Bitcoin / US Dollar
Price Analysis
Bitcoin's price has remained silent over the day, without volatility peaks and relatively slow adoption of different news in the price. The price has not crossed the $10,500 level, which is the mid-term support zone for Bitcoin, showing that there is a market depth built in this position. The market depth allows the market to stabilize at certain levels, where investors have increased positions and there are not willing to liquidate them until there is a general bearish feeling in the market, especially through fundamental data.
We can observe that the price is not moving daily below a narrow parallel channel from $10,500 to $10,800, creating a massive compression in the market. This compression will be released soon and create a new trend to follow in the next period. We believe that this trend will be bullish based on the narrow signals that indicate more adoption in the future and long-term investors that are buying more and more cryptocurrencies to boost their portfolios' performance.
This stability is confusing for many technical indicators like the moving averages, which are on the same spot and can cross each other at any point, creating bullish and bearish signals on a consequential basis. At this point, we should ignore those signals, especially the last one, a reverse "Golden Cross" which indicates a bearish move in the upcoming days in the market. This scenario should be approved with larger volumes, which are not evident this moment in the market and lack of faith from investors' point of view.
In the short-term diagram, we can observe that the price is moving in waves during the last days, making investors claiming small margins of profit on a single-day basis, with no evident result in the market. Those ups and downs could not sustain a viable trading strategy that can provide an investor with long-term profitability.
Indicators
MACD index remains on the same page with the previous days, staying above the zero line and creating prospects for the next period to come. The RSI index dropped a little bit below value = 50, creating consciousness in the market about future trend formation and how the price will be shaped.
Ethereum / US Dollar
Price Analysis
A more bearish approach was found on the Ethereum market as the price dropped even further at $335, diverging from the descending trending line which indicates a slower adaptation in the bearish trend over the days. At this moment, we believe that the drop will stop at $330, which served as the short-term support level, tested in the early and late September. The second mid-term support level lays around $320, which was tested back in late July as a resistance point in the bullish run.
The return of the price will be easier if the entire market starts to rise, meeting the first trending line around $350. After breaking the $350 line, the next objective will the $380 point, which stands as the recovery point for returning on previous prices. We believe that market correlations will play an important role in the price formation and a bearish or bullish turn in the Bitcoin will likely have a severe impact on the Ethereum market, shaping the next trend for it.
The moving averages are still on hold while the trading volumes have been lower than ever during the last month, indicating a waiting mood from the investors' perspective.
Indicators
MACD index passed on the negative side, during the day indicating that the momentum has broken and there is a need for more investors to enter the market for a new bullish trend to rise. On the same page, the RSI index moved to values closer to value = 40, where there is a more bearish mood than in other situations.
Ripple / US Dollar
Price Analysis
The previous positive days were corrected due to the crypto's market unwillingness to follow the Ripple's rise. After the price rose to $0.25, the price was corrected back to $0.24, at the mid-term support level which lasts from the early days of September. The price has been compressed for over a month, leading to many investors believe that Ripple will follow the market leader, Bitcoin, regarding the next established trend.
This fact makes us believe that a break in the mid-term support level will not be crucial if the Bitcoin's stability remains on the market. The most possible scenario in a bullish uptrend during the next days is the price to climb above $0.26 at a first point and then try to catch $0.28 in a quick period. If those two points are reached quickly, the market depth will be built around them and we will probably see another bullish round to reach $0.30 and above that.
The "Golden Cross" that was formed during the last days, is a bullish signal that should be supported with the corresponding volume to come into effect in the market. If the volume doesn't meet a sufficient amount on the market, then the bullish trend will collapse and will have the opposite results.
Indicators
MACD index is still moving in the positive area, creating an uptrending momentum for Ripple. This momentum could be capitalized in the next days if the entire market moves towards a bullish trend and establish new high points. The RSI index dropped below value = 50, showing that the market would be stable for the next days to come.
Litecoin / US Dollar
Price Analysis
Litecoin's price remained above the mid-term support line at $46, creating faith in its investors for more things to come during the next period. The price compression is on the market for the last 3 weeks while Litecoin is not a volatile cryptocurrency in general, avoiding major ups and downs in short-term periods. The change in the established trend will be formed if the price drive above $48 at the first step while the next step should be above $50 to consider as an established bullish trend.
In the opposite scenario, the price might drop below $43 and not recover until it reaches $40, a crucial support level that was formed in the long-term run from previous investors. In any case, Litecoin would move in stable moves unless there is a major change in the crypto market. The moving averages have formed a "Golden Cross" signal, making investors optimistic about its future while the trading volume has some peaks but with no clear impact on the price.
Indicators
MACD index continues to rise through the last weeks, creating a bullish momentum in the market where everyone hopes to continue in the upcoming days. The RSI index is moving at value = 45, indicating future stability in the market for the next days.
Bitcoin Cash / US Dollar
Price Analysis
One of the most predictable lines in the market is that of Bitcoin Cash, as its price follows the long-term support level at $225. This support zone was formed during the previous stability period, creating enough market depth to absorb any bearish flow towards a lower point. The bullish trend will be evident in the market if the price rise above $235 at a first step and possibly $265 at a second step.
This scenario requires a massive trading volume and an overall reaction in the crypto market to fuel the rise for the next trend. On the other hand, the price will move in a bearish market if the price fell below $210, where there is little support and almost no market depth.
The "Golden Cross" formed some days ago, has not yet proved right or wrong as the price stands at a waiting mode.
Indicators
MACD index continues to be in a positive mood, creating optimistic momentum for the momentum, for no specific reason except the recovery to the support level. The RSI index is climbing slowly and it will reach probably value = 50 in the next days.
Correlations
Bitcoin / Ethereum = 0.94 (+ 0.01), Bitcoin / Ripple = 0.77 (- 0.07), Bitcoin / Litecoin = 0.85 (- 0.04), Bitcoin / Bitcoin Cash = 0.80 (- 0.05)
The correlations went downwards for the first time after a week of rising correlations that make the market to integrate more and move towards a similar direction. During the day, the correlations went on the other way around, making the market to decompose and create diversity and uncertainty for the near future.
Also, we saw that the examined altcoins except Ethereum have dropped to lower levels, showing a potential drawback from a future bullish move that could happen in the Bitcoin market. On the other hand, Ethereum remained stable from a correlation point, showing investors that it might follow Bitcoin easier than other cryptos in the upcoming trend.
