The Daily Cryptomenon
23rd 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 23.12.2020
Consolidation is the name of the game as the market digests the latest news concerning a new strand of COVID-19 as well as low volume as the market prepares to enter into holiday mode. Not much has happened since yesterday as the market tries to consolidate its current position in anticipation of a new year. Other than that, there isn’t much happening.
With that said, let’s find how the Cryptocurrencies are doing on December 23rd, 2020.
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - continue to experience consolidation at the hands of indecisive markets ahead of the holiday market. Well, Ripple is an obvious exception with the $1.3 billion lawsuit against it. The other two are trading within their new ranges without much change waiting for new news to decide which way is the best way to trade.
Bitcoin managed to bounce from the $22,450 level to above the $23,000 and closer to the $24,000. The bullishness that seems to be fighting back against the downside is not strong enough to break above the current resistance levels. The consolidation had sapped the strength away from the instrument and the possibility of more upside does seem low. Breaking below the $22,450 would create increased bearish pressure that would send the instrument even lower.
Ethereum broke below the $600 support level reaching the $585 before managing to find some support to stage a comeback. However, this comeback was not as strong as the others, since the instrument reached the $640 resistance level and fell heavily from that level back below the $620. Currently the bullishness that we witnessed on this Cryptocurrency has vanished and seems that the path of least resistance is to the downside.
The U.S. SEC has slapped Ripple with a $1.3 billion lawsuit. This has caused the instrument to suffer immense bearish pressure that sent it towards the $0.3300. What’s more is that the pressure still isn’t not done as we can expect the Cryptocurrency to reach below the $0.3000 if the current situation continues. As more news comes out concerning this lawsuit, the market will react, so best keep an eye out on it.
Bitcoin’s (check out the chart below; you’ll find that Bitcoin is the purple line) performance is printing at 27.79% on a month-to-month basis*. Ethereum’s (red line) performance is printing at 7.23% on a month-to-month basis. Ripple’s (turquoise line) performance is printing at -18.63% 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 bearish pressure continue to push the
market lower? Or is there a support at which the Bulls can stage a comeback?
Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin Show Bullish Signs
After a sharp decline, Bitcoin managed to find some support near the $22,350 level. A support base was formed before BTC started a fresh increase above the $22,800 and $23,000 levels. The price gained bullish momentum above the $23,200 resistance level. There was also a break above a key bearish trend line with resistance near $23,200.
Bitcoin even climbed above the $23,500 resistance level and traded close to the $24,000 resistance. The next major support on the downside is near the $23,500 level. There is also a connecting bullish trend line forming with support near $23,200 level. Any more downsides below the trend line support could lead the price towards the $22,350 support zone in the coming sessions.
If Bitcoin remains stable above the $23,500 and $23,320 levels, there are high chances of an upside break. An initial resistance on the upside is near the $24,000 level. The next major resistance is near the $24,250 level. A close above the $24,250 level could start another pump and the price could easily rise towards the $25,000 in the near term.
Current Market Sentiment:Neutral with Bullish Bias
Ethereum Struggling to Stay Positive
After a downside extension, Ethereum found support near the $590 zone. ETH traded as low as $588 before it started a fresh increase above the $600 pivot level. The Bulls were able to push the price above the $620 resistance level. There was also a break above a connecting bearish trend line with resistance near $625, as well as a surge above the $630 level.
However, it failed to clear the $638-$640 zone. A high is formed near $639 and the price is currently declining. There was a break below the $630 level and the 100 hourly simple moving average. Ether is now trading near the broken trend line and the $620 support. A downside break below $620 might spark another decline. Any more losses could lead the price towards the $600 level.
If Ethereum stays above the $620 support level, it could start a fresh increase. An initial resistance on the upside is near the $628 level. The first major resistance is near the $634 level, followed by the $640 zone. A clear break above the $640 zone could open the doors for a sustained upward move towards the $650 and $660 levels.
Current Market Sentiment: Neutral with Bearish Bias.
Ripple Tumbles on SEC Lawsuit
It’s a bloodbath for the XRP investors as the world’s third-largest Cryptocurrency tanks 29% moving below $0.35 levels. While the entire Cryptocurrency market is recovering, Ripple is facing a massive sell-off after the U.S. Securities and Exchange Commission (SEC) slapped a $1.3 billion lawsuit for selling XRP as unregistered securities.
This was very much expected as Ripple’s CEO, Brad Garlinghouse, had already predicted a day before that the regulator was coming after them. Garlinghouse has accessed SEC Chairman Jay Clayton saying: “Clayton did this with one foot out the door. Rather shamefully, he has decided to sue Ripple, and leave the legal work to the next chairman. I think we have to stand up for all of crypto—and not let the SEC bully the entire industry. We’re going to be on the right side of history”.
At the time of writing, XRP is changing hands at $0.3785. Despite the recovery from the intraday lows, the coin lost nearly a quarter of its value on a day-to-day basis to become the worst-performing Altcoin out of the top-10. From the technical point of view, XRP recovered from the daily EMA100 at $0.35. This area may serve as a backstop for the price and allow an upside correction. However, only a sustainable move above $0.45 will mitigate the bearish pressure and allow an extended recovery.
Current Market Sentiment: Bearish.
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