Bitcoin/ US Dollar
The past few days have been really bad for Bitcoin and a lot of the crypto community as well. Experiencing just one green candlestick in seven days, the BTC/USD pair may just be setting up for a downward trend. Although it's looking less likely, the bulls may still have some hope after all if more of them are brave enough to hold on.
Bitcoin has gone below its 50 day Moving Average, and analysts believe that if the trend should continue any further down it might eventually settle around $30,000 or less over a few months. This correction however doesn’t necessarily alter the longer term projections of going over $500,000.
The bearish forecast has been opposed by a number of analysts as well pointing out the fact that 13% of companies participating in a 2020 survey by Gemini stated that they would explore cryptocurrency investments in 2021. Deducing and generalizing from the research figures with the U.S population, about 19.3 million adults will invest in crypto bringing the current number at 21 million to almost twice the amount.
BTC/USDT daily chart. Source: TradingView
Looking at chart candles from 18th April, the long wicks at the bottom mean that traders kept buying the dip and were able to hold a resistance around the 50-day average ($55,529), but the amount of buyers on 21st April was a lot smaller just before the dip below $51,000 the following day. This only intensified the downward direction of the 20-day average and the bears may as well be ready to take us on a long ride.
Currently trading at… the bulls are expected to buy in numbers and hold this position to flip a resistance or force a rebound and possibly hit a new ATH just like the ETH/USD pair but if the bears come out on top then the trend remains southbound for a while longer.
Indicators
The RSI heading towards 30 mens that a lot of selling is going on, and might reach the “over-sold” line sooner than later which could likely make the trend spring back upward. MACD has been negative since 18th April and is going deeper into the red zone daily. The bears are obviously driving things now, but the more people buy the dip, the better.
Ethereum/ US Dollar
Currently trading at $2,426 the ETH/USD pair took a surprising skip above its ATH of 15th April ($2,546) to get to a new height of $2,646, a total opposite of Bitcoin’s price movement which went below its 50-day moving average after the bulls on both markets resisted the April 18th bearish for a while. However, buyers from 24 hours ago still have about 3.5% in profit.
ETH/USDT daily chart. Source: TradingView
The pair bounced off from lows just above $2,000 on 20th April, this is as a result of the intensified buying when it dipped below breakout level at $2,102.
After driving a new ATH so soon, the bulls are convinced that they are in charge. If they keep this momentum, we will be seeing the North-bound trend continue close to $3,000. An opposite scenario will have the pair dropping numbers and possibly gowing below $2,000. Since the moving averages are still turned upwards and RSI is within the healthy buying range, there is still a good chance that the momentum can continue.
Indicators
RSI is at 59.86 which is good, but having a downward tendency further hammers on the indecisiveness between bulls and bears. MACD is just at -4.73 which is not a very bad negative area. At this point it will be impossible to say who has the upper hand, but an upward trend will pose the least resistance.
Ripple/ US Dollar
The past few days have seen the XRP/USD pair trying hard to turn resistance level to support and continue it’s momentum from last week. Attempts have been met with more bearish drags but long tails on today's candle signifies that bulls are still buying on the dip hoping to bounce off the 50 day Moving Average.
The 20 day Moving Average has turned downwards after the bulls couldn’t successfully hold above this position yesterday. Some analysts still believe the bulls have a chance since the RSI slanted a bit to the right from its steep downward slope. However, what direction it will take at this point around its 50 day Moving Average will determine the bullish strength.
XRP/USDT daily chart. Source: TradingView
If the bulls can push back the trend up to its 20 day Average, then there is a good chance of seeing beyond $1.50 again. If the bears can’t mount a good resistance now they will try to do so after the price pumps for a bit. Any good news from the SEC case with the parent company, Ripple, will most likely serve as a bullish drive. The XRP/USD pair broke out from $0.56 on the 4th of April just after the presiding judge ruled in favour of XRP investors who wanted to intervene in the case and was heading towards $2 before being cut short 10 days later.
Indicators
RSI is still on its downward slope and looks to be easing up a bit. Though below 50, it’s still at a good spot and if buyers are strong enough to create a resistance, this could change. MACD is getting stronger in the negative area meaning that bears are in control but long candle tails also show that bulls are buying.
Litecoin/ US Dollar
After going as high as $335 on 17th April, the LTC/BTC pair was corrected and flipped resistance around its 20 day Moving Average, before slipping further down below its 50 day Moving Average. Currently trading at $235 the bulls are trying to flip another resistance around this point by buying the dip aggressively and creating really long candle tails.
Although aggressive buying has been going on for the past few days, the long candle wick tails haven’t affected any changes on trend direction. RSI and MACD indicators have turned downwards but there is every chance that the direction can change since the Moving Averages haven’t fully turned downward.
LTC/USDT daily chart. Source: TradingView
If the aggressive bulls can sustain resistance above the 50 day average for long enough then the pair can regain that upward momentum and rally above the 20 day Moving Average or even $300 if possible. Taking the line of Bitcoin and dropping below this point will mean that the bulls are on the weaker side and more of them are trying to secure profit.
After failing to sustain the built resistance and spring back up like the ETH/USD pair, more bulls may switch sides momentarily. The LTC/USD buyers may have one more chance to aggressively change direction before the resistance around the 50 day Moving average is compromised and prices may settle below $200.
Indicators
The indicators closely follow that of the LTC/USD pair. RSI is below 50 indicating that the asset could get over-sold and possibly cause a bounce back. MACD is in the negative areas meaning that bears are controlling the narrative, but for how long?
Bitcoin Cash/ US Dollar
The BCH/USD pair has lost 12.2% in 24 hours at the time of writing. Currently trading at $813, the pair fell off from its resistance at ... after the bulls couldn’t hold above $900 yesterday. The 20 day Average has now turned flat and RSI is downwrd, meaning that the bulls are no longer at an advantage but long wicks on the candlesticks are a sign that there is still a good deal of buying going on and this can cause a rebound if strong enough.
BCH/USDT daily chart. Source: TradingView
Since the trend is still sustained just above the 20 day average ($797), there is still a good hope of turning upward now, or when it gets to its 61.8% Fibonacci retracement level. If these points can’t tunt to support then we will be seeing it go below the 50 day average in the short-term.
If bulls on this pair can continue buying aggressively at this level then there is a better chance of staging a comeback soon. The pair could possibly go all the way above $1,000 and surpass its recent 52-week high ($1,213). Pulling a stunt like this will set it on a possible path to a new ATH, not without resistance. However, the bears will keep mounting resistance and if they are strong enough, they can drag the price below its 50 day average ($629) and if they do that then prices may fluctuate along that range for a while.
Indicators
The RSI is still on a downward journey just around 54. The buying is still healthy, but may require more than that to affect price movement. The MACD has stepped into the negatives, after trying to stay up even after the very volatile week. This means that bears are gaining control but how far along can they take it?
Correlation
- BTC/ETH: 0.91 (+0.05)
- BTC/XRP: 0.83 (+0.03)
- BTC/LTC: 0.86 (+0.14)
- BTC/BCH: 0.81 (+0.04) *Bracketed is a 7-day difference
The pairs are showing a much stronger correlation with Ethereum closing in on a perfect number. The charts are still strong on a downward trend and are still struggling to find a support range that they could turn into support. The BTC/USD pair has gone deeper below the 50-day average with indications that bulls are still buying the dip. ETH/USD hasn’t been able to hold its newly found position at $2,640 but the resistance seems to be setting in. BCH/USD has continued a downward direction towards the 20-day moving average with all indications of bulls buying the dip. XRP/USD is enjoying the worst week after leading the best week about 2 weeks ago. Resistance remains above the 50-day average Ripple and Litecoin both leading the week’s losers on our list.
Key Notes to Take
- Bitcoin is still showing a lot of resistance after being knocked below its 50 day average
- Ethereum also looks like resuming its downward trend, but a lot of buying is still going on. Are we in for another jump?
- LTC and XRP are holding around $235 and $1.11 respectively, and trying to flip a resistance.
- BCH is still trading above 20-day average at $813.
