The Daily Cryptomenon
17th 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 17.12.2020
Last night marked the beginning of an impressive rally that stayed with the Cryptocurrency market till this morning. Everyone is talking about the explosive movement higher by Bitcoin breaking above the $20,000, then gained traction to trade above the $21,000 and continued moving higher to reach the $22,000. Ethereum and Ripple (I know even Ripple) were able to benefit from that explosive move higher and broke through their respective resistance levels.
With that said, let’s find how the Cryptocurrencies are doing on December 17th, 2020.
Cryptocurrency Recap
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - found enough bullish pressure in a hidden pocket of the market when the CME decided to release Bitcoin Futures as well as announcing Ether Futures. Furthermore, Ruffer Investment Company Limited becomes the latest institution to bet against gold, now holds 2.5% of its portfolio in Bitcoin. Finally, UK Financial watchdog FCA announces temporary relief for crypto businesses. So it’s safe to say yesterday was a historic day for the Cryptocurrency market.
To say that Bitcoin exploded to the topside is a severe understatement for Bitcoin. In fact, Bitcoin had a nuclear propeller strapped to its back as it broke through the $20,000 and within 5-hour set a new All-Time-High at $22,400. After reaching that level, a slight correction can be noticed happening to the instrument, but as we’ve seen countless times before, such a rocket move higher will have a deep correction.
Ethereum got a huge benefit when the CME finally announced that it will be launching Ether Futures, so now, Ethereum joins that ranks of Bitcoin as the second currency to have futures. The expected launch of these Futures are in February 2021, the response was ETH soaring towards the $650. However, the resistance at that level kept the instrument from extending this record move any higher.
While there wasn’t any ground breaking news on Ripple to have caused it to move alongside the other Cryptocurrencies (for once), it was affected by the other Cryptocurrencies, mainly BTC and ETH. The third-largest Cryptocurrency was able to break through several important resistances to reach the $0.5800 resistance level before correcting lower. Currently the instrument is trading around $0.5600 as it waits for new news to trade on or simply consolidate the gains it made.
Bitcoin’s (check out the chart below; you’ll find that Bitcoin is the purple line) performance is printing at 33.14% on a month-to-month basis*. Ethereum’s (red line) performance is printing at 39.31% on a month-to-month basis. Ripple’s (turquoise line) performance is printing at 93.02% 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 Bullish pressure continue to push the
Cryptocurrency market higher? Or is there a correction in the near term?
Whatever you choose to believe, you can react to it all onCryptoAltum.
Bitcoin Records New All-Time High
Yesterday, there was a clear break in the resistance levels of Bitcoin at $19,500 and $19,800. As a result, BTC broke the $20,000 barrier to start a strong upward move. The price traded to a new all-time high and settled above the 100 hourly simple moving average. The Bulls are clearly in action, as they managed to pump the price above $21,000 and $22,000 (reaching $22,400). During the rise, there was a break above a couple of bullish continuation patterns near $19,754 and $20,900 on the hourly chart.
The pair gained pace and it traded as high as $22,182 recently. It’s currently consolidating gains and trading near $22,000. On the downside, an initial support is near the $21,700 level. On the upside, BTC might face some resistance near $22,200 and $22,450 levels. Any more upsides could lead the price towards the $23,500 level in the near term.
If Bitcoin starts a short-term downside correction, it could find support near the $21,700 level. The first key support is near the $21,600 level. Any more losses may possibly call for a test of the $21,000 zone in the near term.
Current Market Sentiment:Bullish.
Ethereum Revisits $650
After forming a support base, Ethereum broke the main $595 and $600 resistance levels. Bitcoin breaking above the $20,000 as well as the CME Ether Future, resulted in a sharp increase in ETH’s price above the $620 resistance zone. The Bulls took over and there was a strong 10% upward move towards $650. There was also a break above a key contracting triangle with resistance near $625 on the hourly chart of ETH/USD. Ether’s price even spiked above $650 and settled well above the 100 hourly simple moving average.
A high is formed near $652 and the price is currently correcting lower. There was a break below the $645 and $640 levels. If there are more downsides, the price might find a strong support at $630. On the upside, the price is facing a major hurdle near the $650 level. A successful close above the $650 level could spark another rally. The next key resistance is near $680, above which the price could test $700.
If Ethereum continues to move down, the $635 and $630 levels are important zones. A downside break below the $630 level might call for a test of the $620 support level. The main uptrend support is now forming near the $600 level (the recent breakout zone). Any more losses may possibly change the trend line in the short term for a test of $565.
Current Market Sentiment: Bullish with Neutral Expectations
Ripple Struggles to Gain Momentum
XRP/USD picks up the bids near $0.5660 during early Thursday. In doing so, the pair cheers its upside break of a key resistance while attacking the 21-day SMA to extend the rise. Considering the receding strength of the MACD bearish histogram, coupled with a clear break of a falling trend line from November 24, XRP/USD buyers are likely to keep the reins.
In doing so, highs marked during the early month, around $0.6290 and $0.6820, will become their targets. However, the 0.7000 psychological magnet and the record high of 0.7842, flashed in November, can challenge further upside.
Meanwhile, a pullback from $0.5755, comprising 21-day SMA, will eye the previous resistance line, at $0.5210, before revisiting the 50-day SMA near $0.4300. Overall, the XRP/USD prices have defied consolidation from the record high and are likely heading north for the fresh top.
Current Market Sentiment: Bullish with Consolidation
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