The Daily Cryptomenon
21st 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 21.09.2020
During the weekend, another bout of bullishness was witnessed in the Cryptocurrency market. The Cryptocurrencies continued to follow Bitcoin’s lead which saw it move higher on a very brief bullish momentum that saw it reach towards the $11,200. However, bearishness and selling pressure won over forcing the Cryptomarket lower but not by much. With that said, let’s find out what today holds for the Cryptocurrencies on September 21st, 2020.
Cryptocurrency Recap
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple have seemed to drop off the highs they were enjoying during the weekend. We saw these three cryptocurrencies simply jump higher during the weekend but as that waned down so did they, that’s where we find them this morning as they try to recapture those highs. Bitcoin had managed to break above $11,000 again and extend its reach towards the $11,200 however that was quickly thwarted as the Cryptocurrency king simply fell back below $11,000. Ethereum wasn’t overly affected by the movement in Bitcoin, unlike last time, and continued to trade in a downward fashion. It had tried to recapture the $390 level in an attempt to move back above $400 but that was to no avail as it simply fell back below $380. After trying to break above $0.2550 again, Ripple simply couldn’t stand the selling pressure of Bears and fell back towards $0.2460.
Bitcoin (check out the chart below you’ll find that Bitcoin is the purple line) continues to try and break higher as the clash between Bulls and Bears continue at Bitcoin’s Skirmish line. It records a performance of -7.55% on a month-to-month basis*. Ethereum’s (red line) continues to fall despite the rather bullish momentum it seems to be gaining as it records a performance of -9.99% on a month-to-month basis. Ripple (orange line) continues to trade at the lower levels falling even deeper into the bearish hole as it records a performance of -16.28% 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 resistances finally crumple and we see these cryptos rise? Or is 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 VS $11,100
Bitcoin has bounced over 10% from the lows set two weeks ago at around $9,800. The cryptocurrency, though, still has a crucial level to move above to confirm that a full-blown bullish reversal is in the works. It would seem that the level that we speak of is $11,100, but we already know what you are saying “It has already moved higher” but it hasn’t been able to actually stay above that level and establish a viable foothold for Bulls to continue the positive momentum.
Our CryptoAltum Market Analysts have also confirmed the importance of the $11,100 - $11,200 range. They’ve expressed their optimism as well as their concern for this cryptocurrency. Should BTC break above the mentioned range, there is no telling where the bullish momentum can take it as the possibility of testing $12,000 is quite viable. On the other hand, should Bears find themselves in control and prevent any such move to happen, well the result might see Bitcoin drop back below the $10,000 mark, but with the presence of viable supports, there shouldn’t be any major damage to the cryptocurrency.
Looking at the RSI (Relative Strength Index) of Bitcoin, we can notice that there is some divergence between the price action and the indicator. As we’ve explained before, this usually gets resolved in 1 of 2 ways, either the price action corrects along with the RSI, in this case it’s to the downside, or we see some consolidation on both ends so that divergence gets cleared up.
Ethereum Targets $420
Back when September first started, Ethereum traded within a whisker of $490, however, the trading in the last couple of weeks has mainly been lethargic, chiefly regarding recovery. Ether refreshed lows of $310 on September 5 before embarking on a recovery mission. On the upside, gains have hit highs above $390 on several occasions, but the resistance at $400 has not wavered, not even slightly. Support at $360 has also been confirmed in multiple instances.
Ethereum is trading within the confines of an ascending triangle, this usually means that there is potential for a breakout higher which might spark the beginning of a bullish rally. The price action comes after last week’s rejection from levels above $390. On the downside, support at $360 has been keen on keeping bears in check. Consolidation seems to be taking precedence, especially with the Relative Strength Index (RSI) holding at the midline.
A triangle breakout aiming for highs above $450 awaits Ether. However, the 50 Simple Moving Average (SMA) must first be flipped into support. The move will allow bulls to shift their focus to $400 immediately. On breaking the stubborn resistance at $400, more buyers could be encouraged to join the market, thereby creating more volume for gains above $420 and $450.
Ripple Within Ascending Triangle
The Ripple price line fell bearish after testing the Exponential Moving Average (EMA) on the 20th of September. The price slipped below the $0.244 mark by the evening. The market is expected to rise, with it Ripple. Currently, the cryptocurrency appears to be testing the EMA marked in blue. The technical indicator may cause the cryptocurrency to be pushed back and fall towards the $0.21 support level. The Relative Strength Index (RSI) stands near 45.00, which means that the technical indicator is in a neutral zone.
One of our CryptoAltum Market Analysts believes that the XRP price will see an uptrend towards the $0.28 resistance, which will then be followed by a price fall towards the $0.21 mark. Ripple fell below an ascending trend line marked in the chart above. The recent accumulation above the $0.24 level may allow the cryptocurrency to rise towards the ascending trendline. For this ascension, the XRPUSD pair will have to break above the falling wedge pattern and test the rising trend line. The analyst believes that the resistance will be strong enough to cause the cryptocurrency to fall down towards the $0.21 support level.
The cryptocurrency recently made its way towards the back-up-cluster near the lower ascending trendline of an upward trading channel. Ripple has bounced from this cluster, which means that the cryptocurrency will now make its way across the midpoint of the ascending channel and towards the upper ascending trendline. If the cryptocurrency, at any point, breaks below the ascending channel, the price will fall in the bearish zone. This is why the cluster region is important for XRP to hold.
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