Price Analysis: BTC is the definite winner for the week but will the market follow on?

News • 2020/10/21 • by

Bitcoin / US Dollar

Price Analysis

Bitcoin's price explodes today, reaching the 2020 high level at $12,300 - $12,400. The previous level, which was reached around mid-August, is a definite border for Bitcoin's price and it will be tested in the next days. If the price continues to rise, there would be massive liquidations and the price will be driven to lower levels for a second time. The rise of the price will break the previous level for 2020 and establish a new high level. This trend is often followed by a steep correction as many investors will try to liquidate their position and claim profits from it.

The second scenario will be an immediate correction. If investors believe that $12,400 is a fair price for Bitcoin and it would not grow after this point, they liquidate immediately after a couple of days and the price drop will stop at the nearest support level. In any case, the holding investors have a cumulative return of around 20 % since the correction period from early September and some of them might be happy with that. At this point, we should highlight that new investors will probably come into the market, after hearing that Bitcoin is having a boom in the price and this will probably lead to earlier correction in the market space.

The two above scenarios include the correction factor but we can also imagine that the price will continue to climb with higher volatility during the intra-day trading, giving out the opportunity to investors to place their positions at the moment that they want. The trading volumes continue to rise and they will probably increase if the price surge even more during the next days. The moving averages are still apart, showing that the bullish market will last for a long time from now.

In the short-term diagram, we can observe that the market has left behind any stability issues it might have during the last period and it is solely focused on rising. This means that a correction move will happen sometime in the future but we hope to delay it.

Indicators

MACD index is growing every day, reaching value = 100, meaning that Bitcoin's price is climbing up to $100 every day on average. This move leads to the second indicator, the RSI index, which shows that Bitcoin is "overbought" and investors should sell the asset as soon as they can.

Ethereum / US Dollar

Price Analysis

Despite the positive vides from the Bitcoin market, Ethereum's price has not the same momentum in the market positioning, surging from $375 to $380 just today. The small surge shows that the price is still looking for a direction to go. The overall bullish feeling in the market could help the situation to escalate faster but there is a need for awakening.

As we highlighted in previous articles, Ethereum needs a huge boost from the market to enter a clear bullish mode. This means that it should break the zone between $390 to $400 as soon as possible for taking the bullish train from the start. The small trend line shows another decline for the present but this could work as an ongoing support level for a future bullish trend. The support levels have worked during the previous period and we believe they will work again in this situation.

The trading volumes continue to stay at low levels while the moving averages are getting closer to each other, around 10 points.

Indicators

MACD index continues to remain positive but with no severe evidence that it will end up in a bullish trend. On the other hand, the RSI index reached value = 55, which is a potential signal for starting a bullish market.

Ripple / US Dollar

Price Analysis

The stability has become second nature for Ripple as the price continues to be around $0.24. The ongoing support level has been tested several times during the last period and this fact seems not to be affected by Bitcoin's surge.

If Ripple continues to stay on this level, it will probably follow the rest of the market in a future period. Ripple will be considered as a bullish asset if it surpasses $0.26 at the current trend and establishes new resistance/support levels above that price. If new investors enter the market and decide that there is a potential opportunity for other cryptocurrencies to surge and get profitable positions in the short-term future.

The trading volumes are at new low levels for 2020, a fact that shows investors are still waiting for the right moment to enter the market. The moving averages crossed each other, creating a reverse "Golden Cross", a bearish signal that might be implemented in future analysis. At this moment, we believe that the signal is fake, as the signal was produced after a long period of stability where the two averages were met at the same point.

There is also a possibility after Bitcoin's surge, for an alt-season that the Bitcoin market's profits will be invested back in the crypto market but in a diversified portfolio of different altcoins.

Indicators

MACD index passed on the negative side, showing that the market momentum is trembling down and down, making the price vulnerable to potential bearish investors who want to drop the price to buy at a lower level. The RSI index lands at value = 50, showing that the market has no direction at this moment and it will look for more during the next days.

Litecoin / US Dollar

Price Analysis

Litecoin is the only cryptocurrency that seems to capitalize on a portion of Bitcoin's dynamics and surge during today. Litecoin's price surge at $50, creating a first step for entering the bullish phase and claim a portion of the profits created from the current bullish market. Of course, there is a need for more investors to enter the market and more volatility to enter the market.

The volatility coming will enable the market to increase its margins and opportunities for investors to come and take advantage of them. The trading volumes have started to rise but there is still a way to go for considering Litecoin as a prime coin in the current bullish market. The moving averages are close to each other (almost 1 point) and this might a worrying point for investors as a fake signal could emerge and deliver wrong initiatives in the market.

Indicators

MACD index lands at value = 0, showing that the market momentum has been disappeared and the investors are not willing to take a certain position on it. On the other hand, the RSI index moved to value = 55, showing that there is a potential bullish opportunity in the market for the next days.

Bitcoin Cash / US Dollar

Price Analysis

Bitcoin Cash has also a positive reaction to Bitcoin's surge, showing that the market has equal potential with other altcoin markets and it could create value for its holders. The decisive step for entering the bullish market will be to reach $270 as a point and establish its presence above this level.

The trading volumes have not been at important levels during the last three days, a fact that leads us to the point that there is not much willingness from investors' point to invest more in the market. The moving averages are still way apart so there is no fear for an instant turn of the market on the other side.

Indicators

MACD index continues to be "green", showing that the market momentum is still positive and it could create opportunities for bullish investors. On the same page, the RSI index moved to value = 60, which shows positivity in the market for attracting new vibes from the market leader.

Correlations

Bitcoin / Ethereum = 0.85 (- 0.06), Bitcoin / Ripple = 0.24 (- 0.10), Bitcoin / Litecoin = 0.65 (- 0.06), Bitcoin / Bitcoin Cash = 0.83 (- 0.04)

Bitcoin's rise makes the correlations to step down even more and the market looks more separated than ever before. The most correlated cryptocurrencies like Ethereum and Bitcoin Cash start to drop down but they still hold a relatively "high" correlation with Bitcoin. Litecoin continues to drop in terms of correlation and it will probably remain in the "medium" correlation zone. Last but not least, Ripple has been in the "low" correlation zone, being unable to move in the same direction with the market leader and move back in the hot zone. In the next days, we will figure out if the market will follow the bullish trend from Bitcoin's price explosion or they will fade out and delay their presence at higher levels.

Key Notes For Today

Bitcoin is the only winner for this period, gaining 20 % and more since the last 2 months
Ethereum has a mild reaction to the surge while Litecoin and Bitcoin Cash acted with more integration
Ripple has remained stable with no evidence of integration in the market

Comments (7)

Guest

ugospecial

6 years ago

BITCOIN PRICE ANALYSIS: There was an upward movement of Bitcoin price today to a high of $12,300 - $12,400, if BTC price keeps rising, with this rise in price new investors will come into the market hearing about the surge wich will lead to an early correction in the market space. Price will be taking to a lower level for the second time wich could correct itself when investors claim profits. ETHEREUM PRICE ANALYSIS: Ethereum only experienced a small surge from $375 to $380, despite the boom from BTC. This indicate that the price is still finding it's direction in the market, though the overall bullish trend can help Ethereum price to escalate thus Ethereum needs a huge boost from the market to enter a clear bullish mode. RIPPLE PRICE ANALYSIS: Ripple stability around $0.24 shows it is not been affected by BTC surge but if it keeps this paste it will end up following the rest of the bullish market in future. Ripple will be considered as a bullish asset if it surpasses $0.26, establishing a new resistance/support levels above that price. Investors are waiting for the right moment to enter the market. LITECOIN PRICE ANALYSIS: Litecoin follows BTC's dynamics experiencing a surge during the day to $50, creating a first step for entering the bullish phase claiming portions of profit created from previous bullish market. There is need for incoming volatility enabling the market to increase its margins and opportunities for investors to come and take advantage. BITCOIN COIN CASH: Bitcoin cash has a positive reaction to BTC's surge indicating that it's market has equal potential compared to other altcoin market and could create value for it's holders. For BCH to enter the bullish market it will reach $270, establishing its presence above this level, though there is not much willingness from investors but an instant turn of the market might be reached.

lorettachinasa

6 years ago

Bitcoin is the winner for this period, gaining 20 % and more since the last 2 months other market will key into the other market as it seems more affordable than Bitcoin thereby making a surge later on the other market

godgrace1

6 years ago

Bitcoin price analysis : Bitcoin price attaining and crossing its all time high in 2020 is really nice, although there will be massive liquidation, which will drive the price of btc to lower level the second time, all though this will follow by a step correction as many traders will be liquidating their position to cash in on the profits. Ethereum price analysis : Ethereum price is still under price action, searching for the direction that the market will head towards, but from the bullish run that bitcoin is currently running at other altcoins might rally towards bitcoin just as we have seen this previous days, so am definitely hoping to see ethereum rally towards bitcoin in the coming days. Ripple price analysis : Ripple has been stable for some weeks now, being stable about $0.24, the support level has been tested severally this previous days, but ripple is not currently affected by the bullish run. Litecoin price analysis : Litecoin is currently rallying with bitcoin, litecoin hit a price surge of $50 due to the bitcoin bullish round. The volatility coming will enable the market to increase its margins and opportunities, many investors will be holding their litecoin now so if the price surges more to capitalize on that to earn profit. Bitcoin cash price analysis : Bitcoin Cash has also a positive reaction to Bitcoin's surge, many investors will also be on alert to capitalize on this bullish run as well, while those waiting to buy into the market will wait until the step correction kicks in before buying.

freshprinx

6 years ago

Bitcoin leaving macro assets behind will be the “biggest story in crypto” if it continues, but there’s more to be bullish about, says Cole Garner. Bitcoin (BTC) abandoning correlation with traditional markets will be its “biggest story” if it continues, one popular analyst says. In a series of tweets on Oct. 21, Cole Garner highlighted Bitcoin’s market decoupling among bullish price factors. Garner: Decoupling will be crypto’s “biggest story” Garner retweeted a chart of Bitcoin, gold, the S&P 500 and Ether (ETH), which shows Bitcoin striking out on its own, delivering positive returns while other assets floundered. The chart originated from Eric Wall, CIO of crypto hedge fund Arcane Assets, who described the trend as “unusual.” “BTC’s correlation to traditional markets appears to be unwinding. If this persists in the coming weeks, it’ll be the biggest story in crypto,” Garner commented. Bitcoin previously demonstrated long-term correlation to the S&P 500 in particular, also forming a close relationship to gold in the months after March’s coronavirus-induced price crash. Others have previously noted the now-decaying trend, among them statistician Willy Woo, who in September forecast that it would continue. “Clear skies” above $12,000 resistance Also buoying the mood for Garner is the “amazingly neutral” funding rate across perpetual swaps on exchanges. Despite Bitcoin’s latest gains which took it above $12,000, the funding rate suggests support for longs at the expense of shorts — an encouraging sign for further upward momentum. Coupled to this is institutional investor sentiment, which from last weekend’s commitment of traders (COT) report is firmly long, not short. As Cointelegraph reported, BTC/USD suddenly retook $12,000 overnight on Tuesday, having spent time tackling the pivotal resistance point of $11,900. As Garner and others note, very little stands in the way of further positive price action above $12,000 due to how Bitcoin spent the brief periods of time above that level before. “Skies are mostly clear above $12K across exchange orderbooks,” he summarized. Other factors remain from previous weeks and months, notably the lack of inflows from whales, suggesting that the desire to sell large amounts of BTC remains low. Exchange balances are in fact continually dropping despite the price rises, data shows. Concluding, Garner’s only concern was that, if Twitter sentiment is a reliable measure, few hodlers expected the current scenario. “Too many people were unprepared for this,” he wrote, linking to a recent survey in which 35% of respondents claimed that Bitcoin made up less than 10% of their crypto portfolio. “I’m no maximalist, got plenty of love for crypto all around, but you gotta respect the king.”

whenayon

6 years ago

Today Bitcoin finally reach the All-time high of 2020 that is the $12,300-12,400 price. If the price continues to rise, there would be massive liquidations and the price will be driven to lower levels for a second time. It is expected for the price to break the previous high level of the 2020 all-time high and create another high level. After createing a new high level there should be an immdiate correction in the market . In any case, the holding investors have a cumulative return of around 20 %. At this point, we should highlight that new investors will probably come into the market, after hearing that Bitcoin is having a boom in the price and this will probably lead to earlier correction in the market space. The trading volumes has started riseing and they will probably increase if the price surge even more during the next days.

exodusab

6 years ago

The global economy doesn’t seem to be in a good place right now, especially with countries such as the United Kingdom, France and Spain imposing fresh, new restrictions across their borders, thereby making the future financial prospects of many local business owners even bleaker. As far as the crypto economy goes, on Sept. 21, Bitcoin (BTC) dropped by nearly 6.5% to the $10,300 mark after having stayed put around $11,000 for a few weeks. However, what is interesting to note this time around is the fact that the flagship crypto plunged in value simultaneously with gold and the S&P 500. From a technical standpoint, a quick look at the Cboe Volatility Index shows that the implied volatility of the S&P 500 during the aforementioned time window increased quite dramatically, rising above the $30.00 mark for the first time in a period of more than two months, leading many commentators to speculate that another crash akin to the one in March could be looming. It bears mentioning that the $30 mark serves as an upper threshold for the occurrence of world-shocking events, such as wars or terrorist attacks. Otherwise, during periods of regular market activity, the indicator stays put around $20.

visiblemoney

6 years ago

The bullish market might perhaps last for a long time before now. BTC was at $12,300 but it moves to $12,400 and still building momentum in the same way Ethereum surged from $375 to $380 without looking weak. I can say there is a stability in the market that is presently helping altcoins to correlate with Btc momentum direction.