The Daily Cryptomenon
30th 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 30.12.2020
As the end of a hectic year comes to a close (finally), we are seeing the Cryptocurrency market soaring. The markets are simply too bullish to care about anything else at this point in time, with many Cryptocurrencies testing their All-Time Highs or even setting them. With the exception of a couple coins out there (Ripple, we pity you), the market seems focused to continue moving higher for the time being.
With that said, let’s find out how the Cryptocurrencies are doing on December 30th, 2020.
Cryptocurrency Recap
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - continue to increase their divergence as Bitcoin moves higher, Ethereum consolidates, and Ripple continues its downward movement as more pressure mounts on the token.
Bitcoin is currently testing the All-Time High that is set during the holidays at $28,400. The extreme bullish pressure that this instrument is witnessing is nothing short of an epic rally. This instrument has broken through countless barriers on its way higher and it doesn’t seem to have any moral obligation to correct or even take things easy. Those of you HODLing are ecstatic and seem determined to keep helping the price upwards.
Ethereum seems to be in the same mindset of Bitcoin, as it too is trying to break above the current resistance its facing at $740. The bullish pressure here would be immense in helping the instrument reach towards its All-Time high, and the momentum is on its side here as the RSI (Relative Strength Index) is actually printing around the 60 level, indicating that if the coin moves higher, it definitely has room to do so without being considered overbought.
What else can be said about Ripple that hasn’t already been said. The Cryptocurrency seems to be on death's door with multiple brokers and exchanges, most notably CoinBase, delisting the token from their trading list. XRP had reached the $0.1750 support level as it was able to find some bullish momentum to move back higher to $0.2500, but Bears are in complete control here as the instrument fell back towards the $0.2020 where it currently trades.
Bitcoin’s (check out the chart below; you’ll find that Bitcoin is the purple line) performance is printing at 51.12% on a month-to-month basis*. Ethereum’s (red line) performance is printing at 23.99% on a month-to-month basis. Ripple’s (turquoise line) performance is printing at -67.61% 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 divergence between these instruments
continue? Or will there be some convergence as things go back to normal?
Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin Finds Bullish Momentum
After a short-term downside correction, Bitcoin was able to find some support near the $26,000 zone. BTC also formed a double bottom pattern near $25,800 and started a fresh increase. It broke many hurdles near $26,400 and $27,000 to move into a positive zone. There was a clear break above the key $27,300 resistance zone and the price settled above the 100 simple moving average.
Currently, Bitcoin is showing a lot of bullish pressure and positive signals as it battles against the $28,400. Any more upside movements might clear the path for a fresh all-time high above the $28,400 level. In this case, the price could even rally towards the $30,000 level.
If Bitcoin fails to effectively break above the $28,400 and starts another downside correction, it is likely to find support near the $27,300 zone (the recent breakout zone) or the $27,200 level. The next major support is near the $26,500 level and the 100 SMA. Any more losses could lead the price back towards the key $26,000 support zone in the coming sessions.
Current Market Sentiment:Bullish.
Ethereum To Rally Above $750
There was a minor downside correction in Ethereum below the $720 support level. However, dips were limited below the $700 level. ETH remained well bid above $695 and the 100 simple moving average. A swing low was formed near $693 before the price climbed back above $720. The last swing low was near $703 before the main upward move above the $730 level. The price even broke the $740 level, but it struggled to clear the $745 resistance level.
A high was formed near $747 and the price is currently correcting lower. It broke the $735 level. The first major support is near the $725 level. There is also a key bullish trend line forming with support near $720 on the chart. On the upside, the $740 and $745 levels are important hurdles. Once there is a close above the $750 level, Ether’s price is likely to accelerate higher. The next major resistance on the upside might be $780. Any further gains could lead the price towards the $800 level.
If Ethereum fails to clear the $745 hurdle, it could correct lower. An initial support on the downside is near the $725 pivot level, followed by $720. A downside break below the trend line support could lead Ether’s price towards the $700 support zone and the 100 SMA in the near term.
Current Market Sentiment: Bullish.
Ripple To Plunge Below $0.1000
XRP has been on a rollercoaster ride throughout the past few weeks. The Cryptocurrency saw immense volatility that began when news began spreading regarding the recent Spark token airdrop to holders. This allowed the Cryptocurrency to break its multi-year trading range between $0.20 and $0.30 and rocket to highs of $0.90 on Coinbase and other exchanges.
This explosive rally captivated the attention of traders and resulted in its price stabilizing around $0.60. Then, news regarding a SEC lawsuit against Ripple that accuses XRP of being a security, sent the token plunging towards the lower-$0.20 region, which is where it found some serious buy-side support. News of Coinbase planning to delist the Cryptocurrency in the coming weeks sparked a continuation of this selloff, with its price briefly sliding below its crucial $0.20 support.
Traders are now anticipating further downside in the near-term, with one analyst pointing to a move down towards the $0.07 to $0.12 region, noting that further exchange delistings coupled with sliding liquidity could cause a further descent. Some major market-making firms that worked with Ripple have cut their ties with the company, which likely means that liquidity will begin descending rapidly. For this reason, CryptoAltum has also suspended trading on XRP pairs until further notice.
Current Market Sentiment: Extreme Bearishness.
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