The Daily Cryptomenon
4th 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 04.12.2020
Consolidation was the name of the game yesterday as the Cryptocurrency market seemed to be consolidating the events of the past couple of days. However, during the day, the market saw some bullish behavior that had instruments attempting to break above their first level of resistance, but with the lack of any proper momentum, that experiment failed and a bounce from the resistance levels is currently underway.
With that said, let’s find how the Cryptocurrencies are doing on December 4th, 2020.
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - saw some bullishness in their momentum as Bitcoin and Ethereum both attempted to break above their first level resistance, the one that could set a new bullish wave, but instead they simply waved hello and went back down, staying within their respective consolidation zone.
Bitcoin had enough bullish momentum in reserve to attempt another move higher and that’s what happened. Yet, the momentum wasn’t strong enough to break above the resistance level at $19,500 as the Cryptocurrency soon found itself heading lower. It remains unclear on what the next leg of the journey will be as BTC remains between the $19,500 resistance and $18,400 support.
Ethereum moved in the same manner as Bitcoin, as it also attempted to break above the resistance at $620, but failed. Ethereum then fell from that level, just Bitcoin, as the momentum wasn’t enough to break above that important level. And just like Bitcoin, Ethereum remains stuck in its consolidation zone between the $620 resistance level and $575 support level.
Ripple will forever be the odd man out, as all other Cryptocurrencies seem to be in an upward trajectory or at least attempting to break above some certain levels. While Ripple, has fully embraced the consolidation theme and doesn’t seem to be moving anywhere.
Bitcoin’s (check out the chart below; you’ll find that Bitcoin is the purple line) performance is printing at 38.15% on a month-to-month basis*. Ethereum’s (red line) performance is printing at 56.23% on a month-to-month basis. Ripple’s (turquoise line) performance is printing at 156.93% 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 bullishness finally allow Cryptocurrencies to break higher? Or will the market remain undecided and continue to consolidate?
Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin On Divergent Point
There was a fresh increase in Bitcoin that allowed it to move above $19,250 and $19,400, as it even made another attempt to clear the $19,500 resistance, but it failed as the bullish momentum wasn’t sufficient for such a move. A high was formed near $19,586 and the price is currently trading above the 50-SMA (Simple Moving Average) on the 2-hour chart.
Bitcoin is now trading near the $19,330 level. An initial support is near the $19,220 level. There’s also a key bullish trend line forming with support near $19,200 on the hourly chart. The next key support is near the 50-SMA at $19,120. If there’s a downside break below the trend line support, the 50-SMA, and $19,000, the price could start a significant downside correction. The next major support could be $18,500.
Should BTC manage to stay above the trend line support and the 50-SMA, it could rise above $19,400. The main resistance is near the $19,500 level. The price must gain bullish momentum above the $19,500 level and the recent higher. A proper close above the $19,500 level could lead the price towards the main $20,000 barrier.
Ethereum Breaks Above $600
There was a steady increase in Ethereum after it broke the $600 resistance. The price action was solid enough to continue moving higher as it managed to trade close to the $625 resistance before starting a downside correction. A high was formed near $624 and the price corrected lower below $615 as it currently trades near the $607.
Ether is currently approaching the $600 support zone and trading above the 50-SMA. There’s also a major contracting triangle forming with resistance near $620. As long as the price is above the $600 support and the mentioned SMA, it could start a fresh increase.
If Ethereum fails to clear the $615 resistance and the triangle upper trend line, there’s a risk of a downside break. The first key support is near the $600 level and the 50-SMA. A downside break below the $600 support could spark a sharp decline. The next major support is near the $570 level, where the Bulls are likely to take a stand.
Ripple Prepares for $1.0000
The cross-border Cryptocurrency is trading at $0.62 at the time of writing amid a sideways trading action, as highlighted by the RSI (Relative Strength Index). Stability in XRP markets is providing ample time for the Bulls to plan the next attack on key barriers. The formation of a symmetrical triangle on the daily chart hints at a possible 49% upswing towards $1. However, for the massive breakout to come into the picture, XRP must close the day above $0.61 and perhaps slice through the descending trendline.
On the 4-hour chart, the 50 Simple Moving Average is holding firmly. Ripple must close above this support zone to avert declines that could sabotage the uptrend. Besides, as long as the market's stability continues, XRP Bulls will focus on breaking above the crucial resistance range between $0.7 and $0.75.
It is worth noting that the symmetrical triangle on the daily chart could result in a 49% downswing if the ascending trendline support fails to hold. On the other hand, closing the day under the 50 SMA on the 4-hour might trigger declines to the 100 SMA.
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