The Daily Cryptomenon — 15th 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 15.07.2020
Consolidation seems to be the main theme this week as we enter into Hump Day. Our Cryptocurrency Trio have been taking a well-deserved break this week from the entire movements up and down with no clear direction lately. There have been some interesting moves but they’re all confined to familiar ranges. With that said, let’s find out what today holds for the digital currencies on July 15th, 2020.
Cryptocurrency Recap
As mentioned, our Digital Currency Trio are stuck in their familiar ranges and they don’t seem to want to leave their comfort zone any time soon. Neither the bears nor the bulls have any sway these days as both seem to be biding their time for the best opportunity to strike. The question, however, is who will be first? Will we see the bulls breaking the market or the bears?
Bitcoin (check out the chart below you’ll find that Bitcoin is the purple line) stayed within the same range losing -3.23% since the beginning of June. Ethereum (red line), seems to be back on the positive side of things as it registers a 0.44% increase since the beginning of June. Ripple (orange line) has moved a lot during the past couple of months seeking to recover all the losses it had faced. Currently, it’s only -3.17% compared to -14% just a couple of weeks ago.
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 on CryptoAltum.
BTC/USD
The Cryptocurrency King attempted to break below the wedge formation yesterday, reaching the support line of $9,100. However, bulls were waiting for any sort of move to that level as they capitalized and pushed BTC right back into the wedge formation keeping the status quo for the time being.
The movement of the wedge is reaching a critical juncture as the price action has reached the tips of the wedge. There’s definitely going to be a movement higher or lower, it’s too early and too hard to tell at this point in time as all indicators are showing one thing; consolidation. This is quite understandable since we’re approaching August which is, as most of you know, the ‘Dead Month’ of the year with the least amount of liquidity in the markets.
The Relative Strength Index (RSI) is collaborating in this consolidation theory as the index has barely made any headway in either direction, remaining stuck between the 60 and 40 levels at around the 50. This shows that neither the bulls nor the bears have the energy to make a move to their respective sides. However, as things stand, traders need to be very careful of the $9,385 and $9,100 as these are the important resistances and supports respectively and any meaningful move needs to break either one.
ETH/USD
Ethereum bulls have managed to correct the negative movement on Tuesday with a shallow recovery to the former pivotal level at $240. Investors’ interest has remained high despite Ether being a poor performer. For instance, the price has been stuck in consolidation despite parameters within the network saying it’s time to rally.
However, ETH/USD continues to trade side by side Bitcoin (BTC). In fact, the correlation between the two crypto assets has hit the highest level in over two years. In other words, Ethereum could continue to ignore the positive sentiments within its network in favour of waiting for a BTC price action.
The dominant sideways trading is likely to take precedence in the coming sessions according to the motionless RSI. It’s quite obvious of how the indicator is working; there isn’t going to be any movement in any direction any time soon. This also shows that the buying interest is there but the bulls lack the catalyst and support for gains above $250.
XRP/USD
After facing some turbulence throughout the early part of the month, XRP has been able to stabilize just below its key $0.20 resistance level, marking a notable climb from its multi-week lows of $0.17. Despite its apparent stability and slight strength around its current price levels, we’re noting that the token has reached a “now or never” turning point that could determine its mid-term fate.
Ripple is currently caught in a downward triangle ever since it has failed to effectively breach the $0.2100 resistance. Since that moment, the cryptocurrency has been moving in a rather consolidatory manner with no clear movement, posting lower higher and rather steady lows and creating a triangle pattern. Technical Analysis tells us that this pattern is mostly a continuation pattern. In other words, the price of Ripple is more likely than not, going to move higher. For this reason, it’s a “now or never” kind of thing because we have effectively reached the end of the line.
The RSI is printing at the 50-level at the time of this writing which shows an absolute consolidation, but as we’ve expressed rather clearly, the movement higher or lower is close at hand. It all depends on whether or not the bulls have what it takes to seize control over this crypto asset and move past the downward trendline breaking above the $0.2050 and $0.2100 resistances in a clear and unmistakable fashion.
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Originally posted on https://cryptoaltum.com/en/the-daily-cryptomenon:-wednesday-15th-july
