Bitcoin / US Dollar
A record-breaking day for Bitcoin as a new all-time high was achieved. At the time this article was written, the price had peaked just below $24,000, while it is moving at this moment around $23,300. This is a historic moment for Bitcoin and the entire crypto market as these levels have never been seen before so we don't know how to answer the question "How far the price can grow ?". The only thing that we can describe is the investors' behavior in the bullish trend that set the previous all-time high above the $19,000 level.
In the previous bullish period around late 2017, the majority of investors were trying to liquidate their positions throughout the growth period and re-invest these amounts in new purchases of Bitcoin or other cryptocurrencies. This led the market to have a short-term horizon as many investors were trying to take their profits out of the market, creating liquidity gaps at certain points. This market formed a path above $17,000, which lasted for 13 days.
This fact made some investors to take full advantage of the situation and deploy a portfolio strategy around that position. The entire situation led to a bearish trend that lasted almost 3 years, making Bitcoin and the entire market to fall continuously until it reached $4,000. The most important question in the current situation is to see how large the market depth is in the current situation. This will determine how "robust" the system will be in a turn of events and the market turns on the bearish side.
We believe that the current trend will last for longer than the previous bullish trend but it will eventually need to draw back at lower levels. This will happen when investors were happy with the returns they have accumulated in that period and they want to turn them into fiat. Such a move will bring new standards in the market as there would a lot of selling orders to be served in the exchanges.
The trading volumes have surged again at high levels again, indicating that a massive flow of investors starts to put capital in the market. The moving averages have started to tear apart from each other, forming a bullish position on that point.
In the short-term diagram, there might be an answer to the core question about market depth. The short-term horizon shows that there are much more compression and depth above $19,000 that could work as a "pillar" for the next bearish period. This means that there is a possibility for the price to find support at the current level after making a turn in the next period.
Indicators
MACD index passed on the positive side, showing that there are enough bulls in the market to make the momentum drive at new higher levels. The RSI index was turned crazy, as its value surpassed value = 75, indicating that the asset is considered overvalued.
Ethereum/US Dollar
Ethereum brought another 2020 high level, landing at $665. The previous 2020 high level was laid around $615, making Ethereum look much weaker in terms of boost, considering the corresponding surge of Bitcoin. This means that the next goal for Ethereum is its all-time high level of around $1,000.
We believe that Ethereum will try to move towards this way but there is a need for independence in the next moves. This is not an easy task for Ethereum as its correlation with Bitcoin has been really high since the last period. If there is another trend, independently from the general trend, Ethereum will probably ride on it and head towards the $1,000 point.
The trading volumes have made some spikes during the last days, indicating that investors are coming back since the last period. The moving averages crossed again, forming a "Golden Cross" in the diagram, which is the bullish signal for entering such a period.
Indicators
MACD index moved to a positive field, creating positive momentum for the market and the next period. The RSI index has not surpassed the "dangerous" zone, showing that there is more room in the market for another uptrend, independently from the rest of the market.
Ripple/ US Dollar
Ripple is no more the contrarian asset in the market as it joins the bullish side and surged at $0.57, reaching its previous stability levels around $0.60. Ripple is hard to predict how it will move as it seems quite fragile at this moment. This means that a single trend could determine its position in the next days, giving opportunities to many investors to make money on both sides, bullish or bearish.
We believe that the Ripple market will absorb a portion of the capital flows in the market, specifically from high-risk portfolios that want to achieve results like the previous period, where the accumulated returns turned over 100 %.
The trading volumes have made more spikes in recent days, indicating that investors are having a strong interest in the market. The moving averages have still been apart at bearish positions, but they will probably adapt in the current situation.
Indicators
MACD index is still in the negative field, showing that there is still more room for recovery in that situation. The RSI index has pointed at value = 55, indicating that the price will remain on the same spot with a positive outlook. This index has brought mixed results during recent days and we should be more careful about taking it to them under analysis.
Litecoin / US Dollar
Litecoin made another breakthrough in the market, reaching a new 2020 high level at $100. This point was made possible under Litecoin's strong correlation with Bitcoin, creating huge market momentum and boost. We know that Litecoin is an asset with no fundamental elements but its main driving point is the market dynamics.
If the market dynamics are positive, then Litecoin will move towards a bullish position and the opposite. This means that bold market momentum will bring a price surge in the market.
The trading volumes are surging at this moment, depicting the picture above while the moving averages have formed a "Golden Cross", indicating that the market has passed on the bullish side.
Indicators
MACD index moved at positive fields, approving the bullish side to be held in the market while the RSI index has moved just below value = 70, indicating that another uptrend will bring a possible sell-off in the market.
Bitcoin Cash / US Dollar
Even if Bitcoin Cash has joined the bullish market, landing at $325, it didn't break the 2020 high level which lays around $350. We believe that the mild reactions of Bitcoin Cash in the crypto market will make the market to have slow progress in the price formation.
The Bitcoin Cash market has dropped in volatility at higher levels which must break in the current trend if the price wants to get at higher levels. We believe that the existing trend will try to bring another uptrend in the future that might even lead to a future alt-season, with the delayed surge in the rest of the market.
Indicators
MACD index moved at positive fields, indicating that there is a lot of positive momentum in the market that could lead to more positive positions. The RSI index moved above value = 60, indicating that there is growth potential in the market.
Correlations
Bitcoin / Ethereum = 0.93 ( 0 ), Bitcoin / Ripple = 0.01 (+ 0.15), Bitcoin / Litecoin = 0.91 (+ 0.05), Bitcoin / Bitcoin Cash = 0.81 (+ 0.10)
The overall surge in the crypto market brought a new status in the correlation between Bitcoin and the rest of altcoins. Ethereum remained on the same strong levels while the two other positive assets, Litecoin and Bitcoin Cash, strengthen their position in terms of bonding with the market leader. Indeed, Bitcoin Cash passed on the "strong" correlation zone, moving above value = 0.75. On the other hand, Ripple after its surge brought its correlation with Bitcoin near value = 0, which indicates a complete indifference between their moves. This could not depict the current situation, and the index value will be determined during the next days.
Key Notes For Today
Bitcoin sets a new all-time high level at $23,900
Ethereum sets a new 2020 high level at $670
Ripple bounced back at $0.57
Litecoin sets a new 2020 high level at $100
Bitcoin Cash bounced back at $325
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.
