The Daily Cryptomenon
11th 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 11.12.2020
The bearish momentum that has dominated the Cryptocurrency Market doesn’t seem to be letting up as the downward pressure on markets continues to increase. There was a brief attempt at a bounce back at certain support points, however, that idea was quickly squashed at the first level of resistance that the market encountered. Traders are currently trying to digest the current market conditions as they plan their next move.
With that said, let’s find how the Cryptocurrencies are doing on December 11th, 2020.
Cryptocurrency Recap
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - continued to be under pressure of the bearish market. While there wasn’t any additional slide downwards, the market continues to limit the upside and seems to extend the downside of the equation. There had been attempts to move higher but the resistance levels and seller pressure continue to limit the upside.
Bitcoin attempted to break above the $18,600 resistance level, but the selling pressure at that level seems to indicate that a break requires a bit more strength than the Cryptocurrency has. After failing to break that level, Bitcoin continued to fall as it broke below the $18,000 once again and trades around $17,850. From there, the Cryptocurrency will possibly attempt to below the previous bounce level at $17,600.
Ethereum continued to fall as well as it trades marginally above the $540 support level. The Cryptocurrency has also been affected by the bearish pressure with the $530 level acting as the bounce level from yesterday. In order for the instrument to reestablish some kind of power to the upside, the instrument is in desperate need to reclaim the $560 level, or we could be experiencing another move lower possibly towards the $500.
Ripple’s momentum is definitely limited by the upside by the 100-SMA (Simple Moving Average) on the 2-hour chart. This Moving average is proving too much for the third-largest cryptocurrency to handle as the downward pressure continues to mount higher. Currently the instrument is looking at the $0.5420 for some support, as a break below that would lead towards $0.5000.
Bitcoin’s (check out the chart below; you’ll find that Bitcoin is the purple line) performance is printing at 16.19% on a month-to-month basis*. Ethereum’s (red line) performance is printing at 17.60% on a month-to-month basis. Ripple’s (turquoise line) performance is printing at 116.67% 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 support levels prove to be strong against the downward pressure? Or will the downward pressure simply blast through them and continue lower?
Whatever you choose to believe, you can react to it all onCryptoAltum.
Bitcoin Continues to Extend Downside Pressure
Bitcoin had failed to break above the $18,600 which triggered another step lower as the downward pressure extends. A high was formed near $18,640 before the price of BTC traded below the $18,400 level. The Bulls seem to have lost control since the price is now trading well below the $18,500 level and the 100 hourly simple moving average.
The price is trading below the $18,000 level and signaling more losses. There’s also a major bearish trend line forming with resistance near $18,380 on the hourly chart of the BTC/USD pair. If there’s a downside break below the recent low, there’s a risk of a sharp decline below the $17,500 level. The next key support is near the $17,200 level.
If Bitcoin starts a short-term upward move, it might struggle to clear the $18,000 resistance level. The first major resistance is near the $18,200 level. The main resistance is now forming near the trend line and $18,400. A clear break above $18,400 and $18,500 could be very tough in the coming sessions.
Current Market Sentiment:Bearish
Ethereum Indicates Larger Declines Ahead
There was a failed attempt by Ethereum to clear the $580 resistance zone. ETH price traded as high as $577 and recently started a fresh decline. There was a break below the $565 pivot level to spark a fresh downward move. Ether price broke the $550 support level, and there was a clear break below the 50% Fib retracement level of the upward move from the $530 swing low to $577 high.
The price is now showing bearish signs below the $550 zone and the 100 hourly simple moving average. An initial support is near the $540 level. On the upside, the Bulls are facing many hurdles, starting with $555. To move into a positive zone, Ether must gain momentum above $560 and then clear the bearish trend line. The main resistance is still near the $580 zone.
If Ethereum fails to clear the $555 and $560 resistance levels, it could continue to move down. An initial support zone is forming near the $540 level. The next major support is near the $530 swing low, below which there’s a risk of a larger decline. In the stated case, the price could even break the $520 support and revisit $500.
Current Market Sentiment:Bearish
Spark Token Airdrop to Affect Ripple
XRP is trading at $0.55 just hours from the airdrop. The cross-border token recently embraced support at $0.55, sabotaging the bearish call for losses pointing to $0.32. Most analysts believe that the demand for XRP has surged ahead of the Spark token airdrop, thus the ability to hold at higher support.
The short-term XRP outlook seems bearish, especially with selling pressure mounting under the 50 Simple Moving Average. For now, the least resistance path is downwards, as reinforced by the sloping Relative Strength Index.
Holding above $0.55 would be a bullish signal, but if push comes to shove, the buyer congestion at $0.5 would come in handy. On the upside, closing the day beyond the 50 SMA and $0.6 might call for more buy orders and perhaps restart the uptrend to highs above $0.7
Current Market Sentiment: Bearish
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