Bitcoin / US Dollar
Bitcoin made small correction moves during the weekend, trying to break the support level at $16,000. The bulls didn't let the market to slip to lower levels, establishing a new price level for the current bullish trend. We saw last week that the psychological frontier around $15,000 broke in an easy and unbloody way, making the $16,000 level a logical functional sequence.
As we have pointed out in previous articles, there are no technical indicators that show that there would be another bullish trend, towards $20,000. The $20,000 price level is considered to be the ultimate goal for the current bullish trend and it will be reached if the trend continues to have the same dynamic and supported by new capitals, flowing in the market. The highlights for every bullish market in the recent Bitcoin history are characterized by the time shortness and explosiveness. This means that a bullish trend (if happened in the next days), will last for a short time period and will reach new high levels.
If the market slows down during the next period and has a step-by-step price development, it will show to investors that it has reached a certain level of maturity and there are higher possibilities to develop higher price levels in the long-term period. The maturity level of the crypto market will determine how far the bullish trend will last and how the price formation mechanism will end up. In any case, the market is on a very hot period and the next period will show if we are heading to historical moments or a new cycle for the asset.
The trading volumes were lower during the weekend, creating a waiting mood for the upcoming week. The moving averages have been apart enough, so there is no fear of converging at the current moment.
In the short-term diagram, we can observe that the bullish spikes are formatted in the market after 2 or 3 days of stability or minor correction. This means that the market is trying to find a new direction after reaching a higher level. The general bullish mood enables the market to get a positive direction and establish new high levels in the process.
Indicators
MACD index has reached value = 30, a descending move during the last days, indicating that there is a stable trend over $16,000. On the other hand, the RSI index is steadily above value = 70, showing that the market is "overvalued" and a sell-off is possible in the next period.
Ethereum / US Dollar
After reaching almost the 2020 high level at $480, the price corrected in the opposite direction. The price reached $450 and got more stable at this level, creating a support level that was formed before the spike at $480. As the price reached a former high level, there was a high possibility to correct from this point and on. This prediction proved true during the weekend, in contrast with the rest of the market, which moved at positive levels on Monday.
If Ethereum doesn't follow the rest of the market, even with a delay, we have described that there are support levels at $400 and $370, where there is more market depth and a bearish move is more likely to stop. On the other hand, if the bullish trend catches up the Ethereum market also, we might observe an urge at $480 and above that, establishing a new 2020 high level.
The trading volumes were shrinking during the last days, moving in parallel with the price correction. The moving averages bend towards each other but there is a lot to do before crossing.
Indicators
MACD index dropped, even more, today but remained in a positive field, indicating that the bullish trend has not disappeared yet from the market. The RSI index moved below value = 60, indicating that the market will need more room to grow in the near future.
Ripple / US Dollar
Ripple made the difference this time, breaking the resistance level at $0.26 and establishing a new point at $0.27. The bullish trend will try to move along the new standard. This means that Ripple has missed the first opportunity for the initial bullish trend and it tries to find its way in the second wave. If it can exploit the second bullish wave, it can follow it up to a point before the market turns around.
The delays in the market development could be the crucial factor for the next period as the price will give more boost in the market dynamics. We believe that the bullish trend will continue until the 2020 ultimate goal of around $0.30, which can give the market a bullish stamp for the future.
The trading volumes have surged during the last days, making the market investors believe for more uptrend in the next sessions. The moving averages have moved apart from each other, creating a bullish perspective for the next period.
Indicators
MACD index surged during the last 4 days, creating a bullish outlook in the market and making investors more optimistic about its future. The RSI index passed value = 65, showing that there is more room in the market for an uptrend in the next period.
Litecoin / US Dollar
Another bullish surprise from Litecoin as the price surged at $67, matching the previous 2020 high level. As we have described in the diagram below, the $ 67 is the crucial point for the current price development as the chances for breaking the current level and establish a new high level will form a new standard for the Litecoin market.
This move has made after many consequent spikes from $59 and on, creating a nice winning streak for the previous month. As we have observed in the previous period, Litecoin is vulnerable to market reactions and this could be a problem for further market development. The trading volumes have made some spikes during the last days, showing that there is a certain interest in the market that can drive the market at higher levels. The moving averages have moved in parallel positions during the last days, creating more and more stability in the current position.
Indicators
MACD index has some ups and downs during the last days but always stays in the positive field. The RSI index moved at value = 65, showing that there is a little more uptrend in the next period.
Bitcoin Cash / US Dollar
The currency made more minor corrections during the weekend, moving in the opposite direction from the rest of the crypto market. The price moved to $250, which is just above the $245 support level, which was the major support level for the rebound period during the last month.
The volatility in the Bitcoin Cash market will enable the price to move to new levels while giving the opportunity for new investors to come. The lack of correlation in the current market will be a disadvantage for the currency as it will need much more effort to return at higher levels, without market support.
The trading volumes have been to normal levels, sending mixed signals about what is going to happen in the next days. The moving averages are on the same level and wait for a new uptrend to create a "Golden Cross" in the market, which might spark bullish actions in it.
Indicators
MACD index dropped even more in the negative area, creating a more bearish outlook in the current situation. On the same page, the RSI index moved to value = 45, indicating a stable next period with a negative outlook
Correlations
Bitcoin / Ethereum = 0.94 (+ 0.03), Bitcoin / Ripple = 0.87 (+ 0.23), Bitcoin / Litecoin = 0.90 (+ 0.14), Bitcoin / Bitcoin Cash = - 0.26 (+ 0.01)
The price development during the last weekend and Monday shows that there are more correlations than before in the current market situation. Ethereum continues to move at a higher correlation, making the asset the most correlated than any other in the market. This means that Ethereum will probably get benefitted from any bullish trend in the near future. This path was also followed by Ripple and Litecoin, gaining more profits during the last days. Both coins made tremendous progress during the last days, improving their positions in the market structure. On the other hand, Bitcoin Cash wasn't moved, placing itself at the worst possible position in the current moment for market conditions.
Key Notes For Today
Bitcoin remained above $16,000 after minor corrections during the weekend
Litecoin and Ripple made bullish moves in the market, speaking hopes among investors
Ethereum stayed on the same page for another day
Bitcoin Cash might enter a bearish market in a matter of days
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Remitano.
Every investment and trading move involves risk, you should conduct your own research when making a decision.
