Reversal Day?

Bitcoin and the rest of the cryptocurrencies continue dropping, the bearish impulse coming during the Asian session.  Bitcoin (-1.12%) has already crossed the gap created in the Futures trading and is traded for $8,550, Ethereum (-1.06%), Bitcoin Cash (0.92%), and Litecoin (-0.65% ) had similar drops, percentwise. Tezos (+11.29%) and VeChain (+17%) are the best performers of the day. Also worth mentioning, Cosmos (+5.01%) recovered its $4 level.  On the Ethereum token front, lots of them in the red, although some continue moving up, such as Seele (+21%) and IoT Chain (+29%).

Fig1 - 24H crypto Heat map

The crypto sector market cap descended to $235.013 billion (-2.25%), while the traded volume moved up to $27.867 billion (+15.27%). The dominance of Bitcoin is unchanged at 65.77%.

Fig 2 - 24H Crypto market capitalization and traded volume

 

Hot News

According to a Russian news outlet, the BRICS alliance members discussed the creation of a cryptocurrency for the commerce between members. This idea was brought by the head of the Russian Direct Investment Fund, Kiril Dimitriev, who proposed a  simple and unified payment system for settlements between members a way to stimulate commerce and ensure the stability of investments.

China began phase one of its implementation of the digital yuan. The People's Bank of China has announced its pilot plan to exchange cash for the new digital money. According to some tweets by Dovey Wan, founder of Primitive Capital, The PBoC will implement stronger capital controls, which will lead to cash elimination. This pilot will be limited to three provinces:  Shenzen (pop. 110 million) Hebei (pop 95 million) and Zhejiang (pop 56.5 million).

 

Technical Analysis- Bitcoin

Chart 1 - Bitcoin 4H Chart

Bitcoin continue descending moving along its -1SD Bollinger line. Now the price is below its three averages: 20, 50, and 200 SMA, while the traded volume grows only to the short side. The price seems poised to test the $8.300 support level. So far, 8,490 has acted as a momentary stop for the price, but there is no strength in the upward candlesticks, and it seems just a matter of time this level is crossed to the downside. If buyers come and move the price back above the $8.667 level, it could be a good reversal signal for this asset.

Supports	Pivot	Resistances
8,530	8,657	8,755
8,429		8,855
8,300		8,982

 

Ripple

Chart 2 - Ripple 4H chart

Ripple continues moving below its -1SD Bollinger line, and the bands also descending, which shows the asset is in bearish mode. XRP has retraced all the gains acquired in the last bullish impulse made in the latest ten days of October. Now the price has entered a zone of support so we can expect a consolidation if no other factors come into play. The critical level to keep is $0.26.

Supports	Pivot	Resistances
0.2634	0.2690	0.2750
0.2580		0.2800
0.2526		0.2850

 

Ethereum

Chart 3 - Ethereum 4H chart

Ethereum is the less bearish of the tree higher cap cryptocurrencies. The price had a drop in the early morning but was held by the 200 SMA. That said, the price continues below its -1SD Bollinger line and the MACD is in a bearish phase. So we have to observe the $180 level closely.

Supports	Pivot	Resistances
181.80	185.00	188.00
179.00		191.00
176.00		193.00

 

Litecoin

Chart 4 - Litecoin 4H chart

Litecoin is also moving in the bottom side of what seems like a wide horizontal channel. LTC's price has bounced off if the $58.5 level, which is in the region of consolidation made early November. The price is still touching the -1SD Bollinger line and the MACD is negative, so there is still some bearishness in the current situation. To determine if a new bullish leg is starting, we need a confirmation that hasn't happened yet. A close above $61, negating its last drop would be a good one.

Supports	Pivot	Resistances
58.00	59.50	60.70
56.80		62.30
55.00		63.40

 

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