The Daily Cryptomenon
14th 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 14.09.2020
Once again we find the Cryptomarket trying to test the resistances that were once considered as supports, as if confronting a friend that has turned into an enemy. Well, not as dramatic but you get the picture. These levels have made it very difficult for the Cryptomarket to stage any kind of meaningful rally as with every upward move, a new level waits to send it back down. With that said, let’s find out what today holds for the Cryptocurrencies on September 14th, 2020.
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple attempted to make a move higher during the weekend, however, that seems to have ended very poorly as their respective resistances were in the way of any move higher. Bitcoin attempted to move higher past $10,600 but was rejected at that level and sent back below the $10,400. Even though Ethereum managed to break above the $380, the $390 was there to stop all the upward momentum. It was strong enough to send the Cryptocurrency back towards the $365. Ripple also attempted a move higher as it tested the $0.2550 resistance, but with the lack of momentum and the overwhelming bearish pressure at that level, Ripple fell back towards the $0.2400 where the 50 SMA (Simple Moving Average) is still holding the instrument in place.
Bitcoin (check out the chart below you’ll find that Bitcoin is the purple line) tried to move higher and erase this massive drop back into negative performance. However, it only managed to settle at -11.86% on a month-to-month basis*. Ethereum (red line) attempted to do the same thing, managing to rise towards -8.00% but ended up going much lower, reaching -13.40% on a month-to-month basis. Ripple (orange line) mimics its older cousins as the Cryptocurrency rises and falls, ending up at -17.39% 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? Are the Bulls attempting a steady move higher by testing and retracing? Or do you think that the Bears are just too strong at the moment and the downward spiral will continue? Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin Faces Power Struggle
Bitcoin was able to surpass that pesky resistance level at $10,400, it even managed to break through the $10,500 and end up trading close to $10,600. The seller presence and the bearish pressure won the day as the flagship Cryptocurrency dropped back below $10,400. It’s trading now around $10,350 with bearish pressure mounting.
However, the drop didn’t do a lot of damage as the 50 SMA on the 4-hour chart was able to hold the Cryptocurrency in place around the $10,250. This moving average should provide enough support for BTC to gather momentum once again and attempt a push higher. Actually, the only way the bullish momentum can continue is if Bitcoin manages to break through $10,500 in a clean manner (i.e. no retracements below it), so the key level to beat is $10,500.
Looking at the RSI (Relative Strength Index) we can notice that the indicator has risen towards the 60-level alongside the price action, and just like the move higher, the RSI moved lower with said price action. The move lower, however, was halted at the 50-level indicating that the powers between the Bulls and the Bears are at a standstill for the moment and that whoever is going to win this battle is either going to have to break above the 60 or below 40-level, respectively.
Ethereum Faces Short-Term Bearish Bias
Ethereum has seen some intense selling pressure throughout the past day, which has struck a blow to the technical strength that was brought about by the buying pressure seen yesterday. This decline has made it grow increasingly unclear as to where the Crypto may trend in the near-term, but it does seem as though it may be positioned to see significant further downside in the near-term.
One of our CryptoAltum Analysis Team noted that the recent decline appears to have been sparked by a so-called “whale” who had been previously walking up the Cryptocurrency’s price by spoofing buy orders. The analyst notes that this whale “pulled the rug” on ETH, sparking today’s decline. As such, it may continue seeing heightened weakness in the near-term, as it has now broken below a key support level. Unless this level is recaptured, there’s a strong likelihood that the Cryptocurrency continues plunging lower in the near-term.
Looking at things from a Technical standpoint, things are looking a bit rough on ETH for the time being as the RSI is printing below the 50-level indicating that the downward bias might continue pressuring Ether lower. However, with the 50 SMA on the 4-hour chart holding down the fort for any additional movement downwards, Bears are going to have a very hard time breaking below that level. So things remain a bit unclear at the moment until a significant move from either side is made.
Ripple Consolidates as Animal Spirits Fight
While Ripple did manage to move alongside its older cousins and head on higher, it also faced an important resistance level at $0.2550, from which it retraced lower just like BTC and ETH. If one was to look at the overall picture of how this instrument has been moving, one would notice that for the past 10 days Ripple has been horizontal, to say the least, with some movements higher and lower, but overall it was in a sideways movement.
When looking at other indicators, the price is presently undervalued. This might point to a breakout in the making as XRP is currently consolidating and building up the necessary momentum to break out. While we expect this breakout to be bullish, the Bears can also break below the $0.2378 support line and take the price down to $0.2273. So which side will really prevail?
The RSI is showing signs similar to those of ETH as the indicator is printing below the 50-level. This means that even though there’s a consolidation going on, the bias is currently downwards, indicating that the 50 SMA on the 4-hour chart is going to have its hands full as the Bulls enter the market and try to defend this moving average.
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