The Daily Cryptomenon
17th 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 17.11.2020
Cryptocurrencies have continued to show their bullish power for quite some time now and there doesn’t seem to be an end in sight as they break through resistance after resistance. Bears have been caught sleeping at the wheel, as they have allowed this “madness” to continue with Bitcoin eyeing the $17,000 and Ripple finally topping the $0.3000.
With that said, let’s find how the Cryptocurrencies are doing on November 17th, 2020.
Cryptocurrency Recap
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - have been revelling in the bullish momentum as they continue to print higher highs and breaking through resistances, if not that, at least maintaining the bullish pressure by consolidating the gains they’ve made. Anyway you cut it, Bulls are in control of the market and it seems that it’s going to stay that way.
Bitcoin’s momentum just got another extra boost higher as it attempted to break above the $17,000. However, that was short lived as the $16,850 blocked any kind of movement higher and began a short-term correction lower. Yet, there’s nothing to actually fear as the Bulls have plenty of support on the downside to prevent such things from happening.
Ethereum has consolidated the gains it has made from the move higher. While it's not as flashy as Bitcoin, it still has been able to print some impressive gains and seems to be on the route for more. After reaching the $440, ETH managed to bounce higher reaching the $470 resistance level and consolidating around there.
It has been a while since Ripple showed any kind explosive bullish runs. It usually lays low, waiting for the time to strike, just like now as it broke through many important resistances that have blocked it’s path and reached above the $0.3000. However, due to overboughtness, it has corrected lower. Still, the bullish momentum remains.
Bitcoin’s (check out the chart below; you’ll find that Bitcoin is the purple line) performance is printing at 46.50% on a month-to-month basis*. Ethereum’s (red line) performance is printing at 26.14% on a month-to-month basis. Ripple’s (turquoise line) performance is printing at 23.73% 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? The bullish momentum continues, but will it last? Have the Bears given up the fight?
Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin Signals More Upside
After forming a base near the $15,800 level, Bitcoin managed to start an upside. BTC followed through by breaking the $16,200 and $16,350 resistance levels to move back into a positive zone. The upward move was shaped in a way that the price broke the $16,500 resistance. The price traded towards the $17,000 level and a new monthly high was formed near $16,897.
The triangle support is close to the $16,630 level, below which the price could test the 50% Fib retracement level of the recent rally from the $15,796 low to $16,897 high. On the upside, a clear break above the $16,725 and $16,750 levels might start a fresh increase. The next major resistance is near the $16,850 and $16,900 levels, above which the Bulls are likely to aim a break above the $17,000 level.
If Bitcoin fails to clear $16,750, there could be a short-term downside correction. A clear break below the triangle support might lead the price towards the $16,500 support zone. The next major support is near the $16,350 level. Any further losses may perhaps lead the price towards the $16,200 support level.
Ethereum Draws Near to ETH 2.0 Launch
Ethereum is drawing closer to the launch of the much-anticipated Ethereum 2.0. The new protocol is expected to revolutionize the smart contract ecosystem. Simultaneously, Ethereum developers are confident that the upgrade will help the second-largest Cryptocurrency solve its scalability challenges and significantly bring down traction costs.
Meanwhile, Ether is trading around $465 after stepping above the 50 Simple Moving Average on the 4-hour chart. Ethereum needs to close above this critical level to continue with the uptrend from the support at $440. Currently, the trend is mainly in the Bulls’ hands, especially with the Relative Strength Index recovering fast toward the overbought region. On the upside, ETH/USD is facing resistance at the ascending channel’s middle boundary. Trading above this area is likely to catapult Ether towards the coveted $500.
It's worth noting that Ethereum’s bullish momentum will face some resistance at $480 (last week’s hurdle). Moreover, if Ethereum fails to hold above the 50 SMA, selling pressure could increase, sending Ethereum back to the drawing board, the channel’s lower boundary, and support at $440.
Ripple Breaks Above $0.3000
XRP had a notable breakout on November 13 from the ascending triangle pattern formed on the daily chart. The Cryptocurrency has been able to break above the initial target at $0.3000, but only marginally as it faced some selling pressure at that resistance forcing it to correct lower.
Ripple has managed to peak at $0.3029, before it began to correct lower, currently trading around the $0.2980 with momentum indicators still showing overboughtness. However, even with a correction, there’s plenty of support on the downside to stop any kind of further degradation of the price with the closest one being the $0.2950 and $0.2900 being more crucial. A break below the $0.2900 could jeopardize another move higher to revisit the $0.3000.
In order for Ripple to keep the momentum going, a break below the $0.2950 should be avoided at all costs. Breaking below that level would indicate that consolidation is on its way and the chances of another move higher grows smaller. Ripple doesn’t have the best record with consolidations as more often than not, those lead to another move lower. Breaking above the $0.3000 would be a huge move for the Cryptocurrency as establishing it as a support would go far in catapulting this instrument into higher levels.
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