The Daily Cryptomenon
19th 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 19.11.2020
A day after the silent explosion in the Cryptocurrencies, things have begun to calm down as we witness a sharp correction lower on all of these assets. It was expected because, compared to the climb, the drop wasn’t all that serious, still now Cryptocurrencies are facing consolidation. This means there’s going to be a massive rush in order to gather momentum to attempt the next leg of the journey. But in which direction?
With that said, let’s find how the Cryptocurrencies are doing on November 19th, 2020.
Cryptocurrency Recap
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - have entered into their consolidation mode as they try to see what the next step of their journey is going to be like. The Bulls are trying to continue with the movement higher that saw breaking important resistance levels, while the Bears seemed to have woken up from their slumber after the rally. They are looking to benefit from the current consolidation.
After Bitcoin reached the top of the range for the year, breaking through the $18,000, even reaching the $18,520, it started to retrace lower, breaking through the $17,500 support level but not managing to close under it. After that, it began to attempt to break above the $18,000 yet again but so far no such luck.
Ethereum’s move resembles that of Bitcoin’s as the smart-token Cryptocurrency failed to break above the $495 and proceeded to move downward in a spectacular fashion. Breaking below the $470 support level and even below the 100-SMA (Simple Moving Average) on the 2-hour chart, it managed to bounce back and is currently attempting to break above the $480 level in an attempt to keep the positive momentum going.
Ripple was also faced with major downside pressure after it failed to close above the $0.3050. It did manage to reach the $0.3100 resistance but faced selling pressure enough to send it down towards the $0.2820 from which it bounced higher. Currently, the Cryptocurrency is attempting to move back higher but seems to be hindered by the $0.2970.
Bitcoin’s (check out the chart below; you’ll find that Bitcoin is the purple line) performance is printing at 56.04% on a month-to-month basis*. Ethereum’s (red line) performance is printing at 27.73% on a month-to-month basis. Ripple’s (turquoise line) performance is printing at 21.57% 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 Consolidation lead to another move higher?
Or will the Bears manage to force their way through the supports?
Whatever you choose to believe, you can react to it all onCryptoAltum.
Bitcoin to Face Bearish Pressure
Bitcoin has retreated considerably from the recently traded new yearly high of $18,520. Buyers had hoped to establish support above $18,000 but were overpowered and forced to seek refuge at lower levels. At the time of writing, the flagship Cryptocurrency is trading around $17,845 amid renewed bearish momentum. The most vital support seems to be the buyer congestion between $17,500 and $17,490. Therefore, holding above this zone is critical for the Bulls, as it will allow them to focus on the return journey above $18,000. Besides that, the support may also prevent potential losses below $17,000.
The general trend is still bullish, however, it’s essential to note that selling orders may surge mainly due to panic of Bitcoin sliping under the initial support at $17,500. The Bulls will do their best to hold the flagship Cryptocurrency above $17,000.
It’s worth noting that the bearish outlook may be invalidated if the bullish picture remains intact. Technical indicators reveal the absence of robust resistance ahead of BTC. It means that, if Bitcoin holds above the prevailing support between $17,205 and $17,727, a rally might ensure pulling the price above the subtle hurdle at $18,500.
Ethereum Struggles to Build Momentum
Ethereum rallied above the $480 and $485 resistance levels, but it failed to test the $500 barrier. Recently, there was a sharp downside correction below the $485 pivot level, even managing to break the $480 support, but the Bulls were able to protect the $470 support and the 100 hourly simple moving average.
The recent low was formed near the $470 level and the recent high was near $482. The price is currently declining and trading below the $480 level. It’s testing the $476 support with the next major support near the $474 level. The main support is near the $470 level and the 100 hourly simple moving average. If there’s a clear break below the trend line support, $470, the price could decline sharply towards the $455 level in the coming sessions.
If Ethereum stays above the trend line support or $470, it could attempt a fresh increase. An initial resistance on the upside is near the $482 high. The first major resistance is near the $485 level. A successful break above the $485 pivot level could open the doors for a fresh increase towards the $495 high or even $500.
Ripple is “Onto Something Big”
Ripple’s price action throughout the past few months, and even years, has been nothing more than lackluster. This token is still trading down over 90% from its all-time highs while failing to garner any widespread adoption. On one hand, its 2017 rally was fueled by high hopes surrounding Ripple’s xRapid product.
On the other hand, its intense decline and inability to rally have come about due to the company’s previous pattern of selling tokens each quarter and its inability to drum up adoption for the token. Despite its multi-year consolidation phase within the $0.20 region, XRP is now showing some signs of life as it moves to break out of its long-held trading range.
A firm breakout here could allow the Cryptocurrency to see significantly further gains in the days and weeks ahead. One of our CryptoAltum Analysts is even going so far as to note that a move up to the range between $0.50 and $0.85 could be right about the corner.
He notes that it may take some time for it to confirm that this move is imminent, as it needs to close its weekly candle above $0.315 for this to take place. The coming few days should offer insight into whether this is a realistic possibility for the embattled XRP token.
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