The Daily Cryptomenon
28th 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 28.07.2020
There’s no stopping our Cryptocurrency Trio now, not after they’d recorded such impressive gains and the steam still doesn't seem to waver. Even with all the technicals proving there might be a move lower, digital currencies continue to move much higher. With that said, let’s find out what today holds for the digital currencies on July 28th, 2020.
The digital currency market is currently witnessing the best rally yet, where investors and traders alike flock to these “semi-safe” havens as the economic uncertainty in the global markets continues to be quite the issue. All of our digital currencies have seen extreme gains as they continue to move higher on the back of increased demand as well as the increase in volatility.
Bitcoin (check out the chart below you’ll find that Bitcoin is the purple line) has managed to continue with its positive streak as it prints a whopping 15.43% performance since the beginning of June. Ethereum (red line), has held on to its positive streak printing 34.27% since the beginning of June, however, performance did cap at 37.50%. Ripple (orange line) has followed in the footsteps of its cousins and rose to reach 8.87% 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 have finished their movement higher and it’s time for a correction? 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.
BTC/USD: Bitcoin Begins the Journey to $20,000
Bitcoin price rally has officially commenced following eight weeks of tight range trading. The Bulls are still building on weekend gains that saw Bitcoin breach the $10,300 mark for the first time in three months, and now it has broken through the $11,000 indicating that the journey towards the elusive $20,000 has just begun.
Bitcoin is still in a strong buy zone because the rally that seemingly awaits it is massive (resembling the rally in 2017). This will mean that Bitcoin is finally going to break the three-year downtrend resistance line. All eyes are on $20,000 as the year 2020 gradually draws to an end. In the following year, according to our analysts, Bitcoin would have the potential to hit new all-time highs.
Technically, everything is aligning perfectly for the rally to continue, there’s severe overbought-ness showing on the RSI in the 4-hour chart. From a daily and weekly point of view, however, there still seems to be enough gas in the tank for another move higher before we witness a small correction. The next target for the Bulls comes in at $12,000 followed by the more important $14,000.
We’re seeing an immense number of sellers at these levels. However, how many of these are profit-takers and how many are actual sellers? We still can’t find out. As we approach the targets, things will become much clearer for us and then, we can accurately assess whether or not this rally will continue.
ETH/USD: Ethereum Consolidates But Target Remains
Ethereum is solely in the hands of the Bulls. This follows an impressive price action since last week. The weekend session was particularly yielding for Ethereum as it catapulted ETH above $300. The key move was the break past the descending trendline resistance which commenced when Ether retreated from June 2019 highs around $360.
Although very little progress has been made from the time Ether hit new 2020 highs at $334, buyers have been keen on holding the price above $320. If we consider the path of least resistance for the ETH, it would be upwards. This is because of the lack of considerable resistance levels higher, compared to the downside where the Bulls have many opportunities to hold off any sudden move lower.
The RSI is acting very strange but not the bad kind of strange. What do we mean by that? Well, please inspect how the price action is moving in a somewhat consolidated manner caught between the $310 support level and the $335 resistance level. Now, examine the RSI. The movement doesn’t correspond to a consolidation but more of a down movement, and this leads us to believe that the ETH will experience consolidation at the current levels before it gains enough momentum to continue higher.
However, it’s very important for the Bulls to be extremely careful of any movement lower, as a break below the $300 would mean that gaining the needed momentum to break back higher will be extremely difficult and a continuation of the bull trend would become unlikely.
It’s always difficult to see ETH and BTC doing their thing, breaking new levels and moving higher, while Ripple is sitting there wishing it could join the fun. Investors and traders of Ripple, are having a hard time breaking through the $0.2250, their first attempt is understandable, hitting a resistance and all, but the second time, well, it just shows a lack of conviction.
After XRP’s inability to break through the mentioned level, things are becoming somewhat stressed in the Bullish camp. They need to break above that level for the momentum that’s been shown in BTC and ETH to be translated over into XRP. As things stand, XRP is showing signs of consolidation at the current levels, something that’s needed in order for the Bulls to get their camp in order and push the digital currency higher.
Looking into the RSI, it clearly shows the divergence that’s going on; as the price action is actually printing higher highs, the RSI is showing lower highs indicating that there’s going to be a movement lower on Ripple. However, all’s not lost for the cryptocurrency, as long as the support at $0.2120 is able to hold any extensive declines in XRP, we should be able to see another leg higher, this time hopefully it would be able to break through the resistances.
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