The Daily Cryptomenon
1st December 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 01.12.2020
The bullish Cryptocurrency market continued to make its way upwards after the massive correction. This correction proved to do more good than harm as it gave the market the needed momentum to break above resistances that were previously very hard to reach. Currently, the market is poised for another bout of bullish momentum, however, there are fears that this time will not be like last time.
With that said, let’s find how the Cryptocurrencies are doing on December 1st, 2020.
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - continued to move higher, albeit at a much calmer pace than last week’s explosive move. This move is a double edged sword as it can give Bears the needed time to set up powerful roadblocks ahead as well as draining the Bulls of their momentum a bit more quickly, and not reaching their intended target.
Bitcoin continued to move higher during the overnight session as it broke through the $19,000 resistance level with relative ease and even managed to break and close above the previous high of $19,500. The Cryptocurrency King has its eyes set at $20,000 as it recorded a high of $19,873 before closing lower, yet, here it is again attempting to break above the $19,800 once more.
The second-largest Cryptocurrency has taken to mimicking the movement of Bitcoin once more as it climbed higher itself. However, where Bitcoin was able to record a new high, Ethereum only managed to test its previous one. The $620 is putting up quite the fight against the Cryptocurrency as a break above it could mean something big for Ether.
Both ETH and BTC had a clear bullish momentum higher that allowed them to reach their respective highs. On the other hand, one cannot constitute the current movement of Ripple as bullish. Yes the instrument did move higher, however, the momentum is more accurately described as consolidation with a bullish bias. The instrument has tested the $0.6800 again and it doesn’t seem to have the proper momentum to break above.
Bitcoin’s (check out the chart below; you’ll find that Bitcoin is the purple line) performance is printing at 42.15% on a month-to-month basis*. Ethereum’s (red line) performance is printing at 57.33% on a month-to-month basis. Ripple’s (turquoise line) performance is printing at 172.91% 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? Have they reached the maximum number of highs and now is the time for another correction? Or will the bullish momentum continue to push the Cryptocurrencies higher?
Whatever you choose to believe, you can react to it all onCryptoAltum.
Bitcoin Seeks to Move Above $20,000
Yesterday, we saw the start of a decent increase in the price of Bitcoin which allowed it to move above the $18,500 resistance. The Cryptocurrency even managed to remain in the positive zone and cleared the $19,000 resistance, and with that momentum BTC even climbed above the $19,500 resistance and traded to a new high in 2020, reaching a high of $19,860.
However, sellers were waiting for such a move as they forced the Cryptocurrency lower, resulting in a spike below the $19,200 level, but dips were limited, managing to curb any big movements. The 50% Fib retracement level of the recent wave from the $18,335 swing low to $19,860 high acted as a strong support. Bitcoin formed a support base near $19,200 and it’s currently trading around $19,500. There’s also a key contracting triangle forming with resistance near $19,800 on the hourly chart of the BTC/ USD pair. If there’s a clear break above $19,860, the price could start a strong surge in the coming sessions. In the stated case, the Bulls might aim a new all-time high above the $20,000 level.
If Bitcoin fails to clear the resistance at $19,800, there could be a short-term downside correction. An initial support on the downside is near the lower trend line at $19,550. A clear break below that support might start an extended decline towards $19,200. The next major support below the $19,200 level is near the $18,800 level (a multi-touch zone).
Ethereum To Surge Above $620
The chances of more upsides in Ethereum towards the $620 resistance were quite apparent yesterday and the Cryptocurrency did manage to create enough bullish momentum to break above resistance levels at $585 and $600. Ether traded close to the $620 resistance and is trading way above the 100-SMA (Simple Moving Average) on the 2-hour Chart. A high was formed near $618 and ETH is now showing positive signs similar to Bitcoin. It’s currently consolidating gains and trading near the $607 level.
On the downside, there are many supports forming, starting with the $600 level. The first key support is near the $595 level. On the upside, Ether is facing hurdles near the $618 and $620 levels. A clear break above the recent high and $620 might spark a larger upward move. The next stop for the Bulls could be $635 or even $642 in the near term.
If Ethereum fails to clear the $618 and $620 resistance levels, there could be a minor downside correction. The channel support at $595 holds the key. A downside break below the $600 level and the channel support could lead the price towards the $580 support zone. Any further losses might call for a test of the $570 level.
Ripple’s Focus Shifts to $0.7500
The current Ripple price action suggests that the Cryptocurrency’s price will rise to the $0.75 resistance again. The Cryptocurrency moved above the $0.67 mark on the 30th of November. While some believe that the Bitcoin price movement doesn’t affect the Altcoin market, it appears that the King is actually keeping the market afloat.
Previously, the $0.75 resistance was tested on the 24th of November when the Cryptocurrency was extremely bullish. Since then, the Cryptocurrency has faced bearish pressure that led it towards the $0.47 support level again. Over the past couple of days, XRP has been gradually moving towards the upside, and it is expected to continue this ascension until it re-hits the resistance. The resistance zone is between the $0.75 and $0.80 price levels.
The trade volume for the Cryptocurrency was substantially high over the last week, and now it has deteriorated by a lot. The price, however, seems to be gradually increasing in the up-channel while it rides the midline. It would seem that the Cryptocurrency is suggesting it will turn bearish and fall below the channel after bouncing off the upper boundary and the flat $0.71 resistance that lies above. So trading with caution is advised.
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