The Daily Cryptomenon
9th December 2020
Your daily Cryptocurrency Market Analysis News brought to you by the CryptoAltum Cryptomenon Team.
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This analysis was written at 9:00 am GMT +3, on 09.12.2020
Consolidation no longer rules the events of the day. In fact, the bearish pressure has taken over the Cryptocurrency market and seems to have reached a certain support at the time of this writing. The momentum seems to be waning at the current time and we could be seeing another wave of bullish pressure in the making.
With that said, let’s find how the Cryptocurrencies are doing on December 9th, 2020.
Cryptocurrency Recap
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - were afflicted with the bearish syndrome, however, it isn’t all that surprising concerning the consolidation that had made its presence in the market. The markets weren’t going anywhere fast, allowing Bears to weasel their way into the momentum of the instruments and proceed to being a downward trend that seems to have hit a support.
Bitcoin’s price movement has taken ill with bearish pressure as it has broken below the $18,840 level and even the $18,400 before settling just around the $18,200 with volatility widening as per the BB (Bollinger Bands) and the RSI (Relative Strength Index) is showing oversold conditions, implying that there could be a move higher coming soon.
Ethereum followed the same pattern that Bitcoin did as it fell from the highs around the $600. An important resistance that caused the instrument to actually dip quite severely reaching the $540 level before balancing out. Same set in the BB with widening volatility and oversold conditions based on the RSI.
Ripple wasn’t left behind in terms of the bearish momentum that led it to fall after failing to break above the $0.6160. It reached the $0.5420 support level and seems to be consolidating around that support. The patterns on the BB and RSI also mimic that of ETH and BTC implying that a possible upside momentum is in the works.
Bitcoin’s (check out the chart below; you’ll find that Bitcoin is the purple line) performance is printing at 17.61% on a month-to-month basis*. Ethereum’s (red line) performance is printing at 21.16% on a month-to-month basis. Ripple’s (turquoise line) performance is printing at 117.63% 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 November till the 1st December.
What’s the strategy you’re going to use when it comes to these cryptos? Consolidation has ended, will the bearish momentum stay? Or will the Cryptocurrencies find bullish momentum at the current levels?
Whatever you choose to believe, you can react to it all onCryptoAltum.
Bitcoin Falls from Range
After many failed attempts to surpass $19,500 and $19,600, the price of Bitcoin finally was affected by the downside momentum and simply fell. BTC broke the $19,000 support and settled below the 100-SMA on the 2-hour chart to move into a short-term bearish zone. The price gained pace after it broke the key $18,600 and $18,500 support levels. The bears gained strength and they managed to push the price towards the $18,000 zone. A low is formed near $18,033 and the price is currently consolidating losses.
There’s also a short-term contracting triangle forming with resistance near $18,320 on the hourly chart of the BTC/USD pair. If there’s an upside break above the triangle resistance, Bitcoin might recover above $18,350. The next major resistance is near the $18,500 level. It’s close to the 50% Fib retracement level of the recent decline from the $18,986 high to $18,033 low.
If Bitcoin fails to clear the $18,500 resistance zone, it could continue to move down. An initial support is near the triangle lower trend line at $18,100. The first major support is near $18,000, below which the price might decline sharply. The next major support is near the $17,650 level. Any more losses might lead the price towards the $17,200 level.
Current Market Sentiment:Mixed Bearish and Bullish
Ethereum Falls From $600 and Seeks $540
After many failures, Bitcoin and Ethereum declined below the $19,000 and $585 support levels. ETH price gained bearish momentum below the $580 level and it settled well below the 100 hourly simple moving average. The bears were able to push the price below the $565 support level. Ether price even spiked below the $550 support and traded as low as $541. It’s currently correcting higher and trading above the $545 level.
The first major resistance on the upside is near the $565 level (the recent breakdown zone). Therefore, Ether price is likely to face a strong selling interest if it recovers above $555 and climbs higher towards the $565 and $570 level in the near term.
If Ethereum fails to clear the $555 and $565 resistance levels, it could continue to move down. An initial support is near the $542 and $540 levels. A downside break below the $540 support zone may perhaps spark more losses towards the $525 level. The next major support is near the $500 zone, where the Bulls are likely to take a stand.
Current Market Sentiment:Bearish with Bullish Bias
Ripple To Breakout Soon
XRP underwent an extremely strong rally at the end of November. The Cryptocurrency, as many remember, surged around 100% in the span of three days amid one of the most rapid bouts of price action in a high-cap crypto-asset since the 2017 rally. At one point, the market became so disjointed and volatile that XRP traded as high as $0.92 on CryptoAltum. The Cryptocurrency, the third-largest by market capitalization, peaked at $0.75 on most other platforms.
XRP has managed to consolidate and hold its post-rally prices despite selling pressure from large position holders. XRP, while down 4% in the past 24 hours, remains far above the prices it was trading at just a month or two ago.
XRP has seen extreme stability relative to the rally seen late last month, when 10-30% daily swings were commonplace. One of the leading Cryptocurrency analysts,Josh Olszewicz, spoke to CryptoAltum and thinks that this relative stability is likely going to be a precursor to a breakout. Olszewicz shared a chart recently, showing XRP’s 12-hour chart in relation to its Bollinger Bands on the same time frame. The Bollinger Bands is a technical indicator used to denote important technical levels and volatility.
Current Market Sentiment: Bearish with Neutral Bias
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