The Daily Cryptomenon
18th 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 18.11.2020
A silent explosion rocked through the entire Cryptocurrency market as we saw Bitcoin as well as other Cryptocurrencies force their way through their respective resistance levels to record yearly highs. The bullish momentum has not been letting go for a single second as the market keeps pushing higher with no afterthought to where this might lead.
With that said, let’s find how the Cryptocurrencies are doing on November 18th, 2020.
Cryptocurrency Recap
The Bulls of our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - kept on (for the lack of a better term) punishing the Bears for hibernating and pushed markets higher breaking through important resistances that were supposed to provide a tough challenge for Bulls. However, the levels got sliced through like a heated knife against butter.
Bitcoin’s original projection was to break above the $17,000 or at least reach it. Bitcoin’s reply was “Seriously? How about this?” and proceeded to break above the $17,000 to reach a high of $18,520. Talk about overextending a bullish run! However, that move already faded as the Cryptocurrency has begun to falter, breaking below the $18,000 as it trades around the $17,670 as of this writing.
Ethereum was quick to follow in Bitcoin’s footsteps breaking above the $480 level to reach a high of $495, just shy of the $500 resistance level. The Bullish momentum remains strong in this instrument but it would seem that the move higher has awakened the Bears from their slumber as the Cryptocurrency retraces lower reaching the 100-SMA (Simple Moving Average) on the 2-hour Chart.
Ripple’s upside move was a surprise to us all as the fourth-largest Cryptocurrency was having a tough time in breaking above the $0.2800 resistance. However, once that was done, XRP was catapulted towards the $0.3050 level and seemed to consolidate around that level. Bitcoin’s bullishness didn’t really help but the retracement that’s currently going on is affecting Ripple. The latter has dropped towards the $0.2800 before bouncing as it trades around $0.2900 as of this writing.
Bitcoin’s (check out the chart below; you’ll find that Bitcoin is the purple line) performance is printing at 60.62% on a month-to-month basis*. Ethereum’s (red line) performance is printing at 33.75% on a month-to-month basis. Ripple’s (turquoise line) performance is printing at 25.24% 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? Has the Bullish momentum reached the end of the
line and the Bears have woken up? Or will the Bears simply continue to sleep
through the winter and allow the Bulls to keep moving higher?
Whatever you choose to believe, you can react to it all onCryptoAltum.
Bitcoin Breaks Above $18,000
Bitcoin’s bullish path wasn’t hindered by a mere resistance level as it managed to break through the $17,000 level. This Cryptocurrency surged even higher reaching above the $17,200 level to move further into a positive zone. The price rallied over 6%, breaking the $18,000 resistance. However, resistance at the $18,520 was too much for the current bullish momentum as that started a retracement lower falling towards the $17,450 before managing to consolidate around that level with RSI (Relative Strength Index) printing overboughtness.
Even with the current retracement, the price remained well supported above the $17,450 level. The price to beat currently sits around $17,800. If there’s a fresh break above that level, the price could rally further. The next major resistance is near the $18,000 level. Any further gains could open the doors for a rise towards the $18,400 level in the near term. An intermediate resistance sits near the $18,250 level.
Should the $17,800 prove too much for the current bout of bullish pressure, there could be a short-term downside correction. An initial support is near $17,450, with the next major support is near the $17,410 level. It’s close to the 50% Fib retracement level of the recent surge from the $16,924 swing low to $17,895 high. Any further losses may perhaps lead the price towards the $17,200 support level.
Ethereum To Target $500
Closing above the $470 level gave Ethereum the needed push higher as a new wave of bullish pressure emerged. Ether managed to break above the $480 and $485 resistance levels. Bitcoin’s rise towards the $18,000 helped the smart-token Cryptocurrency higher which resulted in a push above $490. The price traded as high as $495. That was a bit too much for the Cryptocurrency as ETH fell from that level in a deep retracement that took it towards the $455 and below the 100-SMA on the 2-hour chart.
However, strong Bull presence at those levels managed to stop the downward move and a bounce is currently underway. On the upside, the $495 level is an initial resistance. The main hurdle is now at $500. A clear break above the $500 resistance zone could spark another 5% rally. The next stop for the Bulls may perhaps be $525 or even $540 in the coming sessions.
The danger lies in whether or not Ethereum is able to break above $480. If Ether remains in the current range, there might be upside break above the $495 and $500 resistance levels, leading Ethereum to correct a few points. The main support is now forming near the $465 and100-SMA, any more losses could lead the price towards the $450.
Ripple Heavily Corrects Lower
It seems like XRP was finally catching up to the crypto market after a notable rise to $0.3050 for the first time in two months. Unfortunately, several indicators have turned bearish for XPR, showing a potential short-term pullback is lurking around. That’s exactly what happened. The bearish movement in Bitcoin sparked the downward move in Ripple that led it from the $0.3050 towards the first support around $0.2900 breaking below that and reaching the $0.2790 before climbing back up again.
The bearish correction wasn’t entirely surprising as the RSI has been printing above the 70 level for quite some time, until Bitcoin sparked a movement lower. However, the bullish pressure is all but gone, as this retracement could be a blessing in disguise as Bulls gather up forces and attempt to break above the $0.3050.
The level to beat currently lies at the $0.3000. Breaking above that level and establishing it as a foothold could prove to be the needed push for Bulls to attempt another move higher. Should that fail to happen, the $0.2900 will be acting as a support for the downturn, but the $0.2790 will be the crucial level for Bears to break under.
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