The Daily Cryptomenon
25th 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 25.09.2020
Yesterday we asked the question whether or not the current supports, that the Cryptocurrency market is using to stave off the downward pressure, are going to hold up. That question was answered as the bounce from those support levels targeted the previously failed resistances and the market is trying once again to rise to the occasion. With that said, let’s find out what today holds for the Cryptocurrencies on September 25th, 2020.
Cryptocurrency Recap
The Bears failed to keep our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - down for the count as the support levels that were on the brink of collapsing, found the needed strength to attract enough Bulls in the market as the move higher was quite the strong one. Bitcoin’s path from the $10,200 level all the way to $10,800 was one of pure green candles as the bullish momentum came back with such force that the levels in between those two ranges posed no threat. After reaching the Bottom of the Range, Ethereum managed to find the strength needed to rush back higher towards the $350 resistance level, but as of this writing, the Cryptocurrency was not able to break higher. Ripple had followed the same path as that of Bitcoin and Ethereum as the bounce from the support level at $0.2200 led to a rise towards the resistance level at $0.2350.
Bitcoin (check out the chart below you’ll find that Bitcoin is the purple line) managed to rise from the bearish pressure after reaching the strong support. This also affected Bitcoin’s performance which prints now at -8.65% on a month-to-month basis*. Ethereum (red line) managed to recover from the massive hit it took and moved higher with its performance to -14.61% on a month-to-month basis. Ripple (orange line) also managed to eke out some decent returns, however it wasn’t as good as ETH or BTC, but still managed to increase its performance to -19.16% 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? Is this move higher a mere blip on the Beach Radar? Or will the Bulls continue to move this market higher? Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin Gains Traction
After trading as low as $10,139, BTC started a decent recovery against the US Dollar, enough to break through a few important hurdles near $10,400 and $10,550 to move into a short-term positive zone. The recovery was such that the price settled above the $10,550 level and the 100 hourly simple moving average. There was also a break above a major bearish trend line with resistance near $10,600 on the hourly chart of the BTCUSD pair.
Bitcoin is now testing the next key resistance near the $10,800 level. A high is formed near $10,789 and the price is consolidating gains. An initial support on the downside is near the $10,640 level or the 23.6% Fib retracement level of the recent increase from the $10,139 low to $10,789 high.
The next major support is near the $10,550 level and the 100 hourly simple moving average. The 50% Fib retracement level of the recent increase from the $10,139 low to $10,789 high is also near $10,464 to act as a support. On the upside, the bulls are facing a huge task near the $10,800 level. If they manage to clear the $10,800 resistance, the price is likely to accelerate higher towards the $11,000 and $11,200 levels.
Ethereum To Experience More Negative Pressure
At the time of writing, Ethereum is trading up nearly 5% at its current price of $341. This is around the price at which it was trading at prior to the recent selloff that led it to lows of $318. The cryptocurrency has primarily been caught within a bout of sideways trading for the past few days, with bulls trying to figure out what comes next following the intense decline from its $390 highs. Where it trends next will likely depend on Bitcoin, which is also caught within a consolidation phase.
One of the CryptoAltum analysts observed that Ethereum’s bedrock support exists within the lower-$300 region, and has yet to be tapped by the cryptocurrency. As such, a visit to this level may be vital for the crypto to form a sustainable bottom that kicks off an uptrend.
Mixed Showing Signs of Positivity
XRP finally showed investors a glimmer of hope that after a brutal trend of deeper lows and general stagnancy compared to the rest of the space, by beating the rest of majors about a month ago in week-over-week returns. Since then, the cryptocurrency has once again been hovering at around $0.25 per token, which is roughly the median price throughout all of 2020.
Ripple appears to be going nowhere fast. The latest slow grind down is now potentially forecasting a storm ahead, and unless weekly cloud support holds, pain could soon rain down even harder on XRP investors.
XRP is currently holding the bottom of weekly cloud support, and losing it could spell a storm ahead. However, the Ichimoku indicator, which loosely translates to “at a glance,” is actually more than meets the eye. The indicator was designed by a Japanese journalist to provide a quick look at the bigger picture of the overall market, which is why the tool features so many different tools and lines.
The cloud is just one of many ways to read the Ichimoku. Support and resistance, for example, is also found by looking at the chikou span. The chikou span lags behind price action, showing their historical support and resistance lies, making it a logical place to act as such in present price action.
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