Bitcoin / US Dollar
Price Analysis
One day after breaking the $ 10,000 point, Bitcoin's price corrected back to $ 9,500. The last days' rise was expected due to the three triangles at 50o, extended through the entire May. Many investors liquidate their positions immediately after the $ 10,000 surpass, a fact led to the immediate correction.
The "Golden Cross" signal appeared almost 2 weeks before, showing a positive trend for the upcoming weeks. The last time when the "Golden Cross" signal appeared, there was a bearish move from $ 8,800 to $ 4,800. The reversal move may indicate at this moment also, although there is no pattern for it. At this moment, the 50-day and 200-day Moving Averages are separated, even more, indicating an uncertain future for Bitcoin's price.
The Ribbon line can showcase if there are severe differences between the Moving Average and Exponential Moving Average. In previous signals, the green ribbon area was followed with a major downturn while the red ribbon area in late-April was followed with a surge from $ 8,000 to $ 10,000. At this moment, we are at the beginning of a green ribbon area, a bearish signal for the upcoming period.
In the short-term diagram, we can observe that volume was much bigger than previous days, accompanying the moves made from the investors. The move between the parallel channels could predict as power absorption, which may release on both sides. We remain cautious about Bitcoin's price as there is more evidence on the bearish side rather on the bullish.
Indicators
MACD index returns on the negative side, showing that the momentum is not on the bulls' side. On the other hand, the RSI index corrected after price correction, reaching near 50. Both indicators show that a downturn in the next days is possible, taking into consideration the analysis above.
Ethereum / US Dollar
Price Analysis
Ethereum's price remains in the recent levels, without correcting to the previous. After breaking the $ 220 resistance, the price seems to stabilize around $ 235, creating a new dimension for Ethereum trading. The surge in the last days was accompanied by slightly more volume than in the previous month, showing that stabilization in the new levels may be possible.
The correlation between Bitcoin and Ethereum was always a signal for uptrend and downtrend, especially in the Ethereum market. Over the last days, the correlation seems to decrease and Etherum continues its uptrend, despite Bitcoin's correction after breaking the $ 10,00 point. This is an important note to take, as in the next articles we are going to talk about Pair trading and how we can benefit from it.
Indicators
MACD index is around 2.8, on the positive side, showing that there is increasing momentum in the market. The momentum could be a temporary factor that will drive the market in new levels. Moreover, the RSI index stands in the zone between 80 and 60, where there is room for both directions.
