The Daily Cryptomenon
29th 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 29.07.2020
It seems that the cryptocurrency market has finally reached its limit, or at least has exhausted all of the steam it had stored and it’s time for a short break before it continues moving higher with its upward trend. Our Cryptocurrency Trio has finally reached what seems to be the half-way point as things start to settle down with investors taking stock of what is probably the next move for these digital assets. With that said, let’s find out what today holds for the digital currencies on July 29th, 2020.
The cryptocurrency markets have finally entered into a consolidation phase, well at least for 2 out of our 3, as Ripple has finally decided it was time for a rally, after everything that has been done. We see this morning our trio in the same good spirits. They’ve managed to hold on to the gains that they’ve been printing and for now, they’re entering into a consolidation phase in hopes to figure out what’s the next leg going to be like.
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 20.33% 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 40.47% on a Month/on/Month* basis. Ripple (orange line) has finally decided to join its cousins with the rally as it prints a 35.80% performance on a Month/on/Month* basis.
*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 finished their movement higher and it’s time for a correction or at least some sort of consolidation? Or do the Bulls still have more will left in their tanks for another push higher? Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin Takes a Break on the Road to $20,000
Bitcoin’s price is holding marginally under $11,000 following a rejection from the new year high around $11,420. The recovery from last week was sharp and fulfilling as observed on the 4-hour chart, however, sustaining gains above $11,000 has become difficult. For this reason, BTC is teetering around the $10,970 mark amid some consolidation at the mentioned levels. The volatility across the market is expanding, in other words, sellers could gain traction in the coming sessions.
Technically, Bitcoin is hanging at the edge of a cliff. The Relative Strength Index (RSI) is currently struggling to hold above 70 (overbought line). Should that level break on the RSI, sellers are likely to feel emboldened and enter the market.
All is not lost for the Bitcoin though, as there are many supports on the way down, some very strong ones as well, that could play a major role in stopping the Bears in their tracks and enough to start the next leg higher. The way we see it, BTC will probably see a healthy correction all the way down towards the $10,400, from there, it would be up to the Bulls to get ready and stop the Bears. If that doesn’t happen, all that performance would have been for nought, and another sustained move higher could be out of the question.
Ethereum Seems Exhausted, Correction Looming
Ethereum made headlines after its price finally broke out of two months of stagnation. Upon the breakout point, the smart contracts giant shot up by more than 40% smashing through mid-February’s peak. The bullish momentum behind Ether was significant enough to push its price up to a new yearly high of $335, where the current resistance lies.
However, Ether appears to have reached an exhaustion point where investors have become extremely optimistic about the upward pressure. Its price took a 9% nosedive to hit a low of $306. Even though Ether has managed to recover some of these losses, many other metrics indicate that ETH is ready for a steeper decline.
We don’t believe this is the case. It seems that more consolidation is set going forward as the digital currency might find itself somewhat trapped between the $335 resistance level and $310 support level. Many technical indicators, especially the RSI, are backing this theory, even though a certain sentiment indicator has shown “extreme greed”. Historically speaking, when this happens sellers will enter the market extremely quickly. For now, it’s a wait-and-see kind of situation.
Ripple Follows BTC and ETH in Rallying
As Bitcoin and Ethereum rallied on Sunday and Monday, Ripple only managed to clear a couple of resistance zones including $0.21 and $0.22. A seller congestion zone at $0.2250 became the pivot point, forcing Ripple to retreat, seeking support at the former resistance, and now, turned into support at $0.21.
Consequently, this retreat appeared to have been instrumental for Ripple, since the digital currency has gathered what’s remaining from the strength it had and sent itself flying. It not only broke above $0.22 but also blew past the hurdle at $0.23. While this rally happened, Bitcoin retreated under $11,000 as reported earlier and Ethereum spiralled from the new yearly high at $334 to seek refuge above $310.
Bulls are working hard to keep the gains sustained above the $0.2400 mark as the $0.2450 has proved somewhat hard to break in the current stage. Moreover, all indicators point towards a continued rally towards $0.25, it seems only a matter of time.
The Technicals are helping the scenario of further upside for the digital currency as the RSI is printing deep into overbought territory and this means that the Bulls are well in control of the price movement and it seems that more upside is bound to happen.
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