The market moves at new all-time highs?

News • 2021/03/31 • by

Bitcoin / US Dollar

Bitcoin has made slow, positive moves during the last days, climbing back to high levels around $58,000. This move made a small step-back today, at $57,800 which remains a normal reaction for the current situation.

Practically, the market seems ready for another all-time high-level record but how possible is this? A new all-time high level is often achieved when there is a sharp move from the market that enables the investors to establish a better position for higher levels and raise their expectations for the next period. This kind of move requires larger trading volumes and there is also a need for a leader that could make a sparking move, with much more “noise” than smaller investors.

If there is no sharp move, the reality is that the market could move slow on the highest possible levels but without any tendency to break the all-time high-level barrier. This could be harmful to the mid-term future as there is no power from the market to hold those levels. The fatigue is also an important factor that discourages traders from placing bullish orders in the market and the price formation is losing valuable momentum in its short-term dimension.

We expect a strong move on either side in the next period, for a new start in the Bitcoin market that could affect the rest of the crypto market. The trading volumes have made some spikes during the last period, indicating that there is no major trend in the market where investors will onboard. The moving averages have remained close but remain at bearish positioning for now.

In the short-term diagram, we can observe that there is a compression in the market above the $50,000 line, which remains a positive signal for the market as there is a possibility that the market will likely move to new high levels soon.

Indicators

MACD index has remained in the negative area but the trend is rising, showing that an uptrend in the next period could bring higher price levels through positive momentum pushing. The RSI index has brought between values 55 and 60, indicating relative stability in the market with a positive outlook.

Ethereum / US Dollar

Following Bitcoin’s example, Ethereum made a positive move in the market development, landing above the $1,800 line. As we have stated several times in previous articles, the $1,800 line is the step before the all-time high level around $2,000. This means that investors will be ready to smash the current all-time high levels if there are the right foundations for that.

The right foundations could be a correlated bullish turn in the rest of the crypto market or a new announcement that could make investors review Ethereum’s fundamentals and place higher stakes on it. On the other hand, if the Ethereum market proved unable to move towards levels above $2,000, a stability trend around $1,800 is possible, followed by another correction at lower support points.

We expect that Ethereum will follow Bitcoin dynamics while it could also affect other smaller coins at a higher rate. The trading volumes have remained at low levels, indicating that the market is not ready for a new move at this moment. The moving averages are still at a bearish position but there is an uptrend that could lead to another bullish cross in the next days’ span.

Indicators

MACD index passed on the positive side, indicating that there is a reversal in the momentum factor while the RSI index moved to value = 55, proving that the market will probably stay at the same price levels, sustaining a positive perspective for the market.

Ripple / US Dollar

The stability in the Ripple market seems to be unbreakable in the current situation, bringing the coin to a complete independent status from the rest of the market. This means that even if there is a generally positive vibe in the crypto market, we cannot tell for sure that this would affect positively the Ripple market.

The price has been standing at $0.58 for the last weeks, proving that the familiar levels could be a sufficient path for the coin to establish its independent route and follow a different path towards short-term market development. We believe that the market will find a more stable path towards more integrated positions with other coins.

The trading volumes have remained at low levels, showing that the liquidity is restricted and the investments have followed a tighter framework for now. The moving averages have moved at bullish positioning, bringing a more positive vibe in the market formation.

Indicators

MACD index has remained in the positive area for a long time, proving that Ripple’s independence was a positive fact for the price formation. The RSI index moved between values 55 and 60, indicating that there is a positive outlook for the current situation.

Litecoin / US Dollar

Unlike the rest of the market, Litecoin has failed to reach the step before the all-time high level, creating a stable outlook for the coin. The price lands at $190, which may be a positive reaction regarding the previous period but it lacks viability in terms of the current market dynamics.

If Litecoin wants to join the new bullish wave, it should climb above the $200 line and establish a higher point of focus. The higher focus point will enable the market to explore higher price levels at a faster pace, with better chances. We expect that there would be a major move in the market once there would be a try for reaching the all-time high level of around $240.

The trading volumes have not shown any significant traction during the last days while the moving averages have remained at a close position but negative positioning. Reversing the momentum at this moment might derive from the fact that the market will fall at a loop of price stability.

Indicators

MACD index has reached value = 0, indicating that the market has no momentum to capitalize in the next phase of price formation while the RSI index moved to value = 50, showing that the stability hypothesis is being confirmed from this index also.

Bitcoin Cash / US Dollar

The same scenario with Litecoin could be depicted in the Bitcoin Cash market, as its price has remained around $515, a stable point without being able to join the bullish jump during the last days. This seems to be concerning about the market development but we might observe a change in this situation a second time.

The expectations for the new bullish wave lays on the fact that the price will be able to climb at $600 and then pursue a new break around the $700 point, which remains the local high level. We expect that the high correlations will push the price towards the overall trend of the crypto market, making the market more integrated than before.

The trading volumes have remained at low levels, which is one of the main reasons for the coin’s stability. The moving averages have remained on the bearish positioning but close to each other, looking for a bullish turn in the short-term future.

Indicators

MACD index passed on the positive side, showing that there is hope for a bullish jump in the next days. The RSI index has moved below value = 50, showing a different point of view in the current analysis.

Correlations

Bitcoin / Ethereum = 0.96 (+ 0.02), Bitcoin / Ripple = - 0.25 (+ 0.10), Bitcoin / Litecoin = 0.82 (- 0.04), Bitcoin / Bitcoin Cash = 0.89 ( 0 )

After Bitcoin tried to hit new high levels in the price formation, the rest of the market is trying to fit within the new context formed in it. Ethereum has established a stronger position, indicating that any positive move in Bitcoin will lead to a respective one in the Ethereum market.

Litecoin and Bitcoin Cash have sustained their strong position in the upper correlation zone, proving their positive reaction in the Bitcoin’s price movement. Last but not least, Ripple has remained in the negative correlation zone, showing that no move in the rest of the market could affect its stability.