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23rd Sep 2020
CryptoAltum Analytics Team

The Daily Cryptomenon

23rd 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 23.09.2020

The recent bearish pressure that hit the Cryptocurrency market has forced all Cryptocurrencies to fall after all the cryptos failed to break above their respective important resistances. This is where we find them this morning as these Cryptocurrencies seem to be holding the line for the time being and managing to stop the bearish pressure from completing its plan to wreak havoc on this market. With that said, let’s find out what today holds for the Cryptocurrencies on September 23rd, 2020.

Cryptocurrency Recap

Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple have managed to stay the hand of the bearish executioner as they held the line at their current respective supports, managing to enter into a makeshift consolidation mode. However, it’s unclear just how long will these levels hold the Bears from reaching lower levels. As things stand, Bitcoin has managed to rise from the support at $10,200, enough to reach $10,600, however, that was quickly thwarted as BTC fell back towards the $10,460. The latter is the level BTC is currently trading around. Ethereum is suffering from the same fate as Bitcoin. As the second-largest Cryptocurrency, it’s trying to hold on to whatever it currently has in an attempt to stay on the current sideways course at the very least. This Cryptocurrency is currently trading around $340, this comes after the rise and failure to break above the $350 level and the rebound from $320. Ripple’s $0.2300 support level is doing its very best to keep the Cryptocurrency from continuing the downward movement. It seems to be waning in strength though and we’re not completely sure just for how long that level will be able to keep holding the line. A small recovery towards the $0.2350 can be noticed but Bears quickly eliminated any attempt higher.

Bitcoin (check out the chart below you’ll find that Bitcoin is the purple line) managed to hold on to the supports after the fall it had witnessed. This hold also affected the performance of the Cryptocurrency which currently prints at -9.91% on a month-to-month basis*. Ethereum (red line) isn’t any better in terms of performance as it too is currently just holding on to whatever level it can in anticipation of a bounce. Performance on ETH is currently at -12.99% on a month-to-month basis. Ripple (orange line) is trying its best to stop the $0.2300 from breaking as that would open the floodgates to lower levels which will, of course, affect performance which currently sits at -17.91% 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 supports finally crumple leading the cryptos to fall even further? Or are these supports going to be the building blocks that the Bulls rely on to bounce higher? Whatever you choose to believe, you can react to it all on CryptoAltum.

Bitcoin Held Down by 100 SMA

The flagship cryptocurrency suffered yet another blow, which forced it to revisit support at $10,200. The declines came after BTC was rejected from highs above $11,000 towards the end of last week. Lack of support at the 100-SMA on the 4 Hour chart added gas to an already huge inferno. Sellers were encouraged to increase their orders, putting pressure on Bitcoin. While there were other supports that could have helped stop the decline, especially at $10,600 and $10,400, they simply couldn’t contend with the power of Bears. They just failed to hold up.

Buyers must not lose sight of the $11,000 level, and in order for that to happen, a move above the 100-SMA on the 4-Hour chart is needed to establish a foothold that Bulls can use to catapult themselves higher. A move of such magnitude is likely to stir a buying frenzy in the market, attracting more investors from the sidelines. 

Consequently, a breakout awaits the pioneer cryptocurrency from the Simple Moving Average. If buyers overcome the seller congestion at that level, we can expect Bitcoin to extend the bullish action majestically above $11,000.

Ethereum Whales Consolidate Positions

It looks like Ethereum whales are on the move. A certain Cryptocurrency behaviour analytics platform noted that the top 100 Ethereum non-exchange addresses, aka whales, now hold 27.85M ETH combined. That’s a pretty steep rise from two months ago when these addresses held around 21.74M. It looks like they’re making the most of low prices to consolidate their position. However, what are they doing exactly with their holdings?

It looks like there’s been a sharp dip in velocity since this Tuesday. Since velocity and token movement are directly related to each other, then  instead of buying and selling ETH for short-term gains, the Bulls are hoarding their ETH and either storing them in their wallets or staking them in DeFi contracts.

Despite the whale’s actions, the short-term price outlook remains bearish. Ether has charted a head-and-shoulders pattern, which will trigger a further bearish movement. The price will break below the $335 support level and fall to the $320 line. The RSI is also showing increased bearish momentum, which will further help the sellers, as the indicator prints just above the 30 level without much indication that a move above is going to happen.

Ripple’s $0.2300 Level in Jeopardy

Ripple followed its older cousins as it consolidated at the current support of $0.2300. This level has held the Cryptocurrency before and is currently doing everything it can to hold any further decrease. Previously that level held the Cryptocurrency during the beginning of September, which resulted in impressive bounces that found Buyers entering the market. However, this time things are different as the Cryptocurrency is trading right at $0.2300 with no effort from Bulls to move higher. This begs the question if $0.2300 can hold Ripple’s Bears any longer.

The RSI is trending right at the edge of the oversold zone, however, downward momentum is decreasing as the indicator is increasing slightly. But that doesn’t rule out another dip before the buyers step in to correct the price. Technical analysis shows us that the cross-border payment coin may drop further to the $0.22 support line before it experiences a reversal in fortunes.

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