The Daily Cryptomenon
28th 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 28.12.2020
The Cryptocurrency market turned out to be the gift that keeps on giving. We saw the two main Cryptocurrencies in the market (Bitcoin and Ethereum) reach towards new heights breaking above their respective resistance levels and shower Bulls with the best gift of all, value. Those who are HODLing are ecstatic of the move higher and those aren’t letting go, now that they feel vindicated. However, the outlier is Ripple, as it continues to wrestle against the SEC lawsuit.
With that said, let’s find how the Cryptocurrencies are doing on December 28th, 2020
Cryptocurrency Recap
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - continue to trade in their own different trajectories. Bitcoin continued to consolidate the gains it manifested out of thin air as it looks for the next target to break. Ethereum has managed to rally above the $700 level for the first time in several months as the positive momentum seems to continue. As for Ripple, well, the lawsuit has not helped it one bit as exchanges are beginning to remove the token from their trading list
Bitcoin gave traders the best Christmas gift they could have ever asked for. The incredible climb manifested from $23,000 all the way towards the $28,400 before finding resistance at that level and correcting lower. However, the bullish momentum has proven its worth and is here to stay as the instrument looks to break above the $27,400. This would signify that the market is not yet ready to let anything go.
Ethereum was facing some bearish pressure before the holidays, however, that quickly turned to bullishness as the smart-token was catapulted higher above the $600 and above the $675 to reach above the $700. Bitcoin was a great boon for the smart-token as the rise in BTC is what made the rise in ETH possible. Currently, the bullish momentum continues to build momentum as the RSI (Relative Strength Index) is seen breaking above the 70 level indicating that there might be some corrective pressure in the near-term.
More downward pressure. That’s all that can be said about Ripple, as the U.S. SEC lawsuit continues to wreak havoc on the instrument. The consequences were so dire, that many exchanges and brokers have opted to remove the Cryptocurrency from the trading list, until there’s a resolution to this lawsuit. XRP has continued its downward move reaching the $0.2150 level before settling around the $0.2830 mark.
Bitcoin’s (check out the chart below; you’ll find that Bitcoin is the purple line) performance is printing at 58.47% on a month-to-month basis*. Ethereum’s (red line) performance is printing at 37.79% on a month-to-month basis. Ripple’s (turquoise line) performance is printing at -49.46% 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 bullish momentum continue to push the market higher? Or will there be some correction?
Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin Breaks Above $28,000
In the past few days, there was a strong increase in Bitcoin, as the Cryptocurrency broke above the $25,000 resistance. It even surged above the $26,500 and $27,000 resistance levels. Finally, the price surged above the $28,000 level. A new all-time high was formed near $28,390 before the price started a downside correction. It traded sharply below the $27,000 level.
However, Bitcoin started a fresh increase above the $26,500 resistance. There was also a break above a major contracting triangle with resistance near $26,800 on the hourly chart of the BTC/USD pair. The pair is now trading above the $27,000 level. An initial resistance on the upside is near the $27,275 level. A clear break above the $27,275 resistance could open the doors for a fresh run towards the $28,000 and $28,400 levels in the near term.
If Bitcoin fails to clear the $27,275 resistance level, it could correct lower. An initial support on the downside is near the $26,800 zone and the broken triangle trend line. The first major support is near the $26,500 level. The main support is still near the $26,000 level, below which there is a risk of a sustained downward move in the coming sessions.
Current Market Sentiment:Bullish.
Ethereum with Best Risk-Return Ratio
Don’t give all your attention to Bitcoin as it would be a good thought to look at Ethereum (ETH) that is doing equally well. Earlier today, Ethereum (ETH) crossed the crucial levels of $700. At press time, ETH is trading at $720 with a market cap of $79 billion. 2021 could be the year of Ethereum investors with institutional ETH buying going up. Moreover, considering that ETH is trading at a 50% discount from its all-time high, there’s enough room for it to catch up with BTC. Looking at these parameters, ETH could be the best risk-return for investors at this point.
After forming a support base above $620, Ethereum saw a strong increase above the $650 resistance level. ETH price remained well above $650 level. During the increase, there was a break above a rising channel with resistance near $662 on the hourly chart of ETH/USD. It opened the doors for more upsides above the $680 and $700 resistance level. Ether price traded to a new yearly high at $720 before starting a consolidation phase.
If Ethereum fails to surpass the $718 and $720 resistance levels, it could correct lower. An initial support on the downside is near the $695 level. The first major support is near the $690 level. The main support is now forming near the $650 level. There is also a key bullish trend line forming with support near $655 on the same chart.
Current Market Sentiment: Bullish.
Exchanges Delisting Ripple
Ripple's XRP is a whipping boy of the Cryptocurrency industry. The digital asset lost nearly half of its value in less than a week amid panic caused by SEC's lawsuit against the San-Francisco-based fintech startup. At the time of writing, XRP is changing hands at $0.2830, down over 6% on a day-to-day basis. The asset slipped to fourth place in the global Cryptocurrency market rating with the current market capitalization of $13.2 billion and an average daily trading volume of $9.5 billion.
Several Cryptocurrency exchanges delisted or suspended XRP trading, citing concerns about Ripple's legal issues. If the court decides that XRP is a security, the trading platforms may be accused of making it available for retail investors. Bitstamp is the latest exchange that introduced limitations on XRP trading. The US-based customers will not be allowed to trade or deposit XRP as of January 2021, the company announced on Twitter.
From the technical point of view, XRP has settled around the $0.2830 level. This critical barrier has been limiting XRP's sell-off since June 2020. If it is broken, the sell-off may gain traction with the next focus on the former channel support at $0.2100. The price touched this area on December 23 but managed to recover amid strong profit-taking activity.
Current Market Sentiment: Extreme Bearishness.
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