The Daily Cryptomenon — 23rd 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 23.07.2020
Cryptocurrencies didn’t just rally higher during the night, in fact, they’ve snuck into a top-secret government facility, stole a trio of JetPacks, put them on and rocketed through the stratosphere! The movement on these instruments has been incredible, to say the least, especially Ethereum which has outpaced all other cryptocurrencies by miles. With that said, let’s find out what today holds for the digital currencies on July 23rd, 2020.
If yesterday was an explosive movement for our Cryptocurrency Trio, then today is a nuclear bomb! The meteoric rise of these instruments has been outstanding, as they’re all on the verge to eliminate all the losses they might have accumulated from the beginning of June.
Bitcoin (check out the chart below you’ll find that Bitcoin is the purple line) has managed to reach -0.38% performance since June and this shows that the Bulls are looking to make it positive once again. Ethereum (red line), has held on to its positive streak and kept on going higher reaching 10.62% since the beginning of June. Ripple (orange line) has followed in the footsteps of BTC and rose to reach -0.73% 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 beaten the Bears once and for all? Or have the Bears taken a serious hit and now it’s their time to push? Whatever you choose to believe, you can react to it all on CryptoAltum.
Bitcoin price exploded massively on Wednesday during the Asian hours; this rally caused quite the reaction in ETH and XRP. However, over the past months, Ethereum has become so heavily correlated with Bitcoin that one would think they’re actually joined at the hip.
As we spoke about this yesterday, Volatility has found its way back through the woods to the Cryptocurrency market. This resulted in a massive rally in BTC, as the digital asset took down the resistance levels at $9,200, $9,300 as well as $9,400. Unfortunately, due to increased selling activities, it became difficult to contain the gains above $9,400. Things didn’t stop there as Bitcoin continued to rally and broke through the $9,500, but the increased selling pressure at the $9,560 caused it to retreat.
Meanwhile, the technical picture clearly shows that the Bulls are in control. The Relative Strength Index (RSI) in the 4-hour range is showing extensive overbought-ness as it prints close to the 70-level. This means that the momentum on the spike is fading somehow, but as we saw yesterday, the same setup presented itself and we saw a fallback and consolidation before the spike happened. Let’s see if yesterday’s going to repeat itself.
Ethereum price finally broke above the stubborn resistance at $245. The massive and impressive breakout came into the picture following a similar Bitcoin price action. The largest cryptocurrency stepped above $9,500 during the American session on Wednesday, with ETH/USD following closely bringing down several resistance levels including $250 and $260.
The target now of ETH lies at $280, as the Bulls start making their way to this target. However, to make sure that that target remains eligible, the $260 must not be broken, otherwise, the Bears would have a field day and bring the cryptocurrency back towards the $250 level. So to keep things strong for the Bulls, a support at $260 must be established.
Examining the RSI, we notice extensive overboughtness as the indicator is printing above the 80-level. This shows a continuation higher that’s out of the question in the current circumstances and a pullback is definitely happening for Bulls so they attempt to go for the next push higher. However, as we emphasized earlier, the pullback must not break the $260 or the Bulls can kiss the $280 goodbye.
XRP wasn’t left out of the climb higher alongside ETH and BTC. In fact, it joined in the fun and climbed higher along with them, finally breaking through the pesky resistance at $0.2000 and reaching the $0.2063 resistance, before the Bears stepped in and the selling pressure mounted.
As things stand, Ripple is poised for more movement higher as indicators are showing the lack of any significant resistances from this point up until the $0.2300 barrier. So should the Bulls take control of the cryptocurrency once again, we’d see XRP reach that resistance level.
The RSI is collaborating in the additional push higher as the indicator is still far from being considered overbought and the momentum higher is still very much in place. However, due to the correlation between the three cryptos, we might see a slight move lower on the XRP as both ETH and BTC have become overbought and a slight correction might be needed to continue their respective moves higher.
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