gives the impression that the instrument might see some correction lower, but as long as the indicator is able to stay above the 50 level, the bullish momentum should continue to push XRP that much higher.
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