The Daily Cryptomenon
30th 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 30.11.2020
After what looked like a steep correction downwards, which also fanned the possibility of a reversal, we saw the Cryptocurrency market bounce back from the lows it had witnessed and began another leg higher. In fact, the weekend was so good to the market, that some pesky resistances were also broken in the process. This gave the Bulls the needed support to counter any future negative shocks to the market.
With that said, let’s find how the Cryptocurrencies are doing on November 30th, 2020.
Cryptocurrency Recap
Over the weekend our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - have managed to break the downward pressure as a short rally began allowing the Cryptocurrency market as a whole to climb back higher. The move higher managed to break some important resistances, which gives the Bulls the needed support for another push.
After Bitcoin’s major move downward from the $19,500 all the way to $16,400, the Cryptocurrency was finally able to gain some momentum back and began to trek higher. While it wasn’t an explosive move (which is good), it does have some intensity to it, as it broke through the $18,000 and $18,500 resistance levels and now aims at $18,800.
Ethereum has followed Bitcoin’s movement, as the second-largest Cryptocurrency managed to climb out of the correction and trade back higher, but it’s still way off from the highs at $620. This move gives the Bulls the needed confidence and support to continue moving upwards, locking eyes with $600. Breaking above that would generate enough momentum to possibly even take on the $620 level.
While not as impressive as the moves in Bitcoin and Ethereum, Ripple has also managed to break the correction after reaching $0.4500. From there, the Cryptocurrency continued to move higher above the $0.5500 and $0.6000 levels, however it seems to be encountering heavy resistance at $0.6600 with decreasing momentum.
Bitcoin’s (check out the chart below; you’ll find that Bitcoin is the purple line) performance is printing at 38.03% on a month-to-month basis*. Ethereum’s (red line) performance is printing at 51.85% on a month-to-month basis. Ripple’s (turquoise line) performance is printing at 161.16% 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? Is the correction complete and the upward
movement will continue? Or is this just another wave higher in the overall
downward trend?
Whatever you choose to believe, you can react to it all onCryptoAltum.
Bitcoin Ends Downturn and Seeks $20,000
During the weekend, Bitcoin managed to bid farewell to the downtrend. The flagship Cryptocurrency built on the newly-established support at $16,200 and achieved significant gains above $18,000, giving the Cryptocurrency King another chance of attempting to reach the all-time highs. The slump to $16,000 was a temporary setback but again necessary for the continuation of the uptrend in Bull markets.
Bitcoin is trading at $18,580 at the time of writing. The comeback from last week’s support has lifted most of the major digital assets upwards as well. The Moving Average Convergence Divergence (MACD) doubled down on the improving technical picture by making a comeback into the positive region. A bullish divergence above the MACD suggests that buyers will remain in control in the near term. An increase in the trading volume could increase the tailwind and push BTC above $19,000. Trading above the resistance at $19,500 is likely to call for more buy orders as Bulls speculate the final leg to $20,000.
Currently, Bitcoin is trading above the 2-Hour SMA (Simple Moving Average), so it’s worth mentioning that the bullish outlook will be invalidated if Bitcoin corrects below that line. Such a move is likely to lead to instability and panic in the market, similar to the breakdown last week, which may lead BTC to revisit the support at $16,200.
Ethereum Looks Towards $625
Ethereum has recovered significantly since last week’s dive to the support at $480. The weekend session was kind to other major Cryptocurrencies too, with Bitcoin surging above $18,000. Meanwhile, Ether is trading at $580 amid a building bullish momentum. Which can be noticed since all technical indexes point towards Ethereum soaring to highs above $600 in the coming sessions. The Relative Strength Index has reinforced the bullish grip, as it grinds closer to the overbought region.
ETH is also trading above the 2-hour 100-SMA. Note that the last time Ethereum exchanged hands under it, losses amounted to 11%. As long as the smart contract giant is above this key moving average, the path with the least resistance will remain upwards. Trading above $600 is likely to encourage more buyers to join the market. If enough bullish pressure is created, Ethereum will likely break above the target at $625 and focus on gains above $700.
On the flip side, it’s worth mentioning that some delays may be encountered at $600. Perhaps enough selling pressure will build to stop the planned breakout to $625. A correction from the critical level might see Ethereum fall back to seek refuge at the 100 SMA. Other key support levels to keep in mind include the $550, $520, and $480.
Ripple’s Rise to $1.000 Hinges on Crucial Barrier
Ripple sellers had returned on Sunday, as the recent recovery from sub-$0.50 levels appears to lose steam. However, from a technical perspective, it looks like the bulls have taken a breather before the bullish reversal picks up pace. Looking at how the price movement is acting, the $0.6600 is acting as a major resistance and could very well start another leg downwards if Bulls are unable to break above it.
If a daily candle can close above that level, another breakout could be triggered, with the bullish Relative Strength Index (RSI) favoring the move higher. Although the follow-through buying interest could weaken at $0.7000, which is the critical resistance.
Acceptance above the latter is critical to reviving Ripple’s journey towards the $1 mark. Alternatively, the bullish 2-hour 100-SMA at $0.5700 is the level to beat for the bears. The next relevant downside target awaits at the $0.4000 support.
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