The Daily Cryptomenon
8th 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 08.12.2020
Consolidation has still not released the markets from their grasp. The markets continued to trade in their ranges without much thought to breaking either higher or lower, which is being reflected with the lack of volatility in the market making for some very quiet times.
With that said, let’s find how the Cryptocurrencies are doing on December 8th, 2020.
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - still traded within their respective ranges without fail as the consolidation in the market proved to be too strong to be removed in a couple of sessions like what has happened earlier in the year. Now the market is simply trying to figure out the direction to come ahead of the new year.
Bitcoin’s attempt yesterday to break above the $19,400 resistance didn’t yield any kind of result with the consolidation remaining intact with no particular move higher or lower. The Cryptocurrency continued to be confined within the upper bound of $19,400 and the lower bound of $18,840.
Ethereum isn’t exempt from this consolidation as the smart-token was also confined to the familiar range that it finds itself in between the $605 as a resistance and the $575 as a support. Even though the momentum in either direction isn’t formed yet, there are signs that there could be some downward bias building on this Cryptocurrency.
Ripple finds itself in the same boat as Bitcoin and Ethereum, or is it the other way around? Doesn’t matter really as the boat is stationary and going nowhere. Ever since XRP broke below the 100-Simple Moving Average (SMA) on the 2-hour chart, it has been trying to regain a foothold above it but with the lack of momentum that is proving to be a lost cause.
Bitcoin’s (check out the chart below; you’ll find that Bitcoin is the purple line) performance is printing at 28.26% on a month-to-month basis*. Ethereum’s (red line) performance is printing at 34.93% on a month-to-month basis. Ripple’s (turquoise line) performance is printing at 142.50% 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? Consolidation will keep its hold on the market? Or will the Cryptocurrencies stage a coup to end this situation?
Whatever you choose to believe, you can react to it all onCryptoAltum.
Bitcoin Stuck in Crucial Range
In the past few days, there were mostly range moves in the price of Bitcoin, which led the Cryptocurrency below $19,500 and $19,600. BTC made a couple of attempts to gain strength above $19,400, but it failed to extend its rise. The recent high was formed near $19,407 before the price moved lower in a range. A low is formed near $18,889 before the price corrected higher.
Bitcoin is now trading above the $19,000 support and the 100-SMA on the 2-hour chart. An initial resistance is near the $19,280 level. A clear break above the trend line resistance could lead the price towards the main $19,500 resistance zone. To gain bullish momentum, the price must close above $19,500 and clear $19,580.
If Bitcoin fails to clear the $19,350 resistance zone, it could react to the downside. An initial support is near the $19,100 level and the 100 hourly simple moving average. The first major support is near $19,000, followed by the $18,900 level. Any more losses might increase pressure on the Bulls and the price might decline towards $18,500 in the near term.
Current Market Sentiment:Neutral
Ethereum Faces Against $600
There were mostly range moves in Ethereum above the $585 support, similar to Bitcoin. ETH price traded as high as $607 before it started a minor decline within a range. There was a break below the $600 support level and the 100 hourly simple moving average. However, the price found a strong buying interest near the $585 level. The bears made a couple of attempts to clear the $585 support, but they failed.
On the upside, Ether’s price is facing a strong resistance near the $600 and $602 levels. There’s also a crucial bearish trend line forming with resistance near $598 on ETH. The price is currently consolidating above the $585 support and below the 100 hourly simple moving average. To start a strong increase, the Bulls need to gain strength above the trend line resistance, the 100 hourly SMA, and $600. A close above $600 and $602 could open the doors for a fresh surge towards $620 and $635.
If Ethereum fails to clear the trend line resistance and the $600 zone, there could be a bearish reaction. An initial support is near the $585 support (a multi-touch zone). A downside break below the $585 support zone could put a lot of pressure on the Bulls. In the stated case, ETH could decline towards the $570 and $565 levels in the near term.
Current Market Sentiment:Neutral with Bullish Bias
Ripple Is Lethargic
Volatility is at an extreme low compared to the levels seen at the beginning of December. As discussed yesterday, the Bollinger Bands’ constriction is a signal for a near-term breakout. However, for a breakout eyeing $0.9 and $1 levels, XRP must reclaim the position above the 100-SMA on the 2-hour chart. A breakout is estimated to take place before the trend lines converge. This means that XRP/USD breakout could occur anytime in the coming sessions.
For now, the Relative Strength Index adds credibility to the consolidation, as it levels at the midline. Traders can watch out for spikes toward the overbought to ascertain that it is indeed a breakout to the upside.
It’s essential to note that the breakout would be counterproductive if Ripple fails to close the day above $0.6 or stays under the 100 SMA. The downswing could be just as massive as the expected upswing to $0.9. Therefore, XRP will likely refresh lower price levels around $0.3 before recovery comes into play.
Current Market Sentiment: Neutral with Bearish Bias
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