Bitcoin / US Dollar
Price Analysis
Bitcoin continued its positive route, without any major losses but also neither with uptrend during the weekend. It is common for the weekends to establish stability in the market as there is not much activity on the market and the volumes are often decreased. A small parallel channel was formed in the market between $11,200 and $11,600 with a bullish mood in its formation. This parallel channel broke positively at $11,800, showing a really interesting fact in the market.
Even if the volumes remained low, the price didn't drop immediately after the channel break. This reverses the current market situation, making the former resistance level at $11,600, the new support level. This means that the market might gain support at this level to fuel another uptrend in the upcoming period. We should be very careful about that as the volume was lower than previous, meaning that the market has not enough depth to support a potential downtrend or reversal in the upcoming days. If during the stability period, investors increase their positions in Bitcoin, then the market will acquire more depth and will establish stronger support at $11,600 level to fuel more sustainable growth in the future.
The 50-day average has started to bend over but with no decrease yet, letting the 200-day average to climb steadily and reach to a potential cross in the next week. The cross for the reverse "Golden Cross" should ideally come after the downtrend of the 50-day average that will showcase that the market is moving at a downward pace. In the opposite case, when the 200-day average climbs towards the 50-day average, several fake signals might appear, misleading investors to believe that the market will change trends.
In the short-term diagram, we can observe that we ride the second positive wave in the market during the last month. The second wave is characterized by lower volumes and less spark in the market, a fact that leads us to the conclusion that the second uptrend might be fragile and might not last for many days. If there is more volume at those levels, the situation will be shaped in favor of Bitcoin, increasing its market depth and a potential uptrend in the future.
Indicators
MACD index is still on the positive side, with the two lines to move close to each other, showing that the momentum is slowing down. The momentum's slow down indicates that there is a possibility for reverse in the market trend in the next period. The RSI index is moving back and forth in the "overbought" area, giving signals for selling to the investors. The signals should not be ignored and we should consider the possibility of the market reverse for the next period.
Ethereum / US Dollar
Price Analysis
Ethereum's price has been stabilized during the weekend, waiting for the next major move. The price seems to top at $400, creating a severe resistance level that could not break unless there is more fuel in the market. The volumes tend to low during the last days, decreasing the momentum of the asset and creating a halt in the market.
The last uptrend for Ethereum was impressive but the current stop could possibly mean that the asset might change its route in the next period. This would be determined from the entire mood in the crypto market but also from some fundamental issues like mining and adoption rates. The moving averages are still way from each other but the 50-day average seems to stabilize around $390, showing that the 200-day average would climb soon and there is a possibility for cross in the foreseeable future.
Ethereum's future will be determined from the correlation with Bitcoin and its depth when the bearish phase will make investors liquidate their positions and move their capital to other assets.
Indicators
MACD index is still positive but the two lines are very close to each other, making the momentum reversal very likely during the next days. The change in the market momentum could also be driven from the "sell" signal, derived from the RSI index, which still remains in the "overbought" area and indicates a potential downtrend in the next days.
Ripple / US Dollar
Price Analysis
Ripple went through a "red' weekend as its price moved below the $0.30 point, creating a new trend in the market. During the previous days, Ripple seems to correct every other day, creating a series of bearish signals in the market. The market trend reversal is also evident from the decreasing volumes that favor bearish moves. We should also point out that "red" days (days when the price end up lower than the beginning of the day) had larger volumes than "green" days, leading to the conclusion that investors were liquidating their positions and claim their profits, believing that the uptrend would not last for long.
The sharpness of the moves is also correlated with the market volume, indicating that the market reversal might be slow and steady, waiting for the rest market to move towards this direction. The moving averages are on the same page as the rest of the crypto market, indicating a slight bend on the 50-day average that might lead to cross signals in the next period.
Indicators
MACD index is on the verge to cross and move to the negative side, creating a negative momentum in the market. This is second with the RSI index that shows the market at an "overbought" position which will end up in a bearish trend, established during the next days. We should notice that Ripple's RSI index has not entered the "safe" zone, showing that there is still room for a downtrend in the market.
Litecoin / US Dollar
Price Analysis
Litecoin seems stuck at this moment, trying to capture the overall market momentum and establish itself in a stable position. The market has formed a fragile support level at $57, where there is a reverse triangle with its peak at $62. This signal is indicating that there is a strong bearish mood in the market that will try to break the support level and form a new one in the below prices.
The bearish mood in the market is accompanied with the 50-day average move downwards, trying to meet the 200-day average. If the downtrend remains so steep, then a reverse "Golden Cross" will become effective and we will have a new trend formation in the market. The volumes are decreasing but we have to take under consideration that altcoins like Litecoin have intense periods of trading and long periods of waiting. Given that we just exit an intense period, we will have to wait for another one to happen.
Indicators
MACD index moved to the negative side, creating bearish vibes in the market and indicating that the trend has reversed during the weekend. The fall of the price was expected as the RSI index had been on the "overbought" area but return to a safe zone, at values over 60, showing that there is room for more downtrend.
Bitcoin Cash / US Dollar
Price Analysis
Bitcoin Cash seems to be on the same page as Litecoin. A severe bearish trend seems to form in the market, creating the potential for bearish investors to bet on its fall. The moving averages are a step closer to cross each other, creating another bearish signal on the market. The 50-day average has moved to a downward position, indicating that the market trend reversal has already happened and there is more to follow.
The volume is decreasing with several spikes on the "red" days, showing that investors have liquidated their positions and claim profits from the coin, establishing a reversal in the market. The downtrend will be much more effective if more cryptocurrencies will follow and their prices fall in the same direction.
Indicators
MACD index is very close to moving to the negative side, establishing formally the market reversal and form a new trend in the market. On the other hand, the RSI index shows that the market reversal has already happened and it will continue for the next period.
Correlations
Bitcoin / Ethereum = 0.91 (- 0.03), Bitcoin / Ripple = 0.87 (- 0.02), Bitcoin / Litecoin = 0.96 (- 0.02), Bitcoin / Bitcoin Cash = 0.96 (- 0.02)
The correlation coefficients have remained at high levels, indicating that the entire crypto market has entered a new phase that waits for the next major move to happen. The high correlations indicate that a potential uptrend or downtrend in the Bitcoin market will affect dominantly the rest markets, leading to the new trend that will shape the next period for the cryptos. In the next days, the correlations will show how much the markets remain integrated after the start of the stability period.
