The Daily Cryptomenon
18th 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 18.12.2020
We stand in awe. We had expected that the Cryptocurrency market would experience a major move higher this year, but we did not anticipate that the movement in the market would be as explosive as it was yesterday. Bitcoin remains the talk of the town as it had jumped towards an All-Time High yet again reaching the $23,800 mark before correcting lower. The other Cryptocurrencies were no slouches either.
With that said, let’s find how the Cryptocurrencies are doing on December 18th, 2020.
Cryptocurrency Recap
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - continued to enjoy the bullish momentum that was in abundance during yesterday’s market movement. The result was more explosive movements higher as Bitcoin breaks into uncharted territory, Ethereum testing new highs, and Ripple just happy to be included in the fun of moving higher. The entirety of the movements in the markets seem to have faded though as we see that the market is currently just consolidating the gains that it managed to make.
The continued movement higher in Bitcoin is impossible to miss, unless you’re blind (even then, you’ve probably heard). Bitcoin has reached a new All-Time high at $23,800. However, since then, the largest Cryptocurrency has retreated back towards the $22,450 which is acting as a support, from which the market bounced higher towards the $23,000. As much as we talk about this movement, it still wouldn’t be enough to describe just how powerful this move was.
Ethereum joined in the fun of the bullish movement as it too managed to find itself moving higher. However, the bullish momentum on this instrument wasn’t like BTC, as it just barely missed the $680 high and then fell back into the $640 range. It had attempted to break below the $630 level but the Bulls took advantage of the dip to consolidate the gains that the Cryptocurrency managed to make.
Ripple was happy to be included in the fun like last time, as the third-largest Cryptocurrency reached the $0.6600 resistance level before correcting heavily below the $0.6000. The movement in Bitcoin helped the Cryptocurrency break above the resistance levels at $0.5500 and it’s currently trading around the $0.5930 consolidating the gains it made.
Bitcoin’s (check out the chart below; you’ll find that Bitcoin is the purple line) performance is printing at 27.66% on a month-to-month basis*. Ethereum’s (red line) performance is printing at 32.22% on a month-to-month basis. Ripple’s (turquoise line) performance is printing at 96.91% 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? Have the Bears had enough of this Bullish
momentum? Or will there be more continuation of this same path?
Whatever you choose to believe, you can react to it all onCryptoAltum.
Bitcoin Could Resume Its Rally
Yesterday, there was a massive upward move in Bitcoin which managed to move above the $20,000 resistance. BTC surged over 20% and it even broke the $22,000 resistance level. The upward move gained pace above the $23,000 level and the price settled well above the 100 hourly simple moving average. The price traded to a new all-time high at $23,715 before it started a downside correction. There was a break below the $23,000 and $22,800 levels. However, the Bulls were able to protect the price from diving below $22,000.
A swing low was formed near $22,263 and the price started forming a base above $22,350. It climbed back above the $22,500 and $22,600 levels. There was also a break above a key contracting triangle with resistance near $22,850 on the hourly chart of the BTC/USD pair. Bitcoin’s price is now struggling to settle above the $23,000 level. The first key resistance is near the $23,160 level. A successful close above the $23,160 level could open the doors for a fresh increase towards the $23,700 and $24,000 levels in the near term.
If Bitcoin starts another short-term downside correction, it could find support near the $22,500 level. The first key support is near the $22,350 level. A downside break below the $22,350 support base may possibly spark an extended decline. In the stated case, the price could even decline below the $22,000 support level.
Current Market Sentiment:Bullish.
Ethereum’s Rally Not Over Yet
Yesterday, there was a massive upward move in Bitcoin, Ethereum, Ripple, as well as other major Altcoins. ETH cleared the key $620 resistance level and rallied above the $635 swing high. As a result, there was a strong surge and the price broke the $650 resistance. Ether traded to a new monthly high at $676 and settled well above the 100 hourly simple moving average. However, “what goes up, must come down” applies to markets perfectly as much as it does to physics, and there was a downside correction below the $650 level.
However, the Bulls remained active above the $630 and $635 levels. A low was formed near $628 and the price is currently consolidating gains. It recovered above the $640 level, and is now facing a strong resistance near the $652 level.
If Ether continues to move down, the trend line support and $640 could play a major role. The next key support is near the $630 level. A downside break below the $630 support level could lead the price towards the $620 support.
Current Market Sentiment: Bullish
Ripple’s Fundamentals Remain Strong
The breakout of the COVID-19 pandemic has led to a spike in the need for remittance services within the last few months. It appears this development may add to the fundamental factors that will cause XRP price to skyrocket. Contrary to previous expectations in the remittance industry, there has been a significant increase in cross-border transactions. This turn of events presents many strong fundamentals building the case of a potential boom for XRP price.
After a long period of sideways movement between $0.18 and $0.20, XRP price finally made a tremendous 217% spike before settling at $0.60, where it’s currently holding up. A decent buy pressure may spark a rally towards $0.88 before the ultimate push to $1.00. XRP is currently undervalued when taking into consideration its previous all-time high, pointing to great upside potential.
Although the cross-border remittances token seems poised for more gains, the bears might gain control momentarily. Certain technical indicators present a sell signal on the 4-hour chart that may cause prices to dip to $0.52. A break of this support level may see XRP price plunge to $0.33 before a recovery.
Current Market Sentiment: Cautionary.
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