The Daily Cryptomenon
16th 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 16.12.2020
The Cryptocurrency market continues to test the resistance levels as momentum to the topside seems to be waning. After impressive movement higher over the past couple of days, the market is beginning to look a bit lightheaded as there is an expectation of either a sideways run, or a deep correction lower. It would seem that the market will continue to wait for important news to decide which way it wants to continue.
With that said, let’s find how the Cryptocurrencies are doing on December 16th, 2020.
Ripple continues to be the odd man out when it comes to our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple. As the other two continue to battle against their resistance levels and attempt to keep the positive momentum going, Ripple continues to fall under its support levels. Speaking of momentum, it seems that currently, it’s fading as the market tries to decide which way it wants to go next.
Bitcoin has attempted to break above the $19,500 three times so far, and each time it tries the sellers are stepping into the fray and forcing the instrument lower. The most recent attempt, however, did not find enough sellers to force the instrument that much lower as BTC trades around $19,440. There’s also some divergence going on in terms of the RSI (Relative Strength Index) and the price action, meaning that there’s going to be a correction in the near future.
Ethereum has also attempted to break above its resistance level at $595 three times so far, and each time it was rejected as sellers are putting their pressure to force the instrument lower. ETH currently seems to be losing momentum as the Bollinger Bands are squeezing in, indicating a lack of volatility and momentum while the RSI is printing near the 50 level. This means that there’s going to be a break soon, however, it’s a bit unclear which way, but technicals are pointing to the downside.
Ripple continues to get battered down, breaking below its recent supports to reach the $0.4375 before bouncing slightly. The bearish momentum on this instrument continues to outweigh everything as Ripple removes almost all the gains that it managed to gain during the explosive movement higher. RSI is showing extreme oversoldness and there might be a move higher, while the Bollinger Bands continue to widen showing increased volatility.
Bitcoin’s (check out the chart below; you’ll find that Bitcoin is the purple line) performance is printing at 20.92% on a month-to-month basis*. Ethereum’s (red line) performance is printing at 29.79% on a month-to-month basis. Ripple’s (turquoise line) performance is printing at 67.42% 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 Ripple and the other Cryptocurrencies
continue to trade in opposite directions? Or will everything converge?
Whatever you choose to believe, you can react to it all onCryptoAltum.
Bitcoin's Rejection at $19,500 and a Threat of a Move to $17,600
Bitcoin is still locked under the resistance at $19,500. A triple-top pattern is still in place, as sellers appear to be gaining momentum while buyers get exhausted by the day. As selling pressure intensifies, the hope of Bitcoin trading above $20,000 is dwindling, bringing to light the narrative that extended declines are likely to remain in the picture until January, perhaps due to investors realizing profits.
At the time of writing, the flagship Cryptocurrency is trading around $19,345. A recent rejection can be connected to the strengthening bearish grip. In the meantime, the least resistance path is downwards, as reinforced by the Relative Strength Index. Bitcoin is required to continue holding the fort at $19,000. This way, the bearish outlook will be mitigated. Otherwise, action under this crucial support level is likely to see BTC/USD tumble to below $18,800.
It is worth noting that the bearish outlook will be invalidated if Bitcoin broke out past the week-long horizontal resistance at $19,500. Trading above the psychological resistance at $20,000 may drive Bitcoin to astronomical highs as the fear of missing out creeps into the market.
Current Market Sentiment:Neutral with a bearish bias.
Ethereum Bears Keep Fighting
In the past two days, Ethereum made a few attempts to gain bullish momentum above the $594, $595, and $600 resistance levels. However, the Cryptocurrency failed to continue higher and mostly traded in a range above the $565 level. The recent high was formed near $593 before the price declined below the $590 level.
Ether’s price is now approaching the $580 support zone and the 50-SMA (Simple Moving Average) on the 2-hour Chart. If the price fails to stay above the $580 support and the 50-SMA, there’s a risk of more downsides. The next key support is near the $575 level. A close below the $575 support zone could spark a sharp decline towards the $565 and $555 levels in the near term.
If Ethereum stays above the $580 and $575 support levels, it could move higher in the mentioned range. An initial resistance is near the broken trend line and $585. The main resistance is still near the $595 level. A clear break above the $595 and $600 resistance levels may possibly clear the path for a sustained upward move. The next major resistance is near the $620 zone.
Current Market Sentiment:Neutral with bearish bias.
Ripple’s breakdown has been unstoppable ever since it hit a yearly high at $0.82. Selling pressure has continued to rise, shattering key tentative support levels, including $0.7, $0.65, and $0.6. XRP Bulls tried to hold the price above $0.5 but they were unsuccessful. For now, the cross-border token is busy hunting for formidable support but the search is likely to come unrewarded owing to the fact that a possible double-bottom pattern has been ignored.
The bearish narrative appears to have been validated by the RSI, as it dives deeper into the oversold area. The bearish leg is poised to continue to $0.4, where buyers will try to force a rebound. However, the breakdown has the potential of reaching the level at $0.35 before a significant recovery comes into play.
It is worth mentioning that the bearish scenario will be thrown out the window if Ripple bounces off the intraday low at $0.43. The impact of the ignored double-bottom pattern may still be present, and perhaps will support a recovery, at least above $0.5. XRP recovery movements are likely to be hampered by the seller congestion at the 200 Simple Moving Average. Further up, the 50 SMA will stand in the way of upward price action eyeing $0.55.
Current Market Sentiment: Bearish.
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