The Daily Cryptomenon
15th 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 15.12.2020
Despite the bullish momentum that has taken over the Cryptocurrency market (well not all of it, Yes we’re looking at you Ripple), it was not enough to break above the current market resistances. This lack of momentum helped the Bears capitalize on the weakness presented and proceeded to correct the current movement higher. However, recent established supports seem to be wary of such a move and stopped the momentum in its tracks.
With that said, let’s find how the Cryptocurrencies are doing on December 15th, 2020.
Two out of the Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - are moving in the same direction, but Ripple isn’t one of them. The market attempted to break above their current resistances, but failed to gain the needed momentum for that mission to be a success. The result was a drastic move lower from the resistance levels but the supports are doing their part for the time being
Bitcoin attempted to move higher above the $19,400, but the resistance at that level was too strong at the narrowing bullish momentum. This led BTC to fall towards the $19,000. The support at that level allowed the Bulls to gather their strength to move higher as they reached the $19,500 resistance level, which happens to be a very important mark. Sellers quickly entered the fray and didn’t allow any more movements higher which forced the instrument to fall back towards the $19,000 as the Cryptocurrency is currently consolidating around that level.
Ethereum seems to be in the same boat as Bitcoin. The second largest Cryptocurrency attempted to break above its resistance level at $595, but failed a second time. Fortunately enough, the support at $580 was there to cushion the blow. However, this doesn’t mean the bullish momentum has finished, it’s simply taking a break to gather whatever strength it may need for another move higher.
Once again, Ripple finds itself on the wrong side of the tracks in relation to BTC and ETH. While the other two are staging other bullish comebacks, Ripple continues to move lower. While BTC and ETH test recent resistance levels, Ripple is testing recent support levels. The third-largest Cryptocurrency has tested the $0.4870 support again as the bearish pressure continues to mount on this instrument.
Bitcoin’s (check out the chart below; you’ll find that Bitcoin is the purple line) performance is printing at 20.43% on a month-to-month basis*. Ethereum’s (red line) performance is printing at 27.64% on a month-to-month basis. Ripple’s (turquoise line) performance is printing at 80.44% 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 momentum stay the current course? Or will there be a change and a reversal?
Whatever you choose to believe, you can react to it all onCryptoAltum.
Bitcoin Gains Momentum
After a short-term downside correction from $19,440, Bitcoin was able to find some support near $19,000. However, despite the downward move, BTC remained well bid above the $19,000 level and started a fresh increase. There was a break above the $19,200 and $19,380 resistance levels. The price even broke the $19,440 swing high and extended gains above the $19,500 level. A new monthly high is formed near $19,545 and the price is now trading well above the 100 simple moving average on the 2-hour Chart.
Bitcoin’s price is currently consolidating gains above the $19,100 level. The next major support is near the $19,000 level. There’s also a key bullish trend line forming with support near $18,800. On the upside, the price must break the $19,500 and $19,545 levels to continue higher. The next major resistance is near the $19,800 zone. A clear break above $19,800 could increase the chances of a new all-time high above the $20,000 level.
If Bitcoin starts a short-term downside correction, it could find support near the $19,000 level. The first key support is near the bullish trend line or $19,200. The main support is now forming near the $19,000 zone. A downside break and close below the $19,000 level could start a sharp decline towards the $18,500 level in the near term.
Current Market Sentiment:Neutral with a bullish bias.
Ethereum Rising Steadily
After testing the $595 zone, Ethereum corrected lower. ETH traded below the $580 support level, but the Bulls were able to protect the $575 support zone. A swing low was formed near the $576 level before the price started a fresh increase. There was a strong upward move above the $580 and $585 levels. There was also a break above a key bearish trend line with resistance near $586 on the ETH chart.
Ether climbed above the $590 level and even spiked above $595. A new monthly high is formed near $596 and the price is currently consolidating gains. Moreover, there’s a crucial bullish trend line forming with support near $585 on the same chart. On the upside, the price is clearly facing a strong resistance near the $595 level. The current price action suggests that Ether could make another attempt to clear $595. The next major resistance is still near the $600 level. A close above the $600 level could accelerate gains.
If Ethereum fails to clear the $595 and $596 resistance levels, it could start a downside correction. The first key support zone is near the $585 level and the trend line. A downside break below the trend line support and $585 could push the price towards the $575 support zone. The 100 simple moving average is also waiting near the $570 zone to provide support.
Current Market Sentiment:Neutral with bullish bias
Ripple Struggles to Gain Momentum
For the first time in years, XRP gained some massive momentum when it broke above $0.30 last month, with Bulls sending the price rocketing as high as $0.90 on some exchanges before an influx of selling pressure sent it plunging lower. This rally gave many embattled bag holders an ideal exit opportunity, with the new capital being siphoned in due to investors trying to gain access to the highly anticipated SPARK airdrop that took place this weekend.
It does appear that this was a “sell the news” event, as XRP’s price has been plunging lower ever since the airdrop snapshot took place. It’s now in the process of breaking below its key $0.50 support level, despite the strength seen by the rest of the market. This weakness has struck a heavy blow to its previously bullish market structure and may be emblematic of a wave of imminent selling as disappointed traders and investors move to take profits.
The current support at $0.4870 has stopped the Cryptocurrency from seeing any intense decline, but this support is quickly degrading and may not hold for too much longer. The selling pressure is so intense that XRP is currently bucking an uptrend seen across the entire market, with BTC and ETH stable.
Current Market Sentiment: Bearish
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