The Daily Cryptomenon
6th 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 06.11.2020
Just when we thought the rally higher would be over, another wave of bullish momentum that wasn’t expected and catapulted the Cryptocurrency market ever higher. Bitcoin Bulls must be loving this right now as the Cryptocurrency might be on its way to test the previous all time high at $20,000. However, it’s still a long way before that level. The Altcoin market wasn’t left out of this momentum as they too seem to bask in the bullish momentum. Which begs the question, is this rally sustainable?
With that said, let’s find how the Cryptocurrencies are doing on November 6th, 2020.
Cryptocurrency Recap
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - have all managed to move higher and all have managed to break some of their resistance. Some of these Cryptocurrencies gained rose more than the others, but generally spelling, the bullish momentum has helped this market tremendously. The Cryptocurrency market doesn’t seem to be in any shortness of breath from the altitude that it’s displaying and one can only wonder when the other shoe is going to drop and just how damaging it’s going to be.
Bitcoin has touched the $16,000 for the first time since January 2018, marking this move a 2 year high. The positive momentum surrounding this instrument can be attributed to the overwhelming uncertainty in the market due to the U.S. presidential elections, which still hasn’t produced a winner. BTC has corrected a little after reaching the mentioned level as it currently consolidates it’s gain before attempting to break above the $16,000 once again.
Ethereum got a taste of what Bitcoin was having as it too managed to break above important resistances on its side and reach the $440 resistance. However, even though it was able to break above that reaching a high of $442, Bears swooped in and prevented the Cryptocurrency from setting up a foothold above the $440 level.
Ripple hasn’t had the best couple of months as the bullish momentum that we saw on this Cryptocurrency has all been dried up. There are still some sprouts here and there, but they are few and far inbetween. This time, however, it was able to feed off the momentum that Bitcoin was showing and that helped it reach past the $0.2450, but wasn’t enough to break above the $0.2530, let alone reach the $0.2550.
Bitcoin’s (check out the chart below; you’ll find that Bitcoin is the purple line) performance is printing at 45.72% on a month-to-month basis*. Ethereum’s (red line) performance is printing at 22.75% on a month-to-month basis. Ripple’s (turquoise line) performance is printing at -2.94% 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 Bitcoin continue to influence the Cryptocurrency markets higher? Or will there be a day when everything falls apart?
Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin Reaches $16,000
After Bitcoin managed to settle above the $14,000, there had been a huge surge in the price. The Cryptocurrency rose more than 10% and broke many hurdles near $15,000. The price traded to a new 2020 high at $15,977 and it’s currently correcting lower. There was a break below the $15,800 level, plus the price traded below the 23.6% Fib retracement level of the recent rally from the $14,657 swing low to $15,977 high. On the downside, there are many important supports near $15,400 and $15,300. There’s also a major bullish trend line forming with support near $15,300.
As long as BTC is trading above the trend line support, it could start a fresh upward move. An initial resistance is near the $15,800 level. The first major resistance is near the $15,920 level, above which the price is likely to surge past the $16,000 barrier in the coming sessions in the near term.
If Bitcoin extends its downside correction, it could find bids near the $15,400 and $15,350 level. The first major support on the downside is near the trend line at $15,300. A downside break below the trend line support could push the price towards the $15,150 support or even towards the $15,000 handle.
Ethereum Reaches Above $440
The largest Altcoin rallied past $400 on Thursday, suggesting that its correlation with Bitcoin is still relatively high. Bitcoin rallied extensively, almost touching $16,000, while Ethereum managed to break the $440 but failed to close above it. The United States election results are yet to reach the final tally but the counting is approaching the ultimate end. The entire world is anxious to know who’ll win the election. However, analysts believe that it would be beneficial for the crypto market if either Joe Biden or Donald Trump win.
At the time of writing, the smart contract token is trading around the $430 amid the rally eyeing $450. Ethereum whales are reported to be stocking the token in preparing for the much-anticipated launch of Ethereum 2.0. In other words, Ether is likely to resume the uptrend, perhaps rising significantly towards $500 whether Bitcoin stalls or continues with the ongoing spike to $20,000.
On the flip side, the most robust support runs from $384 to $397. 2 million addresses had previously bought 15.9 million Ethereum. It means that Ethereum has significant room for reversal before hitting formidable support. Therefore, higher support is required to ensure the rally continues to $500.
Ripple Shows Increase in Volume
The newest quarterly report shows many statistics in favor of XRP during Q3 2020 compared to the last quarter. The reported daily volume has increased from an average of $196.28 million daily in Q2 to $403.58 million in Q3. Ripple has also partnered with various leading technology and conservation organizations like Energy Web Foundation, or the XRPL Foundation. It seems that a spike in buying pressure for XRP could easily boost its price thanks to strong fundamentals.
Ripple is currently fighting to continue it’s upside movement. A breakout above $0.2530 can easily drive the XRP’s price towards $0.259, which is the upper boundary of an old ascending triangle pattern. Perhaps, the recent positive metrics reported by Ripple can help the digital asset get that small boost.
On the other hand, another rejection from $0.2550 can quickly make XRP’s price drop towards the 200-SMA at $0.2291 and eventually towards the bearish price target of $0.212 after the breakdown of the ascending triangle.
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