The Daily Cryptomenon
21st 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 21.12.2020
After what was an incredible move in the Cryptocurrency market, the weekend provided some reprieve for the market as we saw some consolidation come in the game. Now do note, that the bullishness in the market has still not faded, and that means there’s the absolute possibility of another explosive (or normal) move higher. The resistances are currently being tested, however, the momentum with them this time around?
With that said, let’s find how the Cryptocurrencies are doing on December 21st, 2020.
Cryptocurrency Recap
The weekend provided some much needed rest for the Cryptocurrency market and especially to our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple. They managed to keep the momentum alive as they didn’t slip past their support levels, keeping everything within range. This consolidation comes at a crucial time in the market as we approach the holiday season. Now while the markets are open, volume might be extremely low and might not affect the market movement all that much, so you can expect some solid consolidation until the new year.
After the impressive move higher towards the $24,000, Bitcoin finally starts to consolidate at those levels, maintaining the gains it made as well as gives the Bulls a chance to breathe. This consolidation is super important for the instrument at this current junction as without it, the momentum higher could be lost and that would lead to more downside pressure. Currently, Bitcoin is attempting to break above the $24,300 but with the current setup, there’s bound to be some intense selling pressure that could lead back towards the $23,000.
While Bitcoin seems to continue moving higher in the wake of extreme bullishness, Ethereum didn’t find itself to be as lucky. The second largest Cryptocurrency found itself on the back foot. After it had attempted to rise towards the $680, it faced a lot of bearish pressure around that level, causing it to fall back towards the $630, which currently acts as an important support. However, with the current RSI (Relative Strength Index) showing signs of ovesold-ness, there’s the possibility of another push higher.
Ethereum wasn’t the only instrument to be left in the dust of Bitcoin, as Ripple faced some downward pressure. After Ripple attempted to break above the $0.6600, the instrument fell drastically towards the $0.5330. There was some support there, that helped the instrument to move back higher, and yet the bearish pressure continued to push the instrument downwards. A silver lining does appear, with the RSI which is printing close to the oversold boundary giving the possibility of a move higher.
Bitcoin’s (check out the chart below; you’ll find that Bitcoin is the purple line) performance is printing at 33.12% 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 85.50% 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 on CryptoAltum.
Bitcoin Looks to Move Higher
During the past couple of sessions, Bitcoin was mostly ranging in as it printed above the $23,000. BTC seems to be forming a strong support base near $23,000 and $23,200. The recent low was formed near $23,078 before the price climbed higher above $23,500. There is also a key bullish trend line forming with support near $23,080 on the hourly chart.
However, the price seems to be facing resistance near the $23,800 level. A clear break above the $23,800 zone could open the doors for more gains above $24,000 and $24,080. The next key resistance for Bitcoin is near the $24,300 level, above which the price is likely to continue higher towards the $24,500 and $24,600 levels in the coming sessions.
If Bitcoin starts another short-term downside correction, it could find support near the $23,500 level. The first key support is near the $23,200 level, with that main support forming near the $23,000 level. A daily close below the $23,000 support might call for an extended downside correction. The next major support could be near the $22,350 level.
Current Market Sentiment:Neutral with Bullish Bias
Ethereum Showing Positive Signs
After struggling to clear the $660 resistance level, Ethereum corrected lower below the $650 level. ETH traded below the $640 level and it even spiked below $630. However, the Bulls were able to protect the $620 support zone. A low is formed near $622 and the price is currently rising. It recovered above the $630 and $635 levels.
Ether is now back above the $640 level and the 100 hourly simple moving average. There’s also a key bullish trend line forming with support near $625 on the hourly chart of ETH/USD. On the upside, an initial resistance is near the $645 level. The main resistance is near the $660 level and a connecting bearish trend line on the same chart.
If Ethereum struggles to gain pace above the $650 resistance, it could gain correction lower. The first major support on the downside is near the $630 level. The main breakdown support is now forming near the trend line and $620. Any more losses may possibly call for a test of the $600 handle in the coming sessions.
Current Market Sentiment: Neutral with Bullish Bias.
Ripple To Target $0.7800
After breaking out of a crucial resistance on Wednesday, Ripple touched $0.68 and pulled back to where it’s now consolidating at $0.577. Volatility is low at the moment but it could resume its bullish momentum as soon as it finds key support. While the market remains indecisive, it has still gained 12% in the past week. Considering the mid-week breakout, the market seems likely to go in favor of the Bulls. For this to happen, though, the buying volume needs to increase a lot compared to its current levels.
As we wait for the next major movement, the important level to watch is the $0.6000 resistance. This is followed by $0.6780 and $0.7800 resistance levels in the next few days as the latter is also the yearly high. In the opposite direction, XRP is looking for support on the RSI 50 level. If these indicators fail to hold, there’s support at the $0.5000 level. Support to watch below this is $0.4370, which is inside the green demand zone. Below it lies the $0.3300 breakout level from November.
If Ripple was to break below the $0.5460 and the 100 Simple Moving Average on the 2-hour chart, the bullish momentum that the instrument was harnessing would all be lost as the focus switches towards finding a suitable support to start the rally once again. The RSI is currently around the 40-level indicating that there is some downward pressure but not a lot.
Current Market Sentiment: Neutral with Bearish Bias.
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