The Daily Cryptomenon
24th 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 24.09.2020
The bearish pressure continues to mount in the Cryptocurrency market. Yesterday we saw how these instruments were, more or less, trading in a sideways manner, today we see the bearish pressure increase once again and force the Cryptocurrencies back to important supports. However, it would seem that these levels are holding up, but for how long? With that said, let’s find out what today holds for the Cryptocurrencies on September 24th, 2020.
The Bears found our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple trying to move back higher in an attempt to restore whatever kind of positive momentum they had, but Bears had other plans as sellers entered the market with a clear goal and that is more downside moves. This was shown on Bitcoin as the largest cryptocurrency failed to break above the $10,600, infact only reaching towards the $10,580, and began a downward descent that saw it break below the $10,200 level only briefly, a level that is acting as the major support level. Ethereum broke through the support at $335 and continued to move lower until it hit the Bottom of the range at $320, where it broke underneath but didn’t close, hence giving the Bulls enough leeway to push Ether back higher. It was only a matter of time before the $0.2300 level on Ripple failed to keep the Bears at bay, as sellers simply pushed past that level enough to reach the $0.2200, a level that XRP hasn’t seen since July 2020.
Bitcoin (check out the chart below you’ll find that Bitcoin is the purple line) fell once again as the increased bearish pressure continued to force Bitcoin even lower, as the cryptocurrency reaches a -12.06% performance on a month-to-month basis*. Ethereum (red line) took a huge hit as the second largest cryptocurrency couldn’t handle the pressure and fell extending its negative performance to -17.56% on a month-to-month basis. Ripple (orange line) failed to keep the $0.2300 in check as the cryptocurrency extended its downward spiral enough to reach $0.2200 and record a performance of -22.05% 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 Bears continue to force these Cryptocurrencies below their supports? Or will the Bulls find the needed level to move back higher? Whatever you choose to believe, you can react to it all on CryptoAltum.
Further Downside Pressure on Bitcoin
Bitcoin has been trading a bit all over the place for the past couple of days as it tried to break above the $10,600 level just yesterday, failing and promptly falling towards the $10,200 support level. A level that has held BTC from experiencing any further downside pressure, however, it’s not clear just how long that level will last with the current downward pressure.
One of our CryptoAltum Market Analysts believes that the BTC price has recently broken below a rising wedge pattern, and that it will soon see another breakout below an ascending trend line. This breakout may lead the price below the $9000 mark.
The cryptocurrency entered the rising wedge pattern after it fell from above the $12000 mark on the 3rd of September. The BTC price broke below this ascending wedge on the 21st of September and moved towards another, smaller, trendline on which it has been trading for the past two days. Per the analyst, the king of cryptocurrency is supposed to break below this rising trend line as well and then fall towards the $8800 level.
Ethereum Shows Double Bottom
After trading highs of $489 at the beginning of September, the smart contract token has tested support at $310 twice. Recovery has been capped under $400 with Ether suffering rejection at $390 severally. The recent slump saw Ethereum dive below key support areas at $380, $360, and $340. The unstoppable declines continued to $310 before a reversal came into the picture.
At the time of writing, Ethereum is trading at $325 even as bulls rush to take back control in a bid to stop losses from extending below the critical $310. Note that if ETH dips below $300, the price could explore lows towards $250 before a significant correction comes into the picture.
A double-bottom pattern has been spotted on the 4-hour chart. If the pattern is confirmed, Ethereum could be on the verge of a significant correction. Double-bottom patterns highlight areas of demand and are often used in technical analysis to predict reversal points and the extent to which the incoming bullish momentum will go. However, it is essential to realize that double-bottom patterns must be used with other technical indicators to validate the upward movement in the price.
Mixed Signals Showing on Ripple
We expressed that the $0.2300 is very much in jeopardy yesterday and that a break below that level is quite imminent. However, it still came as a surprise when we saw Ripple fall from that level and end up at the $0.2200 as it tries to find the necessary bullish momentum to move back higher. However, the damage has already been done and it would seem that Ripple will be lower for longer.
One of our CryptoAltum Market Analysts is seeing that Ripple will soon rise towards the $0.3200 mark. Which is quite the thing to say considering the bearish pressure, he does follow up by saying the price will soon bounce from the current support level that it is traveling above. The Relative Strength Index (RSI) has recently returned from the oversold region. The coin appeared oversold over the past two days on the 4-hour chart.
Indeed the RSI indicator is showing signs of extreme oversold-ness as it had printed at the 20 level at the time when the price action hit the $0.2200, this might show some bullish momentum as the Cryptocurrency corrects, however, the correction will be short lived as it might reach a maximum of $0.2350 before falling to test the $0.2200 yet again.
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