The Daily Cryptomenon
29th 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 29.12.2020
As the Cryptocurrency investors come to grips with what’s happening in the market, they’ve begun to back off the trading to allow for some breathing room to understand where the next stage of this leg will be. The market has turned to consolidation for the time being meaning that most traders are on the sidelines to understand where this leaves them after all that has happened in the markets.
With that said, let’s find how the Cryptocurrencies are doing on December 29th, 2020.
Cryptocurrency Recap
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - haven’t changed all that much between yesterday and today. All three continue to trade at their own pace disregarding what the others are doing in the meantime.
Bitcoin seems to consolidate after the massive move higher to $28,400 as it tries to figure out what’s the next step. Ethereum seemed to relish in the bullish pressure as it continued to move higher towards the $740 before dropping back down. While the others are relatively stable, Ripple continues to battle against the immense bearish pressure that comes with a SEC lawsuit and a delisting of its token.
Bitcoin consolidates gains as it drops from the All-Time high of $28,400 towards the first support at $25,760. The correction has given the RSI (Relative Strength Index) some breathing room which drops to the 40-level indicating that the correction might be over and there could be another push higher. However, with the presence of strong resistances on the top side, it’s unlikely that there’s going to be another move higher, especially above the $27,400.
Ethereum managed to find the momentum that Bitcoin left as the smart-token broke above the $720 as well as the $740. It recorded a high of $747 before succumbing to the corrective pressures of both profit-taking Bulls and Bears who saw an opportunity to capitalize on the drop. This forced the instrument to move back towards the $700 level, reaching the $688 before closing above. The RSI is showing the same corrective stance as it prints just above the 50-level indicating that there’s consolidation in the future of this instrument.
Oh, how the mighty had fallen, quite literally. Ripple was doing great in the past couple of months, reaching quite a record run towards the $0.9000 before falling. The fall didn’t stop as we’ve explained in previous articles that the U.S. SEC is filing a lawsuit against Ripple which led many brokers and Crypto exchanges to delist the XRP token. This only added fuel to an already blazing inferno, the result was a move towards the $0.2150 support level as the RSI continues to show extreme bearish pressure.
Bitcoin’s (check out the chart below; you’ll find that Bitcoin is the purple line) performance is printing at 47.03% on a month-to-month basis*. Ethereum’s (red line) performance is printing at 29.68% on a month-to-month basis. Ripple’s (turquoise line) performance is printing at -62.48% 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? Are the markets going to continue to move in
such erratic ways? Or will there be some moderate and expected moves?
Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin Could Correct Lower
After forming a base above the $26,500 support, Bitcoin managed to climb above $27,000. BTC remained well bid above the $26,800 level and the 100 hourly simple moving average. There was a break above the $27,200 level. However, the price seems to be facing a strong resistance near the $27,400 zone. Bitcoin’s price is currently showing a few bearish signs, but it’s holding the $26,500 support.
There is also a key bullish trend line forming with support near $26,650 on the hourly chart of the BTC/USD pair. If there is a downside break below the trend line support, the price could even trade below the $26,500 support. The next major support is near the $26,000 level. Any more losses might put the 100 hourly SMA and $25,800 at a risk. In the stated case, the price may perhaps decline towards the $25,200 level.
If Bitcoin remains stable above the trend line support or $26,500, it could attempt an upside break. The main resistance is near the $27,300 zone. A clear break above the $27,300 resistance zone could open the doors for a larger increase. In the stated case, the price could rise towards the $28,000 resistance. The next key hurdle sits at $28,200 and $28,400.
Current Market Sentiment:Neutral with Bearish Bias.
Ethereum Corrects Gains
There were additional gains in Ethereum above the $720 resistance level. ETH price gained momentum above the $730 level and settled well above the 100 hourly simple moving average. The price even spiked above the $740 level, but it failed to test the $750 mark. A new yearly high was formed near $746 before Ether started a downside correction. There was a strong decline in XRP, which is dragging both Bitcoin and Ether lower.
The price corrected below the $720 support level. The first key support on the downside is near the $684 level. Moreover, there is a major bullish trend line forming with support near $675 on the hourly chart of ETH/USD. The 100 hourly SMA is also close to the trend line support and $670. Any more losses could lead the price towards the $650 support.
If Ethereum stays above the $684 support or the trend line, it could start a fresh increase. An initial resistance on the upside is near the $715 level. The first major resistance is near the $720 level. A clear break above the $720 level may perhaps increase the chances of a fresh bullish wave. In the stated case, Ether will most likely test the $750 resistance level.
Current Market Sentiment: Correction (Bearish).
Ripple Breaks Long Term Support
XRP/USD holds lower ground near $0.2250 on early Tuesday. The crypto major broke the key support line after two major exchanges suspended Ripple trading due to the US Securities and Exchange Commission (SEC) charges. With the Cryptocurrency’s drop below an upward sloping trend line from March 13 gaining support from bearish MACD and downbeat fundamentals, XRP/USD has more on the south to watch.
While the monthly bottom around $0.2120, also the lowest since late July, can offer immediate support, the $0.2000 psychological magnet and lows marked in June near $0.1690 can lure the XRP/USD sellers afterward. In a case where the pair remains heavy past $0.1690, the yearly low near $0.1130 will be the key to watch.
It should, however, be noted that the XRP/USD Bulls are less likely to think of entries unless witnessing a clear break of the $0.4475. Following that, a descending trend line from November 24, at $0.6013 now, will be in the spotlight.
Current Market Sentiment: Extreme Bearishness.
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