The Daily Cryptomenon - 21st 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 21.07.2020
Some might call it impressive, others might call it frustrating, whatever you choose to call it, it’s still something worth being checked out. While Ethereum and Ripple both experienced what’s known as a “Range Dump”, Bitcoin remains quite strong in its range without moving an inch lower. In the meantime, ETH and XRP both fell off their levels. For now, let’s find out what today holds for the digital currencies on July 21st, 2020.
Bitcoin was the star yesterday, not necessarily because it rallied higher or fell lower, but for the mere fact that while it’s brothers (ETH and XRP) were experiencing a significant move lower, effectively breaking through their respective ranges, BTC remained steadfast not wavering a mere inch higher or lower. This kind of consistency has both angered investors as well as made them stop and wonder what’s the next move for Bitcoin.
Bitcoin (check out the chart below you’ll find that Bitcoin is the purple line) has remained steady with its performance since yesterday staying at -3.82% since the beginning of June. Ethereum (red line), has continued to move all over the place jumping from positive to negative performance, currently printing -0.69% since the beginning of June. Ripple (orange line) has followed in the footsteps of ETH and fell extending its losses to reach -4.24% since the beginning of June.
What’s the strategy you’re going to use when it comes to these cryptos? Do you think that ETH and XRP will diverge from BTC? Or that BTC will succumb to peer pressure and follow ETH and XRP? Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin price stability has been impressive over the past week. For some people, the stability is commendable but for others it’s reduced the speculative nature of Bitcoin, making it more or less a stablecoin. On the other hand, altcoins have done exceptionally well in the last few weeks, presenting investors with alternative investment opportunities.
Our analysts expect the tight ranging Bitcoin to wake up from the deep slumber. In other words, Bitcoin’s chance for a rally is coming. At the same time, a dumping exercise is likely to take precedence among altcoins bringing more “pain” and a temporally “range dump” against the largest cryptocurrency, as we saw ETH and XRP falling while BTC remained stable.
Bitcoin is dancing at $9,180 at the time of writing, as buyers have been able to contain the price above $9,100 for several days now. On the upside, $9,200 is the initial resistance, however, anything above that level has become scarce. With that in mind, notice that the RSI is still playing around the 50-level with spikes to the 40 and 60 level indicating that there isn’t any proper momentum for the BTC to take a move in either direction, for the time being at least.
Ethereum 2.0 has entered into its testing phase. This is a big deal for the cryptocurrency since, with 2.0, many new updates and security features are bound to be present. This gives ETH the push higher it needs. However, with a higher transaction cost on ETH, it’s quite possible that we see a major shift downward on Ether as paying $10 transaction fee and waiting 15 seconds for settlement “is just bad UX.”
Back to the technicals, ETH/USD Bulls made a comeback this Tuesday after bouncing up from the SMA 50 curve. The price has gone up from $236.16 to $237, crossing the SMA 20 curve in the process. The Bulls face strong resistance at $240 and $245. On the downside, healthy support lies at $236 (SMA 20), $235.80 (SMA 50), $230 and $225.
The movement lower was due to Ether hitting the $240 resistance and falling from that level. This corresponded with a move on the RSI that breached the 60-level only slightly and went straight back down towards the 50-level. So in order for Ethereum to continue moving higher, a sustained break above the $240 is needed.
Ripple price is attempting to change the narrative that has dominated its market since it hit a hurdle at $0.21 in the first week of July. XRP rallied impressively from lows under $0.17 in tandem with the spike witnessed in various altcoins. Unfortunately, the fourth-largest cryptocurrency failed to contain the gains above $0.20. The price had been pivotal at $0.20 for some time before a Pandora box opened with XRP/USD dumping to levels marginally under $0.19.
Right now, at the time of writing, Ripple is trading at $0.1965. The Bulls seem to be having a difficult time breaking the resistance at the 100 Simple Moving Average (SMA) on the 1-hour chart. On the bright side, a bullish momentum appears to be building towards $0.20 as long as the seller congestion at the 100 SMA and the 100 SMA is overcome.
Ripple is mainly in the hands of the Bulls even though price actions aren’t as rapid as investors would like them to be. The ongoing bullish momentum is supported by the RSI’s upward sloping movement. The cherry on top of the cake is the formation of a short-term bullish flag pattern. A pattern like this usually points to a bullish action following a bearish trend. In this case, if supported by the right volume, a breakout above the pattern could catapult Ripple higher above $0.20.
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