The Daily Cryptomenon
9th 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 09.11.2020
Consolidation and Corrections were bound to happen after the rocket-move higher in the Cryptocurrency market. Of course Bitcoin had the most to gain as the Cryptocurrency king has continued to edge higher reaching the $16,000 before correcting towards the $14,400. This has affected the other Cryptocurrencies as all are showing increased bullish momentum.
With that said, let’s find how the Cryptocurrencies are doing on November 9th, 2020.
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - have seen some corrections over the weekend, however, those were quickly squashed by the abundance of buyers in the market right now, wanting nothing else than to see the Cryptocurrency market back on top. However, nothing can last forever, as the bullish momentum might be fading or at least consolidating at the current levels in the hopes of another move higher is not too far behind.
After Bitcoin touched upon the $16,000 resistance level, the bullish momentum seemed to have evaporated as the moves after that were to the downside. The Cryptocurrency king fell from around $15,500 to below the $14,400, over the weekend. However, that move was short lived as the Bulls intervened and pushed Bitcoin back above the $15,000 support and is currently trading around the $15,600 resistance.
Ethereum continued to sample what Bitcoin was offering to the market as the smart-token also found enough bullish presence to reach the $470 level. But that level proved too much for the Bulls as a move lower was initiated, breaking below the $440 support level and ending around the $420. From there, Bulls found the needed momentum to start another leg higher reaching the $460, as ETH trades marginally below that level.
Ripple finally found what Bitcoin was offering to the market as the fourth largest Cryptocurrency managed to ride the bullish momentum all the way towards the $0.2680. Ripple broke through important resistances, and managed to reach higher levels, however, with the presence of Sellers at those levels, Ripple found itself back on the downward move, only finding enough support at the $0.2450. From that point, Bulls managed to force the Cryptocurrency back towards the $0.2570.
Bitcoin’s (check out the chart below; you’ll find that Bitcoin is the purple line) performance is printing at 41.61% on a month-to-month basis*. Ethereum’s (red line) performance is printing at 28.70% on a month-to-month basis. Ripple’s (turquoise line) performance is printing at 0.20% 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 Cryptocurrency market continue to
consolidate at those levels? Or will there be a move in the short-term?
Whatever you choose to believe, you can react to it all onCryptoAltum.
Bitcoin Faces Bearish Pressure
After a strong downside correction, Bitcoin managed to find enough support near the $14,400 level. BTC traded as low as $14,380 and started a steady upward move. It surpassed the $14,800 and $15,000 resistance levels. More importantly, there was a break above a major bearish trend line with resistance near $15,300 on the hourly chart.
Bitcoin even settled above the $15,200 level and is now facing a strong resistance near the $15,600 level. A clear break above the $15,600 resistance level is a must for more upside in the near term. The next major resistance is near the $15,800 level, above which it could revisit $15,950. Any further gains could lead the price above the $16,000 and $16,120 levels.
If BTC fails to clear the $15,600 resistance, there’s a risk of a fresh decline. A downside break below the $15,200 support zone could increase the selling pressure on Bitcoin. In the stated case, there’s a risk of a drop towards the $14,800 and $14,750 support levels in the coming sessions.
Ethereum Faces Important Resistances
After a sharp downside correction, Ethereum found support near the $425 level. ETH price formed a base above $425 and started a fresh increase above the $435 resistance. Ether gained enough momentum above the $440 resistance to break above the $450 resistance, but the price faced a major barrier near the $460 level. A high is formed near $461 and the price is currently declining.
It seems like there’s a major contracting triangle forming with support near $450 on the ETH/USD chart. If Ethereum breaks the triangle support, it could test the $442 support. The next major support is near the $440 level, below which there’s a risk of a sharp decline towards $425 or even $420 in the coming sessions.
On the upside, an initial hurdle for Ethereum is near the triangle resistance at $458. The main resistance is near the $460 level, above which the Bulls are likely to gain strength. A successful break above the $460 resistance is likely to open the doors for a move towards the $470 zone. The next major resistance is near the $480 level.
Ripple At Critical Levels
While Bitcoin was showing signs of extreme bullishness, Ripple remained dormant without much movement upwards. However, all of this is about to change as we could be seeing Ripple moving on to greener pastures. XRP has gone through a month-long consolidation period that has forced the Bollinger bands to squeeze on its 3-day chart.
Many analysts view squeezes as phases of stagnation that are often succeeded by high levels of volatility. The longer the contraction, the more violent the breakout that follows. This index’s inability to provide a clear path for the direction of the cross-border remittances token makes the area between the lower and upper band a reasonable no-trade zone. Breaking through the overhead resistance at $0.26 or the underlying support at $0.23 will determine where this altcoin is headed next.
With that said, pattern following indicators are showing signs that Bulls have a much higher chance of emerging victorious than the Bears. Furthermore, indicators are showing that the $0.2600 is the level to beat. Just in case the Bulls were able to change the $0.2600 from a resistance level to a support level, Ripple might find the needed momentum to reach towards the $0.2900.
On the flip side, a downswing that sends XRP underneath the $0.23 support may jeopardize the bullish outlook. Moving past this hurdle might cause an increase in sell orders which by turn pushes prices further down. If this were to happen, this altcoin could drop to $0.195 instead.
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