The Daily Cryptomenon
30th 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 30.09.2020
After the ping pong match between the Bulls and the Bears, it seems that the score has reached a tie. Neither of the two schools were able to really find the momentum to break through the other’s defences as things seemed to settle on a back and forth, as both currently wait for the ideal opportunity to strike and switch things into their favor. With that said, let’s find out what today holds for the Cryptocurrencies on September 30th, 2020.
Both spirit animals have been trying to take the upper hand over the other, as they try to set the tone to move our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - in either direction. Yet, both schools have failed to get the upper hand and direct the Cryptocurrency market the way they wanted. In the case of Bitcoin, after the move towards the $10,950 and the subsequent fall to $10,600, the Cryptocurrency seemed to have set its speed at cruising as it goes nowhere fast, stuck between the mentioned levels. Ethereum has a similar set up to that of Bitcoin, as the second-largest Cryptocurrency failed to break above the $370, which sapped all the power of the Bulls in this market forcing the Cryptocurrency to consolidate between the $370 and $340. The $0.2470 is proving to be quite the resistance to Ripple, as the Bulls have attempted several times to break above that level and still haven’t been able to do so, as it consolidates below that level for the time being.
Bitcoin (check out the chart below you’ll find that Bitcoin is the purple line) settles into a sideways movement barely moving. This of course has affected its performance which sits around -7.40% on a month-to-month basis*. Ethereum (red line) has had a go more rough than that of Bitcoin as the volatility surrounding this instrument has affected the performance, which currently prints at -12.10% on a month-to-month basis. Ripple (orange line) continues to mirror the moves of Ethereum as the Cryptocurrency prints a performance of -13.12% 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? 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 Endures Downward Pressure
After a sharp bearish reaction from the $10,950 zone, Bitcoin finds some support near the $10,650 level, where the bears made a couple of attempts to clear the mentioned support, but they failed. The recent low was formed near $10,647 before the price recovered above $10,750. The price traded as high as $10,860 and it’s currently correcting lower. Bitcoin is now approaching the 100 hourly simple moving average and the $10,750 support.
It seems like there’s a major contracting triangle forming with resistance near $10,850 on the hourly chart of the BTC/USD pair. To start a strong increase, the price must clear the triangle resistance and then the $10,950 zone. The main hurdle is still near the $11,000 resistance, above which there are real chances of a sustained upward move towards the $11,500 and $11,600 levels in the near term.
If Bitcoin fails to climb above the $10,800 and $10,850 resistance levels, there’s a risk of a downside break. The first key support is near the triangle lower trend line or $10,650. A clear break below the $10,650 support might increase chances of more downsides below the main support zone at $10,550. In the stated case, the price is likely to dive towards $10,200 or even $10,000 in the coming sessions.
Ethereum 2.0 Ready to Make an Appearance
The highly-anticipated launch of Ethereum 2.0 is an area of particular interest for long-term Ethereum holders. In particular, the surging DeFi demand has resulted in skyrocketing ETH gas fees. This gas fee problem has put ETH 2.0 into the spotlight. Ethereum’s transition from a proof-of-work model to a proof-of-stake is expected to bring more scalability to the blockchain.
The price is sitting on top of a strong support wall at $350. This wall is robust enough to absorb the strong selling pressure. On the upside, there are moderate-to-weak resistance levels. If the buyers take control, then they can potentially take the price up to $400. However, the $360 resistance wall remains a barrier that the price hasn’t been able to jump over the last few days.
Ripple Faces Important Resistance
Ripple is expected to rise towards the $0.258 mark, after which it will see a bearish momentum that will lead the price towards the $0.246 level, according to one of our CryptoAltum Market Analysts.
According to the analyst, the Cryptocurrency is currently inside an ascending channel. This Ripple price prediction suggests that the XRP price will see an uptrend, due to which the coin will break above the ascending channel and reach a resistance cluster near the $0.258 mark. The cluster is formed by a horizontal resistance in red, and a falling resistance in black.
The price line is expected to bounce off this resistance cluster around $0.2470 and return to the bottom of the ascending channel around $0.2300. The analyst believes that the XRPUSD pair will eventually bounce off the lower boundary of the channel and rise towards the $0.2560 from which an attempt will be made towards the $0.3000.
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