The Daily Cryptomenon
27th 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 27.11.2020
The downward pressure on the Cryptocurrency market continued yesterday as we saw an extension of the deep correction which removed a lot of the gains that the market had made. However, hope still remains that the Bulls will be able to recover as the market seemed to have reached important supports.
With that said, let’s find how the Cryptocurrencies are doing on November 27th, 2020.
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - continued to face a deepening correction as the fear of it turning into a full-fledged reversal is growing every time a support is broken. Several important supports were broken easily on the way down, and yet they should have put up more of a fight, especially those resistance-turned-support levels, yet nothing held until we reached previous important supports.
Bitcoin suffered a major downfall, eliminating all the gains that it posted with it’s run towards the $19,500. The Cryptocurrency broke through the support at $17,500, and continued to move lower reaching a low of $16,200 before managing to find enough support to push it above the $17,200 where it currently trades.
Ethereum didn’t fare any better than Bitcoin, as the smart-token Cryptocurrency suffered the same fate and dropped severely also discarding all the gains it managed to create before finding a level to bounce from. The $480 level managed to halt Ether’s descent, and even managed to boost the Cryptocurrency above the $500 as it trades around the $530.
Ripple was also part of this bearish scheme as the Cryptocurrency almost whipped out all the gains it did, which were impressive to say the least. The Cryptocurrency fell below the $0.5000 support. However, it found another support at the 100-SMA on the 2-hour chart, allowing XRP to bounce back higher as it trades around the $0.5650.
Bitcoin’s (check out the chart below; you’ll find that Bitcoin is the purple line) performance is printing at 31.99% on a month-to-month basis*. Ethereum’s (red line) performance is printing at 34.42% on a month-to-month basis. Ripple’s (turquoise line) performance is printing at 124.23% 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? Is the downward trend going to continue wreaking havoc on the market? Or will the Bulls be able to find the needed momentum to stop that from happening?
Whatever you choose to believe, you can react to it all onCryptoAltum.
Bitcoin Faces Another Bullish Challenge
Bitcoin experienced a sharp decline that led it below the $18,000 and $17,200 levels. The Cryptocurrency even spiked below $16,500 before the Bulls protected the $16,200 support zone. There were two attempts by the Bears to push the price below $16,300 and $16,200, but they failed. A swing low is formed near $16,219 and the price is currently rising. It’s trading above the 23.6% Fib retracement level of the recent decline from the $19,500 swing high to $16,219 low.
There’s also a key bearish trend line forming with resistance near $17,500 on the hourly chart of the BTC/USD pair. The next major resistance is near the $17,850 or the 50% Fib retracement level of the recent decline from the $19,500 swing high to $16,219 low. BTC is likely to start a strong increase if it clears the breakout resistance at $17,500 and then gains pace above $17,850. The next major resistance sits near the $18,400 level or the 100 2-hour simple moving average.
If Bitcoin doesn’t find the needed momentum to clear the breakout resistance at $17,500, there’s a risk of a fresh decline. An initial support on the downside is near the $16,800 level. The first major support is near the $16,500 level. The main support is near the double bottom zone at $16,300. A daily close below the $16,300 and $16,200 levels could open the doors for another slide.
Ethereum Manages to Stay Steady Above $500
Yesterday, we saw a sharp decline in Bitcoin, Ethereum, Ripple, as well as other Altcoins. ETH even broke the $550 support level and settled well below the 100 2-hour simple moving average. It opened the doors for more downsides and the price even spiked below $500. Finally, Ether found support near the $480 level. The Bears made two attempts to clear the $480 support, but they failed, since then Ethereum started a decent recovery wave above the $500 level.
On the upside, there’s a major hurdle forming near the $550 level and the 100 2-hour simple moving average. If there’s an upside break above the triangle resistance, the price could test the $550 barrier. It is also close to the 50% Fib retracement level of the recent decline from the $623 swing high to $478 low. To move back into a positive zone, the price must clear the $550 resistance and settle above the 100 SMA.
If Ethereum fails to recover above the triangle resistance or $550, there could be a fresh decline. An initial support is near the $510 level and the triangle lower trend line. A downside break below the triangle support could push the price below the $500 level. The main support is near the $480 level, below which there is a risk of a drop towards the $450 level.
Ripple’s Pullback is Healthy
Ripple has declined by approximately 30% in the past 24 hours. This is a substantial downward movement by any standards. It’s currently stagnating near the $0.5550 support that has helped the pair bounce back to higher levels many times in recent weeks. The near 10% crash in Bitcoin is affecting the Altcoin market as well.
XRP didn’t stop at any intermediate support levels. In fact, the 4-hour chart shows that the pair is hovering around primary support levels near $0.5 and $0.45. Our CryptoAltum Analysts see today’s correction as a healthy trend that will help tone down excessively bullish trends on the daily charts. Therefore, the pair is expected to bounce back from lower supports in the coming days.
The current decline was expected after the price spike towards the $0.92 level. The overbought levels were unsustainable and warranted a correction. If the recent correction was intentional and Bulls have the buying power, the recovery will start in a day or two. The pair has found strong support near the $0.5 level and can bounce back.
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