Price Analysis (19 February): New all-time high levels for Bitcoin (BTC) and Ethereum (ETH), shaping new paths in the market !!!

News • 2021/02/18 • by

Bitcoin / US Dollar

Bitcoin reached another all-time high level, hitting a point around $52,500. The new all-time high level has not been achieved with a major move in the market but with steady and slow growth. This means that the bullish outlook continues to exist in the market and the majority of investors believe that a new wave of institutional investors will bring more capital in the market and drive the price at higher levels.

As long as this attitude has been established in the market, smaller flows of capital will enter the market, making the price move steadily at positive rates, independent from the fact that no major news is coming to the surface. We expect this trend to continue with minor corrective moves in the meantime, just when investors believe that they should claim their profits, settling down their goals for achieving certain returns.

The next period will bring more stability to the market and prepare it for the next trend. The trading volumes have been sustained at normal levels for the market while the moving averages have been stabilized at a certain gap between them, at bullish positions.

In the short-term diagram, we can observe that the bullish trend has entered a 3-week phase when there are no minor corrections. The full bullish mode in the Bitcoin market has brought a different kind of investors in the market, sustaining the price in a positive mood for its development.

Indicators

MACD index remained on the positive side but with sliding momentum during the last days, bringing descending mood in the market development. The RSI index remained around value = 75, indicating that the price has remained “overvalued” and a correction trend might be on the way for the price.

Ethereum / US Dollar

Ethereum also hit a new all-time high level, reaching $1,930 and making more investors happy for holding it. As we mentioned in previous articles during this week, we believe that Ethereum has a target of reaching $2,000 for establishing a winning attitude among the investing community.

Unlike other coins in the crypto market, Ethereum has not experienced a major correction during the last period, indicating that Ethereum has ridden the momentum curve, without losing any chance for price development.

The consistency in the price development has been a positive signal for any investor. As we know, investors are looking for predictable assets that could bring them a sustainable return over time.
We expect this trend to continue in the recent future, making Ethereum the most viable option for investment from institutional and individual investors.

A sudden turn in the trend-setting will bring Ethereum at a much better position than other coins as the market depth has been increased during the recent price levels where many institutional investors entered the market.

The trading volumes have been decreased at stable levels, indicating that even small amounts of invested capital moved the price at high levels. This also means that even fewer investors are liquidating their positions, believing that the price will continue to surge.

The moving averages have remained on the same gap between them, bringing a certain level of stability in the market.

Indicators

MACD index passed again on the positive side, indicating that the momentum has been very weak during the last few days, without being used in the recent price formation. The RSI index reached a value = 70, indicating that there is a correction underway for the market.

Ripple / US Dollar

Ripple made another turn in the market formation, surging towards $0.56. We can observe that the price is reaching high levels that were observed during the previous “bubble” phase. The previous bullish period for Ripple formed the price levels between $0.65 and $0.50.

Those levels could be sustained for a short-term period if investors get the bait and establish buy positions and reverse ones after a small margin.

Those short-term positions might be able to sustain the bullish trend for some time, bringing the market to new levels for now. We can’t make long-term predictions for the market as the core fundamentals have been brought at crucial positioning, giving out a short-term outlook for the price development.

The trading volumes have been sustained at normal levels, indicating that only a certain part of the investing community has taken part in the recent price formation. The moving averages are moving closer to each other, indicating that the market will move towards another position in the short future.

Indicators

MACD index passed on the negative side, indicating that the market momentum is lowering day by day, bringing a new type of dynamics that will bring the price to more stable levels. The RSI index reached values between 60 and 65, sustaining a positive outlook for the moment.

Litecoin / US Dollar

Litecoin is also touching its all-time high levels near the $240 point, landing at $230. We expect a resistance in the all-time high levels that will make a major or minor part of the investing community liquidate their positions. It is quite common to see a correction after a market is touching its all-time high levels as there is always disbelief about the next step in it.

The crypto has sustained a positive relationship with Bitcoin and Ethereum, meaning that it is capitalizing on the major trends in the market and provides value to its holders. We expect Litecoin to have a mild approach when it will break its all-time high level, making it the third major cryptocurrency that establishes a new all-time high level during 2021.

The trading volumes are surging during the last period, indicating that more investors are entering the market to exploit its strong relationship with the two major cryptocurrencies, Bitcoin and Ethereum. The moving averages are moving far from each other, confirming the bullish mood in the market.

Indicators

MACD index has remained on the positive side, bringing the market to new levels, fueled by the current momentum. The RSI index reached value = 70, indicating that the market has surged at “overvalued” levels and a correction is possible at this moment for it.

Bitcoin Cash / US Dollar

Bitcoin Cash has remained on the same levels since its strong surging move during the last week. The price has been established around $730, imposing that this trend has lost its momentum in the current position, making investors think two and three times before liquidating their positions.

Of course, Bitcoin Cash has created a lucrative return for its investors which is rarely evident in the market, giving them a tremendous opportunity to capitalize on their profits. Indeed, the stability in the current situation shows that some investors were happy with their accumulated returns and decide to stop the trend at this point.

We expect a minor correction from this point and on as the price has no support levels to create another bullish trend. The price can surge just by the market dynamics but this is something to observe shortly. The trading volumes have fallen since the major increase during the last week but the moving averages show that the market is in a full bullish mode for now.

Indicators

MACD index moved slightly lower but remained on the positive side, indicating that there is still positive momentum in the market. The RSI index has sustained its “overvalued” position, bringing more thoughts about a price correction soon.

Correlations

Bitcoin / Ethereum = 0.92 (+ 0.01), Bitcoin / Ripple = 0.76 (- 0.01), Bitcoin / Litecoin = 0.95 (+ 0.01), Bitcoin / Bitcoin Cash = 0.89 (+ 0.02)
The correlations remained on the same spot during the last days, indicating that the market has created a stable position, predicting a stable future for any coin’s growth.

Ethereum and Litecoin have created the strongest correlation relationship with Bitcoin, showing that they will be able to capitalize on any strong move that will happen in the short future. On the other hand, a bearish move will also bring a turn in the trend for those coins much faster than at other coins.

A similar situation is faced by Bitcoin Cash, whose recent stability at high levels has made the coin establish a strong relationship with the market leader. Ripple’s unstable moves have brought the coin at a medium to strong correlation zone with Bitcoin, with an unknown future for its market development.