Bitcoin / US Dollar
Price Analysis
The price of Bitcoin remained on the established trend line, without major ups and downs during the day. As we have told in the previous articles, the established trend line has a bullish mood according to its formation, giving us hoped that the future is bright for Bitcoin and the price will rise even more in the future. Even that this period could be characterized as a "stability period" with low or negative momentum in the market, the bullish trend remains on the block.
The continuation of the bullish period means that a small portion of investors still holds and increases their positions on the currency while there are no major liquidations in the market. On the other hand, it is possible for a large portfolio investor to liquidate a part of its investment in Bitcoin if he feels that the coin has reached its peak. As long as we can see, for now, the coin hasn't reached its peak and we have wait for more.
The volumes have lower over the last days, showing that the momentum has been lost and the stability could become very fragile. Regarding the fundamentals, Bitcoin's hash rate has exploded over the last week, reaching 110 exahash per second. This means that many competitors in the mining market believe that the price will increase in order to sustain their businesses and operations. All of the above factors will determine the next move in the Bitcoin market and in the cryptos in general.
In the short-term diagram, we can observe that the "red" days might be rarest over the last days but they deliver much more impact in the market. This means that some investors prefer to liquidate their assets when there is a new high in the market, letting the price drop and continue from a lower point.
Indicators
MACD index remained on the negative side, creating bearish prospects for the market but without major evidence about it. On the other hand, the RSI index dropped below value = 60, showing that there is room for stability, at least in the short-term period. This stability will determine the next direction for the Bitcoin market, possibly a bearish one.
Ethereum / US Dollar
Price Analysis
After the bending curve that went the price from $380 to $440 and back to $410, the Ethereum market is on the verge for the next phase. As we saw, the market took a massive during the last week but it corrected and waits for the next trend to establish. This uptrend was a small gift for investors who position themselves over the first days of August when the rally had plenty of days on the market and the momentum was pretty much lost.
The important fact for the market is the $390 level, where there was a major support/resistance level for the market and could provide us more insights about the market. A possible scenario would a "head and shoulders" formation. The formation would mean a second "shoulder" around $390 in the upcoming days. The "head and shoulders" formation indicates a reversal in the trend and more specific a bullish trend to a bearish one.
Taking into consideration that a bullish trend has been established over the last months in the market, a "head and shoulders" formation would possibly spark the reverse in the market.
Indicators
MACD index is still on the negative side, creating a bearish mood in the market and making investors believe that this is the end of the bullish run. The RSI index remains above value = 60, showing that there is more room for fall in the market and we could observe it in the next days.
Ripple / US Dollar
Price Analysis
Ripple starts to behave in an uncorrelated way with the rest of the crypto market. A negative bending curve appeared in the market from the peak at $0.31 to the local bottom at $0.28 and up again at $0.315. This curve seems to repeat itself at this moment as the price fell at $0.29 and wait for another move to happen.
A possible scenario for Ripple the "triple high" signal. The "triple high" signal shows that the market is not strong enough to break a resistance level and it collapses afterward. Until now, there are two local high points at $0.31 - $0.32, and the appearance of a third will indicate a reversal in the market for Ripple.
The volumes have decreased over the last days while a small boost in the market might be possible as a reaction to the general conditions in the market. Additionally, the moving averages are moving closer to each other and it will form a reverse "Golden Cross", a bearish signal that might determine the coin's fate in the next phase.
Indicators
MACD index is on the negative side, creating a more bearish mood in the market and making investment decisions even more difficult. The RSI index moved below value = 60, showing that there is a possibility for a stability period over the next days until the next trend comes.
Litecoin / US Dollar
Price Analysis
No major changes happen in the Litecoin market after the previous week's ups and downs. The price went from $54 to $67 in just a few days and it corrected to $62, where it was established over the last days. The "head and shoulders" formation might be possible over the next period as the first "shoulder" stands around $60, the "head" around $67, and the next "shoulder" might stand around $60 again. As we told before, the "head and shoulders" formation indicates a reverse from a bullish trend to a bearish one. If this formation appears in the future, the other technical indicators will follow also.
The volumes have fallen during the last days showing that there might be a pause in the momentum that was created. The moving averages were moving away from each, which was created during the last uptrend but it might reverse in a potential downtrend during the next period.
Indicators
MACD index is near zero after it dropped from the stability day. Even that the momentum was high in the market, we should not expect a major change in the market and its components. The RSI index is on value = 60, creating more uncertainty in the market as there possibilities for stability in the next days or downtrend due to the lost momentum. We should wait to see the next move that will set the pace in the market.
Bitcoin Cash / US Dollar
Price Analysis
Bitcoin Cash's market is even more complex at this moment as many technical indicators and formations took place, creating multiple signals for uptrend and downtrend at the same moment. The price peaked at $320 during the bullish run and it immediately corrected at $280 in just a day. After that, there was a second wave of uptrend at $310 which was also corrected at $280. The third uptrend lands at $320 again, creating a second local high that might be used for future analysis.
All these ups and downs made the moving averages to get closer to each other and form a reverse "Golden Cross" and a "Golden Cross" signal the other day. Those two signals might be fake as there is confusion in the market about Bitcoin Cash's next move. Some analysts believe that none of the indicators could give us a clue about Bitcoin Cash's next move while others believe that we should see the overall performance of the crypto market to determine our next moves in the Bitcoin Cash.
The volumes seem to lower over the next days, indicating another evidence of a potential emerging downtrend that might appear in the entire crypto market.
Indicators
MACD index seems to decline, even more, creating bearish vibes in the market and cutting out positive perspectives from investors. The RSI index lays around value = 55, meaning that there is going to be stability in the market over the next days.
Correlations
Bitcoin / Ethereum = 0.75 (+ 0.03), Bitcoin / Ripple = 0.36 (- 0.08), Bitcoin / Litecoin = 0.68 (+ 0.02), Bitcoin / Bitcoin Cash = 0.74 (+ 0.05)
The correlations have been directed to different angles for every coin, showing that the market is disintegrating during this period, creating a chance for more diversification for investors that want to expand their portfolio and minimize the market risk. At this moment, Ethereum, Litecoin and Bitcoin Cash has remained on the medium correlation zone while Ripple has dropped, even more, creating a strong option for investors that want to add uncorrelated assets to their portfolio. If Ripple's correlation with Bitcoin continues to drop, we will see much more action in Ripple as investors will opt-in for a rainy day in Bitcoin's market.
