Price Analysis: Is Bitcoin Trying to Create New High Levels for 2020, or Taking a Boost from the US Elections?

Bitcoin tried another jump to reach $14,000 at the end of yesterday but the price corrected today, although the market still looked bullish. The $400 jump in a single day was enough to make the market continue in the bullish trend and the slight change during today's session at $13,850 seems like a normal reaction.

It is worth noting that Bitcoin is heavily affected by external events that affect major economic indexes and prepare the markets for a changing situation. An event like that is the American elections, which cause uncertainty in traditional markets as many factors will be determined from the implemented economic and fiscal policy of the newly elected US president. On the other hand, Bitcoin has been pointed out as the primary asset for investors that fear instability in the traditional markets. For this reason, the recent jump might be caused by the US elections and the predictions around it and less on technical features in the market charts.

Here is an interesting fact; one bitcoin was worth $700 In the 2016, at the time of the US elections!

On the technical side, the $14,000 point must hold for the next days to establish a new standing point in the market. A slip in lower levels might be possible if there is not enough depth in the market to absorb corrective moves. We believe that further uptrend might be possible only from events that affect the entire economy and not from a technical perspective.

The trading volumes also sparked up again, showing that investors moved towards Bitcoin for another time, fearing negative dominos in the rest of traditional markets. The moving averages are still apart, showing that the bullish trend is still on the market position.

In the short-term diagram, we can observe that the last 2 weeks have passed the Bitcoin's price to a new level. This means that many investors were thinking ahead of the current situation and believe that the market will increase due to the US elections.

Indicators

MACD index continues to remain on the positive side, without making any difference in the price formation as the market momentum is slowly decreasing, without affecting the bullish formation. The RSI index is just on the "sell" side, showing that the market is "overbought".

Ethereum / US Dollar

Price Analysis

Ethereum's price remained on the same level as yesterday, showing that there is little interest in the particular market. The price managed to stop above a previous support level, between $370 and $380, showing that the market depth is sufficient at this point to make the market work efficiently. We believe that the current support level will hold for a short period and it will break if there is more pressure in the market from the bearish side.

The compression formed during the last days predicts that it could be a decisive move towards both directions, according to the momentum that will exist in the market. The $400 point is the resistance level that will determine if the market is returning to the bullish side. Otherwise, we must expect a drop in the price, even below the current rolling support line at $340. This will determine the extension and the seriousness of a possible bearish trend.

The trading volume has been a little higher than in previous days, showing that investors might be interested in entering the market to buy or sell coins. The moving averages are on the same level and we will observe a crossing in 1 -- 2 days, according to price movements.

Indicators

MACD index continues to dive in the negative side, showing that the market momentum has disappeared from the market, making a decisive move less likely. The RSI index has remained at value = 50, indicating a stable trend over the next days in the market.

Ripple / US Dollar

Price Analysis

The price of ripple dropped again below the long-term support line at $0.24, showing that the bears are ready to take over the market and lead it to lower levels. The support level at $0.24 stands for a "fair" bullish price, which stands between the previous resistance point at $0.20 and the previous high level around $0.30. The "fair" price scenario will be used for explaining the long-standing stability around this level.

As we usually say in these articles, the compression in the market leads to a major move in either direction. The direction will be determined by the current situation. At this moment, the momentum in the market seems to be on the bearish side, making us believe that there would a bearish trend in the upcoming period. This is also supported by the fact that the Ripple -- Bitcoin correlation passed in negative values.

The trading volumes have remained at the same levels, without any major changes in the market. The moving averages have crossed some days ago and still moving in a bearish direction.

Indicators

MACD index continues to drop for the last week, making a reverse very difficult to happen. The RSI index moved at value = 40, showing that there is a negative outlook for the current situation.

Litecoin / US Dollar

Price Analysis

The price remained around price = 53, making no severe difference from yesterday's situation. This move continued the bearish trend, which operates as a corrective factor in the current situation. If we look back at the previous trend, around August, we observe that a similar pattern has been formed. This pattern shows that Litecoin is volatile during a bullish market, creating opportunities for short-term investors.

The most important thing is for the $50 support level not to break during the next period. If the level holds, then we might observe another uptrend. The trading volumes have been at higher levels than during the stability period, showing a clear interest from the investors' side. The moving averages start to converge, making a reverse "Golden Cross" possible in the next period if the bearish move continues.

Indicators

MACD index continued to lay on the negative side for the third day in a row, making any positive trend to vanish into thin air. On the other hand, the RSI index moved at value = 50, indicating that there would stability in the market for the next days at the current levels.

Bitcoin Cash / US Dollar

Price Analysis

Another correction day for Bitcoin Cash as the price laid at $235. This move made the coin to return to previous levels, making the market less lucrative in the current situation. The next support level lays at $220, which was the long-term support line, derived from the long-standing stability period.

This level shows that a certain market depth has been established at this level, making it difficult to break and establish a different trend. If there is a massive bearish trend in the market, we might observe a different approach in the market formation than before.

The trading volume spiked during the last days, showing that there was a liquidation wave among investors which lead to the current situation. The moving averages are about to cross each other and make a reverse "Golden Cross", predicting bearish moves in the upcoming period.

Indicators

MACD index moved deeper in the negative zone, making a reverse move highly unlikely to happen. The RSI index moved to values below 40, showing that there is a negative outlook in the current situation.

Correlations

Bitcoin / Ethereum = 0.53 (- 0.05), Bitcoin / Ripple = - 0.05 (- 0.10), Bitcoin / Litecoin = 0.79 (- 0.05), Bitcoin / Bitcoin Cash = 0.37 (- 0.17)

Another day for dropping correlations as all the major altcoins adjusted their correlations, being unable to follow Bitcoin in the new jump from the first time. We can observe that Ethereum and Bitcoin Cash dropped even more in the "medium" correlation zone, making the market less optimistic about their future growth and potential to move according to bullish trends. Litecoin remains in the "strong" correlation zone but it seems that it cannot capitalize its relationship with Bitcoin. On the bottom line, Ripple turned on a negative correlation, a fact rarely seen in the crypto market, showing that Ripple has started to make opposite moves from Bitcoin. This feature will make our analysis more interesting as we have to analyze a contrarian asset in the market.

Key Notes For Today

• Bitcoin made another jump, reaching $14,000 and correcting immediately

• Ethereum and Litecoin remained on the same levels

• Ripple remained the support level at $0.24

• Bitcoin Cash continues to correct, reaching $235

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.