The payment giant Square is the second company listed after MicroStrategy to buy Bitcoin (BTC). While buying Square 4709 bitcoins is much less than buying MicroStrategy 38,250 Bitcoins, many investors believe this is a welcome step in the right direction.
The acquisition of cryptocurrencies by large listed companies such as Square could inspire other companies to join the cryptocurrency, and it also signals an improving image of Bitcoin as an investment and value creation tool.
The growing interest in cryptocurrencies does not go unnoticed as many central banks are trying to assert their presence in this digital age by launching central bank digital currencies.
China has been at the forefront of CBDC development. Local news in China also reports that the city of Shenzhen plans to give a public gift of 10 million RMB to nearly 50,000 people to be chosen through the lottery.
China’s progress in the digital yuan has prompted other Asian countries to speed up the development of their digital currency currencies. As evidence, a recent report from the Bank of Japan says the country plans to start testing its central bank digital currency sometime in 2021.
The cryptocurrency market has reacted positively to the flow of news, but is this recovery sustainable?
Let’s explore the top 10 cryptocurrency cards to find out.
Bitcoin / USD
Bitcoin (BTC) broke out and closed above the symmetrical triangle and the 50-day simple moving average ($ 10,855) on October 8. This indicates the disappearance of the uncertainty between the bulls and the bears.
If the buyers manage to hold the price above the triangle for another day, the breakout is valid and the BTC / USD pair could start its journey towards the $ 12,434 target pattern.
The bears are not likely to give in easily, and most traders expect stiff resistance at $ 11,178 and $ 12,000.
However, a 20-day exponential moving average ($ 10.744) is starting to emerge, and the RSI also rose to positive territory. This indicates that the bulls are currently winning.
This uptrend becomes invalid if the bears pull the price below the 20 day moving average. The move signals that the current outbreak has been an upward trap.
ETH / USD
Ether (ETH) jumped $ 333,039 on October 7 and the bulls are currently trying to maintain the bearish price. If successful, they could go for 50 days SMA ($ 371) and then up to $ 395.
Bears can have a stiff resistance of $ 395. If price falls from this level, the ETH / USD pair may drop to the 20-day moving average. The 20-day moving average ($ 354) is flat and the RSI is just above 50, indicating the range movement over several days.
However, if the bulls push the price above $ 395, the momentum will likely increase and the pair might rise to the 61.8% Fibonacci retracement level at $ 419.473 and higher to the 78.6% retracement level at $ 449.669.
Contrary to this assumption, if the pair falls from current levels, it may fall to the immediate support level of $ 333. A break below this level could test the $ 308,392 support again.
XRP / US Dollar
The bounce in the 20-day moving average ($ 0.244) over the past 3 days indicates that sentiment has shifted from selling on ready to buying on dips. If the bulls can push and close the price (UTC) above the $ 0.26 horizontal resistance, XRP will complete the inverted head and shoulders pattern.
The target of this reversal pattern is $ 0.300288. The two bullish 20-day Exponential Moving Average (EMA) and Relative Strength Index (RSI) are in positive territory, indicating that the path of least resistance is pointing upwards.
However, if the pair stabilizes from the current level or from $ 0.26, several days of range can be made. The trend will be negative if the bears drop their XRP / USD pair below the $ 0.219712 support.
BCH / USD
Bitcoin Cash (BCH) broke the downtrend and 20-day EMA ($ 226) on October 8th and the bulls are now trying to push the price above the highest resistance to $ 242.
The 20 day moving average is starting to appear, and the RSI indicator has entered positive territory. This indicates that the bulls are trying to return. If the BCH / USD pair breaks down and closes (UTC) above $ 242, it might rise to $ 280.