The Daily Cryptomenon
22nd 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 22.07.2020
We can hear the conductor of the train calling “All Aboard!” just as our Cryptocurrency Trio have finally found a direction to move in. The overnight movement of these instruments was explosive rather than a slow crawl higher, and that brought on a lot of opportunities for traders. With that said, let’s find out what today holds for the digital currencies on July 22nd, 2020.
The explosive movement higher is both good and bad. For one it means that volatility has found its way back into the market as the Bulls took charge and led these digital assets higher, breaking through the familiar ranges they’ve been stuck in. On the other hand, it also means that the Bulls might have used up a lot of momentum to do so the Bears might have a chance to strike back.
Bitcoin (check out the chart below you’ll find that Bitcoin is the purple line) has managed to reach -2.00% performance since June and that shows that the Bulls are looking to make it positive once again. Ethereum (red line), has returned to the positive territory reaching 2.19% since the beginning of June. Ripple (orange line) has followed in the footsteps of both BTC and ETH and rose to reach -3.46% since the beginning of June.
What’s the strategy you’re going to use when it comes to these cryptos? Do you think that the Bulls still have enough momentum to reach higher? Or has all this momentum gone away and it’s time for the Bears to shine? Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin had remained paralyzed for almost eight weeks, living off life support from machines, but it seems that lifestreams (volatility) were pumped back into the Cryptocurrency king after a breakout was confirmed on Tuesday.
Coming from a position of volatility, after falling to a two-year low, BTC/USD sprung up above several resistance zones starting with $9,200. The upward leg continued above $9,230 as well as the key $9,300 level. Buyers had their eyes fixated on $10,400 but the momentum lost steam shortly before $9,500.
As things stand, BTC is trading around $9,348 at the time of this writing, after failing to clearly break above the $9,500. Furthermore, the technicals are showing signs of exhaustion in the momentum higher. Looking at the RSI, after the initial breakout above the important resistance at $9,200, the digital currency seems to have lost the momentum it was carrying as the RSI hit the 70-level and a bit higher indicating overbought-ness. What does that mean? Well, two things, either there’s going to be a correction lower towards $9,200, or consolidation at current levels. It’ll be interesting to see how things pan out.
The much-anticipated Ethereum 2.0 has kept investors on the edge for the longest time. However, the good news is that its final testnet is set to launch on August 4. Keeping this in mind, the Ethereum network is expected to raise the transaction capacity as well as the speed extensively. While investors and the community feel the upgrade is long overdue, it’s been in successful testing for at least three months.
At the time of writing, Ether is trading at $244, following a short-lived rally on Tuesday when we saw it reclaim some ground above $240. The resistance at $250 is proving unbreakable for the second time in July, as ETH had failed to rally alongside other coins earlier this month. Instead, Ether chose to remain as stable as Bitcoin.
However, when Ethereum 2.0 is officially launched, the digital asset is expected to kick start a rally because investors and the community can now see the light at the end of the tunnel in regard to the mainnet launch. The extent of the rally remains unknown, however, what’s absolutely clear is that more buyers are bound to join the market as the launch draws nigh, which will be positive for Ethereum in the long run.
At the start of July 2020, XRP rebounded from the support at $0.175 as it pushed higher to reach the $0.21 level. However, from there, XRP dropped back beneath $0.20 and has struggled to reclaim the level ever since.
Luckily, the buyers have managed to defend the support at $0.192, which has prevented XRP from heading toward the July lows again. For a bullish run to ignite, the cryptocurrency must break above $0.20 and surpass the resistance at $0.21.
Looking ahead, if the sellers do push lower, the first level of support to be found is at $0.192. Beneath this, added support lies at $0.18, $0.175, and $0.171. On the other side, if the buyers break the $0.2 level, resistance is expected at $0.21, $0.215, and $0.225.
When it comes to the momentum of the digital currency, the RSI has recently rebounded from the 50 line, which is a good sign as it shows that the Bulls are unwilling to give up their control of the market momentum. However, with the proximity of the print to that line, the most compelling argument, for now, is consolidation until clearer signs are provided.
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