Daily Crypto Review, Oct 7 – Crypto Sector Falls As Trump Rejects Stimulus Proposal

The cryptocurrency sector has declined slightly as Bitcoin returned to the level it was on Monday. Bitcoin is currently trading for $10,591, representing a decrease of 0.88% on the day. Meanwhile, Ethereum lost 3.04% on the day, while XRP lost 3.26%.

 Daily Crypto Sector Heat Map

If we look at the top 100 cryptocurrencies, we can see that PumaPay gained 6.93% in the past 24 hours, making it the most prominent daily gainer. EOS (5.08%) and Ethereum Classic (2.6%) also did great. On the other hand, Elrond lost 17.09%, making it the most prominent daily loser. It is followed by Ocean Protocol’s loss of 15.55% and Aave’s loss of 15.24%.

Top 10 24-hour Performers (Click to enlarge)

Bottom 10 24-hour Performers (Click to enlarge)

Bitcoin’s market dominance level has increased slightly since our last report, with its value currently being at 60.95%. This value represents a 0.49% difference to the upside when compared to when we last reported.

Daily Crypto Market Cap Chart

The crypto sector capitalization has lost quite a bit of value over the course of the past 24 hours. Its current value is $335.30 billion, representing a decrease of $7.1 billion compared to our previous report.

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What happened in the past 24 hours?

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• Bitcoin Trump-Dumps to $10,500; MetaMask Hits 1 Million Users (Coindesk)
• The US is losing ‘tech cold war with China’ says Ripple co-founder (Cointelegraph)
• 75 crypto exchanges have closed down in 2020 (Cointelegraph)
• Markets will decide on the regulations, not the government: Currency Comptroller (Cointelegraph)
• UK Bans Retail Investors from Buying Bitcoin Derivatives (Cryptobriefing)
• Ethereum’s MetaMask Reaches 1 Million Users, Grows 400% Year-to-Date (Cryptobriefing)
• Google Cloud Has Joined EOS as a BP Node (Cryptobriefing)
• Xfers Launches Fully-Regulated Digital Singapore Dollar on Ethereum and Zilliqa (Cryptobriefing)
• Silvergate’s payments platform crosses $100B in transfer volume (The Block)
• Galaxy Digital is building a one-stop financial services shop for cryptocurrency miners (The Block)

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Technical analysis

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Bitcoin

The largest cryptocurrency by market cap has spent a day declining in price slightly, with many analysts speculating that it was because of US President Donald Trump’s tweet on his rejection of the most recent stimulus proposal. Analysts that are less concerned about fundamentals saw a potential death cross as well as Bitcoin not being able to confidently pass the ascending trend (pink line), ultimately causing a small crash.

For the time being, Bitcoin will remain range-bound by the $10,360 level to the downside and $10,850 level to the upside as main support and resistance levels.

BTC/USD 4-hour Chart

Bitcoin’s short-term technicals have turned more bullish than yesterday, with both its 4-hour and 1-day overview tilting towards the downside. However, its longer-term technicals have remained bullish.

BTC/USD 4-hour Technicals

Technical factors (4-hour Chart):

• Price is below both its 50-period EMA and 21-period EMA
• Price is slightly below its middle Bollinger band
• RSI is ascending (46.96)
• Volume is average (after the one-candle spike)

Key levels to the upside          Key levels to the downside

1: $10,630                                 1: $10,500

2: $10,850                                 2: $10,360

3: $11,000                                  3: $10,015

Ethereum

Ethereum was trading on increased volume in the past 24 hours, with the volume starting to ramp up as the second-largest cryptocurrency by market cap was unable to break the top Bollinger Band line. This caused a slight crash, which pulled back Ether to its support level of $334, which held up quite nicely.

As we mentioned many times now, traders should pay attention to any increase in volume, but should ultimately trade Ethereum’s movements between $334 and $360.

ETH/USD 4-hour Chart

Ethereum’s short-term and long-term technical outlook looks very similar to Bitcoin’s. Its short term technicals (4-hour and 1-day) are heavily tilted towards the sell-side, while its weekly and monthly outlooks are still quite bullish.

ETH/USD 4-hour Technicals

Technical Factors (4-hour Chart):

• The price is below both its 50-period and 21-period EMA
• The price is at its lower Bollinger band
• RSI is neutral (40.44)
• Volume is above average

Key levels to the upside          Key levels to the downside

1: $360                                     1: $334

2: $371                                     2: $300

3: $400                                      3: $289

Ripple

XRP had a pullback day, where its price tried to find equilibrium after two days of pushing towards the upside. The third-largest cryptocurrency by market cap traded on increased volume, which indicated that the pullback would be more severe. The price has reached the $0.2454 support level and briefly fell under it as well. It is yet uncertain whether XRP has finished its pullback phase and remained above $0.2454, or if the fight for this level still continues.

XRP/USD 4-hour Chart

XRP 4-hour, daily, and weekly technicals are now tilted towards the buy-side, while its monthly outlook remains tilted towards the sell-side.

XRP/USD 4-hour Technicals

Technical factors (4-hour Chart):

• The price is above its 50-period EMA and right at its 21-period EMA
• Price is at its middle Bollinger band
• RSI is neutral (51.12)
• Volume is above average

Key levels to the upside          Key levels to the downside

1: $0.266                                   1: $0.2454 

2: $0.27                                     2: $0.235

3: $0.273                                  3: $0.227