The Daily Cryptomenon
26th November 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 26.11.2020
The return of the Bears into the scene of the Cryptocurrency market has been quite evident with the recent strong pullback that happened. To say that it was expected would be an understatement, investors were waiting for the other shoe to drop after the meteoric rise that happened a couple of days ago, which we’ve talked about extensively in our previous posts.
With that said, let’s find how the Cryptocurrencies are doing on November 26th, 2020.
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - continued to correct lower yesterday as the correction continues to deepen. Now, while this correction is nothing out of the normal, the fear of it turning into a reversal is actually pretty real. The Cryptocurrency market, and Bears in particular, would love to benefit from an extended drawdown as Bulls scramble to find some decent support to build their defense on.
Bitcoin had attempted to break above the $19,500 level once again yesterday, but it was doomed to fail as the Bulls seemed to have run out of steam to break above such an important level. This led to a severe downward price movement that broke through the supports as well as the 100-SMA (Simple Moving Average) on the 2-hour chart, only managing to stop around the $17,200 support.
It seems that Ethereum’s lack of momentum to break above the $620 resulted in a massive downward move that broke through the supports before setting around the $530. The Bears are indeed in control of the situation now as the Bulls scramble to find support strong enough to stop any kind of extended move downwards.
Ripple faced an incredible run where it reached a multi-month high around the $0.9210, however, the bearish pressure at those top levels couldn’t be just washed away as it forced the instrument to correct lower breaking through important supports. The descent broke through the $0.6600 and the $0.6000 reaching a low of $0.5200, as the momentum downwards doesn’t seem to be abating.
Bitcoin’s (check out the chart below; you’ll find that Bitcoin is the purple line) performance is printing at 36.30% on a month-to-month basis*. Ethereum’s (red line) performance is printing at 29.80% on a month-to-month basis. Ripple’s (turquoise line) performance is printing at 118.86% 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 October till the 1st November.
What’s the strategy you’re going to use when it
comes to these cryptos? Has the correction turned into a reversal? Or will the Bulls find a strong support to rally from there?
Whatever you choose to believe, you can react to it all onCryptoAltum.
Bitcoin Attempts $19,500 Again
There was another attempt by Bitcoin to clear the $19,450 and $19,500 resistance levels, but it failed. A double top pattern was formed near the $19,500 level and there was a sharp decline in the Cryptocurrency that led it below the $19,000 support. The price declined below many key supports near $19,000 and the 100 2-hour simple moving average. There was also a break below a major bullish trend line with support near $18,400 on the chart.
Bitcoin broke the last swing low at $18,656 and extended its decline below the $18,500 level. The bears pushed the price below the 1.236 Fib extension level of the upward move from the $18,656 swing low to $19,511 swing high. The downside was so massive that it even broke below the $18,000 as it currently trades around $17,850.
If Bitcoin manages to gain enough momentum to regain the $18,100 and $18,000 support levels, there could be a fresh increase. An initial resistance is near the $18,500 level. The first major resistance is forming near the $18,700 level and the 100 hourly simple moving average. The main resistance sits at $19,000, above which the price could rise towards the $19,500 resistance zone in the near term.
Ethereum Corrects Even Further
After forming a short-term top near the $620 level, Ethereum started a sharp downside correction. ETH settled below the $600 level and it failed to stay above the $580 support level. A clear break below the $580 support level sparked a strong decline (similar to Bitcoin), that led the Cryptocurrency below the $550 support and it even settled well below the 100-SMA (on the 2-hour chart).
The price declined below the $520 support and traded as low as $507. It’s currently recovering higher and trading above the $530 level. Ether is testing the 23.6% Fib retracement level of the recent decline from the $605 swing high to $507 low. On the upside, there’s a major resistance forming near the $550 and $555 levels. The 50% Fib retracement level of the recent decline from the $605 swing high to $507 low is also near the $555 level.
If Ethereum fails to recover above the $550 resistance, there could be more losses. The first major support is near the $515 level, below which the price could retest the $507 low. The main support is near the $500 handle. A clear break below the $500 handle might start a substantial decrease. In the mentioned case, the price could even test $450.
Ripple Losses Footing and Falls
XRP has surprisingly been one of the best performing Altcoins throughout the past few days and weeks, with the previously “dead” Cryptocurrency seeing a massive resurrection when inflows of capital poured in at a rapid rate. Where it trends in the midterm will depend largely on Bitcoin and Ethereum, as these two cryptocurrencies have been guiding the price action seen by smaller cryptocurrencies over the past few weeks. It’s important to note that XRP is showing signs of technical weakness, with one of our CryptoAltum Market analysts noting that a serious selloff could be just around the corner.
At the time of writing, XRP is trading down just over 7% at its current price of $ 0.5730. Although it’s down significantly from its recent highs, the crypto is still up from its lows of $0.23 set just before this parabolic rally took place. It’s down from its $0.80 highs set yesterday during the height of the XRP mania, but there’s still a serious chance that the Bulls will regain control of its price action.
The coming few days should provide some serious insight into where XRP and the Altcoin market will trend next. There’s a strong possibility that it’ll be largely determined by where Ethereum and Bitcoin move in the days ahead.
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