Price Analysis: BTC reached its 2020 high level, will the rest of the market follow the leader?

Bitcoin's price overcame the $13,000, showing that there is still interest in the market from new and existing investors. The investors increased their positions in Bitcoin, showing growing interest over the last few days, making Bitcoin the winner of the year once again. At this moment, it is very hard to predict the price development as these levels are new at this point and the last time, these levels appeared in the market, it was back in 2017. This means that many investors might withdraw from the market or they have held their positions at higher levels than before.

We believe that the corrective time is near as long as investors believe that Bitcoin has fulfilled its intrinsic value capabilities and head towards a more "fair" price in market terms. The "fair" price scenario is quite common in the Bitcoin terminology, but it could differ from time to time. The "fair" price for Bitcoin was much lower in 2017, where many large companies used to ignore and now it would be much higher, as more and more holding companies prefer to move their reserves in Bitcoin rather than cash equivalents. Another aspect is that Bitcoin adoption is gaining fans every month, creating a larger user base, which they provide value back to the cryptosystem.

All of the above stuff will determine how high Bitcoin can grow and how fast the rest of the market will follow. The trading volumes have dropped significantly today but this is normal as most investors made their move during the previous days, waiting for the price to rise furthermore. The fight between bears and bulls will determine the final result and how long the price will increase and how much market depth. The moving averages are way apart, showing that the market is mainly on the bullish side.

In the short-term diagram, we can observe that the increase in Bitcoin's price was exponential and create a huge amount of profit for all the investors that might enter the market, even at the last minute. This is one of the core characteristics in the crypto market, which attracts many short-term investors and creates a lot of volatility in the market, which leads the market in many potential ways.

Indicators

MACD index continues to grow in a fast way, showing that the market momentum is at high levels and can keep the price up to and running. On the other hand, the RSI index has moved over value = 80, showing that Bitcoin is considered "overbought" for now. If the price got more stabilized in those levels, the index will correct itself and there is a possibility for more price development.

Ethereum / US Dollar

Price Analysis

The price gained slightly through the day, reaching $420. The small steps in the bullish market are important enough but the core aspect at this moment is Ethereum to surpass its previous 2020 high level and establish itself at higher levels. This could happen if Ethereum starts to grow by itself and make the bullish trend a vehicle that will lead it to new levels in terms of valuation.

The technical indicators are not in favor of the above statement, but they weren't back in the previous bullish trend. This could happen as an optimistic scenario for Ethereum's case as there are other possibilities in the field, which include the scenario of a heavy correction towards $350 - $360 if the Bitcoin market starts to fall at a higher pace. A neutral scenario will be the price to remain at the same levels (around $400 - $420), giving a small volatility period for corrective moves.

The trading volumes have surpassed by far the previous period, showing that investors are dealing with diversification issues and they want to expand their portfolio choices by investing in a lot of cryptocurrencies. The moving averages have a steady difference between them, with no evidence of trend reversal.

Indicators

MACD index continues to grow throughout the day, giving out a lot of momentum in the market and making investors optimistic about its case. The RSI index has almost touched the "dangerous" zone, that will might spark a sell signal in the market.

Ripple / US Dollar

Price Analysis

Ripple's price ended up just a little bit below of $0.26, indicating that Ripple will not follow the market at this point. The stability in the Ripple market shows that Bitcoin cannot affect every single coin in the market and the correlations would have predicted this possibility. This possibility became a reality at this point but we might observe a different route in the future.

Indeed, there was a delay in the market for Bitcoin to transmit its positive energy to the rest of the cryptocurrencies but they all followed in the end. Ripple was not one of them and this could a costly mistake for it. The bullish trend for Ripple will be probably the second time or it will skip it at all. Skipping a bullish trend might be deadly for Ripple as the bearish market that might continue will affect Ripple also, leading it to lower values.

The trading volumes have not changed significantly, showing that the bullish market has not affected the market at this point. The moving averages, even if they crossed a week ago, forming a reverse "Golden Cross", they now are in a parallel position, showing that the price increase was not enough to make the technical indicators to change their view of the Ripple market.

Indicators

MACD index is slightly on the "green" side, making some investors more optimistic on the Ripple side. The RSI index moved to value = 60, showing that there is room in the market for making a solo bullish trend, fueled by the profits created these days from the rest of the market.

Litecoin / US Dollar

Price Analysis

Litecoin is Bitcoin's loyal follower, exceeding any expectations from the most optimistic investor in the market. The price reached $56, just a step from the crucial point around $57, which was the key point for the previous bullish trend. The volatility measurements were crashed during the last days, showing that Litecoin is pushing the market in new areas where it could evolve even more.

The trading volumes were at very high levels, which were shown when the market has much more volatility to show and the price moves were much more intense. The moving averages are moving in parallel routes, indicating that the price action is stable at this point and it will not change in the next days.

Indicators

MACD index is constantly growing in the diagram, showing that the market has increased momentum which will be delivered at the price and create new standards for it. The RSI index touched the "sell" signal and the correction move can happen over the next sessions.

Bitcoin Cash / US Dollar

Price Analysis

Bitcoin Cash's price continues to grow at a logical pace, creating positive momentum in the market and its move with slow steps above the $270 level. This is a small victory for Bitcoin Cash as it moved to an area that was familiar from the previous bullish period. The ultimate goal for Bitcoin Cash is always $300 but this will become a reality through a lot of volumes and larger volatility expansion.

The trading volumes rose during the previous days, creating a positive effect on the price and making investors more comfortable about their positions. The moving averages are still apart from each other.

Indicators

MACD index rises in small steps, showing a progression from the last period's momentum. The RSI index is moving closer to the "overbought" area, making Bitcoin Cash investors think more about their positions.

Correlations

Bitcoin / Ethereum = 0.92 (+ 0.01), Bitcoin / Ripple = 0.34 (+ 0.04), Bitcoin / Litecoin = 0.87 (+ 0.02), Bitcoin / Bitcoin Cash = 0.85 (+ 0.01)

The correlations remained on the same level as yesterday's, showing that the market has shown a stability overview for the current period. The stability period might last for several days as the market needs a standing point that will give the potential in the market for more volatility and more ups and downs in the next periods. The change in the price means more opportunities for investors that want to have day-trading operations and make a living out of it. The long-term investors will find future opportunities to increase their value over the market position and establish a diversified portfolio with multiple assets and cryptocurrencies.

Key Notes For Today

• After hitting the 2020 high level, Bitcoin takes a stop at $13,000

• Ethereum and Bitcoin Cash followed the trend but at normal levels

• Litecoin was the big surprise in the market, hitting new highs in the local point

• Ripple remained stable, unable to capitalize on the bullish trend

Disclaimer: 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