Bitcoin / US Dollar
Price Analysis
Price Analysis: The Bullish Market Stopped For A Little, Gaining More Power For The Future!
Bitcoin slightly corrected today, dropping at $11,370, just a little bit of yesterday's performance. The minor changes in the Bitcoin's price seem to create a stability outlook for the next days as the price has been stuck under the $11,500 resistance level, without being able to break it. A decisive move that will break this resistance level at $11,500 will determine the continuation of the bullish trend and its expected duration.
The $11,500 is considered a bullish level according to previous data from the respective bullish period during August 2020 but it doesn't appear to have the same dynamic with this period. This means that the market has digested the fact that $11,500 is a normal level for Bitcoin and the future expectations are shaping towards higher levels. We believe that there is a need for a major move that will break the current resistance levels and lead the market to a new status.
We believe that the new high points in the bullish market will surpass $12,000. This period is crucial for Bitcoin price's formation as the market is trying to build enough depth to sustain the current levels and prepare the soil for higher prices and more development in the next period. We believe that the next days will establish the current price levels as the standard for the market and then we will wait for the next major move to change the status.
The trading volume has not changed dramatically but we can say that it is moving at slightly higher levels than in previous days. The moving averages are way from crossing each other and a reverse "Golden Cross" won't happen soon.
In the short-term diagram, we can observe that Bitcoin enter the last phase of the current bullish market, after recovering from the surprising drop below the support level around $10,500. The compression period between $10,500 and $10,800 was enough to produce fuel in the market for reaching $11,500 for 5 days. This fact shows us that a similar scenario is possible this time with the compression just below $11,500.
Indicators
MACD index continues to drop, showing that the market momentum is slowly decreasing, creating stability in the market for the next days. The RSI index dropped below value = 60, showing that the price is not considered "overbought" or in the middle of a bullish market. This outlook could change at any moment if a major move turns away the plans.
Ethereum / US Dollar
Price Analysis
Ethereum's price continues to correct today as the price dropped just below $370, passing down the 50-day average and being very close to the 200-day average at $360. As we told in previous articles, the descending trending line from $400 down to $350 draws a continuous border for the price to find constant support from previous market positions.
At this moment, the lack of momentum could be a result of Bitcoin's stability but also it could be small corrective moves when the market is testing previous levels. A possible scenario at this moment will be for Ethereum to test the $350 support level before hitting higher levels, always in correlation with the rest of the market.
The trading volumes seem to drop during the last days, showing that the investors continue to lose their interest in the market and hope to enter at a lower level for getting higher returns. This waiting mode is always nerve-cracking for holders but it could create new opportunities for new entrances in the right spot. The moving averages are close enough and we will possibly see a signal from them in the next period.
Indicators
MACD continues to stay in the "green" area with diminishing momentum, implemented in the market through the price decrease. On the other hand, the RSI index reached value = 50, showing that the market is clueless about what will happen in the next days and what direction will be followed.
Ripple / US Dollar
Price Analysis
As we told in yesterday's article, Ripple's price will probably continue to fall until it reaches $0.24, which is considered as a mid-term support level for the market. This support level broke during the last stability period only once, reaching $0.22. If the support level at $0.24 broke out, then Ripple's direction will change and probably will take apart from the rest of the market for some time.
The 50-day moving average starts to drop and will probably meet the 200-day average if the trend continues in the corrective mode. This signal could be a fake one if Ripple continues to correlate positively with Bitcoin and the other major altcoins in the crypto market. The trading volumes are moving at lower levels, showing that investors are slowly liquidating some of their positions to re-enter at a lower level.
Indicators
MACD index hit the zero point, indicating the momentum in the market is about to change at the weekend if there are no big surprises during that. On the other hand, the RSI index moved towards value = 45, indicating a potential stable move in the next days, without major moves to be expected soon.
Litecoin / US Dollar
Price Analysis
The price drop was much more evident for Litecoin today, as it reached the mid-term support level at $47. This support level was formed during the bearish trend in early September and was the first frontier for the Litecoin market, where the drop stopped for a little. If this level broke again, there is another support level at $45 where there is much more depth in the market and it would be more difficult to breakthrough.
The negative price action could be correlated with Bitcoin's stability that distracts many investors from the crypto market and the "orphan" capitals look for other markets to place. The trading volumes are not very high, showing that investors are willing to liquidate their positions after the small bullish run, that they believe that it would not continue. The moving averages have no significant distance between them and a potential cross could take place shortly.
Indicators
MACD continues to drop through the last days, indicating that we could observe a change in the market momentum that won't translate to trend change if the rest of the market doesn't follow the same direction. The RSI index dropped below value = 50, indicating short-term stability in the market.
Bitcoin Cash / US Dollar
Price Analysis
The past days' winner corrected back at $255, a normal reaction for the market after a successful and "green" week. This streak makes Bitcoin Cash count in the bullish trend, established from the market leader, Bitcoin. The next goal for Bitcoin Cash will be to establish a market position around the local high point and then set higher goals according to the overall market state.
The trading volume is much higher than in the previous period, indicating a bullish turn for the investors that find a lucrative opportunity for placing their money in Bitcoin Cash. This is also evident from the distance between the two moving averages, which are way apart.
Indicators
MACD index bends a little bit after today's correction but it continues in a positive field, showing that there is no change in the market momentum. The RSI index took a hit, dropping at value = 62, which is promising for more in the future.
Correlations
Bitcoin / Ethereum = 0.95 ( 0 ), Bitcoin / Ripple = 0.66 (- 0.10), Bitcoin / Litecoin = 0.92 (- 0.04), Bitcoin / Bitcoin Cash = 0.90 (+ 0.02)
The correlation analysis has brought useful insights about the market positions and the direction that will be formed shortly. Ethereum, Litecoin, and Bitcoin Cash seem to correlate in a high percentage with Bitcoin, leading the market to a universal approach regarding its movement. Those coins are observed to be more correlated with Bitcoin in previous periods and follow its direction on a large or small scale. The only exception from the major altcoins is Ripple, which seems to drop at a much steeper pace than the other cryptocurrencies. The minor changes in the correlation between Bitcoin and Ripple would not be a crucial factor that could affect the entire market direction or the long-term perspective in the crypto space.
Key Notes For Today
Bitcoin continued under the resistance level at $11,500
Litecoin and Ripple took minor hits in their prices and their market momentum might change
Ethereum continued at stability mode
Bitcoin Cash corrected after a 10-day winning streak
Comments (5)
Guest
ugospecial
6 years ago
BITCOIN PRICE ANALYSIS: Bitcoin dropped at $11,370 and was slightly corrected just a little bit from yesterday's performance, Bitcoin price seem to be stable and remains under $11,500 resistance level. A bullish trend and duration could be obtained if a decisive move can break BTC's resistance and as the market is trying to build enough depth to sustain the current level, the bullish market could surpass $12,000. The bulls seem to regain strength as Bitcoin entered the last phase of the current bullish market, after recovering from the surprising drop below the support level around $10,500.
ETHEREUM PRICE ANALYSIS: Ethereum price keeps correcting as it drops below $370, going down the 50-day average and very close to 200-day average at $360, the descending trending line from $400 to $360 enables price to find constant support from previous market positions. Drop of trade volume is a proof that investors are continuously loseing interest in the market and hoping to enter at a lower level so as to be able to get a higher return.
RIPPLE PRICE ANALYSIS: Ripple price may probably fall continuously untill it reaches $0.24, considered as it's mid-term support level wich broke during the last stability period only once reaching $0.22. Ripple 50-day moving average starts to drop and probably will meet the 200-day average if the trend continues in the corrective mode this trading volumes are moving at a lower levels, wich shows that investors are slowly liquidating some of their positions to re-enter at a lower level.
LITECOIN PRICE ANALYSIS: Litecoin price drop was more evident as it reaches the mid-term support level at $47 which was formed during the bearish trend early September and was the first frontier for the Litecoin market. This negative price action could be correlated with Bitcoin's stability that is distracting many investors from the crypto market, LTH trading volumes are not very high and this shows that investors are willing to liquidate their positions after the small bullish run, that they believe would not continue.
BITCOIN COIN CASH: Bitcoin cash was corrected back at $255, wich is a normal reaction for the market after a successful "green" week and this made Bitcoin cash count in the bullish trend wich was established from the market leader Bitcoin. It's next goal will be to establish a market position around the local high point and set a higher goal according to the overall market state, The trading volume is much higher compared to the previous period wich indicate a bullish turn for any investor that find a lucrative opportunity for placing their money in Bitcoin Cash.
godgrace1
6 years ago
Bitcoin / US Dollar price analysis : Bitcoin dropping at $11,370 creating a stability outlook for thw next days is due to price action as the price has been stuck under the $11,500 resistance level, with out being able to break it.
since the $11,500 is considered a bullish level according to previous data,
with hopes that $12,000 will be the new bullish levels, so the market is building more depths for the market to make the bullish run,
Ethereum / US Dollar price analysis : Ethereum price became bearish and dropped below $370, passing down the 50 day moving avaerage, the price will find a constant support level from previous market position.
and the lack of ethereum price momentum might be due to price stability,
ethereum might test the $350 support level before being bullish to hit higher levels,
though a lot of investors are loosing interest on ethereum due to high gas fee causing ethereum to loose trading volumn.
Ripple / US Dollar price analysis : ripples price is currently falling, which is considered a mid term support level for the market, the support stability level broke the last period, reaching $0.24
so far no major move is being expected from the ripple market for some time now.
Litecoin / US Dollar price analysis : The price drop was much more evident for Litecoin today, as it reached the mid-term support level at $47
the litecoin market is bearish, and The negative price action could be correlated with Bitcoin's stability.
Bitcoin Cash / Us Dollar : Bitcoin Cash will be to establish a market position around the local high point and then set higher goals according to the overall market state The trading volume is much higher than in the previous period, indicating a bullish turn.
exodusab
6 years ago
Bitcoin is enduring a troubling period of bearish pressure after re-testing the $11,430 level of support for the second time in three days.
The previous touch of this support prompted a 3.14% bounce to the upside, although failure to achieve a high above $12,000 and even $11,900 demonstrates bullish exhaustion.
If Bitcoin begins to trade beneath this level of support it will likely cause a sharp drop to $11,150, which may be extended depending how many long positions get put into liquidation across derivatives exchanges.
freshprinx
6 years ago
Bitcoin and altcoins must rebound off their immediate support levels to recapture bullish momentum and resume the uptrend.
Chicago Mercantile Exchange’s cash-settled Bitcoin (BTC) futures trading products “contribute more to price discovery than its related spot markets,” according to findings in a new report by investment firm Wilshire Phoenix.
The increasing volumes of crypto derivative products highlight greater participation from institutional investors and this will likely be positive for the entire crypto space.
This is not unique to cryptocurrencies because even in most other asset classes, the derivatives markets lead the spot markets.
In a separate attempt to determine the valuation of Bitcoin, several experts from JPMorgan Chase opined that Bitcoin’s price is overvalued compared to its intrinsic value and the analysts suggested that BTC could face selling in the short-term.
The analysts consider Bitcoin to be a commodity and have calculated its marginal cost of production to estimate its intrinsic value.
While fundamentals do work in the long-term, short-term price action is usually dictated by sentiment and technicals. Let’s analyze the charts of the top-10 cryptocurrencies to determine the path of least resistance.
BTC/USD
Bitcoin (BTC) bounced off the $11,178 support on Oct. 15 but the bulls could not sustain the price above $11,500. This weakness could have attracted profit booking by the short-term traders and shorting by the aggressive bears.
The bears are currently attempting to sink the price back below the critical support at $11,178. However, this level is likely to attract buyers because the 20-day exponential moving average ($11,081) is placed just below this support.
The upsloping 20-day EMA and the relative strength index in the positive territory suggest that buyers have the upper hand.
If the bulls can push the price above the downtrend line, it will be the first sign of strength. The uptrend could pick up momentum after the bulls can sustain the BTC/USD pair above the ascending channel.
Contrary to this assumption, if the bears sink the pair below the 20-day EMA, a drop to the support line of the channel is possible. A breakdown of the channel could spark further selling, which could result in a drop to $10,000.
ETH/USD
The bears are currently attempting to sustain Ether (ETH) below the moving averages. If they succeed, a drop to the uptrend line is possible. If this support also cracks, it will indicate a range-bound action for the biggest altcoin for a few more days.
The flat moving averages and the RSI near 50 also point to a balance between supply and demand.
However, if the ETH/USD pair turns up from the current levels or the uptrend line, the bulls will again try to push the price above the overhead resistance at $395. If they can pull it off, it will complete an ascending triangle pattern that has a target objective of $481.608.
XRP/USD
XRP broke below the moving averages on Oct. 15 and is on its way to the critical support at $0.2295. Although the altcoin had formed a bullish inverse head and shoulders pattern, the bulls could not push the price above the neckline at $0.26 and the setup did not complete.
The current price action of the altcoin is a good example of why traders should wait for the setup to complete before taking a directional bet. Buying in anticipation could quickly turn the trade into a loss.
The XRP/USD pair is currently range-bound between $0.2295 and $0.26, hence, the bulls are likely to buy near the support of the range.
A trending move will start after the bulls push the price above $0.26 or the bears sink the pair below $0.219712.
BCH/USD
Bitcoin Cash (BCH) witnessed sharp selling at $266.46 that resulted in a retest of the breakout level at $242. The sharp rebound off this support suggests that the bulls aggressively accumulated at lower levels and $242 has now flipped from resistance to support.
The upsloping 20-day EMA ($238) and the RSI above 60 suggests that the bulls have the upper hand. If the buyers can push the price above $266.46, the uptrend could reach $280 and then $300.
This assumption will be invalidated if the bears sell at the current levels and sink the BCH/USD pair below the moving averages. If that happens, the pair could again drop to $215.
LTC/USD
Litecoin (LTC) has dropped below both moving averages today, which suggests that the bears used the rally to the $51 resistance to initiate short positions. However, the bulls have not yet given up as they are currently attempting to defend the uptrend line.
If the bulls fail to push the price above the moving averages, the selling is likely to intensify and the bears will once more try to sink the LTC/USD pair below the uptrend line. If they succeed, a drop to $42 is possible.
Conversely, if the pair rises above the moving averages, the bulls will try to thrust the price above the $51–$52.36 resistance zone. If they succeed, the inverse head and shoulders pattern will complete and it has a target objective of $60.3702.
whenayon
6 years ago
Bitcoin has made some amusement today, dropping at $11,370.
The changes in the Bitcoin price seem to create a stedy move in the market. The bitcoin price is now stuck under the $11,500 resistance and it has been unable to break it this level is a strong resistance level. If the bitcoin price can break this level we sholud expert a bullish trend in the market, (the break of the $11,500 resistaence is the continuation of a bullish trend)
If the price should break the $11,500 resistaence, the new high points in the bullish market will surpass $12,000 resistaence, This will be the period for the market to build enough depth to sustain the current levels and prepare the soil for higher prices and more development in the next period.
The trading volume are still a bit low. We should be expecting more highs in the market in some days to come
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