After hitting the $47,000 resistance level, the Bitcoin market has taken a step back, showing that the current resistance level is much stronger than expected.
The current resistance level was formed back in February 2021, when Elon Musk decided to invest through Tesla’s portfolio over $1.5 billion in the Bitcoin market.
This move, back in early 2021, created another critical point for the market as the $47,000 point was characterized as a support/resistance level, which was tested several times in the next months, bringing new results for the market’s next steps.
This time, we expect the market to move slowly towards the lower side, creating another support level of around $40,000.
If the price didn’t reach the $40,000 point, the probability of entering another bullish phase will be higher than before.
As you may know, a resistance level breaks when there is a massive move upwards that makes the level collapse and establishes the market to a new position.
As the situation shapes the next phase, we should also take into consideration that every resistance level is accompanied by some profit-taking actions from a part of the investing community.
The expectations have remained on the bullish side while the trading volumes are making ups and downs, showing that the investors are making moves on the markets.
The moving averages have sustained a space between them, on bullish formation.
In the short-term diagram, we can observe that the price is making bounces before starting to take off again for a higher level.
This is also a potential scenario for the current situation as the price is taking a small break before starting to rise again, given that the situation will be coordinated with more dynamic events.
MACD index passed on the negative side, showing that the market has been stalled for now and we might need another bullish trend to bring the momentum back.
The RSI index fall below value = 60, showing that the price will probably remain on the same levels for the next few days.
The correction in the Ethereum market has fallen to $3,000, showing that the market has enough resistance in the correction mode to sustain bullish levels.
The $3,000 point is an important signal that will determine if the market will continue to thrive at higher levels or the market will mark another signal that could lead to further correction around $2,500.
The correlation between Ethereum and Bitcoin dynamics has proved to be consistent during the previous times while the last period made Ethereum find better and faster ways to achieve higher returns on the short-term charts.
Those dynamic moves show that Ethereum can outperform many cryptocurrencies if the situation is favorable for it.
This performance could be replicated in the current situation if the bulls take over the market and make it run.
The expectations are bullish at this point but we expect more things to happen in the market before we have more data to analyze.
The trading volumes have remained on the same level as before while the moving averages have remained on the same gap between them, on the bullish formation.
MACD index passed on the negative side, showing that the market will probably add more negative momentum in the next few days.
The RSI index fell to value = 55, indicating that the market will remain stable for the next few days, with a more bullish outlook.
The correction phase in the Ripple market was not as bearish as some analysts were expecting.
The most important part of the current situation is that Ripple’s price has not broken the $1.00 support level and has remained around $1.07.
This slow adaptation in the bearish situation is a positive event as the bearish dynamics seem to affect the market less than in previous times.
The market depth is an important factor, especially for the Ripple market, as it will provide more information and data about how the market will move and what we should expect from this point and on.
The situation at this point can show us that the market could move at higher levels if there is a specific dynamic that will bring the market to a new bullish spree.
The resistance levels above $1.00 can be identified at $1.60, which remains long from the current point but we might see something in the short-term future.
The trading volumes have made more progress than in the previous period, indicating that more investors are involved in the market structure. The moving averages have remained in the same bullish formation.
MACD index decreased but remained on the positive side, showing that the market has still positive momentum to add in the price formation process.
The RSI index fell between values 60 and 65, indicating that there are still hopes for a rebound.
The slow moves in the Litecoin market made the price fall around $167, as the compression zone continues to exist.
As we can see from the diagram below, the Litecoin market had entered a compression zone between $125 and $200 since May 2021 and has not managed to break it since then.
The expectations for breaking the $200 resistance point have vanished during the last few days as the market corrected downwards.
The comeback scenario will pass from the average point of the compression trend around $175 and it will bring more investors to break the $200 might level.
As the coin’s adaptability has remained slow during the last period, we don’t expect big moves from its side but slow progress in the price formation.
The trading volumes have continued to stay on the same levels, confirming the above scenarios about the market development while the moving averages have remained on the bullish side, providing some hope for the future.
MACD index is on the verge of turning on the negative side, showing that the momentum is not on the best side for the current situation.
The RSI index fell between values 55 and 60, showing that the market will remain stable for now, with a positive outlook.
The same scenario with Litecoin is depicted on the Bitcoin Cash market as the price adaptability in the current situation is similar.
Bitcoin Cash’s price fell slightly to $640, making the market shake up a little bit.
The expectation for the Bitcoin Cash market is to balance at a certain level after passing the correction phase.
This balance might be again around the $550 level. If the market stopped to drop before reaching this level, the expectations will be more positive than before for the Bitcoin Cash market.
The trading volumes have been sustained on the lower side, showing that investors are not interested as before in the market. The moving averages have remained close to each other but in bullish formation.
MACD index is reaching the value = 0, indicating that the market is moving towards a more stable trend, bringing another status in it. The RSI index moved to value = 60, showing that the bears have not taken down the trend in the market.
Bitcoin / Ethereum = 0.92 (+ 0.01), Bitcoin / Ripple = 0.78 (- 0.06), Bitcoin / Litecoin = 0.93 (- 0.02), Bitcoin / Bitcoin Cash = 0.85 (- 0.06)
The correlation field has started to unbundle as the correction trend has brought the market to another step back.
Ethereum and Litecoin have sustained their strong correlation with Bitcoin, indicating that those markets will be affected more if there is another move on the other side in the next few days.
Bitcoin Cash has fallen more than the other coins in terms of correlation, showing that the market is unstable at this moment and more affected by the market dynamics.
In the last position, Ripple has brought itself near the medium correlation zone, indicating that Ripple has always been the exception for the crypto market and its moves.
