The Daily Cryptomenon
2nd 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 02.11.2020
The divergence in the Cryptocurrency market continues as Bitcoin continues its move higher attempting and almost succeeding in breaking above the $14,000, while Ethereum and Ripple continue to struggle to break above their respective resistances.
With that said, let’s find out what today holds for the Cryptocurrencies on November 2nd, 2020.
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - experience another bout of bullish momentum, but as usual, this momentum isn’t spread equally among them all. Bitcoin remains the obvious winner from all of this as it looks to break above the $14,100, and Ripple is the obvious loser as it remains stuck in the downward channel that we highlighted last Friday.
Bitcoin managed to break above the consolidation and above the $14,000 resistance level over the weekend and even reached the $14,100 level before correcting. The momentum remains bullish as the Cryptocurrency consolidates just below the $14,000 level indicating that another push higher is not out of the question.
Ethereum managed to get infected by the bullish momentum that Bitcoin was displaying as it too moved higher amid the bullish momentum to reach above the $400 level. However, it was rejected at the $405 level as the Bears couldn’t let this slide. Overall, the Cryptocurrency remains in familiar ranges as it tries to continue its move higher.
Ripple is back at being the odd Cryptocurrency out after the current bout of bullishness failed to spark any kind of meaningful rally. XRP continues to trade in familiar ranges without much consideration on where it might be headed next, but something tells us that there might be a move higher soon.
Bitcoin’s (check out the chart below; you’ll find that Bitcoin is the purple line) performance is printing at 28.06% on a month-to-month basis*. Ethereum’s (red line) performance is printing at 12.84% on a month-to-month basis. Ripple’s (turquoise line) performance is printing at 0.75% 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 September till the 1st October.
What’s the strategy you’re going to use when it comes to these cryptos? Will the Bears have any say in the continued bullish momentum? Or will the Bulls simply continue to do what they do best?
Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin Consolidates Below $14,000
Bitcoin was able to break above the $13,500 resistance level over the weekend, not only that, but the Cryptocurrency was able to break the $13,800 resistance as well and managed to stay above the 100-SMA (Simple Moving Average) on the 2-hour chart. With this new surge of bullishness, Bitcoin was able to spike above the $14,000 resistance before starting a downside correction.
With this correction, the price broke below $13,800 support level, however, the price remained well bid above the $13,600 and $13,500 support levels. There’s also a major bullish trend line forming with support near $13,580 on the hourly chart of this instrument.
The probability of more upside is not out of the question, as long as Bitcoin is able to hold its own above the 100-SMA on the 2-hour chart. Looking on the upside, an initial resistance is near the $13,880 level, of course, the level which every investor is looking at is the $14,000 level. A successful close above the $14,000 resistance could open the doors for a sharp rally towards $14,400 or even $14,500.
However, should the Cryptocurrency king fail to stay above the $13,600 and $13,580 support levels, there is a risk of a downside break. The first key support is at the 100-SMA which is currently near the $13,400 level. A downside break below the $13,400 level is likely to spark a fresh increase in selling. In that case, the Bears may perhaps attempt a test of the $13,000 support level in the coming days.
Ethereum Regains $400 with Sights on $430
Ethereum hit October highs at $420 but retreated to support provided by the 100 Simple Moving Average (SMA) marginally above $370 in the 4-hour range. Towards the end of the month, buyers took back control over the price, elevating Ethereum above $410. The impressive price action coincided with Bitcoin’s price rally above $13,000. Unfortunately, a retreat occurred with ETH diving back to the drawing board at $370.
Currently, Ethereum is trading just below the $400 following a remarkable weekend price action that took down several resistance zones, including the 100 SMA and 50 SMA. A short-lived constriction of the Bollinger bands contributed to the upward price action. For now, the path with the least hurdles is to the north, especially with the price trading above Bollinger Bands.
In order for the bullish momentum to continue, Ether must break above the $400 and settle above it. However, the presence of resistance at $410 and $420 may delay the breakout eyeing $430. For now, the smart contract token is in the hands of the Bulls, whose desire is to take off to $500. The bullish outlook will be invalidated if ETH was to slide back below the 100-SMA on the 4-hour chart. The lower leg may also test the buyer congestion at $390, as highlighted by the 100 SMA. If declines progress, Ethereum will explore the rabbit hole, grinding to the primary support at the $380-$375 support zone.
Ripple Gets Rejected at $0.2460
In our last post on Ripple, we had explained that should the Cryptocurrency fail to climb back higher into the downward channel, the chances of another move higher could all be lost. Well, that didn’t happen as Ripple managed to climb back into the channel and even continued to move higher into the weekend reaching the $0.2460 mark. Yet, the bearish pressure that was seen on Ripple forced the Cryptocurrency to fall back away from that level as it currently trades around $0.2400.
The inability to actually break above that level increased the likelihood of further downward moves on this instrument. Yet, there might be some positivity showing on the Cryptocurrency through a double bottom that was noticed by one of our CryptoAltum Market Analysts. On the daily chart, there seems to be a double bottom forming. This formation usually indicates that there’s a spike coming.
As per the analyst, the price will head upwards by 25% over the next few days, and the Cryptocurrency is expected to rise on the 3rd of November following Bitcoin. The analyst believes that once the current daily candlestick closes over the next 20 hours with the current weekly candlestick, the price will go up. The double bottom pattern is a bullish indicator; the Cryptocurrency hit bottom at the $0.2390 mark.
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