The Daily Cryptomenon
1st 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 01.10.2020
The end of the month and the beginning of the new one is marked by the continuation of the consolidation in the Cryptocurrency market. Eversince the drop that happened back in the beginning of September, this market was overwhelmed by the bearish pressure, however slowly but sternly the market was able to rebound and consolidate at current levels. With that said, let’s find out what today holds for the Cryptocurrencies on October 1st, 2020.
Consolidation continues to take control of our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - as the sideways movement is the most dominant move so far. Bitcoin continues to trade between the two levels at $10,600 and $11,000 with neither Bulls or Bears being able to actually break through these levels. Ethereum consolidates as well, taking its cue from Bitcoin, as the second largest Cryptocurrency trades between the $340 and $370. Ripple was in the same boat as the other Cryptocurrencies as it trades between its current resistance and support at $0.2600 and 0.2370 respectively.
Bitcoin (check out the chart below you’ll find that Bitcoin is the purple line) continues to trade in this sideways movement with an unmoving performance at -7.60% on a month-to-month basis*. Ethereum (red line) has also been moving in a sideways move, but since its performance is based from a month ago, it shows a -18.32%. Ripple (orange line) follows the lead of both of its older cousins and simply consolidates at the current levels with a performance of -14.71% 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? Who will win after the consolidation period ends? Will it be the Bulls or Bears or is there going to be a continuation? Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin Shaky Below $11,000
Bitcoin is uncharacteristically tepid despite firm fundamentals. At spot rates, for instance, not only are Bitcoin prices wavy with light trading volumes, but Bulls are oscillating below critical resistance levels. In the immediate term, Bulls have to contend with strong liquidation levels at $11,000 and later $11,500. A clear surge past this could be the necessary impetus, a prerequisite for $12,500 or even a new 2020 highs.
Behind this is the uncertainty of U.S. politics. Some analysts say yesterday’s presidential debate was a big win for Bitcoin and crypto. To some degree, this may be true. Bitcoin has morphed into a store-of-value asset, a vehicle for storing value just like gold.
The Bitcoin price is trading at a narrow range with caps at $11,000. In the last week of trading, the coin is down four percent against ETH but has gained versus the greenback. From candlestick arrangement, the humongous bear candlestick of Sep 3 still influences proceedings. As long as prices trending within its trading range, sellers are in charge. Ideally, a sharp close above $11,000 could build the impetus needed to reverse losses of early September.
Ethereum Showing Positive Signs
Ethereum started a steady rise above the $355 support zone and remained in a positive zone. ETH bears failed to push the price below the $350 support and the 100 hourly simple moving average, resulting in a positive move. The price climbed above the $358 and $360 levels. Ether is now testing the $362 resistance and it is showing a few positive signs. If there is a downside correction, the price could find support near the $360 level.
The first major support is near the $358 level or the 50% Fib retracement level of the recent rise from the $352 low to $363 high. The main support is still near the $355 level and the 100 hourly simple moving average. There is also a major bullish trend line forming with support near $355 on the hourly chart of ETH.
If Ethereum fails to clear the $365 resistance, there could be a fresh downside correction. On the downside, there are many important supports near $358, $355, and the 100 hourly SMA. To push the price into a bearish zone, the bears need a clear break below the $355 support and then a follow up move below the $350 support in the near term.
Ripple Critical Point to Determine Future
The month of September hasn't been the greatest for the cross-border currency. XRP lost roughly $3 billion in market capitalization over the past month. The digital asset currently stands at a crucial point that will determine its short-term future. Several indicators and patterns are suggesting that XRP's price could be looking at further downside action in the short-term.
On the daily chart, XRP formed a descending parallel channel and seemed to have been rejected from the channel's upper boundary. On September 2, the last rejection made the digital asset drop by more than 20% within two days.
However, on the 4-hour chart, the RSI seems to be ready for a bullish cross within the next few hours. The last bull-cross on September 24 preceded a notable 10% price surge. XRP has defended the 100-SMA support level, and it's trying to stay above the 50-MA and also convert it into support. If XRP can clearly turn the 50-MA into support, the odds of a breakout above the daily descending parallel channel will be greater.
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