Bitcoin / US Dollar
Bitcoin's price achieved a new all-time high, surpassing $28,000 today, corrected again to $27,800 and returned above the frontier. The massive market momentum that has been compressed during the entire month of December seems to give enough boost to the market to move at a fast pace from one checkpoint to another.
As we can see, there is continuous mobility in the market that makes the price move constantly in a positive trend. The fact that only "good" news is coming in the market is also a tremendous effect on price development. The entrance of major institutional investors that want to diversify their portfolios and jump on the train for achieving better returns while taking the respective risk for those actions.
We have to underline that Bitcoin's total market is small comparing to other assets in the financial world. For example, Bitcoin's total capitalization amounts to $380 billion while Apple, one of the most valuable companies in the world, is valued at $2.3 trillion. The difference between the two shows that there is more to be done for the crypto market to reach a more mature level and be considered as a viable opportunity for more investing firms.
In any case, we will watch closely for how long this trend will continue to exist and its impact on the entire crypto market. The trading volumes have been sustained at higher than normal levels, showing that the investors' interest has not stopped during this period while the moving averages are positioned at bullish formation.
In the short-term diagram, we can observe that the market trend has not stopped for more than 2 or 3 days in a row, indicating the many investors have adopted a more aggressive approach in their strategy and want to drive the price at higher levels than before. The end of this trend will come when the majority of the investing community will believe that Bitcoin has reached its top and it won't grow from this point and on.
Indicators
MACD index has continued to stay on the positive field, making the price grow at a steady rate while the RSI index has been established at "overvalued" levels, indicating that there is need for a stability in the market for the next period.
Ethereum / US Dollar
Ethereum remained in the same spot as yesterday, around $720, showing that today's surge in the Bitcoin market didn't affect the price yet. We believe that there are two scenarios on the line for the asset. The first scenario would be that Ethereum will follow Bitcoin in the recent surge, reaching new 2020 high levels and trying to reach its all-time high levels around $1,000. This trend will require more trading volume in the market and an independent move from the coin. The second scenario would describe a more stable situation in the market that could lead to a delayed move in both directions.
The second scenario might become a reality if there are more examples like that in the crypto market where many cryptos tend to move together and create similar patterns between them.
The trading volumes have remained at higher levels than before, showing that investors are trying to fuel the market at higher price levels. The moving averages have sustained a certain difference between them and they will move according to that.
Indicators
MACD index continues to grow day by day, indicating that the surge might come at a delay of day or days, depending on the momentum growth. The RSI index has moved back at value = 65, indicating that an uptrend will bring a "sell" signal in the market.
Ripple / US Dollar
Ripple has been the special case in the current situation as its continuous correction has no relationship with the market dynamics and its continuous bullish situation. The price rebounded to $0.21, much lower than the previous stability levels, which have been similar in the previous period.
We have to underline that after the SEC charges against Ripple's founders for the illegal stock issue and investor fraud, two major crypto exchanges, Bitstamp and Coinbase, moved towards a delisting procedure for the coin. This fundamental element is going to affect the coin's market formation and will possibly make a long way before returning to previous price levels. For this reason, we are extremely conscious about Ripple's future and we will watch it closely to see any other options in the market.
The trading volumes surged during the last days, indicating that there are major sell-offs in the current situation while the moving averages have been positioned at the bearish formation that cannot change easily.
Indicators
MACD index continues to lay on the negative field, creating a more negative perspective for the market while the RSI index indicates that the asset is "undervalued" and we should consider buying it.
Litecoin / US Dollar
As we can see from the diagram below, Litecoin's price has remained on the same levels but the volatility around it has been increasing day by day. We believe this is happening as many investors are trying to exploit the low fundamental aspects of Litecoin in combination with its strong correlation with Bitcoin.
The price has reached a 2020 high level of around $130, indicating that there is more potential for another uptrend shortly if the trend continues this way. The only sure thing in the current situation is the peg between Bitcoin and Litecoin that will bring the next move in the market.
The trading volumes start to decrease at this moment, indicating that the market is passing on a more stable situation. The moving averages have been at a large distance that will not turn easily.
Indicators
MACD index remains on the positive side, creating more positive momentum in the current situation while the RSI index landed near value = 65, indicating that there is more room in the market for a future uptrend.
Bitcoin Cash / US Dollar
Bitcoin Cash's price remained on the same spot as yesterday, the resistance level around $350, which was tested 2 or 3 times during the last period and finally broke during the last days, establishing a new 2020 high level.
The situation in the Bitcoin Cash market has been established as a continuous pattern that includes certain support and resistance levels, where the price is surging and correcting in the whole process. This situation has created a lot of opportunities for day-traders, as they can buy and sell coins in shorter periods.
The trading volumes were at 2020 high levels, indicating that many investors jumped on the Bitcoin Cash train and try to establish profitable positions from it. The moving averages are moving in parallel directions, showing that the bullish trend will not be reversed in the current situation.
Indicators
MACD index continues to stay in the positive field, making analysts believe that the market will break its pattern and try to establish higher price levels. The RSI index came back at value = 60, indicating that there is a positive outlook in the market for the next period.
Correlations
Bitcoin / Ethereum = 0.87 (+ 0.01), Bitcoin / Ripple = - 0.72 (- 0.02), Bitcoin / Litecoin = 0.97 (- 0.01), Bitcoin / Bitcoin Cash = 0.87 ( 0 )
The new surge in the price has not affected the correlation in a major way as indicated from the values above. Ethereum and Bitcoin Cash have remained on the same strong spot as the last days, indicating that there is a possibility for a delayed uptrend in the next days. This scenario became a reality in the last period when Bitcoin's price surged and the rest of the market followed the next day. Litecoin, which has the strongest correlation with Bitcoin, will likely move to slightly lower values, indicating that its reflexes will move slower in this situation. Ripple has moved on the other side of correlation, depicting its fundamental elements in the price formation.
Key Notes For Today
Bitcoin reached new all-time high levels above $28,000
Ethereum remained on the same levels around $720
Ripple continues to correct, after SEC charges, landing at $0.21
Litecoin remained at $125
Bitcoin Cash stayed on the resistance level around $350
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.
