The Daily Cryptomenon — 13th July 2020

This analysis was written at 9:00 am GMT +3, on 13.07.2020

Even Cryptos need to take a break from time to time as we see our Cryptocurrency Trio entering into consolidation mode for the time being. After what was a very volatile few days, it’s nice to see these volatile currencies taking a breather and try to figure out what their next move is. With that said, let’s find out what today holds for the digital currencies on July 13th, 2020.

Cryptocurrency Recap

Neither the Bears nor the Bulls were able to take the upper hand during the weekend as we saw most traders staying on the sidelines for the meantime and trying to figure out who might come out on top. Both teams are building up their attack power to generate a profound move on either side.

Bitcoin (check out the chart below you’ll find that Bitcoin is the purple line) seemed to regain some of its losses as it has lost -2.84% since June. Ethereum (red line), has turned positive yet again with it being the only currency of our Trio to turn positive since June when it gained 1.44%. Ripple (orange line), is no longer the worst-performing currency of our Trio since Bitcoin has taken that title; XRP has managed to regain most of its losses as it prints a -2.63% loss.

What’s the strategy you’re going to use when it comes to these cryptos? Who do you think will come out on top, Bears or Bulls? Whatever you choose to believe, you can react to it all with CryptoAltum.

BTC/USD

Bitcoin has been sluggish in its trading since the recovery from the slide in the last week of June that tested support at $8,800. Last week’s attempts to push Bitcoin above $9,500, lost traction at $9,481 with a trendline resistance standing strongly in the way. The just-concluded weekend session remained in consolidation with gains above $9,300 being unsustainable.

BTC/USD has already retreated to $9,272 (prevailing market value). The technical picture printed by indicators such as RSI and MACD is drab and mainly supports sideways trading. The RSI is moving sidelong at 54, in turn, highlighting the possibility of consolidation lasting longer in the course of the new week.

The price action and RSI are back working in tandem and it seems that’s the way it’ll be for the current time. Looking at the RSI, we notice it printing near the 50-level, which we all know signals a consolidation phase. In the meantime, both Bears and Bulls are battling to see which side will prevail.

ETH/USD

Ethereum is motionless at $240 after suffering rejection at $245 earlier this week. As expected, the weekend session is flying by without volatility. Consolidation continues to take precedence for the largest cryptocurrency. As reported, Bitcoin is also in consolidation with short-term support at $9,200. Note that Ether’s price is greatly correlated to Bitcoin. Therefore, as long as the largest cryptocurrency holds this sideways action, ETH/USD consolidation will remain.

Meanwhile, the price is trading above the moving averages and most significantly, the 50-day SMA. If Ethereum continues to hold above this level, the potential for growth will be huge in spite of the consolidation.

RSI is printing close to the 50-level with some upward bias, which can be seen in the price action as well. However, it’s far too early to say that the bulls are in control of Ether as we notice that the $250 remains intact and any promising bullish run needs to break that level in order for the bulls to be happy with the movement. RSI is showing signs of consolidation and there’s no evidence that it’s changing for the time being.

XRP/USD

Ripple has seen some very hard times in the past few weeks. It has managed though to break through its restraints as it catapults itself with the help of the Bulls to levels not seen in a while, particularly the 0.2100. It has tried to break through this level but ultimately failed due to the lack of momentum currently within the digital currency.

The digital currency is currently caught in a wedge creating a technical pattern known as the pennant, which is a kind of triangular flag and it has the same properties as that of a Flag pattern. This means that XRP is expected to continue to move higher, as the mentioned pattern is a continuation indicator. This implies that Ripple is expected to continue higher.

The RSI is collaborating the pennant idea, as it prints close to the 50-level which means a consolidation phase is upon the digital currency. This proves that the pennant is currently gathering its strength for a move higher which has happened before, where we saw XRP reach the $0.2100 level only to be shut down and forced below the $0.2050.

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