Bitcoin / US Dollar
After reaching $34,000 during the weekend, Bitcoin's price started to correct, without breaking the previous weekend dynamics. The price landed at $30,600, and the severe level of volatility indicates that the price might move to higher levels (above $31,000) during the day. The volatility of the Bitcoin market could create a plethora of opportunities for intra-day traders to claim quick profits.
As we can see from the diagram below, the correction reached $28,000 for some moments, before rebounding above $30,000. The real question, in this case, is how "organic" is the current growth. By "organic", we mean that many investors have made their analysis and have concluded that Bitcoin is undervalued and it is worth to buy more and more as it will eventually increase its value over time.
On the other hand, a "non-organic" growth is mostly fueled by the hype in the market that is created for the second time, from investors that want to exit the market quickly and push more people to buy to accumulate larger margins of profit for themselves. Until reaching the $30,000, we believe that the fundamental analysis and the demand from institutional investors have brought the needed boost in the Bitcoin market.
Another jump above $30,000 will probably be corrected and there will another try to reach another high level that will determine its value for the next periods. The trading volumes have been sustained at high levels, showing that the market is still hot after all those periods of the bullish trend. The moving averages show no evidence that a reversal in the trend will take place in the next period.
In the short-term diagram, we can observe that there are two minor support levels between the $20,000 and the $30,000 points. The first one lays around $23,000 while the second one lays around $26,000. This means that a potential bearish turn might stop for a little in the above-mentioned points, according to the market dynamics.
Indicators
MACD index continues to grow during the last 3 weeks, showing that the market momentum has played an important role in the price formation. The RSI index dropped near value = 70, showing that the price might remain at normal levels.
Ethereum / US Dollar
A major surprise for the crypto market is the surge in Ethereum's price during Sunday's last hours and Monday's first hours. Ethereum's price surged from $780 to $1,000 on Sunday while the same pattern was repeated today when the price surged from $1,000 to $1,180 before correcting to $900 and rebounding again to $1,000.
This crazy roller-coaster brought a lot of action in the market as many investors joined the market to open and close positions in a matter of minutes, ignoring any fundamental element and functioning only according to market dynamics. This phase was explored from many coins that have reached high levels and try to find where is the optimal price level for them.
The next goal for Ethereum, after finding a stable growth channel for the next period, is to acquire its all-time high level which was established around $1,400 back in early 2018. This will be achieved if Ethereum continues its independent path and create intrinsic value for its investors.
The trading volumes skyrocketed during the last 2 days, indicating that many investors have flown in the market, attracted by the dynamic intensity in its surge. The moving averages have been positioned at a bullish level, indicating a clear bullish path for the next days.
Indicators
MACD index has surged majorly in the diagram, creating more and more momentum for the market development while the RSI index climbed above value = 80, showing that the recent growth will be corrected shortly.
Ripple / US Dollar
As we have written in the previous articles, Ripple has remained on the same level around $0.22, indicating that no move will be determined from the market dynamics but instead, by the major fundamental issues that Ripple is facing right now.
The SEC charges will come into effect later this year and this moment will be probably the end of the current situation for Ripple. Otherwise, there is a need for another bullish event that could overthrow the market trend and establish a new one. This situation has revealed that Ripple was subjected to fundamental issues that could blow its stability up and the formed market depth has been proved to be strong around $0.20. This means that a bearish move below $0.20 is highly unlikely to happen at this moment.
The trading volumes have been established at normal levels for Ripple, indicating that a small portion of investors is interested in the coin. The moving averages are way apart from each other, showing that a bullish trend could not take up the market at this moment.
Indicators
MACD index is moving slowly towards a positive passing as the price has been stabilized around a certain price level. The RSI index indicates the same thing, showing that, compared to the previous period, the asset remains undervalued.
Litecoin / US Dollar
Litecoin is a loyal follower of the general trend and this was revealed during the last 2 days. The price surged to $160 while today reaches $175, before correcting at $140 and rebounding again at $150.
Litecoin, which lacks fundamental elements, has only the market dynamics to be taken under consideration. This means that it remains vulnerable to a bearish situation but as long as the market stays in the bullish path, there are no problems regarding market development. Litecoin will follow any trend at this moment so we have to focus on larger coins to see how Litecoin will move from now on.
The trading volumes are making spikes, showing that there are investors in the market that are willing to take this risk and place their money at Litecoin positions. The moving averages have settled at a certain level of difference that will sustain the bullish trend for now.
Indicators
MACD index surged even more during the last days, indicating that there is momentum in the market that could drive the price at higher levels. The RSI index moved back in the "safe" zone, indicating that another uptrend will make the market move at the previous levels.
Bitcoin Cash / US Dollar
Bitcoin Cash continues its explosion above the market standards, landing around $420 during Sunday's last hours. The surge continued in Monday's first hours around $470, but it corrected at $380. At this moment, the price has been landed at $420, creating a large volatility window for day traders.
This window was observed in other situations, making Bitcoin Cash another opportunity for crypto traders. The price will probably follow the rest of the market while in case of a bearish trend, the price will return in the space between $350 and $270. The trading volumes surge during the last days, approving the investors' interest while the moving averages have sustained a healthy gap between them that will fuel a positive path for the next period.
Indicators
MACD index surged during the last days, making momentum to work for the price formation while the RSI index moved at value = 65, indicating that there is room for more uptrend if the market wants to move this way.
Correlations
Bitcoin / Ethereum = 0.85 (- 0.08), Bitcoin / Ripple = - 0.78 (- 0.03), Bitcoin / Litecoin = 0.91 ( 0 ), Bitcoin / Bitcoin Cash = 0.83 ( 0 )
The correlations moved in mixed correlations, showing that there might be an unbundling in the market that will shape the 2021 market. Even if Ethereum, Litecoin, and Bitcoin Cash have remained in the "strong" correlation zone, there are severe differences between them in the dynamics formation. Litecoin and Bitcoin Cash have remained in the same phase while Ethereum seems to lose the "special relationship" as it moves much stronger during the last days. As we have mentioned in the last articles, Ripple has moved into a special situation and its correlation with Bitcoin has been in the opposite direction and it will probably remain this way until its crisis is over.
Key Notes For Today
Bitcoin corrected to $30,600, making small efforts to sustain these levels
Ethereum reached $1,100 for some hours and went back to $1,000
Ripple remained at $0.22
Litecoin surged to $160 but later corrected to $150
Bitcoin Cash made a decisive move at $400
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.
