The Daily Cryptomenon
13th 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 13.10.2020
The bullish momentum that started over the weekend didn’t finish with the beginning of weekdays. In fact it seemed to continue in another full tilt higher, as we saw most Cryptocurrencies break above another set of resistances showing just how powerful this current momentum is. With that said, let’s find out what today holds for the Cryptocurrencies on October 13th, 2020.
Another calling card was left at the scene of ignition as the Cryptocurrencies fired up another jetpack and continued to move higher after it got a bit of a bumpy. Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - broke through another set of resistances as the road to previous highs continues to prove how important it is. Bitcoin is the most obvious winner of the bunch as it previously stalled at around $11,500, but it quickly moved past that level and ended up higher at the $11,750, as the road towards the elusive $12,000 continues. Ethereum broke its own set of resistances after stalling at $350. The Cryptocurrency found enough bullish momentum alongside Bitcoin as it rose towards the $400, but ended $5 shy from that level being held at $395, before correcting lower. Now while Bitcoin and Ethereum were able to break above another set of resistance levels, Ripple still wasn’t able to find the needed momentum to break above the $0.2600 which is proving too much for Ripple’s Bulls.
Bitcoin (check out the chart below you’ll find that Bitcoin is the purple line) continues to move higher breaking away from the rest of the group of Cryptocurrencies as it records a performance of 8.81% on a month-to-month basis*. Ethereum (red line) barely manages to go back into neutral territory as stalls at the $395. It records a performance of -1.08% on a month-to-month basis. Ripple (turquoise line) is still unable to break above that important resistance at $0.2600 as it seems stuck with an unmoving performance around 1.03% 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? Will the bullish momentum continue to break through resistances? Or will the Bears finally be able to switch the script on the Bulls? Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin Moves Towards $11,750 but Stalls
It appears that Bitcoin investors aren’t fazed by the prospects of a move lower due to the CME futures gap formed at $11,100. The leading Cryptocurrency has continued to thrust higher, pushing towards $11,700 just a couple of hours ago. The leading Cryptocurrency has now printed six days of gains in a row, suggesting it is on track for a full reversal of the September losses.
Bitcoin had thrusted towards $11,750 after weeks of consolidation between $10,000 and $11,000. The leading Cryptocurrency hit $11,750, having pushed 3% higher in the past 24 hours alone, but soon enough the Bears entered the market and forced BTC to back track below $11,500 where it currently trades.
If one was to examine the RSI (Relative Strength Index) of the BTC chart on the 2 hours time frame, an interesting aspect should appear when comparing it to the price action. The indicator is printing lower highs where the first topped around the 90-level and the second barely crested above the 70-level. However, the price action actually shows higher highs indicating the divergence and that means an adjustment will happen. Either the price action will fall severely to correct or consolidation will happen and the RSI will adjust.
Ethereum on its way to $400
Ethereum majestically closed in on the psychological resistance at $400. However, the smart contract giant hit a barrier at $395, leaving $400 unconquered. This had led the Cryptocurrency to correct lower trading at around $385, while trying to figure out the next move.
At the moment, the path of least resistance is downwards. The Relative Strength Index (RSI) points sharply downwards, following a rejection from the oversold area. Initial support is expected at $380, but if push comes to shove and Ethereum continues with the downtrend, the $350 will come in handy. Moreover, the low trading volume means that declines won’t be rapid. Therefore, buyers have a chance to create barricades at higher levels, preferably $380 and $390.
A bounce from the support will most likely give Ethereum an expected boost towards $400. On the other hand, ETH is yet to wriggle itself from the Bulls’ grip despite the retreat from $395. The increasing gap between the 50 SMA and the 100 SMA suggests that buyers have the upper hand, for now at least.
Ripple’s Underperformance Continues
Ripple has seen faltering momentum lately, with its community dissipating as the company struggles to garner widespread adoption for the token. It remains loosely correlated to Bitcoin’s price action, but it has been failing to garner any significant momentum as it remains below a multi-month resistance level. This has caused it to severely underperform both Bitcoin and most of its peers throughout the latest market-wide upswing, which could indicate that further downside is imminent in the near-term.
At the time of writing, XRP is trading up as it tries to test the $0.2600 yet again. This is a slight rise from its weekly lows of over $0.23 set during its latest dip, but it is important to note that this 10% rise marks a serious underperformance of many of its peers. Throughout the past month, XRP has struggled to garner any sustainable momentum as it ranges between $0.22 and $0.26. The upper boundary of this range has been quite intense, with each visit here sparking harsh rejections.
This standstill in Ripple’s performance is raising concerns that the Cryptocurrency might have another severe move downwards, one that might lead it towards the $0.2000. However, to reach that point several strong supports are in the way, enough for the Bulls to stage the needed comeback to move XRP back into the same position of ETH and BTC.
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