The Daily Cryptomenon
14th December 2020
Your daily Cryptocurrency Market Analysis News brought to you by the CryptoAltum Cryptomenon Team.
This analysis was written at 9:00 am GMT +3, on 14.12.2020
At first glance it would seem that the bearish pressure that was present on the Cryptocurrency market has finally reversed as we see the instruments climb back to their previous consolidation zones. After what was a consolidation that turned bearish, the Bulls have shown just how tenacious they are as they took full advantage of the supports and managed to rise back higher.
With that said, let’s find how the Cryptocurrencies are doing on December 14th, 2020.
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - didn’t break under the pressure of the bearish momentum that was threatening to revert things back lower. In fact, they wore their big boy pants and decided to go toe to toe with the downward trend, relying on the support that they’ve cultivated. The weekend saw how the Cryptocurrency market fought against a move lower and won out sending prices back into their previous consolidation range.
Bitcoin was having some trouble as the bearish momentum kept the Cryptocurrency below the $18,700, however, that changed. BTC was able to break above that strong resistance as it was converging with the 100-SMA (Simple Moving Average) on the 2-hour chart. That was enough of a push to change the dynamic of the Cryptocurrency as it continued to move higher reaching $19,500, before retreating a bit.
Ethereum followed the same path of Bitcoin, as the second-largest Cryptocurrency broke above the 100-SMA on the 2-hour chart and managed to climb towards the main resistance level at $595. It has retreated a bit from that level, but the bearish pressure that has been mounting on the instrument seems to have reduced quite a bit.
Ripple goes back to being the odd man out of the group, as the Cryptocurrency continued to fall reaching the $0.4870 support level before bouncing a bit. The resistance level at $0.5290 was too strong for the Cryptocurrency as it halted the upward move. Moreover, the momentum seems to be expanding to the downside with the instrument trading below the 100-SMA.
Bitcoin’s (check out the chart below; you’ll find that Bitcoin is the purple line) performance is printing at 17.71% on a month-to-month basis*. Ethereum’s (red line) performance is printing at 23.76% on a month-to-month basis. Ripple’s (turquoise line) performance is printing at 84.38% 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 upward pressure continue to help the Cryptocurrency market higher? Or will the Bears resume their dominance over the market?
Whatever you choose to believe, you can react to it all onCryptoAltum.
Bitcoin Settles Above $19,000
After forming a strong support base near $17,600, Bitcoin was able to capitalize over the strong support and start an upward trend. BTC surpassed many key hurdles near the $18,000 and $18,500 levels to move into a bullish zone. The recent upward move was powerful enough that the price climbed above the $19,000 resistance and the 100-SMA as we pointed out earlier.
Bitcoin is showing a lot of positive signs above the $19,150 and $19,200 levels. An immediate resistance is near the $19,320, and a break above that level could open the doors for more upsides above the $19,433 high. In the stated case, there are high chances of a strong upward move above the $19,500 resistance. The next major resistance is near the $19,800 level, followed by $20K.
If Bitcoin starts a short-term downside correction, it could find support near the $19,000 level or the broken triangle trend line. The first key support is near the $18,800 level. The main support is now forming near the $18,680 level. A proper daily close below that level could lead to more downside pressure leading the instrument towards the $18,200.
Current Market Sentiment:Neutral with a bullish bias.
Ethereum Turns Green with $600 as Resistance
After forming a support base near $535, Ethereum started a steady increase. ETH traded higher and broke a few important hurdles near the $550 level to move into a positive zone. The price gained bullish momentum above the $565 and $575 levels. The upward move was such that Ether’s price even surpassed the $580 resistance level and settled nicely above the 100 hourly simple moving average. It traded as high as $594 and it’s currently consolidating gains.
There was a minor decline below the $585 level. However, Ether is finding a strong support near the $582 and $580 levels. On the upside, the Bulls are facing hurdles near the $592 and $594 levels. There’s also a connecting bearish trend line with resistance at $592 on the same chart. The main resistance is still near the $600 level. A close above the $600 level is must for upside continuation.
If Ethereum fails to clear the $595 resistance levels, it could start a downside correction. An initial support zone is forming near the $570 level. The next major support is near the $550 zone. A close below the trend line could lead the price towards the $550 level and the $535.
Current Market Sentiment:Neutral with bullish bias
Ripple Remains Bearish Despite Bullishness
XRP/USD drops to $0.4870 during the early trading hours of Monday. In doing so, the quote keeps Friday’s downbeat mood inside a descending trend channel formation established since November 29. With the RSI conditions far from oversold, XRP/USD sellers can keep the reins inside the bearish formation. However, 200-bar SMA and the stated channel’s support, respectively around $0.4830 and $0.4640, will challenge further downside.
In a case where the XRP/USD bears keep dominating past-$0.4640, November 26 low around $0.4580 will be the key to watch. Meanwhile, an upside clearance of the latest top near $0.5290 can recall short-term buyers targeting the channel resistance of $0.5700. Though, any upside break will have to cross the 100-bar SMA level of $0.5865 to convince the XRP/USD Bulls. Overall, the crypto pair is likely to witness further downside but the key supports can offer intermediate bounces to the quote.
As things stand, Ripple is expected to continue to move in a downward trend, however the presence of strong support at $0.4870, will probably limit the downside a bit. However, with the current squeeze in the Bollinger Bands, things are expected to turn volatile soon. Combine that with the RSI which prints just above the 40-level, things become clear that more downside is to be expected.
Current Market Sentiment: Bearish
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