The Daily Cryptomenon
30th July 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 30.07.2020
After the meteoric rise that we witnessed in the Cryptocurrencies for the past week, it’s only natural that we see them actually consolidating at their current levels. We saw our Cryptocurrency Trio break through their respective resistances, establishing new ones, and making sure that certain support levels are in check, as they get ready for the next leg of the move. With that said, let’s find out what today holds for the digital currencies on July 30th, 2020.
Cryptocurrency Recap
Consolidation seems to be the name of the game as we see our digital currencies settle into somewhat familiar ranges for the meantime. That’s expected, especially after the rise that we saw them perform over the past week. Furthermore, if seems that the resistances that have been recently cleared are acting as important supports for the Bulls, and should they want the run higher to continue, they must defend them at all costs.
Bitcoin (check out the chart below you’ll find that Bitcoin is the purple line) has managed to hold on to the gains that it has created reaching a 20.51% performance on a Month/on/Month* basis. Ethereum (red line), continues to be the biggest gainer of them all as it prints a performance of 40.55% on a Month/on/Month* basis. Ripple (orange line) has finally decided to join its cousins with the rally as it prints a 36.06% performance on a Month/on/Month* basis, effectively taking second place and knocking Bitcoin to third.
*Please note that we mention month/on/month we mean the same day, one month ago. For example, 29th of June till the 29th of July.
What’s the strategy you’re going to use when it comes to these cryptos? Do you think that the Bulls have entered into a consolidation phase as they prepare for the next leg higher? Or will the Bears wrestle control away from the Bulls and drive these assets lower? Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin Eyes $14,000 with $11,000 as Support
Bitcoin recovered the ground lost when it slipped under $11,000 on Tuesday. For a period of time, the largest cryptocurrency was stuck between the support at $10,800 and the resistanceat $11,000. The level at $10,900 also became instrumental in the recovery witnessed on Thursday.
BTC/USD reclaimed the position above $11,000 at some point stepping above $11,300. However, the price stalled before hitting the recently formed yearly high around $11,400. Meanwhile, Bitcoin retreated towards the key support at $11,000.
Despite the drop, which can be hardly called one, the Bulls have managed to keep the $11,000 intact for the meantime, which has proven to be a very important psychological support and it extends towards the $10,900. It seems that BTC has the potential of hitting $14,000, however, this prediction is based on Fundamental aspects of the market’s economy rather than technical ones.
From a technical point of view, there’s some increasing divergence between the price action of Bitcoin which has recorded higher highs in the past couple of days. While the RSI is printing lower highs in the same time frame. This, of course, means that there’s going to be some severe correction in the price action that might jeopardize the movement higher as it would most certainly break below the $10,900.
Defending the $11,000 is the most important thing for the Bulls at the moment if they really hope to see the $14,000 anytime soon.
Ethereum Bulls Losing Gas, Correction Imminent
Ethereum bulls have, for most of this week’s trading, found it increasingly difficult to hold the price above $320. Note that, earlier this week, Ether ascended to a new 2020 high around $314. Unfortunately, a reversal ensued, forcing ETH to seek support at $305.
Intriguingly, the formation of a short term (4-hour range) symmetrical triangle pattern highlights the possibility for an uptrend continuation that could draw $400 nearer. ETH/USD is already trading at the apex of the symmetrical triangle. Ether only needs a boost above $320 and towards $330 to be able to actualize this breakout.
Scanning the technical picture, the short term price actions for Ethereum are bound to remain bearish, or at least remain in the consolidation zone that it has established for itself between $335 and $310. The Technical picture, as it were, does suggest there’s bearish momentum brewing as the RSI has dropped back towards the 50-level meaning that consolidation is on the horizon.
But should the RSI mark a break of the 50-level and a move towards the 40, we’d be in trouble because this would suggest that ETH will break below $310 and target the psychological support at $30. Breaking below that level would put the possibility of ever seeing $400 in much danger. The Bulls must defend the $310 and $300 by extension if they wish to see a movement higher towards the $400.
Ripple Tests Critical Level $0.2500
Ripple price has for the first time since February 2020 tested the critical level at $0.25. The crypto exchanged hands at this level amid a retreat from the yearly highs traded at $0.3463 on February 15. The cryptocurrency has shown immense progress, however, it’s still far from the previously mentioned high.
From a technical perspective, rapid gains such as the ones experienced from Tuesday are unlikely. The RSI seems to hold slightly below 70, and a return into the overbought region is possible and would give XRP a boost towards $0.25.
On the support side of things, there doesn’t seem to be any meaningful support below that of $0.2400. In case Ripple finds itself on the lower side of $0.2400, there isn’t much stopping the digital asset from reaching the $0.2270 support. Should that be the case, a move back higher would face the $0.2400 resistance which might be very hard to break through especially now that most of the momentum has been lost.
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