These moves are making investors more optimistic about Bitcoin's future and expect more institutional investors and companies to follow this strategy and invest more heavily in Bitcoin and cryptocurrencies in general.
In situations like that, we have to expect every possible move in both directions. On the one hand, there is the ultimate goal of breaking the $20,000 level and create a new all-time high level, and setting the path for new levels. On the other hand, there is always the correction perspective in a bullish market. The bullish market might correct for some time, reaching $15,000 at a first step and then to $12,000 at a second step. The correction process will reveal the true nature of the current bullish trend as it might evolve into a bearish trend that could break the momentum in the market and head towards lower positions.
The trading volumes jumped again at high levels, showing investors' engagement with the coin and their continuous attraction to it. The moving averages are distant enough, not to worry us about a potential cross.
In the short-term diagram, we can observe that the major event behind the current evolution in the bullish trend is the surge from $14,000 to $15,000 in just a day. Bitcoin is known for creating large returns and establishing new trends in the crypto market and November 5th was a crucial day that made the entire market to believe that there is more room for Bitcoin to grow.
Indicators
MACD index is continuously in the uptrend, making market momentum to work for the price and enable it to grow through time. The RSI index moved to value = 75, indicating that Bitcoin is considered "overvalued" and a correction is possible shortly.
Ethereum / US Dollar
Ethereum made a small progress today, reaching $465 and making small steps towards $480, the 2020 high level that is considered to be the next goal for Ethereum's bullish trend. The correlation between Bitcoin and Ethereum's moves is moving to high levels, showing that the bullish moves in the Bitcoin market could be transferred with some delay in the Ethereum market. If the price reaches $480, there would be a much easier task to erupt in new levels, above $500. The all-time high level for Ethereum lays around $1,000, so it is difficult to say that there would be another all-time high during the next period.
The support levels are expanding from $400 to $340, spreading across this space with severity as there is an extensive market depth that can absorb any bearish trend that could be formed in a turn of events.
The trading volumes have started to surge during the last days, making an impact in the price formation while the moving averages have diverged, even more, making the reversal trend less likely during the next period.
Indicators
MACD index has a full depiction of the current market situation as the price grows every day by $5, creating a small momentum in the market. The RSI index moved to values between 65 and 70, showing that a further increase in the price will spark different reactions in the market.
Ripple / US Dollar
Ripple is making slow progress every day, surging a little bit, and keeping on the positive field as long as it can. Today, the price rose just above $0.26. The $0.26 point, as we have told in previous articles, is the crucial point for the Ripple market as its break might enable a full bullish trend to show up and reach new high levels.
The 2020 high level for Ripple lays at $0.31, which is the current goal for the Ripple market. We believe that a surpass of the $0.26 level will enable the price to develop more and more and establish itself around $0.30. In the opposite scenario, as we can see from the diagram below, Ripple tried to break this resistance level a couple of times ago and it was unsuccessful, leading to minor corrections in the price.
We expect the price to correct again at the stable levels if the price doesn't manage to break the $0.26 level and surpass it. The trading volumes are not showing any progress regarding their development while the moving averages have diverged from each other, creating hopes on the investors' side.
Indicators
MACD index continues to grow, showing that there is more evidence for future growth while the RSI index starts to grow at value = 58, indicating a stability trend with a positive outlook.
Litecoin / US Dollar
Litecoin made the jump of the day, reaching $65 and made rapid progress towards the ultimate goal for 2020, which is the $67 point that can be described with plain words. Given that Litecoin has no fundamentals to be supported, there is an opportunity for the market to establish a different position and exploit its relationship with Bitcoin and its strength. The major correlation issue could lead the market to follow a bullish path and establish new high levels in the current period.
The last three days were positive for Litecoin, indicating that its nature enables it to create certain patterns at higher levels that could be predicted by analysts. As we can see in the previous and the current bullish trend, the ups, and downs following a certain pattern of ups and downs before reaching new high or low levels. We believe that the current pattern will lead to the price at higher levels.
The trading volumes remain at high levels, showing investors' interest while the moving averages start to diverge, even more, creating bullish hopes for the market.
Indicators
MACD index made another jump today, making the market to hope for more while the RSI index moved to value = 67, showing that there is a little more room for an uptrend.
Bitcoin Cash / US Dollar
Bitcoin Cash can be described as the "contrarian" asset for the current period as it continues to drop, reaching $255 today. The next support level for the currency lays at $245, which was the mid-term support level while the long-term support level lays at $220. Given that Bitcoin Cash has a negative correlation with Bitcoin, the market will probably stay on the same spot for some period, creating a lack of interest in the investors' community.
The trading volumes are at normal levels, taking into consideration the liquidations in the market while the moving averages are still at a bullish position and wait for a signal to cross over each other.
Indicators
MACD index dropped even more during the last days, showing that the market momentum has disappeared from the market while the RSI index lays at value = 50, indicating more stability soon.
Correlations
Bitcoin / Ethereum = 0.91 (+ 0.04), Bitcoin / Ripple = 0.64 (+ 0.17), Bitcoin / Litecoin = 0.76 (+ 0.16), Bitcoin / Bitcoin Cash = - 0.27 (+ 0.09)
The market is moving in the same direction for today, creating a massive uptrend in the correlations' side. Ethereum and Litecoin have been on the "strong" correlation zone, with Litecoin specifically to turn on a positive track and enable it to climax during today. Ripple continues to rise during the last days, maintaining its position in the "medium" correlation zone. In the opposite scenario, Bitcoin Cash is still on the negative side, making investors hold a neutral position against it. The negative outlook for Bitcoin Cash will make investors create bearish scenarios in their mind and abandon the coin in markets that don't support margin trading.
Key Notes For Today
Bitcoin made the jump and surpassed the $16,000 frontier
Ethereum and Ripple made slow progress by hitting smaller targets
Litecoin made another surprise and reached $65
Bitcoin Cash dropped a little bit, taking another hit from the market
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Remitano.
Every investment and trading move involves risk, you should conduct your own research when making a decision.
