The Daily Cryptomenon
2nd 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 02.12.2020
The Cryptocurrency market reached another high yesterday, but as they reached those levels sellers couldn’t wait to enter the market and begin to correct it. The result was a drop in most of these instruments, however it wasn’t as severe as last time. In fact one could describe it as a healthy correction to begin anew. Support levels were able to keep things in check as Bulls continue to enter in on dips.
With that said, let’s find how the Cryptocurrencies are doing on December 2nd, 2020.
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - faced their respective resistance levels, however, it seems that the lack of momentum and the presence of sellers caused the market to retrace lower. However, the move lower, while intense, wasn’t as deep as the last time an important resistance couldn’t be broken. Bulls are remaining on high alert for the time being as they look for decent supports to continue the journey higher.
Bitcoin’s bullish momentum allowed it to set a new high around $19,915 mere inches away from an All-time-high. However, with such intensity, the Cryptocurrency soon found itself on the back leg that had it drop below the $18,400 and even managed to slightly break below the 100-SMA on the 2-hour chart. Since then, BTC has been somewhat volatile around the $19,000 showing signs of bullish - and bearish - ness.
Ethereum finds itself at the support level of $575, after failing to close above the $620. While the Cryptocurrency was indeed able to break above the critical resistance, reaching a high of $636, it wasn’t able to keep the pressure on to close higher. Since then, a drop began with some volatility that seems to have ended around the $575, but breaking lower and testing the 100-SMA on the 2-hour chart.
Ripple has also faced its own resistance level at $0.6800, but it wasn’t even able to break above it let alone close above it. The third-largest Cryptocurrency has been facing strong resistances ever since it dropped heavily and wasn’t able to keep the bullish momentum going. What did this result in? This actually forced it to drop towards the 100-SMA on the 2-hour chart.
Bitcoin’s (check out the chart below; you’ll find that Bitcoin is the purple line) performance is printing at 35.52% on a month-to-month basis*. Ethereum’s (red line) performance is printing at 45.87% on a month-to-month basis. Ripple’s (turquoise line) performance is printing at 150.46% 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 there be another test of the resistances as
Bulls continue to push higher? Or will the Bears break the supports and start a
new leg lower?
Whatever you choose to believe, you can react to it all onCryptoAltum.
Bitcoin Relies on 100-SMA for Another Bounce
Bitcoin had managed to extend its bullish momentum with a break above $19,500, even surpassing the previous swing high and traded close to the $20,000 barrier. However, there was no test of $20,000 and the price reacted to the downside. There was a sharp decline of more than 5% and the price traded below the $19,000 level. Bitcoin found support near the $18,100 level and the 100-SMA (Simple Moving Average) on the 2-hour chart. A swing low was formed near $18,111 before the price corrected higher.
It seems like there’s a major bearish trend line forming with resistance near $18,800 on the hourly chart of the Cryptocurrency. On the downside, the price is approaching a key support at $18,350 and the 100-SMA. The 76.4% Fib retracement level of the recent recovery from the $18,111 swing low to $19,512 high is also near $18,400. A downside break below the $18,350 support and the 100-SMA could spark a larger decline. The next major support could be $18,000 or $17,850.
If Bitcoin manages to remain stable above the $18,350 support and the 100-SMA, it could attempt a fresh increase. An initial hurdle for the Bulls is near the trend line and $18,800. The first major resistance is near the $19,000 level. A clear break above the $19,000 level could pump the price towards the $19,500 resistance level.
Ethereum At New Inflection Point
Ethereum experienced a decent increase above the $600 and $620 levels, as it broke the previous swing high and traded to a new yearly high at $636. However, the Bulls failed to gain strength, resulting in a sharp decline below $620 (not unlike Bitcoin). The price broke the $600 support level to move into a short-term bearish zone. The last swing high near $620 before the price declined towards the $575 support. A low is formed near $574 and the price is currently consolidating losses.
There’s also a key bearish trend line forming with resistance near $590 on the hourly chart of the Cryptocurrency. The 50% Fib retracement level of the recent decline from the $620 high to $574 low sits at $597. A clear break above the trend line resistance and then $597 could start a decent increase. The next key resistance is near the $600 level. A successful close above the $600 level could lead the price towards the $620 resistance in the near term.
If Ethereum fails to clear the trend line resistance and $597, there’s a risk of more downsides. An initial support is near the $575 level and the recent swing low. The main support is forming near the $570 level and the 100-SMA. A proper close below the $570 level and the 100-SMA could spark a sharp decline towards the $550 and $530 levels.
Ripple Faces Bearish Pressure
Ripple’s price action suggests that the Cryptocurrency will continue to fall towards the $0.5300 level, as the coin has recently broken below an ascending triangle. The Cryptocurrency fell below the $0.60 mark on the 1st of December, and now it rests above $0.6100. The Altcoin was priced at $0.613 at the time of writing after trading over the 24-hour chart. The price was kept above $0.6500 for the first half of yesterday, while the price observed a drastic drop near noon and fell below $0.6000.
The Cryptocurrency has been observing sideways movement through the rest of the day, and now it rests between the $0.61 and $0.62 levels. For the day’s highest, the Cryptocurrency reached the $0.6790 mark, and the day’s lowest price was marked at $0.5880.
As mentioned, the Cryptocurrency recently broke below an ascending triangle, which might lead the Cryptocurrency to move bearishly on the charts. There are two short-term targets for XRP, the first one lies at $0.5387, and the second one was marked at $0.4288. The Cryptocurrency is expected to fall to either of the two targets and then observe a bounce-off.
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