The Daily Cryptomenon
13th 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 13.11.2020
It seems that Bitcoin is the center of attention in the Cryptocurrency market as it managed to break above the $16,000 resistance and touch upon a new high around the $16,500. This all happened when Ethereum and Ripple consolidated at their current ranges with no attempt whatsoever to follow suit. This could be due to the fact that only Bitcoin had been admitted to the PayPal payment system, giving BTC that added fundamental push against the other Cryptocurrencies.
With that said, let’s find how the Cryptocurrencies are doing on November 13th, 2020.
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - continued to maintain the bullish momentum that we’ve seen for the past couple of months. The Bulls are in complete control of this market and the Bears have gone into hibernation for the Winter. There’s been some corrections in this bullish market, but that’s not completely unexpected with how the market has been acting and it’s attributed to position closing rather than outright selling.
Yesterday we mentioned how BTC was attempting to break above the $16,000 resistance level, but with it being such an important level, it would be difficult to break through. We were proven wrong (much to our delight) as the BTC broke through the $16,000 resistance level even reaching the $16,500. However, with the position closing at that level, the price has dropped towards the $16,230.
Ethereum didn’t move all that much during the overnight session as the second largest Cryptocurrency continued to trade within its normal ranges. It had attempted to reach above the $470 level, but was quickly shut down and forced towards the $450, which had some buyers ready. Currently ETH is trading right on the $460 with some downward bias.
Ethereum’s subdued movement was mirrored by Ripple as the fourth largest Cryptocurrency continued to trade around $0.2550. The consolidation that we see on XRP comes after the fact that it failed to break above the $0.2600 and proceeded to move towards the 100 Simple Moving Average (on the 2-hour Chart) around $0.2520 before bouncing slightly.
Bitcoin’s (check out the chart below; you’ll find that Bitcoin is the purple line) performance is printing at 41.80% on a month-to-month basis*. Ethereum’s (red line) performance is printing at 20.29% on a month-to-month basis. Ripple’s (turquoise line) performance is printing at -0.35% 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 new highs be broken as the bullish momentum
continues? Or will the Bears finally wake up and correct the market lower?
Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin Breaks Above $16,000
Yesterday, we discussed the significance of an upside break if Bitcoin were able to move above the $16,000 resistance, which it did. BTC gained enough strength and was able to clear the $16,000 resistance level. That’s not all, but the price even broke the $16,200 resistance trading close to the $16,500 resistance and a new multi-month high was formed near $16,487. The price is currently consolidating gains near the $16,280 level.
The first major support on the downside is near the $16,200 level. Moreover, there are two bullish trend lines forming with support near $16,080 and $15,900 on the hourly chart of the BTC/USD pair. On the upside, the $16,500 level is a strong resistance. A successful break above the $16,500 resistance might open the doors for a push towards the $16,800 level in the near term.
On the downside, if BTC were to start a downside correction, the $16,200 support zone might act as a decent support. The next major support is near the $16,000 level (the recent breakout zone). However, a downside break below the $16,000 support might accelerate losses in the Cryptocurrency and it could decline towards the $15,500 support level.
Ethereum To Face $470
The $450 and $455 support levels on Ethereum have been playing a huge part, as they’ve created a level which Bulls are comfortable in buying as ETH remains well bid above those levels. In a recent move, ETH was able to break above the $460 level, however, the price seems to be facing hurdles near the $468 and $470 levels. A swing high was formed near $468 and the price is currently consolidating gains. An initial support is near the $454 level.
Currently, the first support for Ether lies around the $460 where it currently trades and is barely holding on. What’s more important is that there’s a major bullish trend line forming with support near $455 on the hourly chart of ETH/USD. On the upside, the $468 zone is a key breakout zone. A successful break above the $468 resistance and a follow up move above the $470 resistance might open the doors for a sharp increase. The next major resistance is near the $480 level, above which Ether’s price is likely to test the $500 handle.
If there’s no upside break above the $470 resistance level, Ethereum might start a corrective decrease. An initial support is near the $460 level. The main support is now forming near the $455 and $454 levels. The 100 simple moving average on the 2 hour chart is also positioned around the $445. Any more losses could trigger a larger decline towards the $435 and $432 support levels in the near term.
Ripple Consolidates Gains
Ripple continues to consolidate the gains it has managed to produce in the past couple of days as the Cryptocurrency trades above the 100-SMA. This of course signals the possibility of more upside as long as XRP remains above that line. After the recent move higher in an attempt to break the $0.2600 and failing, the Cryptocurrency fell towards the 100-SMA at $0.2520, from there on, the Bulls were able to bounce back and trade marginally above the $0.2550.
Currently, the first support for Ripple lies around the $0.2550. However, how things are structured at the moment, the better support can be found around the 100-SMA, as we’ve mentioned. On the upside, the $0.2580 zone is a key breakout zone. A successful break above that level and a follow up move above the $0.2600 resistance might open the doors for a sharp increase. The next major resistance is near the $0.2640 level, above which Ether’s price is likely to test the $0.2700 handle.
If there’s no upside break above the $0.2580 resistance level, Ripple might wake the Bears from their slumber and start a downward move. An initial support is near the $0.2550 level. The main support is now forming near the $0.2520. Any more losses could trigger a larger decline towards the $0.2450 and $0.2370 support levels in the near term.
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