Bitcoin / US Dollar
Price Analysis
The fall seems to stop for Bitcoin as the support level at $10,200 seems to work and halt the bearish trend for now. If the price continues to move around $10,000 - $11,000, then the odds are in favor of long-term investors. As we remember from the last spring, Bitcoin's price made several attempts to break the $10,000 point, which was considered to be a major resistance level keeping Bitcoin from growing.
If the old resistance level becomes the new support level, then we have to be ambitious and anticipate a new growth cycle in the next period. To let this happen, the market needs to lower the trading volumes and let the price stabilize itself in the current levels. The stability in the market will make investors think more about their strategy and how they want to optimize their portfolio returns and structure, given the risk they want to take.
If the support level at $10,000 breaks, it will spark another round of liquidations in the next period that will lead investors to withdraw capitals from the market and might abandon the market for some time. The trading volumes seem to be lower than in the previous period but there is a need for even less to establish a stable and low-risk market. The moving averages are still apart, indicating that the reversal of the downtrend has not started yet.
In the short-term diagram, we can observe that the last 5 days are considered calm and stable as the price moved between $10,200 and $10,500, a relatively close action for Bitcoin. The bouncing after a correction is normal for cryptocurrencies as some risky investors decide to enter the market the exact moment after the drop, taking up more risk than others, believing that this might the local bottom for the trend.
Indicators
MACD remained at negative values, around value = -178, showing that the price loses almost $200 per day in the negative trend. This could be accumulative in the recent trend but we could expect a similar trend and gaps to appear during the next few days. The RSI index remained below value = 40, creating a deeper bearish mood in the market as there is a possibility for more downtrend before a "buy" signal appears in the market.
Ethereum / US Dollar
Price Analysis
The stability overview can also be observed in Ethereum as the price took a small lift from $340 to $350, creating a small margin for stabilization during the downtrend. After breaking the $380 support level, it could be quite difficult for Ethereum to establish a comeback trend all by itself, moving independently from the crypto market. The next support level lies at $320, which was a former resistance level that broke easily during the last uptrend from Ethereum. The resistance weakness could mean that the support level will be neither strong to hold a downtrend in the future.
The trading volume didn't seem to lower during the past few days, created more confusion to the market as many investors keep on believing Ethereum and don't give up on their positions or try to build new ones. The trend reversal finally appeared in the moving averages as the reverse "Golden Cross" signal appeared in the market, proving that the technical signals could be easily affected from a volatile period for price.
We expect Ethereum to try and follow a different route from the market as it did during the last trending period. This could work if investors remain faithful to it and believe that the same pattern could work in this situation also.
Indicators
MACD index keeps on moving at lower levels, reaching value = - 10, meaning that Ethereum lost almost $10 per day during the last trend. The concerning part is that the index's trend is rising, making investors fear another downtrend in the next days. On the other hand, the RSI index is barely surfacing at value = 40, showing that more downtrend is likely to come in the next few days.
Ripple / US Dollar
Price Analysis
Like the rest of the coins, Ripple took a stability check for now, at $0.24. This support level was not in the chart for Ripple, as there was no support or resistance level during the last couple of months, which indicates a stop in the price from either direction. This fact shows that Ripple was heavily affected by Bitcoin's trend and its dynamics shape the Ripple's market in an extensive way.
As we can observe from the diagram, the major support levels for Ripple lie at $0.20 and $0.19 with large trading volumes and depth in the market positions. During the short-term stability days, the trading volume was higher than the previous stability period but remained at lower levels from the current trends. The moving averages are still way apart from each other so a reversal event won't affect the signals from their side.
We expect XRP, like the rest of the market, to continue following the Bitcoin trend.
Indicators
MACD index has its ups and downs during the past few days, creating a visible confusion among investors as the MACD trend doesn't follow the price trend. This mismatch could bring more uncertainty in the market without a definite signal. On the other hand, the RSI index lays below value = 40, indicating a small downtrend in the next days that might activate a "buy" signal in the market.
Litecoin / US Dollar
Price Analysis
Litecoin found a support level at $48, which was a previous resistance level on July 25, indicating a critical week for Litecoin. The long-time support level lies at $45, which is not far away but could be reached at any moment if the downtrend continues for the entire crypto market. The past few days' trading volume is lower and indicates that a major move is unlikely to happen during the next couple of days.
The moving averages are still way apart while no signal in the market indicates a trend reversal. Litecoin is used to calm, extended periods with little action in the market and we believe that this might be a start of another period like that.
Indicators
MACD index seems to lower its momentum, dropping at value = - 1.5, indicating that the price is dropping at least $1 per day. MACD index is heavily affected by volatile moves and this could bring fake signals in the market. On the other hand, the RSI index lays at values lower than 40, indicating a further downtrend within the next few days.
Bitcoin Cash / US Dollar
Price Analysis
The only cryptocurrency that dropped in the long-term support levels is Bitcoin Cash. The price dropped at $230, the second long-term support level after the break of the $250 support level. The last two days were pretty stable for Bitcoin Cash, showing that we might re-live the May to July days where the price was moving predictably without major surprises.
The trading volume has lowered during the last two days, calming down the market and making space for the next major move in the market. The moving averages are still apart from each other, creating no fear for a new signal during the next period. We expect Bitcoin Cash to move along with other cryptocurrencies' trend, without diverging from the established trend in the crypto market.
Indicators
MACD index closed almost a month on the negative side, creating a bearish mood in the market while the RSI index moved at value = 35, indicating a small further downtrend during the next couple of days.
Correlations
Bitcoin / Ethereum = 0.77 (+ 0.06), Bitcoin / Ripple = 0.98 (+ 0.01), Bitcoin / Litecoin = 0.98 (+ 0.01), Bitcoin / Bitcoin Cash = 0.98 (+ 0.01)
Even if the correlations remained at a high level, all altcoins have developed a similar dynamic with Bitcoin, following the market leader faithfully and creating a predictable market. At this moment, if Bitcoin rises and moves to higher levels or the opposite, the rest of the market will follow as there is a heavy correlation between them. The exception in the market remains Ethereum but the trend is rising, indicating that it will also be affected if there is another move in the market, shaping a different environment. In any case, we should always take into account that the capital concentration in the market could affect the prices for every altcoin, joining a common direction for a short-term period.
