The Daily Cryptomenon
5th 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 05.10.2020
There has been some minor volatility during the weekend in the Cryptocurrency Market. There wasn’t much happening in the main market, but Ripple was spotted having a pretty intense rally, and this was all on it’s own without the help of either ETH or BTC. With that said, let’s find out what today holds for the Cryptocurrencies on October 5th, 2020.
Cryptocurrency Recap
Minor volatility was seen in our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - as we saw them either idle around, such as ETH, or experience a bout of positive energy that had them skyrocket, such as XRP. Bitcoin experienced a mixture of both as it found itself with some minor bullish pressure during the weekend, enough to send it higher to test the resistance level at $10,730. While Bitcoin was showing some minor bullishness, Ethereum was rather stagnant over the weekend, barely managing a move higher as the consolidation at the current levels continued. Ripple was the obvious winner during the weekend with an extreme move higher, as the Cryptocurrency jumped from the support level at $0.2300 and moved higher passing the resistance at $0.2400. It’s currently trying to break above the Critical Level at $0.2500.
Bitcoin (check out the chart below you’ll find that Bitcoin is the purple line) manages to keep things rather stable. Since the move downward earlier last month, things have been moving upwards but only slightly as Bitcoin’s performance records a 2.47% on a month-to-month basis*. Ethereum (red line) continues to deal with the increase in negative pressure as it performs the worst of the three with -9.09% on a month-to-month basis. Ripple’s (orange line) performance is the best out of the three, while it didn’t reach the positive level, it still has shown the biggest improvement with -1.74% 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 ETH and BTC follow in the steps of XRP and move higher? Or will XRP find that this move is unsustainable and fall from the highs? Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin to Recover to $11,000
Bitcoin is on its way to recovery towards $11,000. The reversal comes after the flagship Cryptocurrency plunged to $10,400 last week. At first, price actions to the north were lethargic mainly due to the resistance at $10,600. However, BTC is currently exchanging hands above $10,700 amid a consistent push by the Bulls for gains towards $11,000.
The bellwether Cryptocurrency has stepped above both 50-SMA (Simple Moving Average), however, it seems to be battling against the 100 SMA in the 4-hour timeframe. In addition, the Relative Strength Index (RSI) highlights the uptrend. Note that it’s just getting started and there might be enough momentum to reach higher.
For now, the path of least resistance seems to be to the upside. Meanwhile, Bitcoin is trading within a symmetrical triangle. This pattern is used in technical analysis to signal either a breakout or a breakdown. A breakout takes place above the upper trendline and a breakdown happens beneath the lower trendline. Breakouts are characterized by an increase in volume. Therefore, if the uptrend continues, there’s the likelihood of a breakout coming into the picture and sending Bitcoin significantly above $11,000.
Ethereum Tests Support at $340
Ethereum explored levels below $320 twice in September. Multiple attempts were made to pull the crypto above $400, but little progress was made above $390. Moreover, for the past two weeks, the price has remained capped under $360. The smart contract token divided again on Thursday and Friday with losses mainly following in the footsteps of Bitcoin, which revisited the levels around $10,400. Ether found support at $335 before resuming the uptrend to $348 (current market value).
Ethereum is trading at $348, as mentioned before. The price is dancing within a symmetrical triangle pattern. The pattern represents a period of consolidation heading to either a breakdown or breakout. It’s essential to watch out for high volume movement to confirm a breakout. Simultaneously, symmetrical triangle patterns must be used in conjunction with other chart patterns and technical indicators.
Ripple Wins Lawsuit and Skyrockets
Ripple has been dealing with multiple lawsuits for several years now. In a new development, the United States District Court for the Northern District of California ruled out a couple of fraud allegations filed against the blockchain startup. However, the prominent lawsuit against the cross-border company has been allowed to proceed.
XRP rallied by 6.50% on Sunday. Reversing a 0.57% loss from Saturday, Ripple’s XRP ended the week by 1.86% to $0.24789. Tracking the broader market, Ripple’s XRP fell to an early morning intraday low of $0.2320 before making a move. Finding support at the first major support level at $0.2319, Ripple’s XRP rallied to a late intraday high of $0.2500.
Ripple’s XRP broke through the day’s major resistance levels before easing back to wrap up the day at $0.247 levels. In spite of the late pullback, Ripple’s XRP avoided a fall back through the third major resistance level at $0.2381. At the time of writing, Ripple’s XRP was up by 1.96% to $0.25276. A bullish start to the day saw Ripple’s XRP rise from an early morning low of $0.2480 to a high of $0.2545. Ripple’s XRP left the major support and resistance levels untested early on.
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