Bitcoin / US Dollar
Yesterday, the compression trend broke out of the descending triangle, climbing up to $39,000 point. This was a positive move from the market, confirming that the previous analysis was correct and the compression had started to be heavier and heavier in the market. The positive trend didn’t manage to establish a stable position around $39,000, making the next step easier.
In this case, as we have described in previous articles, the next step would be the climb above the $40,000 level, establishing a potential bullish uptrend sold. This didn’t happen today as the market corrected the compression trend around $36,000, vanishing into thin air every short-term possibility for quick recovery at previous bullish levels.
From this point and on, we expect that the compression trend will probably continue to exist and shape the market development. The fact that the price couldn’t reach higher levels is considered a negative element that will pass negative vibes in the next trend. Thus, we believe that more compression in the current situation will end up on the bearish side of the market, bringing the market in a worst position than now.
The most promising part of this situation is that the $30,000 point has developed enough market depth to absorb any bearish trends heading towards it. The compression will bring more in the short-term future.
The trading volumes have returned to normal levels while the moving averages will probably cross each other in the next few days, marking a potential turn in the market movements.
In the short-term diagram, we can observe that the crucial point for exiting the current compression trend will be around $40,000, showing that the market will need to bring more momentum to reach higher price levels.
Indicators
MACD index made some positive steps on the bullish side, managing to retain it despite the sudden correction. The RSI index moved below value = 40, indicating that there is more downtrend on the horizon for Bitcoin.
Ethereum / US Dollar
Like Bitcoin, Ethereum tried to jump above $2,800, its upper compression zone level, but the market had other plans for it. Today, Ethereum returned at the compression point around $2,500, looking unable to break the system and move its path in the market.
As we saw in the recent past, Ethereum could take care of its business alone, establishing long bull runs without any Bitcoin push. This might also happen if there is a story that will exploit Ethereum’s usefulness in a different market or area with a significant impact on its scalability and potential.
Given this perspective, we can say that any support levels above the $2,000 level will be strong enough to establish a base for the next bullish trend in the market. On the other hand, we will be more optimistic if the price manages to climb above the $3,000 point, setting the pace for the upcoming bullish trend.
Since the previous period, the trading volumes have lowered, showing that the market will try to calm down as everyone is waiting for the next move. The moving averages have been closer than ever in the recent period, making investors believe in a change in the momentum.
Indicators
MACD index passed on the positive side, indicating that the bullish momentum will try to gain points for the price formation. The RSI index moved towards value = 45, indicating a stable positioning for the short-term period.
Ripple / US Dollar
On the other hand, Ripple tried to hold the $1.00 level, but the negative mood in the market made the price correct around $0.90 - $0.92. Even if the $1.00 is the major point of this compression trend, the price has not broken any levels that will spark a reaction negatively.
This compression trend has a lower boundary around $0.80, which means that a bearish move below this point might result in more serious corrective results as there are no support levels between $0.80 and $0.60. This crucial space in the market will determine if Ripple will establish the high levels as the new standards for the market or return in the lower price levels, even around $0.25 to $0.30, with a more stable outlook for the long-term horizon.
Ripple had experienced a more volatile uptrend during 2020 and 2021, which indicates a volatile return in the previous levels. This volatility can benefit traders that want to exploit this feature in the short-term run and look to find similar opportunities in the crypto market.
The trading volumes have returned at normal levels while the moving averages are getting closer to each other.
Indicators
MACD index passed on the positive side, indicating that positive momentum will enter the market. The fact that the index lays near zero means that more stability will enter the market in the recent period. The RSI index moved between values 40 and 45, predicting a stability trend with a negative outlook for the short-term horizon.
Litecoin / US Dollar
The corrective move in the Litecoin market didn’t catch by surprise anyone in the space as the $170 point has served several times in the past (and in this compression period also) as a support point. The compression lays between $200 and $140, meaning that the average of this will point around $170. The upper and lower levels could serve as our indicators regarding the next move in the market and predict the next established move.
A decisive move in the specific market will be determined from stronger coins. Thus, we need to close the correlation chart to catch any changes that will mark a change in the relationship.
The trading volumes have decreased during the last period, while the moving averages have to get closer because the market has compressed at lower points.
Indicators
MACD index passed on the positive side, marking a potential return of momentum in the market. The RSI index moved at value = 40, predicting a further correction in the market.
Bitcoin Cash / US Dollar
The compression trend in the market lost the zone between $700 and $800, broke down, and lands today at $650. Even if the correction can be considered a severe one, the $550 support level can stay strong until now, bringing a new status in the market.
This support level will mark the pass on a fully bearish trend, and the opposite side, a pass on the previous zone, can stand as the first step for the next bullish trend. We expect that the next decisive move to follow a general reaction in the market on either side.
The trading volumes have been lowered since the last period, making the market more stable in sudden moves. The moving averages are getting closer as the market stabilizes around a certain point.
Indicators
MACD index moved near value = 0, predicting a certain period of no moves in the Bitcoin Cash’s price. The RSI index moved to value = 40, which means that the market will probably correct even more and follow a bearish path before hitting a support point.
Correlations
Bitcoin / Ethereum = 0.94 (- 0.03), Bitcoin / Ripple = 0.91 (+ 0.02), Bitcoin / Litecoin = 0.94 (- 0.02), Bitcoin / Bitcoin Cash = 0.95 (- 0.03)
The correlations remained on the same strong level, indicating that the market has taken a solid approach towards the next direction. At this moment, every major altcoin has established a correlation above 0.90, predicting that the next trend in the market will affect every asset in it.
As we can see from the above analysis, the market didn’t manage to overcome the compression trend and continues to lay on the same levels, waiting for a story that will shake up the investing community and define the next trend in the entire market.
Key Notes For Today
- Bitcoin landed back at $36,000 after trying to break through a bullish trend around $39,000
- Ethereum returned at $2,500 after reaching $2,800
- Ripple broke down the $1.00 point, landing at $0.90
- Litecoin made another turn inside the compression trend at $170
- Bitcoin Cash breaks the zone between $700 and $800, landing at $650
