The Daily Cryptomenon
10th 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 10.12.2020
The bearish momentum has taken over the Cryptocurrency market as we saw most of the instruments in that asset class fall quite hard. Even though the market has dropped considerably, supports on the lower range have been pulling their weight around here and some bounces higher have been noticed.
With that said, let’s find how the Cryptocurrencies are doing on December 10th, 2020.
Cryptocurrency Recap
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - continued with the bearish correction that began yesterday and even continued to move lower. However, supports on each of the three Cryptocurrencies were in the way to prevent any additional damage. These supports were also a good level for the Bulls to return into the market, as the market jumped higher from the supports, but the Bears wouldn’t allow the Bulls to turn this market around.
Bitcoin’s price movement continued to fall from yesterday’s bearish momentum as it broke through the first level of support at $18,200. The price continued to fall lower reaching the $17,600 which was the stronger support allowing the market to rebound from that level. Bitcoin moved towards the $18,600 level, which was the immediate resistance as it couldn’t break higher and ended back lower as it seems to be testing the $18,200.
Ethereum fell as well, following Bitcoin’s lead, as the Cryptocurrency broke below the $550 support level, and continued to move even lower. Price action reached the $530 support only to bounce from that level back towards the $580, but sellers and Bears aren’t going to allow Bulls to return to the market all that easy.
Ripple continued to move lower as well, following the other two. The Cryptocurrency fell towards the $0.5000, breaking the first support at $0.5420. After reaching the $0.5000, the price found enough bullish presence to move back higher by the $0.6000 and the 100-SMA (Simple Moving Average) on the 2-hour chart, were there to stop the momentum.
Bitcoin’s (check out the chart below; you’ll find that Bitcoin is the purple line) performance is printing at 19.63% on a month-to-month basis*. Ethereum’s (red line) performance is printing at 25.24% on a month-to-month basis. Ripple’s (turquoise line) performance is printing at 126.94% 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? Will the supports hold once again against the bearish pressure? Or will the Cryptocurrencies find bullish momentum at those supports?
Whatever you choose to believe, you can react to it all onCryptoAltum.
$18,600 is Level to Beat for Bitcoin
Yesterday, Bitcoin continued to fall as the bearish momentum was too much, forcing the price action below the $18,500 support level. BTC even extended its decline below the $18,000 support and settled below the 100 hourly simple moving average. The decline gained pace below $18,000 and the price traded close to the $17,600 level. A low was formed near $17,640 and there was a strong recovery wave. The price climbed back above the $18,000 and $18,200 levels.
However, Bitcoin struggled to clear the $18,600 resistance zone (the last key breakdown zone). A high is formed near $18,639 and the price is currently showing a few bearish signs. On the upside, the price is facing hurdles near the previous support at $18,500 and $18,600. A clear break above the $18,500 and $18,600 resistance levels could open the doors for a push towards the $19,000 level.
If Bitcoin fails to clear the $18,600 resistance zone (which seems to be the case) it could resume its decline. An initial support is near the $18,150 and $18,100 levels. The first key support is near $18,000, below which the price might drop towards the $17,644 swing low. Any more losses might lead the price towards the $17,400 level.
Current Market Sentiment:Bearish
Ethereum Remains Vulnerable
Ethereum moved below the $550, mirroring Bitcoin’s move to below the $18,000. ETH price even broke the $540 support level and settled well below the 100 hourly simple moving average. It traded as low as $530 before starting a decent upward move. There was a sharp recovery wave above the $540 and $550 levels. Ether price even broke the $565 resistance, but it faced a strong resistance near the $580 zone.
There’s also a major bearish trend line forming with resistance near $584 on the hourly chart of ETH/USD. The pair is now consolidating below the $565 support. The next major support is near the $550 level or the 50% Fib retracement level of the recent recovery from the $529 swing low to $577 high. On the upside, the price is clearly facing a strong resistance near $580. To start a steady increase, Ether must surpass $580 and $584. The next major resistance is near the $600 level.
If Ethereum fails to clear the $580 and $585 resistance levels, it could start a fresh decline. A clear break below next major support at the $550 zone could strike a death blow to Ether. In the stated case, the price could even break the $529 swing low.
Current Market Sentiment:Bearish
Ripple Heads Even Lower
XRP has been caught within the throes of immense volatility as of late, which has come as the entire market also faces some turbulence due to Bitcoin’s ongoing decline. This weakness has come about due to the Cryptocurrency’s inability to break above the $0.60 region, with this proving to be a heavy resistance level for the token. It is now trading down nearly 50% from where it peaked, although it is still up over 100% from its recent lows of $0.23. Where XRP trends in the mid-term will depend largely on Bitcoin and the rest of the market, as the benchmark crypto has had a firm grasp on the trends seen by the entire market lately.
This weakness also comes as the entire market struggles to gain traction, with sellers overtaking buyers and forcing Bitcoin down towards $18,000. One of our CryptoAltum analysts is expecting XRP to see some notable losses, pointing to its Bitcoin trading pair as an example of its mounting technical weakness. He also notes that the Spark airdrop narrative that may have sparked this rally is likely losing steam and may not guide it any higher.
At the time of writing, XRP is trading down around $0.5690. This marks a notable decline from its recent highs in the mid-$0.60 region set earlier this week. The selling pressure here has proven to be quite intense on multiple occasions throughout the past few days and weeks. Where XRP trends next will undoubtedly depend at least partially on Bitcoin and the rest of the market.
Current Market Sentiment: Bearish
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