The Daily Cryptomenon
3rd 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 03.11.2020
Another bout of bearish pressure has been experienced in the Cryptocurrency market as they attempt the break above their resistance and fail. The recent bullish pressure that had caused the market to rise, was forced back down due to the fact that some of these moves have become a bit over extended. Yet, there remains divergence between them.
With that said, let’s find out what today holds for the Cryptocurrencies on November 3rd, 2020.
Cryptocurrency Recap
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - couldn’t maintain their bullish momentum from yesterday and the Bears found the right opportunity to push our trio lower. Overall it’s been a give and take relationship between the Bulls and Bears as each try to establish a trend. However, if one looks a bit closer, one would see that the Bulls are in charge of Bitcoin while Bears are incharge of Ethereum and Ripple.
Bitcoin continues to trade in an upward move. True that there has been moves to the downside, but nothing has been sustainable and soon enough Bitcoin would continue to move higher. Recently it was rejected by $14,100 and moved towards the $13,200, which remains above the support at $13,000.
Ethereum got rejected at the resistance at $410 from which a large bearish pressure forced the Cryptocurrency to backtrack towards the $370, signaling that Ethereum might be changing hands from Bulls to Bears.
Ripple continues to fall as the Bears are not relenting by pushing the Cryptocurrency even lower. It seems that the bearish pressure has become somewhat overextended and that shows up when examining the RSI. There might be a small comeback instored for the Cryptocurrency.
Bitcoin’s (check out the chart below; you’ll find that Bitcoin is the purple line) performance is printing at 27.25% on a month-to-month basis*. Ethereum’s (red line) performance is printing at 7.63% on a month-to-month basis. Ripple’s (turquoise line) performance is printing at -1.20% 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? Will Bears get the needed momentum lower by breaking those supports? Or will the Bulls fight against the drop?
Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin Corrects below $13,700
Bitcoin was having a terrific run of late, as it managed to break above the $14,000 resistance level, however, that was short lived as the Bears wouldn’t give up that level without a fight. The result was a decline to the $13,700 support level, unfortunately, Bears got emboldened and proceeded to push the Cryptocurrency lower reaching the $13,200 support level. The move was so powerful that it managed to break below the 100 SMA (Simple Moving Average) on the 2-hour chart.
Bulls found this move to be a personal attack and were able to find the necessary momentum to climb back up towards the $13,700 which the Bears have established as a resistance. Failing to break above that level led Bitcoin to fall back below the 100 SMA as the current support lies around the $13,320 level.
Hope for the Bulls isn’t all lost just yet. If Bitcoin is able to stay above the $13,320 and $13,200 support zone, this might give the Bulls some motivation for a fresh increase. An initial resistance on the upside is near the $13,700 level. A clear break above $13,700 and $13,800 is must for a strong push above $14,000.
Ethereum Near Make-Or-Break Level
Last month, Ethereum managed to reach the $420 level, however, it was all downhill from there. The Cryptocurrency continued to move lower, with sporadic spikes in the price that helped it reach above the $400 level, but all of those didn’t achieve any kind of foothold. Recently, after Ether managed to reach the $404 level, the Cryptocurrency broke below the $392 and $388 support levels to move into a short-term bearish zone.
What’s more important is that there was a break below a major bullish trend line with support near $391 on the hourly chart. This whole ordeal has opened the doors for more losses below the $380 support. Similarly, there was a fresh decline in Bitcoin price below the $13,500 support zone. It’s now trading near a crucial breakdown support near the $372-$373 zone.
If Ethereum starts an upside correction, the previous support near the $380 level is likely to act as a hurdle for the Bulls. The next major resistance is seen in the $385-$390 resistance zone. The main resistance for the Bulls is forming near the $390 level and the 100 SMA at the 2 hour chart, above which Ether could test or even break the $400 resistance zone.
Ripple Faces Important Support
The fourth-largest Cryptocurrency has been having a rough go at it. Ripple hasn’t been able to fully capitalize on the bullishness that Bitcoin gave the market as XRP simply continued to move lower. Ever since the high at $0.2640, it’s all been downhill from there reaching the recent low of $0.2285. This move has broken the channel that we’ve spoken about in previous posts as the possibility of more downside pressure increases.
One of our CryptoAltum Market Analysts has noticed something on Ripple. According to the analyst, the Cryptocurrency has entered bearish territory and believes that the price is about to move to the $0.228 support level that lies at the bottom of the range. The Cryptocurrency is holding at the $0.2310 level, while it is expected to stretch a leg towards the downside and move to $0.228. This is because the price has broken below the support and closed under it.
However, volatility on Ripple has decreased by a lot, implying that the Cryptocurrency is near a breakout. The Moving Average Convergence Divergence (MACD) line has crossed above the signal line, and the histogram size appears to be increasing in the positive region. This means that a bullish move is expected up next. What’s more, the RSI is showing oversoldness as the indicator prints below the 30-level and seems to be moving higher.
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