The Daily Cryptomenon — 16th 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 16.07.2020
T’was the night before yesterday, and barely a sound, not even a whisper, not even a coin. It was so quiet in the cryptocurrency market that you could hear the sounds of the electronics firing between the cryptos. Our Cryptocurrency Trio barely made any kind of movement in either direction, even though the time for action has come. With that said, let’s find out what today holds for the digital currencies on July 16th, 2020.
Market participants of the crypto market weren’t really feeling the pressure to move cryptos in either direction just yet, this caused cryptocurrencies to simply lounge around in their familiar places going nowhere anytime fast.
In fact, we’ll just say it; yesterday was rather a dull market! It didn’t resemble the other days where the action was happening around every corner. Let’s hope that the Bulls and Bears pull their act together and get this party rolling.
Bitcoin (check out the chart below you’ll find that Bitcoin is the purple line) has stayed within the same range losing -3.67% since the beginning of June. Ethereum (red line), falls back into the negative realm as it prints a performance of -0.21% since the beginning of June. Ripple (orange line) still lounges around its current performance levels this time with a loss of -4.34% since the beginning of June.
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.
In the past few days, Bitcoin price was mostly traded below the $9,500 resistance signifying some bearish momentum brewing. However, the coin has managed to settle below the $9,300 level, and it’s remained well above the 100-day simple moving average, which is proving to be a significant support.
The last swing low was formed near $8,809 before the price started a short-term upside correction. There was a break above the $9,000 and $9,200 levels, but like all good things, they need to come to an end. So now things are looking up for the Cryptocurrency King as the next leg it faces is surely to the upside, but that all depends on it breaking above the $9,300.
We guess that Bitcoin Bulls do have some sort of a cheerleading section as a twitter poll by Peter Schiff, a famous BTC critic, shows that most people will HODL (Hold On for Dear Life) (that means buying and never letting go) their Bitcoin holdings to the grave if the coin’s price fails to move beyond the $10,000 mark.
On the downside, there’s a significant support forming near $9,000, $8,800 and the 100-day simple moving average. As long as the price is above the 100-day SMA, there are chances of an upside break above $9,300. If not, there’s a risk of a nasty decline below the $8,800 support. In the mentioned case, the price may nosedive towards the $8,200 and $8,000 levels in the near future.
Ethereum is still stuck in consolidation under the $240 resistance line. Support is provided by the 50-day SMA and the key ascending trendline. The technical picture, however, is likely to remain unchanged based on applied technical indicators like the RSI.
The RSI is moving sideways above the average, it kind of still has a bearish tone to it, though. This means that the Bears are gaining traction in the short term.
At the time of writing, Ethereum is trading down marginally at its current price of $237. This is around the level at which it’s been trading throughout the past several days and weeks, with buyers struggling to gain any clear momentum in either direction. This sideways trading is mostly the result of Bitcoin’s extended time in consolidation within the lower-$9,000 region. Until BTC gains some clear momentum, it’s highly likely that Ether will continue consolidating as well.
Ripple, for a couple of days this week, was at its tipping point ($0.20). This followed a reversal from an incredible rally that hit a wall marginally above $0.21. However, with the price action currently extending far below $0.20, it seems the direction XRP will be following in the coming sessions has already been decided. Yes, Bears and Shorters alike get ready, it seems that Ripple is ripe for quite the move lower.
XRP/USD is teetering at $0.1960 at the time of writing. As mentioned, gains above $0.20 have become unsustainable just as the movements seesaw at $0.20. The immediate downside is supported by the support zone that extends from $0.1960 to $0.1930. However, the bulls aren’t giving up without a fight and they are battling for gains in order to regain control of the $0.20 level, it seems to be a losing battle, though.
The prevailing technical picture continues to deteriorate. The Relative Strength Index (RSI) has a gradual negative gradient towards the oversold region. It’s quite apparent that losses would continue in the short term. If the triangle formation, that we spoke above last time, caves in, we can expect Ripple to plunge to $0.19 support and even refresh lower levels.
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