The Daily Cryptomenon
23rd 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 23.10.2020
The Cryptocurrency market has been experiencing the most intense move since August. The move started off with Bitcoin rallying higher on the news that PayPal will finally incorporate Cryptocurrencies in their payment platform. This has sparked a legendary move in the King of Cryptocurrencies, however, at the same this move has sparked criticism on how payments would actually work. With that said, let’s find out what today holds for the Cryptocurrencies on October 23rd, 2020.
Cryptocurrency Recap
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - have continued to move higher, while Bitcoin had a much earlier lead on the other Cryptocurrencies. Good news! Ethereum and Ripple have moved higher mimicking Bitcoin’s movements.
After reaching the $13,200 level, Bitcoin faced a move lower of $600 within minutes, however, it was able to hold any further downward movement around the $12,750. From there, the Cryptocurrency continued to move higher as it tested that resistance once again. It seems there is the needed momentum to break above it.
Ethereum broke higher above the $400 to reach the $420 resistance level after PayPal’s announcement that it would be acquiring a crypto custodian BitGo. This helped the smart-token to reach that resistance level as it currently tries to consolidate for another push higher.
Not only did Ripple break above the $0.2500 but also broke above $0.2600. The Cryptocurrency moved higher towards the $0.2640 where it encountered massive resistance forcing it to fall back below the $0.2600. The momentum remains bullish.
Bitcoin’s (check out the chart below; you’ll find that Bitcoin is the purple line) performance is printing at 23.42% on a month-to-month basis*. Ethereum’s (red line) performance is printing at 21.02% on a month-to-month basis. Ripple’s (turquoise line) performance is printing at 11.27% 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? Has the bullish momentum finally reached a critical level? Or has the time come for a correction lower? Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin Continues To Push Higher
Bitcoin has undergone a strong surge over recent days; from under $12,000 to $13,000 as of this article’s writing. Analysts are starting to expect even more upside as the coin posts candle closes above crucial resistance levels.
Analysts are saying that Bitcoin just formed a pivotal daily candle close. One of CryptoAltum’s analysts had predicted BTC would see a V-shaped reversal after the March crash. In the analysis, they saw that Bitcoin has printed its highest close since January 15th, 2018, just weeks after BTC hit $20,000.
Bitcoin will continue its ascent to the upside in the days and weeks ahead, especially due to fundamentals. News broke today that PayPal is looking to acquire crypto companies, namely the crypto custodian BitGo. Many see this as a validation of Cryptocurrencies and it may act as a catalyst for other financial technology companies and even traditional institutions on Wall Street to enter the Bitcoin space.
Ethereum Reaches $420 and Back Tracks
Ethereum, the smart contract Cryptocurrency, has been on an upward roll since late September. Support embraced at $320 played a key role in the progress, especially at the beginning of October. We’ve discussed in previous posts how Ether struggled with the seller congestion at $360 and $390, before making the final leap for $400.
At the time of writing, the smart contract giant is exchanging hands around the $415, following a persuasive move past $400. However, the selling pressure at $420 is currently acting as the main resistance after buyers failed to break above it. In addition, investors have pulled out of the market bringing volume down, and as a consequence volatility has dropped. Let’s not forget that the Bulls are still in control of the RSI and that alone suggests that there’s more upside happening.
When looking at the daily chart of Ethereum, we can notice that the Cryptocurrency is not overbought yet, but it could soon be. This means that there’s still room for an upside movement in the near term. The Moving Average Convergence Divergence (MACD) is also showing the Bulls in control. In other words, ETH could push further upwards, first settling above $420 and extending the bullish action towards $500. Note that the selling pressure is at $440 and $480. This subtle movement may delay the anticipated spike to $500.
Ripple Hits $0.2640 and Back Tracks
A prediction by one of our CryptoAltum analysts had suggested the Cryptocurrency could continue to rise towards $0.2660. Another move higher occurred on the Cryptocurrency charts while Ripple finally hit the $0.26 mark and continued to move above it. However, the seller congestion at $0.2640 forced the Cryptocurrency to back track below the $0.2600.
The current situation on Ripple suggests that there’s still enough upward pressure to move the Cryptocurrency higher as the inverse head and shoulders formation, which is a technical indicator that suggests a reversal in the downward momentum and more upside to happen, has been completed which means more upside potential. As one of CryptoAltum’s analysts suggests, this formation might push Ripple all the way towards the $0.2750.
Looking at the RSI of XRP, we can notice that the movement has crossed the overbought level to reach the 80 level and that corresponded by a move lower towards the $0.2540 support level from which buyers were able to step up and prevent a further meltdown after finally managing to break above the $0.2600. Currently, the RSI is still showing bullish momentum which corresponds with the price action attempting to break above the $0.2600 again.
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