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Date:
29th Sep 2020
Author:
CryptoAltum Analytics Team

The Daily Cryptomenon

29th 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 29.09.2020

The Ping-Pong between the Bears and Bulls continues as neither is able to hold down any kind of significant lead over the other in order to establish a trend. At one point we see that the Bulls are in control and everything is going fine with trading prices rising. Before we know it we find the Bears back in the game reducing the move of Bulls back to square one. Noone is really getting the upper hand. With that said, let’s find out what today holds for the Cryptocurrencies on September 29th, 2020.


Cryptocurrency Recap

The Bulls failed to move our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - higher even after breaking through numerous strong resistances. But to be fair with the Bulls, they were up against strong resistances which might have tilted the hands in favor of the Bears which quickly capitalized on the exchange in power and forced these instruments to retreat from their respective resistances. Bitcoin is such one case, where the Cryptocurrency moved higher towards the $11,000 but failed to break above it or even test it for that matter forcing the instrument back down towards the $10,700 and even lower. Not unlike Bitcoin, Ethereum faced its own resistance level at $370 which it failed to move above and hence Bears took control and moved the instrument back down towards the $350. Ripple followed in the steps of its cousins as it failed to break above its own important resistance at $0.2470 and fell back down towards the $0.2400.

Bitcoin (check out the chart below you’ll find that Bitcoin is the purple line) couldn’t handle the altitude and fell back down hurting its performance which reads -7.01% on a month-to-month basis*. Ethereum (red line) took a much harder hit than Bitcoin as it fell much more in relative terms also hurting its performance which reads -10.34% on a month-to-month basis. Ripple (orange line) continues to work in tandem with Ethereum and Bitcoin forcing the Cryptocurrency that much lower hurting its performance as well which reads -10.37% 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? Will the game of Ping Pong continue between Bulls and Bears? Or will there be a clear winner to take this market in a certain direction? Whatever you choose to believe, you can react to it all on CryptoAltum.


Bitcoin Forms Descending Triangle

Bitcoin has now set a handful of lower highs on the daily timeframe but has yet to make a lower low, confirming a downtrend. However, each subsequent lower high has now resulted in what appears to be a descending triangle pattern – a traditionally bearish pattern for the Cryptocurrency. Will this triangle eventually break down also, prompting the first lower low and confirming a third stretch of downtrend for Bitcoin before its bear market is officially finished?

Weeks ago at this point, Bitcoin price broke upward through resistance at $10,000 and has only briefly since traded below it. No daily candles have closed under the critical level that was only just freshly claimed. Bulls defended $10,000 support seven days straight, only to have Bitcoin price knocked right back down to the low $10,000 range. Each time Bulls make another push higher, it's rejected before a new local high can be set. With every subsequent lower high, a descending triangle pattern may be forming. These bearish chart patterns, in the past, haven’t been very forgiving to the first-ever Cryptocurrency.



The most recent descending triangle took place after Bitcoin price ran headfirst into $13,800. Lower highs eventually led to a lower low, and a downtrend climaxing on Black Thursday this March. The crypto market rebounded into the rest of the year, but the risk ahead has investors pausing. The coming election combined with the pandemic persisting, political protest spreading, and the mess of the economy along with the profit-taking has prices consolidating.


Ethereum Finds Popularity But Consolidates

The ongoing boom in decentralized finance (DeFi) space has been very beneficial for Ethereum. The demand for ETH has continuously surged in recent times. However, it is DeFi that’s dominating the headlines in the media and not Ethereum. So why is this good for ETH?

Ethereum’s primary purpose is to be the platform that fosters the creation of sophisticated decentralized apps. Similar to how the internet facilitated the creation of Google, Facebook, etc., Ethereum hopes to be a platform that fades into the background, allowing its applications to shine through. The technical on the 4-hour chart shows us that the price plummeted from $365 to $355 over two sessions breaking below the upward trending line. After this drop, the price is trending horizontally around the $355-level. 

 


The RSI (Relative Strength Index) is showing a decrease in the positive momentum that the Cryptocurrency has been exhibiting as the indicator drops below the 50-level. However, should the Bulls want the momentum to be reset, the price action must not break below the $340 or else the momentum will turn negative and send the Cryptocurrency even lower.


Ripple Sluggish Upward Movement

Ripple managed to bounce up from the $0.222 support line and managed to jump above the downward trending line. Following that, as you can see, the price has been trending horizontally around the $0.242-mark.

A horizontal price movement shows us that the forces of supply and demand are nearly equal. This usually happens when an asset goes through a period of consolidation before breaking out into a previous trend or reversing it into a new direction. Also, note how the RSI indicator is trending around the neutral zone, showing that the buyers and sellers are canceling each other out.



The sellers have taken the price down from $0.246 to $0.24 over two sessions, breaking below the upward trending line, in the process. As of now, the price has bounced up from the $0.24 support level and is consolidating below the SMA 20 curve. So, can we expect any price movement at all? Or is XRP going to keep moving along sluggishly in the near future?


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