Bitcoin / US Dollar
The price didn't make another decisive move towards a bullish or bearish direction but the momentum shows that there is a possibility for another bullish try during the next days. The price remained over $19,000, staying in the door of the new all-time high level, that was achieved two days ago. This move could be considered as a positive outcome in the current situation as the price development is hanging on a tight rope about its next steps.
Many analysts believe that we will see another all-time high level during the next period, a fact that will increase market momentum and will bring more attention to the crypto market. On the other end, we should be careful about the potential correction in the price, which will be a result of many disappointed investors that want their money available and ready to invest in other assets than Bitcoin. This scenario will become a reality if the high price levels broke down in the next days and panic was spreading in the market.
In a stability scenario, the price formation is most likely to move bullish during the next period but this will lead to a delay in that, as the potential investors will need to gather more capital in order to enter the market. We believe that projected stability in price levels between $17,000 and $19,000 is considered a positive scenario that will lead to another bullish market in the future.
The trading volumes dropped today, showing that small price movements are usually correlated with lower volumes in transactions. The moving averages have come closer to each other and a longer stability period will bring them even more close.
In the short-term diagram, we can observe that the price formation has been developed above $15,000, indicating that the longer the price stays above that level, there is more likely to establish above it and create a new trend that will surpass the $20,000 point.
Indicators
MACD index continues to flow at negative fields, creating negative momentum for the market at this moment. This will change only if the price surpasses $20,000. The RSI index is moving between values 60 and 65, showing that there is potential in the market for another uptrend in the short-term horizon.
Ethereum / US Dollar
The price remained just below the $600 level, indicating that the correlation between it and Bitcoin is much stronger than expected as they are moving in the same direction and pace. The first goal for Ethereum, in a bullish case, is to break the $600 level and remain above it, creating prospects for reaching the $1,000 frontier in the future.
The market momentum indicates that another bullish trend will become effective if enough capital enters the market and crypto exchanges and push the prices at higher levels. In any case, we should be prepared for unbundling the ties between Bitcoin and Ethereum but as long as this tie continues to exist, there is an opportunity for co-development in the crypto market.
The trading volumes have dropped today, a normal reaction after a turbulent time at high 2020 levels. The moving averages have started to bend towards each other, creating concerns in the market about a potential trend reversal in the future.
Indicators
MACD index has dropped for the second consecutive day but still remains in a positive field, creating hopes for not losing the positive impact on the current situation. The RSI index is moving between values 60 and 65, showing that there is potential in the market for another uptrend in the short-term horizon.
Ripple / US Dollar
Another asset that remained at higher levels than before was Ripple, which remained above $0.60. Ripple made the largest surprise in the current bullish trend as the price grew over 120 % during a week while it still has accumulated profits over 100 % at this moment.
The recent price development indicates that Ripple has established higher intrinsic value, which wasn't released during the last period and it exploded during the last weeks. As we can see from the diagram, the price compression was more pressed than other times, creating a lot of unreleased momentum in the market.
The price surge was a product of the previous compression that rewards its holders and create another price indicator for future trends. If the price manages to sustain above $0.50 for a long time, we believe that there would be another bullish trend in the future that will bring the coin to another level.
The trading volumes have remained above normal for Ripple standards but they have decreased since last week. The moving averages are still way apart from each other, creating hopes for sustaining the bullish trend for a longer period.
Indicators
MACD index is slowly decreasing day by day, remaining on the positive field. The RSI index moved in the "safe" zone, indicating that new investors might enter the market at this point.
Litecoin / US Dollar
Litecoin's price returned to high levels, touching the 2020 high level above $90. The high correlation between Bitcoin and Litecoin has created a positive momentum in the Litecoin market, which is depicting in the price formation.
The high price levels enabled the market to be considered as a winner in the current situation. Litecoin is solely driven by market dynamics, as there are no fundamental elements that could affect price formation in major ways. As long as the market dynamics are driven by Bitcoin, Litecoin is in a favorable position as a strong correlation enables faster adaptation and better results.
If there is an unbundling in its relation with Bitcoin, Litecoin will probably face a negative turn in its market, leading to the next era for it.
The trading volumes dropped today, indicating that there is still interest in the market for it. The moving averages have come close to each other and the lack of a decisive positive move will bring a negative signal in the market.
Indicators
MACD index passed again today in a positive field, showing that there is still a possibility for another bullish trend in the current situation. The RSI index is moving between values 60 and 65, showing that there is potential in the market for another uptrend in the short-term horizon.
Bitcoin Cash / US Dollar
Bitcoin Cash has remained below $300, creating mixed perspectives for what we should expect in the current situation. The price has been developed in a volatile way, creating confusion in the market about its involvement in the market dynamics and its independence from the rest of the market.
If the price continues to grow, the $300 point will be the first to break while the opposite scenario indicates a turn below $260, which a constant support point where many resistance levels spread out during the previous period.
The trading volumes were lowered today with no significant impact on the price formation while the moving averages are heading towards each other in a bearish way.
Indicators
MACD index passed again on a negative field, creating more confusion in the market while the RSI index is moving between values 50 and 55, creating a stability trend in the next days with a positive outlook.
Correlations
Bitcoin / Ethereum = 0.85 ( 0 ), Bitcoin / Ripple = 0.69 (- 0.01), Bitcoin / Litecoin = 0.94 ( 0 ), Bitcoin / Bitcoin Cash = 0.73 (- 0.01)
The calm period for the market brought calmness in the correlations also, sustaining the status quo between Bitcoin, the market leader, and the rest of the market. The examined altcoins have been separated into two different categories at this moment, a fact that helps investors to structure their portfolios more efficiently and deploy their strategies according to that. The first pillar includes Ethereum and Litecoin, whose correlation is considered high and will lead to major changes if Bitcoin changes direction. The second pillar includes Ripple and Bitcoin, whose correlation is considered medium and the adaptation in Bitcoin's changes will be softer.
Key Notes For Today
- The entire market moved in the same direction as the prices remained on the same level as yesterday but with a small surge under pressure.
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.
