The Daily Cryptomenon
10th 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 10.11.2020
Another round of consolidation has hit the Cryptocurrency market as we see these instruments trade within their current ranges as they consolidate the recent round of gains that has been witnessed. Markets are currently looking for the next sign, trying to see which way the Cryptocurrencies are poised to go.
With that said, let’s find how the Cryptocurrencies are doing on November 10th, 2020.
Cryptocurrency Recap
Our Cryptocurrency trio - Bitcoin, Ethereum, and Ripple - continued to trade within the ranges that we addressed in our previous post, showcasing that the consolidation will be the main course when it comes to our Trio. We saw how Bitcoin has been influencing the other Cryptocurrencies as the influence seems to be staying on course for now. Mainly, a break higher or lower in the Cryptocurrency King will surely have an effect on the other two.
Bitcoin had attempted yesterday to jump start another round higher as it rose towards the $15,800, but quickly encountered heavy selling forcing it back down. However, with the presence of $15,000 as a support, Bulls were able to keep any kind of downturn within the range. From there, a consolidation around the $15,370 level seems to be happening as the Cryptocurrency waits for the next move.
Ethereum followed Bitcoin’s lead in trying to jump start another round higher, but it faced a very important resistance at $460 which shut that idea down very quickly. The result was a move downwards towards the $440 level which held any kind of severe selling, allowing the Bulls to push the Cryptocurrency back higher as it trades around the $450.
Ripple continued to mimic the move in Bitcoin, as it too tried to rally higher attempting to reach the $0.2570. However, it never even reached that level before sellers entered the market and forced the Cryptocurrency back down towards the $0.2450. Luckily, the Bulls were there to save the day and allow Ripple to climb back towards the $0.2500.
Bitcoin’s (check out the chart below; you’ll find that Bitcoin is the purple line) performance is printing at 34.72% on a month-to-month basis*. Ethereum’s (red line) performance is printing at 19.63% on a month-to-month basis. Ripple’s (turquoise line) performance is printing at -2.45% 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 current volatility allow interesting trades? Or will there be calm markets ahead?
Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin Consolidates in Current Range
There was an increase in selling pressure on Bitcoin from the $15,850 zone, after it tried to rally higher. BTC dropped over $500 and it even spiked below the $15,000 support. A low was formed near $14,815 before the price started a fresh increase. On the way up, there was a break above the $15,100 level. However, the price seems to be facing a strong resistance near the $15,450 and $15,500 levels.
To move into a positive zone, Bitcoin must break $15,450 and then gain traction above $15,500. The next resistance is near the $15,600 level, above which there are real chances of a sustained upward move towards the $15,850 and $16,000 levels.
If Bitcoin fails to clear the $15,500 resistance, there’s a risk of a fresh downside correction. An initial support is near the $15,200 level. There’s also a key connecting bullish trend line forming with support near $15,050 on the hourly chart of the BTC/USD pair. If there’s a clear break below the trend line support, the price might decline further below $15,000. The next major support is near $14,850, below which the price might revisit $14,500 in the coming sessions.
Ethereum Looks to Break Above $500
Ethereum Bulls have, in the last couple of days, been working around the clock to ensure that formidable higher support is formed. The focus on the support comes after the Cryptocurrency was rejected at $470 and forced to seek refuge at $420.
At the moment, Ether is dancing at $448 following a minor dip under $450. The prevailing trend is sideways leaning as emphasized by the Relative Strength Index (RSI). However, if buyers aren’t careful, Ethereum could resume the downtrend due to bearish divergence between the price and the RSI.
In this case, price action above the upper trendline could elevate ETH towards $500. The smart contract token may rally massively in such a move as the fear of missing out creeps on the investors. On the other hand, trading under the pattern could pull Ether significantly downwards.
Ripple to Target $0.2600
Ripple has established a critical resistance level at 0.2600, tested on eight different occasions from September 4 until November 7. The last try managed to push XRP’s price towards $0.267 before quickly dropping to $0.244 on the same day. The critical resistance barrier at $0.2600 now coincides with the 100-SMA on the daily chart, adding even more strength to the level.
A breakout above $0.2600 would be significant; however, the digital asset needs to also close above this point to target $0.3000 as an initial price point. Bears, on the other hand, are looking at the 50-SMA as the closest support level. The rejection on November 7 from the crucial resistance level at $0.26 is a clear and robust bearish sign considering all the previous rejections.
On the hourly chart, XRP’s price faces a strong resistance level at $0.2550, the 50-SMA. The digital asset has established a downtrend, and it’s eying up a breakdown below the 200-SMA at $0.245, which would push XRP’s price towards $0.2370.
Got any unanswered questions related to trading cryptocurrencies?
No matter what your crypto-related question is, feel free to reach out to your CryptoAltum Account Manager or our outstanding Customer Care Team. Your personal and dedicated Account Manager is on hand ready to help you with any questions. If you don’t have a CryptoAltum trading account yet, get one here. You’ll get your very own Account Manager.
For more market updates go ahead and visit our Blog