This analysis was written at 9:00 am GMT +3, on 10.07.2020
Just like General Akbar said ‘It’s a TRAP!’ The resistance (bulls) has played into the hands of the Empire (bears) as the prior lost all their strength with the latter striking while the iron is hot causing everything to fall back into previous ranges. Just when we thought the rally was finally here, something like this happens to derail everything. With that said, let’s find out what today holds for the digital currencies on July 10th, 2020.
The Bears took the reins from the Bulls by force making it quite obvious that the bulls have walked right into their trap and forced our Cryptocurrency Trio back into a downward move. However, the signs of a resistance haven’t been eradicated yet, not until the moon of Endor is destroyed, or in this case, not until key supports are broken.
Bitcoin (check out the chart below you’ll find that Bitcoin is the purple line) seemed to have extended its losses to reach -4.16% since the beginning of June. Ethereum (red line), has rejoined the negative squadron and lost all the gains it has made, with losses reaching -0.35% since the beginning of June. Ripple (orange line), managed to reach the positive territory but only to be forced back down into the negative territory to print a loss of -3.95% since the beginning of June.
What’s the strategy you’re going to use when it comes to these cryptos? Did you still believe that the bulls will be able to stage a comeback from their current levels? Or do you believe that the bears have struck a critical blow to the bulls and a move lower is on its way? Whatever you choose to believe, you can react to it all at CryptoAltum.
Just when we thought Bitcoin has managed to break through its resistances and find the path to the $10,000 mark, something of this sort happens, where most, if not all of the progress made, is simply washed away. Breaking below the $9,200 mark is a serious blow to the bulls of the markets and a major win for the bears. That level signalled a reversal in trend, on the short term at least, and with the price printing below it, the hopes for another climb higher are somewhat bleak.
Nevertheless, strong support for BTC still hasn’t been broken and those include the psychological level of $9,000 and the $8,800 strong support level. Should the bears get ballsy enough to actually attempt a move to those levels, the bulls will put on their big boy shorts and head in to stop the march lower. The way we see it, the battleground is $9,200, whoever controls that level, controls the Cryptocurrency King.
As we have previously explained, the RSI and Price action were showing signs of divergence, this means that both will need to correct. That’s exactly what happened when the price of Bitcoin dropped severely back into consolidation territory. The RSI now is printing close to the 40-level, meaning that there’s some oversold-ness in the air and the bears might have extended their welcome.
Ethereum recovery towards $250 was recently cut short at $245. The price started to narrow down towards $240 again. At the time of writing, ETH/USD has broken through that level and reached $237. Regaining a footing above $240 is key to the recovery mission targeting $300. The near term target is to detangle from the bearish grip holding the bulls under $245 and to push Ether above $250.
For now, regaining the price above $240 should be the buyers’ priority; it’ll allow them to find balance and shift the attention back to $250 and $260. The 50 and 200 SMA are in the position to offer support in the event losses to overpower the support at $240.
There’s the possibility of a consolidation phase around the $235 as the RSI prints close to the mean 50-level. The need for the bulls to hold the bears at the support of $235 is imperative and there’s a lot of buying power around that level since both the 50 and 200-SMA seem to be converging at that level. Furthermore, the divergence between the RSI and price action has been corrected and things are back to working in tandem.
Ripple performed incredibly well this week, shifting attention back to the major cryptocurrencies. Bitcoin tried to follow the rally but was held back by the resistance at $9,450. Ethereum recovered significantly from the dip to $215 in June but stalled at $245. XRP/USD engaged the forward thrusters as it ground above key resistance zones at $0.1850, $0.1950 and $0.20. The rally continued slightly above $0.21 but buyers lost the momentum towards $0.22.
From a technical perspective, Ripple is poised to settle for consolidation mainly at $0.1950. The RSI is moving sidelong at 50 but a negative inclination hints towards a growing bearish grip. Besides $0.1950, other support areas include $ 0.19, $0.1850 and $0.1750.
Most of the effort from the buyers is currently channelled towards regaining the $0.20. This will allow attention to shift back to $0.30 as buyers stage more attacks on resistance zones at $0.21, $0.23 and $0.25.
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Originally posted on https://cryptoaltum.com/en/the-daily-cryptomenon:-friday-10th-july