The Daily Cryptomenon
9th 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 09.10.2020
We had expected consolidation to take hold of the market for a bit of time so investors could get a clear direction on which way it might go. However, the Bulls of the market had a totally different idea in mind. In fact, they have been able to establish a presence and catapult the Cryptocurrency market higher, breaking through important resistance and are currently facing new challenges. With that said, let’s find out what today holds for the Cryptocurrencies on October 9th, 2020.
The Bulls had been able to gain some solid ground over the Bears as the markets moved higher breaking through some important resistances and establishing a foothold that could be used by Bulls as support. Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - were able to move into new spaces but it’s quite hard to really say if a new trend has been established, well other than Bitcoin. Bitcoin was able to break through the resistance at $10,800 which has been preventing the Cryptocurrency to break through and attempt a move towards the $11,000. Now that the $10,800 has been removed and Bitcoin able to switch it to a support, things might be looking up for this Cryptocurrency. Ethereum was inspired by the move in Bitcoin that it staged its own move higher as it broke through the 100-SMA on the 4-hour chart, however, with the $350 acting as a resistance, it feels as if the Cryptocurrency might have a hard time continuing the move higher, but should it be able to the $360 level is waiting for it. Ripple also found the move in Bitcoin inspiring that it too has been able to move higher, however, it seems that the $0.2510 was there waiting for the Cryptocurrency as it bounced off that level and fell, only slightly though.
Bitcoin (check out the chart below you’ll find that Bitcoin is the purple line) pushed higher breaking through the $10,800 and seems to have established a foothold above giving a boost to performance which prints at 8.56% on a month-to-month basis*. Ethereum (red line) remains the worst performing Cryptocurrency out of the three as it records a 4.72% performance on a month-to-month basis, however it seems to have finally turned positive for the month. Ripple (turquoise line) managed to ride the wave of positivity coming from Bitcoin and rose higher as it now prints a performance of 6.98% 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 sudden wave of bullish pressure going to continue? Or will the Bears have something to say about it? Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin Looks to Break $11,000
Bitcoin has finally been able to break through this consolidation higher. The 4-hour timeframe chart has seen Bitcoin print an engulfing candlestick, which culminated on a short-lived rally towards $11,000. The momentum appears to have built on the support at $10,600. Buyers cemented their position in the market by stepping above the 100 SMA, even reaching as high as the upper bound of the Bollinger Bands.
Bitcoin exchanged hands within a whisker of $11,000 but buyers lost steam, leaving the critical level unconquered. Meanwhile, BTC is teetering at $10,900 amid a gradually building bearish grip. It’s essential that the hurdle at $11,000 comes down to give the Bulls the ultimate push towards the psychological $12,000 level.
The Relative Strength Index (RSI) closed in on the overbought region but is pointing downwards at the momentum, illustrating the Bears’ return. The volume is quite low, in a way, limiting price action. Therefore, consolidation is likely to take precedence as the weekend is ushered in. Initial support is highlighted at $10,800, if that level fails to find support at $10,600, $10,400 and the range between $10,200 and $10,000.
Ethereum Looks to Break Higher
Ethereum is likely to perform extremely well in 2021, analysts say, despite the recent rapid drawdown in ETH’s price. The coin currently trades for $350, around 30% below the recent year-to-date highs of $490, set just a few weeks ago. Ethereum’s strong move lower was a result of a correction in the Bitcoin market, along with a rapid slowdown in the utility of leading decentralized finance platforms.
While Ethereum may perform well in 2021, analysts are expecting short-term weakness likely towards the $300 lows last seen at the start of September. There’s also some uncertainty about all markets due to stimulus talks being paused by President Trump. There are rumors that stimulus talks are being restarted but there haven’t been any concrete moves from both sides just yet.
The momentum Bitcoin led ETH to reach higher seems to be waning as the RSI barely printed above the 60-level as the bullish pressure was not confirmed, this could lead to a move lower if the 100-SMA on the 4-hour chart fails to hold the Cryptocurrency. The current support lies at the $340 followed by the $330 and there seems to be potential for a move lower in case these levels fail to hold any kind of bearish pressure.
Ripple Faces Inverse Head and Shoulders
XRP continues to lag behind the rest of the market, but an inverse head and shoulders pattern has investors hopeful that Altcoin will soon outperform Bitcoin, Ethereum, and others finally after a period of stagnancy. Ripple holders, however, may want to avoid getting ahead of themselves, as two other, much larger matching reversal patterns suggest new all-time highs could take until 2023 or beyond.
XRP has struggled compared to other crypto assets, so perhaps it’s not the best indicator for what might happen to Bitcoin and other assets. However, a long-term rounded bottom may be forming that points to no new peaks in the crypto market until 2023 and beyond. Within the extended high timeframe curvature, the fourth-ranked Cryptocurrency is currently forming a right shoulder on three entirely different timeframes.
The three reversal patterns and their targets’ line up is almost too well with the rounding pattern, adding credence to theories about lengthening cycles, but also potentially confirming a lack of a new All Time High in most assets until much later than most expect.
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