The Daily Cryptomenon
4th 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 04.11.2020
It’s been four years since the U.S. Presidential elections have taken place. Last time, Trump managed to deliver a huge upset in several key states to secure a victory over Hilary Clinton. This time around it’s Trump vs Biden and the race is heating up as the results so far show that Biden is currently leading 220 vs 213.
With that said, let’s find out what today holds for the Cryptocurrencies on November 4th, 2020.
Cryptocurrency Recap
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - don’t seem to be all that phased by the results of the U.S. presidential elections, which is something to be expected especially since Cryptocurrencies weren’t much of a topic during debates or speeches. What’s interesting though, Bitcoin is continuing to move higher leaving Ethereum and Ripple in the dust.
Bitcoin surged higher once again as it attempted to break above the $14,100 resistance level, but Bears were not having any of that forcing the Cryptocurrency back down towards the $13,885 level. The Cryptocurrency seems to still have enough bullish momentum on its side as it works to move higher a third time.
Ethereum’s upgrade to 2.0 seems to be coming soon as the delay has been wreaking havoc on the smart-token. ETH has been able to rebound heavily from the $370 support which was its make or break level, now the Cryptocurrency is trading near the resistance at $390 which is also a very key level.
Ripple is expected to experience even more downside pressure as the divergence between Bitcoin and Ripple expands. BTC continues to drive itself higher as the Bears take all that aggression on poor old Ripple. XRP remains somewhat dependent on BTC, so we should keep an eye out on the movement of Bitcoin.
Bitcoin’s (check out the chart below; you’ll find that Bitcoin is the purple line) performance is printing at 30.27% on a month-to-month basis*. Ethereum’s (red line) performance is printing at 9.51% on a month-to-month basis. Ripple’s (turquoise line) performance is printing at -4.40% 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? Will Bitcoin continue to rise as ETH and XRP fall? Or will the Cryptocurrency trio finally converge in their direction?
Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin Surges Again
Bitcoin managed to establish a new fresh rally higher, this comes after retesting the $13,300 support zone. There was a steady rise above the $13,500 and $13,600 resistance levels, which led to BTC even surging above $13,800. Finally, there was a spike above the $14,000 resistance. A high is formed near $14,065 and the price is currently correcting gains.
On the upside, the $13,880 level is an initial resistance. A clear break above $13,880 and then a follow up move above the $14,000 resistance could increase the chances of a sharp rise towards the $14,500 level in the coming sessions.
If Bitcoin fails to sustain a move above $13,880, there’s a risk of a fresh decline. The first major support on the downside is near the $13,680 level and the 100 2-hour SMA. A downside break below the $13,680 level and the 100 hourly SMA may possibly start another decline towards the $13,400 and $13,300 levels in the near term.
Ethereum 2.0 is Coming Soon
Ethereum’s next update, the ETH 2.0, is on the verge of its first major breakthrough. Developers announced that they are close to the long-awaited launch of the beacon chain. This of course has given the smart contract token the needed boost higher as it rose towards the $390 resistance level which is currently being capped by the 100-SMA on the 2-hour chart.
After reaching a high of $417 on October 22, the Ether dropped to $378 over the next week. After that, it went back up to $399.60 on November 2, before plummeting down to $384.50 within a session. Ethereum is currently trading around $384. The 2-hour chart of ETH is currently consolidating in an ascending triangle formation. As per technical analysis, if the buyers take control, they should push the price up to $475. More importantly, it will be able to flip 50-bar SMA and 100-bar SMA ($390) from resistance to support.
Ethereum bears can take back control by dropping the price below the ascending triangle. If this does happen, then it will be devastating for the price. The downside target for the price is near $300. The only support level of note lies at the 200-bar SMA ($375) and the $385 support wall. If the sellers manage to break below these barriers, they should easily reach $300.
Ripple To Face More Downward Pressure
One of our CryptoAltum Analysts is suggesting that the bearish pressure on Ripple will not ease anytime soon. Currently, Ripple has managed to spike across the $0.244 mark, where it hit a day’s high of $0.2442. The Cryptocurrency has trended above the $0.236 level through most of the day’s trade. At the time of writing, XRP was priced at $0.237.
The analyst observed a downward decline on the charts as it rested over a horizontal support level at the $0.231 mark. Ripple had observed a move towards the downside but it has only been a correction from the spike higher. However, from its current level, the price is expected to break below the horizontal support and run towards the $0.203 level.
The trade volume for the Cryptocurrency has decreased over the past few days. The analyst also suggested that XRP’s trend totally depends on Bitcoin, so if BTC pumps, XRP would pump as well, and if BTC drops, XRP would drop too. However, with the current divergence happening between BTC and XRP, the extent of the mirror move is not clear.
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