Bitcoin Breaks $10,000!
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This analysis was written at 9:00 am GMT +3, on 27.07.2020
It’s not every day that we witness such an incredible run by our Cryptocurrency Trio. Breaking through major resistances and keeping their eyes focused on even higher levels is something to marvel at. These instruments are now looking at new fresh highs after being so low for so long. With that said, let’s find out what today holds for the digital currencies on July 27th, 2020.
While normal FX instruments would take the weekend off and enjoy some Rest and Relaxation, cryptocurrencies keep on ticking. When everyone was simply enjoying a weekend away from markets, especially now that August is inching closer and closer, our cryptocurrency trio decided that it was time to push higher and that’s exactly what they did. BTC, ETH, and even XRP, all rose to new highs, as things continue to show signs of bullish pressure that don’t seem to be ending any time soon.
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 7.11% performance since the beginning of June. Ethereum (red line), has held on to its positive streak and moved even higher reaching 35.88% since the beginning of June. Ripple (orange line) has followed in the footsteps of its brothers and rose to reach 5.46% 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 have finished their movement higher and it’s time for a correction? Or do the Bulls still have much left in their tank for another push higher? Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin Breaks $10,000
Bitcoin price is ending the month of July in great style after pushing above the critical $10,000 level during the just-concluded weekend session. Following the return of volatility to the crypto market, Bulls have been keen not to fall back into the slumber and hibernation that they’d experienced for more than six weeks. Some of the critical barriers that have already been shattered include $9,600, $9,800, and just recently the $10,000.
As of this writing, BTC is trading near $10,250, after getting rejected at the $10,320. It’s only natural that we see much more Bearish activity with such a move higher as both Bears and Bulls would be either betting on a correction, or liquidating some long exposure to offset the incredible move. It would be best to watch out because, with such incredible moves, severe corrections often follow.
When it comes to the RSI of Bitcoin, the indicator is printing at the 80-level meaning sever overbought-ness and that means there’s going to be correction lower, however, with the divergence that’s happening between the price action and RSI, this correction is bound to be quite extensive, so much so that it might jeopardize the Bull run.
In order for the Bull run to continue to move in this current way, any correction, must not break below the $10,000 as that is the current psychological level for the Bears to ensure that any further movement to the upside is no longer an option. Bulls will defend that level with all they have, so it would be an interesting battle between the two at the mentioned level.
Ethereum Targets $365 after Breaking $300
Ethereum is currently leading the cryptocurrency rally. However, as expected, Ether is still heavily correlated with Bitcoin price, which could explain the movement higher alongside BTC. The break above $280 last week saw Bulls hiding in the sidelines join the market in anticipation of a breakout beyond $300. However, the weekend session sets the Bulls apart from the Bears as they towered above the cryptocurrency landscape with impressive gains that not only breached the $300 mark but also hit highs above $330.
At the time of writing, Ethereum is trading at $325 after adding 3.96% of the new value on Monday. The Asian session has been characterized by a strong bearish grip mainly for Ethereum, which is to be expected after the move that’s pulled during the weekend.
ETH is both technically and fundamentally ready to take down the resistance at $365. All technical indicators have aligned in support of the ongoing bullish action. The RSI, for example, has been able to hold within the overbought levels since Sunday, however, the divergence between the indicator and the price action has become somewhat troubling.
It isn’t entirely out of the question that the Bears take hold of a minor correction to make sure that things are working properly once again. However, this correction must not exceed $300 lower. Breaking below that level would signal that the Bulls have lost some control over the instrument giving the Bears an opportunity to strike.
Ripple Breaks $0.2200 but Fails at $0.2250
Ripple’s move higher is nothing short of impressive, especially when considering where it had started and where it currently resides. This cryptocurrency has had everyone talking about it and how a Bull-Run on this is almost a sure thing.
Unlike its brothers, which saw BTC and ETH both move higher in the most dramatic fashions, simply jumping higher and breaking through their respective barriers, XRP saw a more gradual move higher. We’re not saying there weren’t any jumps, however, the movement of Ripple during the whole thing has been more of a steady movement higher, with corrections where needed, instead of a ‘Wham-Bam-Thank you Ma’am’.
The way we see it, XRP is showing a turtle march higher instead of the hare. Slow and steady wins the race and all that jazz, however, with that approach Bears have a much easier job of turning this Bull-Run lower as it would give them ample opportunities to break through pesky supports.
With that said, the RSI indicator is showing some correction metrics as it prints around the 60-level after falling from around the 80-level, signalling that there is a correction going on, but in order for this correction to remain as such, the price action must not break below the $0.2120 support. Breaking below would signal for the Bears that a continuation of the Bull-Run is dead in the water.
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