Bitcoin / US Dollar
Another corrective day for Bitcoin as the price landed around $18,100 today after a turning day yesterday when the Americans tried to reverse the momentum in the market but failed to do so. As we have mentioned in the previous days' articles, these small corrections should not worry investors from a technical perspective as no major support level has broke until now.
The price level around $18,000 was the standing point for Bitcoin's price before trying to break the $20,000 unsuccessfully, a scenario that could be repeated this time, with fewer possibilities than before, as there is no existing momentum in the market. The next support level exists around $17,000, which will probably be the turning point for a bearish turn in the market. Until then, we should keep an eye on the price to see how it is developed over time.
In this period, a crucial role would be played from fundamental elements like adoption rates, mining difficulty, and institutional investors. All of them have a positive impact on the price so we believe that they will affect the price in the long-term horizon.
The trading volumes are making some spikes during the last days, creating mixed feelings about how the price will move in the future while the moving averages are moving close to each other, creating a "worrying" feeling in the market about how the market will react if there is a reverse "Golden Cross" in the diagram.
In the short-term diagram, we can observe that in the high price levels, the corrections are more severe from day to day. This is something to expect as in the high levels, investors want to claim their profits in case of a surprising correction in the market. These corrections are also making the market deeper and enable the price to sustain the same levels for a longer time in a future position.
Indicators
MACD index moved even more in the negative zone, showing that the market momentum has no chance at this point to spark a reverse move in the bullish side. On the other hand, the RSI index moved to value = 50, indicating that the price will remain on the same spot for some time in the next period.
Ethereum / US Dollar
The independence didn't last for long in Ethereum's case as the price corrected today, landing at $550. Just like in Bitcoin's case, there is no reason for worrying from a technical perspective as the next support level lays at $520 so it is a normal reaction for the price to correct until this point.
Ethereum continues to have a close relationship with Bitcoin, meaning that its price formation will be affected by the established move in the Bitcoin market. If Bitcoin price finds a major support level and bounces back, Ethereum will probably do the same thing, independently from the fact that its price has met or meet a support level in its market. This relationship will continue until a fundamental issue occurs that could change the market structure.
At this point, we should highlight that institutional investors that select to diversify their portfolios by adding cryptocurrencies, usually select Bitcoin and Ethereum to start, creating a dynamic towards those two coins.
The trading volumes made some spikes during the previous days while the moving averages have moved close to each other, bringing a bearish perspective in the next period for the Ethereum market.
Indicators
MACD index moved to lower values, adding one more bearish signal in the analysis while the RSI index moved to value = 50, indicating that the price will not move from the current position for the next days.
Ripple / US Dollar
The most stable coin for the current period didn't move from yesterday, remaining at $0.55. This makes us believe that the price will remain in the current position for a certain period. We should bear in our minds that a surprising surge in the price might be followed by a surprising drop in the price shortly.
This could become a reality if the entire crypto market moved towards a bearish trend, making Ripple return to previous price levels, between $0.20 and $0.30. In any case, Ripple will probably follow the rest of the market and deliver results according to the market dynamics.
The trading volumes have been at normal levels for the current period without making any difference in the current situation. The moving averages will meet each other probably in the next two days, creating a bearish signal as a reverse "Golden Cross" will appear in the diagram.
Indicators
MACD index dropped even more in the diagram, making the market momentum to lower even more. The RSI index moved between values 50 and 55, creating a positive feeling in the market even if the outlook seems to be stable for now.
Litecoin / US Dollar
Litecoin experienced minor changes in today's session, showing that there is another trend in the market that establishes bearish feelings in every single coin. Like the rest of the market, the technical perspective shows us that the reaction is still at normal levels for the current trend, without clearly passing on a bearish trend.
The first support level lays at $70 while the next major support zone lays at $67, which was the starting point for Litecoin's bullish trend. We believe that Litecoin will follow Bitcoin closely and it will be affected by its dynamics at the end of the day. The trading volumes have sustained at normal levels while the moving averages will probably meet tomorrow as they are on the same spot. This might trigger a chain reaction in the market as it happened in the Bitcoin Cash case.
Indicators
MACD index dropped, even more, today, adding one more weight to the current trend and dropping it on the bearish side. The RSI index moved between values 45 and 50, indicating that the price will probably move steadily in the next period, with a pessimistic outlook for it.
Bitcoin Cash / US Dollar
Bitcoin Cash lays on the crucial point for passing in the bearish side as the price lays at $260, which was the turning point for the market in the entire previous period. The price will probably find a support level at this point, stabilizing the price at these levels. If the support level breaks down, the next support levels lay at $245 and $220, which have been built through the entire process.
The trading volumes are still at low levels, showing that investors are starting to lose faith in Bitcoin Cash and try to abandon the market at a certain pace. The moving averages have crossed each other, creating a reverse "Golden Cross", which stands as a bearish signal in the market. Bitcoin Cash is the first crypto that passes on the bearish side, showing the path for the rest of the market. We will see if the market will follow or resist this trend.
Indicators
MACD index is continuously dropping in the last 10 days, creating a massive negative feeling in the market while the RSI index dropped below value = 45, indicating that there is more negative feeling in the market that might lead the price at lower levels.
Correlations
Bitcoin / Ethereum = 0.89 (+ 0.10), Bitcoin / Ripple = 0.42 (+ 0.13), Bitcoin / Litecoin = 0.84 (- 0.01), Bitcoin / Bitcoin Cash = 0.53 (+ 0.04)
The correlations brought again the stream on the positive side, showing that the market will try to harmonize its movements according to the market leader, Bitcoin, and how it reacts in the constant pressure for breaking the $20,000 frontier. More specifically, Ethereum established even more in the "strong" correlation zone. The same thing happened for Ripple but in the "medium" correlation zone. Litecoin and Bitcoin Cash have milder reactions and remained on the "strong" and "medium" correlation zones respectively. We believe that the harmonization will take some time in this period to achieve more predictable results shortly.
Key Notes For Today
Bitcoin corrected a little bit more at $18,100
Ethereum dropped at $550
Ripple remained at $0.55
Litecoin tried to hold the $75 point
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Bitcoin Cash lands at the support level at $260
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.
