The Daily Cryptomenon
5th 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 05.11.2020
The Cryptocurrency market continues to show increased bullish pressure as the elections in the U.S. slowly come to a close. The current results of the U.S. presidential elections show that Biden is in the lead as it seems that he will have the needed majority to become the next president.
With that said, let’s find how that is affecting the Cryptocurrencies on November 5th, 2020.
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - have found another fresh batch of bullish pressure as they all seemed to climb higher. This is all due to the increase in Bitcoin as it seems to be the ring-leader telling the other Cryptocurrency which way to go, but that isn’t always the case as we’ve seen in the past few weeks.
Bitcoin managed to climb much higher as it found the necessary support at $13,500. The bounce higher led the Cryptocurrency to break above the $14,000 resistance level and even higher towards the $14,400.
Ethereum followed Bitcoin’s lead and jumped way higher clearing an important resistance at $395 and above the $400 level. The Cryptocurrency even reached the $410 level but too many sellers at that level seemed to reject Ether’s move.
Ripple is also experiencing a move higher after the increase bearish pressure that has forced the Cryptocurrency to break below important supports. Currently, it tries to break above the 2-hour 100 Simple Moving Average as a break above signalling more upside.
Bitcoin’s (check out the chart below; you’ll find that Bitcoin is the purple line) performance is printing at 34.10% on a month-to-month basis*. Ethereum’s (red line) performance is printing at 14.48% on a month-to-month basis. Ripple’s (turquoise line) performance is printing at -4.04% 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 the higher highs continue to dominate the market? Or will the Bears seek to hold their ground against the move higher?
Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin Looks Towards $15,000
Bitcoin was able to close above the $13,800 resistance giving the Cryptocurrency the needed momentum to push higher. BTC didn’t stop there since the bullish momentum was so strong that it continued to carry it past the $14,000 resistance level, even clearing the $14,200 zone. It actually reached the point to trade at a new 2020 high at $14,390. It’s currently following a bullish path and showing a lot of positive signs above the $14,000 level. If there’s a downside correction, an initial support is near the $14,150 level.
On closer inspection, it can be noticed that there’s a channel support forming near the 50% Fib retracement level of the recent rise from the $13,545 swing low to $14,390 high. On the upside, the $14,350 level is a short-term resistance, which Bitcoin is currently battling against. A clear break above that level, could open the doors for a push towards $14,500. The next major stop for the Bulls may possibly be near the $15,000 level in the near term.
If Bitcoin finds itself on the backfoot and begins a correction, it could find bids near the $14,150 level. The first major support on the downside is near the $14,000 level and then the channel lower trend line. A downside break below the $14,000 level and the channel support could push the price towards the $13,800 support or even towards the 100 hourly simple moving average around the $13,600.
Ethereum Turns Bullish to $425
Ethereum was able to jump back higher after the Cryptocurrency found strong support around the $372. As explained in the section above, Bitcoin has been able to rally above $13,800 and $14,000, resulting in a decent increase in ETH above the $388 and $395 resistance levels. The recent rally was initiated right after ETH was able to break above the key resistance area at $395. Ether even cleared the $400 resistance level and settled well above the 100 2-Hour simple moving average. Ethereum is currently experiencing initial support near the $402 and $401 levels.
It seems like there’s a key contracting triangle forming with resistance near $407 on the same chart. A clear break above the triangle resistance and $408 could open the doors for more upsides. The next immediate resistance is near the $412 level, above which the Bulls are likely to aim a larger rally towards the $420 and $425 resistance levels in the upcoming sessions.
Currently, if ETH fails to clear the $407 and $408 levels, a correction will be coming soon. However, initial support on the downside is near the $400 level and the triangle lower trend line. If there’s a downside break below the triangle support at $401 and $400, the Cryptocurrency might decline towards the $395 support.
Ripple Faces Important Resistance
Ripple appears to have resumed the uptrend from the support recently formed at $0.23. The fourth-largest Cryptocurrency was recently rejected from levels slightly above $0.26. This gave credence to the bearish outlook, sending XRP under several key support areas, including $0.25 and $0.24. Meanwhile, the upswing in the market, especially for Bitcoin and Ethereum, seems to have woken Ripple Bulls. A breakout from the descending parallel channel elevated the price past $0.24.
If buy orders increase, XRP might overcome the 50 Simple Moving Average (SMA) selling pressure. Above this level, price action is likely to culminate in a spike past the 100 SMA and the 200 SMA.
The Relative Strength Index (RSI) gives credence to the Bullish outlook as it sharply rises towards the overbought region. In other words, the path of least resistance is upwards, especially if the 50 SMA flips into support. It’s worth mentioning that buyers must hold above $0.24 to ensure the anticipated uptrend is validated. Price movement above the 100 SMA and the 200 SMA will kick start the last part of the upper leg, eyeing $0.26. On the other hand, a reversal under $0.24 may see XRP revisit the critical support at $0.26.
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