The Daily Cryptomenon
20th 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 20.11.2020
Yesterday we asked the question of which direction will the Cryptocurrencies choose after they completed their consolidation. Well, it seems that an answer was given as we saw all Cryptocurrencies rise back higher attempting to break above their resistances, which started the correction in the first place. The Bullish momentum is obviously still the one in control here, but will it be enough to break the resistances that it first couldn’t?
With that said, let’s find how the Cryptocurrencies are doing on November 20th, 2020.
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - faced a rather sharp decline in the last couple of days as they failed to break above some key resistances. The sellers were able to capitalize in return. However, as they hit their respective supports, Bulls were not happy about this move and quickly managed to turn the tables on the Bears and move the Cryptocurrency market higher in an attempt to regain some key levels.
Bitcoin fell from $18,520 to $17,360 which marked a 38.60% retracement of the rise between November 16th and November 18th. However, the support level at $17,360 was able to halt any bearish movement and ignite another move higher, one that broke through the $18,000 barrier and seems to be targeting the first resistance at $18,250. Breaking above that level would mean the $18,520 is at risk of breaking, too.
Instead of a static line, Ethereum was able to bounce off the 100-SMA (Simple Moving Average) on the 2-hour chart. That dynamic line proved to be ever strong in the face of the bearish pressure. The push was hard enough to ignite another bout of bullish pressure that saw the Cryptocurrency break above $480. Currently, Ether is attempting to break above the $490 before targeting the $500.
While the $0.2875 support level was supposed to prevent Ripple from extending its downward run, it had partially failed, as it was broken on three occasions with one even closing below. Thankfully, the Bulls were able to find the needed buyers to attempt another move higher above the $0.3050 resistance which again rejected the advance, making the total to two and creating a double top.
Bitcoin’s (check out the chart below; you’ll find that Bitcoin is the purple line) performance is printing at 54.27% on a month-to-month basis*. Ethereum’s (red line) performance is printing at 27.41% on a month-to-month basis. Ripple’s (turquoise line) performance is printing at 19.98% 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 Bulls be able to break against the
resistance level this time? Or will it be a repetition of last time?
Whatever you choose to believe, you can react to it all onCryptoAltum.
Bitcoin Seeks To Break Higher
Bitcoin fell again below the $17,600 and $17,500 levels, however, the Cryptocurrency remained stable and it seems like there’s a strong support base forming near the $17,360 level. The recent low was near $17,356 before the price started an upward move. It broke the $17,500 and $17,600 levels. There was also a break above the $17,800 level, BTC even spiked above $18,000, but it struggled to clear the $18,250 resistance.
A high is formed near $18,231 and the price is currently consolidating. Bitcoin now seems to be following a bullish flag pattern with resistance near the $18,250 level. A successful break above that level could lead the price towards the $18,500 resistance. To start a strong rally, the price must settle nicely above the $18,250 resistance level. In the stated case, the price may perhaps clear the $18,500 resistance and rally towards $19,000.
If Bitcoin fails to gain strength, it could test the $17,800 support. The first major support sits near the $17,500 level. The main support is now forming near the $17,380 level, below which there’s a risk of a larger decline in the coming sessions.
Ethereum Faces Against $490
Ethereum corrected lower below the $475 level, but the Bulls were able to protect the $465 zone. ETH’s price seems to be forming a strong support base above the $465 level and the 100-SMA on the 2-hour chart. The recent swing low was near $470 before the price climbed higher. There was a break above the $475 and $480 resistance levels.
The first major support is near the $480 level. It is close to the 50% Fib retracement level of the recent upward move from the $470 low to $489 high. On the upside, the $490 level is a short-term resistance. A clear break above the recent high could open the doors for more upsides towards the $495 and $500 levels. The next target for the Bulls could be $520.
If Ether starts a fresh decline from $490 or $495, it is likely to find support near $480. The first major support below $480 is near the $472 level since it is close to the 100-SMA on the 2-hour chart. The main support sits at $465. A successful close below the $465 support level could start a substantial decline and Ether might drop towards the $450 level.
Ripple to Retrace Before Rallying
It seems that the price of XRP is showing signs of a potential retracement before bouncing off to the upside in the short term. Indicators show that incoming bearish momentum could see it go as low as $0.27 before it takes off. Technical indicators are beginning to show signs of bearish pressure mounting, this is of course worrying. However, if Ripple is able to sustain the rally above $0.31, the bearish stance will be invalidated, allowing the Cryptocurrency to go as high as $0.33 or $0.35.
On the other hand, if the market maintains some consolidation, a decent increase in buy pressure could turn things around, returning the price above the $0.31 zone.
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