The Daily Cryptomenon
16th 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 16.11.2020
The Cryptocurrency market has been moving in such an erratic way for some time now. Volatility has become a common occurrence in the market and it doesn’t seem to be going anywhere anytime soon. Over the weekend, the roles have been reversed as Bitcoin dropped from the highs it was printing, to begin with. What’s even more surprising is the sudden jump Ripple has scored. This Cryptocurrency finally joins the rally established by Bitcoin. Ethereum was dealt the losing hand here as the weekend saw it drop heavily after its attempt at climbing.
With that said, let’s find how the Cryptocurrencies are doing on November 16th, 2020.
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - have had all different stories to tell. While the bullish momentum remains somewhat intact, it’s facing danger of over exhaustion that might lead it to expire and a correction, or even worse, a reversal to appear in its place. This of course isn’t applied to all the Cryptocurrencies in an equal manner.
Bitcoin’s momentum has been wavering as of late, even though it managed to reach the $16,500 level during Friday’s early movement. The weekend saw the Cryptocurrency falter and fall below the $16,000, but the $15,820 was able to hold any kind of extreme downturn. Momentum as per the RSI (Relative Strength Index) indicator is showing some consolidation as it prints around the 50 level, with momentum remaining above the 40 level showing bullish momentum.
Ethereum hasn’t fared as well as BTC over the weekend. While the Cryptocurrency King was able to consolidate around strong supports, at least, ETH fell beneath the 100-SMA (Simple Moving Average) on the 2 hour chart. The Cryptocurrency fell after that break, but the support at $440 was able to keep any kind of downward momentum in check for the meantime.
Ripple is the obvious gainer from the weekend and late Friday trading. The fourth-largest Cryptocurrency was able to stage quite the move higher reaching the $0.2780 resistance level. It actually attempted to break above it twice, and both lead to a fall, but the momentum hasn’t turned negative just yet as the RSI is still printing above the 50 level.
Bitcoin’s (check out the chart below; you’ll find that Bitcoin is the purple line) performance is printing at 39.97% on a month-to-month basis*. Ethereum’s (red line) performance is printing at 19.68% on a month-to-month basis. Ripple’s (turquoise line) performance is printing at 9.19% 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 there be a correction in the market as the
bullish momentum fades? Or will the Bulls keep pushing for higher highs?
Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin Targets $16,500
Bitcoin was able to reclaim the position above $16,000 after the weekend saw it attempt to find a stable support, which it did in the form of $15,820. The bellwether Cryptocurrency hit new yearly highs at $16,500 last week but embarked on a retreat, which saw Bitcoin explore levels under $16,000. However, the bearish leg wasn’t left to cause substantial damage to the progress made, with BTC/USD bouncing off support at the mentioned level of $15,820.
In the meantime, Bitcoin is dancing with $16,000 amid a renewed bullish momentum during the Asian session on Monday. The Relative Strength Index (RSI) gives credibility to the bullish narrative with its recovery above the midline. If the indicator sustains motion heading to the overbought side, more buyers will be encouraged to join the market and perhaps create enough volume for gains eyeing $17,000.
For now, the path of least resistance appears to be to the upside, mainly due to the robust support accorded to BTC. As the volume expands, Bitcoin’s price is likely to continue with the run-up to $16,500. Trading above $16,500 will open the road to $17,000 while the remaining journey to $20,000 will ride on the fear of missing out (FOMO).
Ethereum Must Reclaim $460
Last time we talked about Ethereum, we saw how the smart-token Cryptocurrency was seeing bullish momentum as it was targeting a break above the $470. That indeed happened. It ven managed to break above that level towards the $480, however, that was short lived as the Cryptocurrency fell from the $480 resistance level all the way towards the $440, breaking through the 100-SMA on the 2-hour chart. Currently, a low is formed near $440 and the price is currently correcting higher.
Ether managed to surpass the $445 level. In addition to that, here was a break above the 23.6% Fib retracement level of the recent decline from the $462 high to $440 low. The price is now approaching the $450-$452 resistance zone. There’s also a key bearish trend line forming with resistance near $453 on the hourly chart. The trend line is close to the 50% Fib retracement level of the recent decline from the $462 high to $440 low. The next major resistance is near the $460 level and the 100-SMA.
A successful close above the $460 level and the 100 hourly simple moving average could start a fresh increase. In the stated case, the price could rally towards the $478-$480 resistance zone. If there’s no upside break above the $452 and $460 resistance levels, Ethereum might extend its decline. An initial support is near the $445 level. The main support is now forming near the $442 and $440 levels. Any more losses could trigger a larger decline towards the $432 and $425 support levels in the near term.
Ripple Finds Bullish Momentum
For the longest time, Ripple has been the losing Cryptocurrency of the CryptoAltum Trio, as it seemed that the bearish momentum is bound to continue. However, XRP managed to be struck by the bullish momentum that Bitcoin was showing. Ripple managed to break above important resistance levels, especially above the $0.2700 and reached a high of $0.2780 before correcting lower.
The Cryptocurrency didn’t stop here, though. In fact, the Bulls entered the market again around the $0.2610 and attempted to reach above the $0.2780. The second time also didn’t yield the expected result as the correction led Ripple towards the $0.2650 support when it managed to bounce from that level. Currently, the Cryptocurrency is trading above the $0.2700, showing that the bullish momentum isn’t over yet as this is backed up by the RSI which remains above the 50 and is showing signs of higher movements in the short term.
Even though the bullish momentum is in full swing on Ripple, the prospect of a correction on the short term isn’t out of question. For the Bulls to remain in full control, they need to establish the $0.2700 as a viable support level as the $0.2650 is acting as the level to beat for Bears. Furthermore, in order for the bullish momentum to continue, a break above the $0.2750 needs to take place else a correction lower might be imminent.
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