Bitcoin / US Dollar
Price Analysis
After peaking on Saturday at $23,800, Bitcoin’s price starts to correct the next days, Sunday and Monday, landing today at $22,600. This should not be considered as a major move towards a trend reversal, as no support levels have broken until now while there are no overpassing in the previous days’ levels. This reaction is completely normal as we are moving at all-time high levels, where no investor has ever been before. This fact means that many investors are willing to liquidate a part of their portfolio in cash to increase their liquidity and place them in more profitable assets from now on.
At this moment, Bitcoin has achieved something unique. No investor in its history has lost money over it. Being a constant winner in the financial markets is no little thing so we believe that more and more institutional investors have taken this parameter under consideration, before making any investment decision to happen. This momentum will continue to exist in the market as long as this kind of investor is willing to take positions at cryptocurrencies and mostly Bitcoin.
If the price doesn’t return to the previous levels around $20,000, we believe that the bullish trend will continue to grow in the next period. The trading volumes have returned to normal levels while the moving averages are still at bullish positions. We have to underline that Bitcoin will have to create some support levels in the meantime to make its position stronger for the future.
In the short-term diagram, we can observe that the price is moving above $18,000 for the last 3 weeks. This means that the price will another month of correction (at a normal pace) to reverse the existing bullish trend and create more scenarios in an opposite direction.
Indicators
MACD index starts to bend over but remained on the positive field while the RSI index returned to the “safe” zone, showing that the normality will make the price to recover at higher levels as soon as possible. As we know, Bitcoin and many other assets in traditional markets are moving in cycles, so we will soon know what will happen next.
Ethereum / US Dollar
Price Analysis
After peaking at Saturday above $650, Ethereum starts to correct also, landing at $610 during today’s session. As we can see from the diagram below, the $610 point was reached two or three times in the past, as a resistance level that didn’t allow the price to grow higher at a certain moment. This time, a certain level might work as a support level, holding the bearish feelings for the market.
Apart from that, the strong correlation between Bitcoin and Ethereum will probably determine the outcome of the current situation, leading to more correction or a price uptrend. Ethereum has experienced a less aggressive bullish period, showing that it has developed no independence in its moves, a fact that might lead to tolerance in different situations on both sides. Bullish trends could not be exploited while bearish trends could be sustained at higher levels.
If Ethereum’s relationship with Bitcoin remains the same, we believe that this situation will be carried out in the next period. The trading volumes have returned to normal levels for the Ethereum market while the moving averages have remained on a bullish distance between them.
Indicators
MACD index moved at lower levels but it remained on the positive field, making investors believe in a last-minute rebound in the market momentum. The RSI index fell at value = 55, indicating that the market would be stable but with a positive perspective.
Ripple / US Dollar
Price Analysis
Ripple continues to move at unclear waters as it started to correct on Saturday when the entire market peaks. The correction continued during Sunday and Monday, making the price land at $0.52. This point is not as low as the local bottom formed around $0.47 but we cannot tell that this would be a positive reaction for Ripple.
Ripple has been showing a strange behavior during the last year, delivering stability in turbulent times, overreaction to the previous bullish trend while it underperforms when the market is plummeting. Those reactions are showing that investors should rank it at higher risk levels if they want to include it in their portfolios. There are no standard signals to follow or trends that could make the market a reliable asset for the long-term horizon. On the other hand, the overperformance during the last bullish market made more investors think that they should take a calculated risk.
The trading volumes are remaining at higher levels than normal while the moving averages are still at a bearish position, showing that the market has not recovered from the last drop.
Indicators
MACD index moved at lower values, much deeper in the negative field, creating a negative perspective for the market while the RSI index moved back at values below 50, indicating that the negative perspective is still on the line.
Litecoin / US Dollar
Price Analysis
Litecoin followed the same pattern as the rest of the market, topping at Saturday around $120 (another 2020 high level) and started to correct on the next day, landing today at $105. This point didn’t raise any major concerns in the market as there is no more than 2-day work to come back and establish higher points. As we can see from the diagram below, Litecoin made huge jumps during the last week, creating more hype than expected in the market.
Trading volumes went out of the roof, making Litecoin surge even more while the moving averages positioned at bullish points to ensure a smooth bullish move at high levels. Given that, we believe that Litecoin will continue to take advantage of any market trend and deliver value to its holders.
Indicators
MACD index dropped a little bit but remained on the positive field, indicating that there is still hope in the market. The RSI index moved back in the “safe” zone, indicating that the market will probably take a break before moving on another bullish trend.
Bitcoin Cash / US Dollar
Price Analysis
Another contrarian was observed from Bitcoin Cash. When the entire market has started to correct on Sunday, Bitcoin Cash surged at higher levels, reaching the 2020 high level at $350. The traceback was inevitable as there was no support from the market while the price found resistance on the previous high level.
Today, the price lands at $320, showing that the coin is willing to join the overall bullish mood. This could become a reality with some delay but everything is welcome at this moment. During Sunday, the trading volume hit a local high level, indicating that investors tried to move their assets to more profitable positions. The moving averages moved at bullish positioning, creating more space in the market for adding new value to the coin.
Indicators
MACD index moved at lower values but remained on the positive level, indicating that there is still hope in the market for another uptrend. The RSI index moved at value = 60, showing that the market will probably join the bullish train if there is another one in the future.
Correlations
Bitcoin / Ethereum = 0.90 (- 0.01), Bitcoin / Ripple = 0.01 (- 0.06), Bitcoin / Litecoin = 0.97 (+ 0.03), Bitcoin / Bitcoin Cash = 0.92 (+ 0.12)
The correlations remained in the same positions during the weekend, indicating that the market has taken a more integrated position after the new all-time high levels. Ethereum and Litecoin stayed strong in their positions, showing that there is enough movement in their markets to adapt to Bitcoin’s trends. On the same page, Bitcoin Cash moved strongly in the “strong” correlation zone, showing that it is adapting to the current formatted trend. On the other side, Ripple is making contrarian moves, landing on value = 0.01, indicating that Bitcoin’s moves do not affect its price formation. This is not depicting reality as the moves are affected by the rest of the market but with different timing.
Key Notes For Today
- Bitcoin dropped to $22,600
- Ethereum corrected also at $610
- Ripple made a bearish jump at $0.52
- Litecoin corrected at $105
- Bitcoin Cash corrected immediately at $320
