The Daily Cryptomenon
14th 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 14.10.2020
Is this a fading bullish move we see on the horizon? It just might be. After what happened with the Cryptocurrencies in the past couple of days where we saw them catapult themselves higher breaking through the resistances, we see them now move lower. This was’t something unexpected but we are dangerously close to current supports. With that said, let’s find out what today holds for the Cryptocurrencies on October 14th, 2020.
The ride higher is fading and our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - seem to be lacking the necessary steam to continue higher, hence allowing the Bears to take a bite out of the profits that the Cryptocurrencies have made. This is what began the downward move, but there seems to be plenty of support on the way down. Bitcoin failed to break above the $11,750 which was the mistake of the Bulls, whether it was a tactical retreat or the lack of momentum, doesn’t matter, what matters is that the move lower found BTC below the $11,500 yet again as the battle higher begins anew. Ethereum isn’t all that better as the Cryptocurrency failed to break above its own $395 resistance and fell down towards the $380 where it traded below it for a bit of time but eventually rose above that level which has established itself as the line of skirmish between the Bulls and the Bears. What’s to be said about Ripple that hasn’t been said in our previous posts? The Cryptocurrency is unable to get its Bulls to commit to the move higher as the $0.2600 keeps everything in check and not allowing any kind of move higher to materialize, this is only increasing the likelihood of a move lower as we’ve explained previously.
Bitcoin (check out the chart below you’ll find that Bitcoin is the purple line) did retreat a bit from the highs it recorded but still remains the best performing Cryptocurrency of the bunch, recording a 9.93% on a month-to-month basis*. Ethereum’s (red line) move higher has also been interrupted by the move lower and still hasn't been able to really post any of its previous high levels of performance with 4.30% on a month-to-month basis. Ripple (turquoise line) still continues to move along its $0.2600 and it shows in the performance as it records a 5.18% 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? ? Is this a mere pullback on a much longer term bullish trend? Or will the Bears break below the supports and continue lower? Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin Moves Back Below $11,500
After trading to a new monthly high at $11,750, Bitcoin price started a downside correction against the US Dollar, which ultimately led it to break below the $11,520 and $11,500 support levels to move into a short-term bearish zone. The price even tested the $11,300 zone and remained well bid above the 100 hourly simple moving average. A low is formed near $11,315 and the price is currently rising. It surpassed the 23.6% Fib retracement level of the recent decline from the $11,750 high to $11,315 low.
However, the Bulls are still struggling to gain strength above the $11,500 and $11,520 resistance levels. The 50% Fib retracement level of the recent decline from the $11,750 high to $11,315 low is also near the $11,520 level, making that level especially hard to break above. With all of these things combined, it could mean that the short term projection for Bitcoin is downwards, but there seems to be some solid support on the way down.
On the downside, the 100 2-Hour SMA holds the key at $11,080. There’s also a key bullish trend line forming with support near $11,400 on the hourly chart of the BTC/USD pair. If there’s a downside break below the trend line support and the 100 hourly SMA, Bitcoin may even slide below the $11,315 support. The next major support is near the $11,200 level, below which there is a risk of a larger downside correction in the near term.
Ethereum Bulls Look at $800 with Ethereum 2.0 Coming
Back on September 5, ETH dropped from $390 to $335 and has been trending below the 50-day SMA for some time. However, following a lengthy consolidation period, the buyers started a rally on October 7 and managed to break above the 50-day SMA on October 11 even reaching the $395 from which the Bears were able to reject the move higher.
As of now, the second-largest coin by market cap is trading around $380. The Relative Strength Index (RSI) is showing a decrease in the bullish momentum but still completely ruled it out, which might give buyers enough firepower to reach the $395 resistance zone. If the Bulls manage to retain control, they should be able to enter the $500-area, provided they break past the above-mentioned $485 resistance
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 $0.3000 Move
Ripple has been trying to break above the $0.2600 for several times these past few weeks and still that level remains strong. Last month, XRP seemed to have dipped at $0.22; however, the price retracement started but unfortunately clearing the $0.2600 was not in the books
Currently, the XRP Bulls are cultivating an uptrend near the $0.26 resistance. The XRP/USD price action is trading within an ascending triangle, and it appears to be laboring towards a breakout. This price action pattern is standard in the market where an ascending trendline connects a series of higher lows, and a horizontal line connects a string of swing highs.
The XRP/USD pair is currently expected to break out above the ascending triangle pattern, which is the sell off zone. The RSI verifies the likelihood of the XRP/USD price action sparking off above the horizontal trendline to initiate an upside break. A rally towards the $0.30 price level is anticipated if the Bulls manage to clear the selling pressure near the $0.26 resistance.
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