The Daily Cryptomenon
24th 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 24.12.2020
The best way to describe the Cryptocurrency market at this current juncture is mixed. We are seeing that most of the Cryptocurrencies are trading lower, however, some are consolidating at their current ranges. So, it’s quite hard to really decipher which way the markets will be heading, yet the most likely answer would be to the downside, however, it’s not a 100% guarantee. Consolidation with downward bias would be the optimal description for what is happening in the market at this moment.
With that said, let’s find how the Cryptocurrencies are doing on December 24th, 2020.
Cryptocurrency Recap
It’s quite difficult to describe what is happening to our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - as a whole. The issue is, while they tend to move together and share most of the same characteristics, they are trading in completely different patterns now. Bitcoin is consolidating its gains beneath the $24,300, Ethereum is facing downward pressure that led it below the $600 level, and Ripple is facing extreme bearish pressure due to the ongoing lawsuit against it.
Bitcoin remains confined in the trading range between the $24,300 resistance level and the $22,450 support level. While this is an exceptionally large range to be confined in, yet that is what the data and charts are showing. There is some intense consolidation going on as neither, Bulls nor Bears, are willing to give up an inch from those levels. The Bears have managed to break below the $22,450 on several occasions, yet the Bulls were right there to correct the situation. What’s more, BTC is currently trading right above the 100 simple moving average (SMA) on the 2-hour chart, which could be providing an important conversion point.
When Ethereum broke below the $600 support level the first time around, the Bulls were able to quickly capitalize on the situation and force it back higher towards the $640. However, the second time around, things were not looking all that well for the Bulls, as the break sent ETH towards the $550 before the Bulls were able to step in. The result was a massive dent in the bullish drive that the instrument held. Now, the once support has turned into a resistance as the $595 and $600 are going to be tough levels to beat.
The lawsuit against Ripple is currently still raging as both sides of the equation are battling each other to prove that they’re the ones who have the right. Of course, the price of Ripple didn’t wait to see who the victor is, as XRP fell hard below the $0.3000 and even reached a low of $0.2150. This means that most of the gains that it managed to make in the past two-three months are all gone. Currently, the Cryptocurrency will be waiting for new news to come to light concerning the token as it struggles to maintain what it currently has.
Bitcoin’s (check out the chart below; you’ll find that Bitcoin is the purple line) performance is printing at 25.53% on a month-to-month basis*. Ethereum’s (red line) performance is printing at -5.39% on a month-to-month basis. Ripple’s (turquoise line) performance is printing at -57.98% 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 there be some sort of correction higher in the near term? Or will it be a one straight shot downwards?
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Bitcoin Remains in Consolidation
There was another attempt by Bitcoin to clear the $24,000 resistance level. However, BTC struggled to gain momentum and started a fresh decline from that level. There was a break below the $23,500 and $23,250 support levels. There was also a break below a major bullish trend line with support near $23,350, as the decline gained pace below $23,000 and the price settled just above the 100-SMA on the 2-hour chart.
It traded as low as $22,629 and it is currently correcting higher. There is also a bearish trend line forming with resistance near $23,000 on the same chart. The next major resistance is near the $23,360 level. Bitcoin must break the trend line and then gain pace above the $23,360 to start a fresh increase. The main hurdle for the bulls is still near the $24,000 zone.
If Bitcoin fails to clear the $23,000 and $23,360 resistance levels, there is a risk of more downsides. An initial support on the downside is near the $22,650 zone. The first major support is near the $22,350 level. The main support is still near the $22,000 level, below which there is a risk of a sustained downward move in the coming sessions.
Current Market Sentiment:Neutral
Ethereum Becomes Vulnerable
Analysts are saying that the reason behind Ethereum’s drop below the $600 has to do with Ripple. Ripple saw a massive decline below $0.4000 and $0.3000, resulting in bearish moves in Bitcoin and Ethereum below $23,000 and $600. ETH price declined sharply below the $600, $595 and $580 support levels. The decline was such that the price even spiked below the $565 support and settled well below the 100 simple moving average. It tested the $550 support level and recently started an upside correction.
However, the price is now facing many hurdles near $590, $592, and $595. There is also a key bearish trend line forming with resistance near $592. A clear break above the $595 and $600 resistance levels could open the doors for more upsides. The next major resistance is near the $630 level and the 100 simple moving average.
If Ethereum fails to surpass the $595 and $600 resistance levels, it could start a fresh decline. An initial support on the downside is near the $570 level. The first major support is near the $565 level. The main support is still near the $550 level, below which there is a risk of a sharp decline. In the stated case, the price is likely to revisit the $520 support zone.
Current Market Sentiment: Bearish.
Ripple Continues Nosedive
Ripple saw further loss today following a series of rejection from $0.78 level in November. But the latest SEC charges against the cryptocurrency have painted a more bearish picture on a short-term perspective. In fact, due to this, XRP price had lost the third spot to Tether on the market cap as it currently trades at $0.2650 against the USD.
Looking at the price chart, we can see that the price has dropped back to its two-month trading level after losing the $0.435 monthly support level today. This suggests that the market is back on bearish, although there’s still a chance for a rebound if the $0.2500 level can act as support. As it stands now, there’s no sign of bulls in the market.
Adding to this current scenario, the price has now broken below the 30 level on the Relative Strength Index meaning that the instrument has entered extreme oversold conditions and a recovery is likely. The next support to watch now is the $0.2150 level if XRP price loses the $0.2500 level. The following support is the mid-year low at $0.2000. In case of a rebound, the recent monthly drop level ($0.435) would be the bulls’ next target after reclaiming the $0.33 and $0.38 resistance levels.
Current Market Sentiment: Extreme Bearishness
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