The Daily Cryptomenon - 20th 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 20.07.2020
When we last talked about cryptos, they seemed to be on the downward move from the consolidation, however, that isn’t the case any more as they all went right back to moving flat without much change. We guess that these instruments are actually starting the summer vacation a bit early as we’re 11 days away from the end of July. With that said, let’s find out what today holds for the digital currencies on July 20th, 2020.
The support game from the Bulls actually paid off as we saw our Cryptocurrency Trio trade quite flat during the weekend without much change from their ranges before the weekend. Initially, we’d thought that the Bears had taken the reins from the Bulls as we saw quite the departure from previous ranges, only for the Bulls to put up a good fight and keep things within their normal ranges without much change.
Bitcoin (check out the chart below you’ll find that Bitcoin is the purple line) has recouped some of its losses to reach -3.84% since the beginning of June. Ethereum (red line), has managed to erase the losses it made as it prints a performance of -0.07% since the beginning of June. Ripple (orange line) has followed in the footsteps of ETH and managed to win back some of its losses to reach -3.41% 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 Bears have taken control again? Or are the Bulls ready to stage a comeback? Whatever you choose to believe, you can react to it all on CryptoAltum.
After trading close to the $9,000 level, Bitcoin started an upside correction, as the cryptocurrency managed to clear the $9,120 resistance level and the 100 hourly simple moving average. This opened the doors for more gains and allowed a break above a significant bearish trend line with resistance near $9,160 on the hourly chart of the BTC/USD pair.
The pair even traded above the $9,200 resistance, but it failed to gain any bullish momentum. Bitcoin formed a high near $9,240 and the price is currently correcting lower. It traded below the $9,200 level, plus the 23.6% Fib retracement level of the recent wave from the $9,112 swing low to $9,240 high.
The recent break above the trend line and $9,200 might turn out to be a false one if Bitcoin fails to stay above $9,150 or $9,100. A clear break below the $9,100 support level may perhaps start another decline. The next major support is near the $9,000 level, which is the last line of defence for the Bulls.
Analysts are expecting a massive breakout if ETH breaks above an extremely close resistance level. If Ether was to break above the blue line seen in the chart below, that’ll guarantee the end of the bear trend that has constrained the asset since mid-2019.
The blue line was formed at the highs of 2019’s bull market. Since its formation, it has constrained rallies in the price of ETH, almost exactly marking the highs in February and the highs in June and earlier this month.
It’s a very tough job for the Bulls to break about this trendline as we’re sure that the Bears will be defending it with all their bearish might. Fundamental indicators are also giving a chance for the Bulls to prove their worth, one of our analysts have identified them as:
- The market cap of ETH-based tokens has passed the value of all ETH
- The number of ETH locked in DeFi has rocketed to 3.4 million coins
- Ethereum is seeing increased network usage
- Futures for the cryptocurrency are still at manageable levels.
One risk for ETH, though, is that the selling pressure is outweighing the buying pressure caused by ICOs and miners.
After falling for three straight days and losing nearly 3% during that period, Ripple (XRP/USD) rose sharply on Saturday and gained 2.85% to close near $0.2000. However, the pair seems to be having a tough time building on its recent gains and was last seen losing 1.12% on the day at $0.1980.
Although Ripple is edging lower on Monday, it continues to trade above the 100-day SMA that it broke yesterday. Meanwhile, the RSI indicator on the daily chart is pulling away from Saturday's high of 60 but stays above 50, suggesting that the fall is a technical correction.
The $0.2000 (Saturday high/psychological level) is a key resistance for XRP/USD. With a decisive break above that level, Bulls can target $0.2025 (Fibonacci 50% retracement of May-July drop). On the other hand, supports are located at $0.1960 (100-day SMA), $0.1925 (50-day SMA) and $0.1900 (20-day SMA).
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