The Daily Cryptomenon
17th 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 17.09.2020
It’s all about Bitcoin these days as the #1 Cryptocurrency was able to withstand the fall of the Altcoins and continue trading sideways only to prove its power by breaking through the $11,000 and helping along with the Altcoins back into their high positions. So yes, the focus seems to remain on Bitcoin as the Cryptocurrency seems to be setting the pace of the market for the time being. With that said, let’s find out what today holds for the Cryptocurrencies on September 17th, 2020.
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple find themselves moving higher especially after Bitcoin resisted the bearish pressure coming from both ETH and XRP and stayed within a sideways move. The result was seen when Bitcoin popped through the $11,000 barrier which helped both ETH and XRP move back into their ranges. However, Bitcoin couldn’t sustain the high bearish pressure that it had encountered at $11,000 as it fell back towards $10,900 as it trades around it as of this writing. Ethereum is currently trying to break above $380, the Cryptocurrency experienced a fall from that level but with the help of Bitcoin, ETH found the needed momentum to jump back into the fray and push back towards that resistance level. While Ripple was also facing some downward pressure, which we saw a push towards the $0.2340, but again Bitcoin was there to the rescue as the third-largest Cryptocurrency break through the $0.2550 resistance. Unfortunately, it failed to establish any kind of foothold above that level and was promptly forced back below it as it currently tries to break above once again.
Bitcoin (check out the chart below you’ll find that Bitcoin is the purple line) managed to push higher after the brief sideways move attempted a break of $11,000 and succeeded. It promptly fell below it, all of this giving it a performance of -7.92% on a month-to-month basis*, it would seem that things are shaping up, but we’re still a long way before entering positive areas. Ethereum’s (red line) followed Bitcoin’s lead as it managed to resist the temptations of the Bears of the market and rose back higher towards the $380 as it gives a performance of -11.06% on a month-to-month basis. Ripple (orange line) also moved along with its older cousins and was propped up by the move of Bitcoin. It could break above $0.2550, but that wasn’t sustained. However, performance-wise giving it -16.46% 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? Is our Cryptocurrency Trio going to continue moving higher? Or are the Bears simply too strong at the moment? Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin Breaks Above $11,000 But Corrects Lower
After successfully closing above the $10,800 level, Bitcoin managed to extend its move higher as it broke through the key $11,000 resistance level. This was a needed move as it proved that the case of the upside is still quite strong when it comes to the #1 Cryptocurrency. The price traded to a new weekly high at $11,102 and recently started a downside correction, which saw Bitcoin fall towards the $10,900. It seems to be stable at that point for the time being, which is important if the Bulls want another crack at the $11,000.
Looking at the technicals for a bit, we can notice that an upward trendline is forming on the 4-hour chart but might be a bit more clear on the 1-hour chart. It stands to reason that as long as the price is above the trend line, Bitcoin could resume its upward move above the $11,000 resistance. The first resistance is near the $11,100 level, above which the Bulls are likely to aim more upsides towards the $11,500 and $11,600 levels in the near term.
Should Bitcoin fail to resume its upward move above the $11,000 level, the bearish pressure could mount and we see it move below the trendline. An initial support on the downside is near the trend line at $10,840. A downside break below the trend line support may perhaps start an extended decline towards the $10,650 support level. Any further losses could remove all chances of a strong rally this week and the price might continue lower towards $10,200.
Danger Zone; Ethereum’s Positive Move
While Ethereum has been enjoying the rather positive vibes it’s been getting from the move in Bitcoin, the danger of losing said positiveness is actually mounting and it has nothing to with the technicals. From a technical point of view, Ether is actually showing increased positive signs especially after it was able to break above the $380. In addition to that, the correction low wasn’t all that bad, all of this is showing that ETH might continue higher.
However, Ethereum has been seeing some intense selling pressure over the past few days, which has likely to come about due to the trend reversal seen amongst Decentralized Finance (DeFi) tokens. Because the DeFi market is essentially built on top of Ethereum, the ETH token has been heavily influenced by the expansion of this sector. That being said, as yields across platforms begin waning and as token prices plunge, some investors appear to be offloading their Ethereum holdings in favour of Bitcoin – which has been able to rally higher over the past couple of days. This trend has hurt ETH’s short-term outlook, which is hampering that of the entire Altcoin market.
The entire Altcoin system is built around the concept of Ethereum, so the moves in this token affect each and every single other token that shares the same system. One of CryptoAltum’s Market Analysts has noted that as long as ETH is unable to break through the cluster of resistance between $380 and $400, the entire Altcoin system will struggle to gain any kind of meaningful momentum.
Ripple on the Verge of Exploding Higher
Things are looking pretty good for Ripple, not just from a technical point of view, but from a Fundamental one. Ripple is the only Cryptocurrency that seems to be pushing towards regulations according to a famous Cryptocurrency investor known as CryptoWhale. In a recent tweet, they noted that the coin will skyrocket following the addition of market regulations and will eventually “annihilate” competing assets.
Furthermore, CryptoWhale added that governments prefer the “transparency” of XRP and lauded the efforts of Ripple (XRP’s parent company) for establishing real-world partnerships instead of chasing retail investors. The analysts also noted that they’ve actively invested in XRP since 2013 and plan on increasing their exposure after a correction in the Bitcoin and Altcoin market. CryptoWhale also detailed their reasoning for investing in XRP. They said that XRP is “x1000” faster and cheaper than Bitcoin.
From a technical point of view, Ripple is actually on the verge of breaking above the current resistance at $0.2550, something that it has already been done but failed to get any kind of foothold above the important level. This move was sparked by the move in Bitcoin which managed to consolidate at the high levels despite Altcoins dropping. With that spark, Ripple broke through the 100 SMA (Simple Moving Average) and seems on a course to break through the $0.2550 yet again. However, will it hold above that level?
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