Bitcoin / US Dollar
After breaking the $50,000 point, Bitcoin’s price returned below this level, landing at $47,500. The support level of around $47,000 has been proved as a strong point in the recent market development as there is enough market depth to absorb several bearish thoughts. As we have mentioned in previous articles, the $47,000 point was the entrance point for Tesla’s decision to buy $1.5 billion in Bitcoin, sparking the last part of the bullish trend and reaching the all-time high level at $58,000.
If the support level around $47,000 holds, for now, there are increased probabilities that the market will continue to flow at bullish levels, creating adding value for its holders. We expect that the price will continue to compress around the $50,000 price zone until there is a major move or news in the market that will shape the next market trend.
The compression around a certain price level brings a break in both directions, according to the momentum in the market at the future time. The bullish trend has been sustained at the highest level for over 3 weeks and this period is crucial as its sustainability will be determined from its strength against corrective thoughts from the market.
The trading volumes have remained at normal levels for Bitcoin while the moving averages have been sustained at a steady gap between them, with bearish positioning at this point.
In the short-term diagram, we can observe that the price formation is including the compression zone around $50,000, which will play the most important role in the next period for the next trend formation. The expectations could be formed according to investors’ beliefs about Bitcoin’s future.
Indicators
MACD index has remained on the negative side, proving that the market has not recovered from the correction mood. The RSI index moved at value = 50, indicating that the price will remain on the same price levels for this period.
Ethereum / US Dollar
Ethereum has moved around the $1,500 price level, creating its form of compression in the market. The price managed to avoid the first major support level around $1,400, which is a positive signal about Ethereum’s future price development.
Of course, the market will try to establish a continuation in the bullish scenario, setting the first target around $1,800. This price level was the step before hitting the all-time high level.
Like Bitcoin’s case, the compression will lead to the next phase of the market trend, completing the bullish trend and changing the trend to bearish. The fact that the correlation between Ethereum and Bitcoin remains high, making us believe that a change in the Bitcoin market will bring the change in the Ethereum market, regardless of the technical features in the market.
The trading volumes have been lowered over the last 10 days, indicating that investors are looking for the next major trend to make a move in the market. The moving averages have been positioned at bearish formation, creating a gap between them.
Indicators
MACD index has remained on the negative side, predicting that the negative momentum will continue to shape the current trend. The RSI index moved between values 40 and 45, creating a negative perspective in the market, which might lead to more corrective moves in the short-term future.
Ripple / US Dollar
Ripple has made a small, independent in the market chart, creating a stable trend around the current price level. The price has landed at $0.45, which is a familiar spot for the market as it has been observed twice in the recent past.
The first time was around late December 2020, when the price remained at those levels, before collapsing at the lower end after the SEC pressed charges against Ripple’s founders.
The second time was around early February when the price tried to establish a new bullish trend in the market and the crucial step was set around $0.45. Following this consideration, we believe that the price compression of around $0.45 will be the step for the next established trend in the market.
The compression will bring more attention to the market until another force in the market will provide capital and hype in the everyday trading life. The trading volumes have hit a bottom, indicating that there are small forces in the market that will bring the change in the market structure.
The moving averages have moved at a smaller gap between each other, indicating that the price has moved in a negative loop regarding its momentum formation.
Indicators
MACD index moved near value = 0, indicating that the negative momentum will have a medium effect on the price formation in the current period. The RSI index moved around value = 50, indicating that the price will remain on the same levels for now.
Litecoin / US Dollar
Litecoin’s price has returned at familiar levels, between $170 and $180. After touching the all-time high level of around $240, the price fell to the current levels, where the market has formed another compression level.
Around early 2021, the price hit a local high level around $175 and then it corrected back at $120. This $175 price level has formed another compression level, indicating that the price will move in both directions, according to the market momentum that will be dominant at this specific moment.
Litecoin’s correlation with Bitcoin will become the leading force in the price structure, giving more information about its future. The trading volumes have been at normal levels for now while the moving averages have a wider gap between them, which might lead to a negative trend.
Indicators
MACD index has moved at negative momentum, predicting that the side will indicate if there is more momentum in the market on either side. The RSI index moved at value = 45, predicting that the price will remain on the same price levels, with negative vibes in it.
Bitcoin Cash / US Dollar
While Bitcoin Cash has moved below the $500 point, indicating that the momentum has been at bearish levels. The $600 target is in constant sight of the market, which seems not possible in the current position. The compression level around $500 could be evident after the $600 local high level, which means that the compression will continue until the next phase.
We expect that the negative trend will continue in this period, indicating that there is more to be done for reversing the trend. The correlation between Bitcoin Cash and the other coins will have a major effect on that process.
The trading volumes have remained at normal levels, for now, indicating that investors are looking for the next trend to move their capital again. The moving averages have placed at a wide gap between them, showing that the negative trend has been established for now.
Indicators
MACD index moved closer towards line = 0, indicating that the negative momentum has been established in the market for now. The RSI index has moved between values 40 and 45, indicating that the market will move at stable levels for now but the negativity in the market will continue to establish vibes in it.
Correlations
Bitcoin / Ethereum = 0.83 (+ 0.13), Bitcoin / Ripple = 0.64 (+ 0.32), Bitcoin / Litecoin = 0.80 (+ 0.11), Bitcoin / Bitcoin Cash = 0.66 (+ 0.09)
The correlations in the market went up, showing that Bitcoin’s dynamics are starting to bring more attention to the market. The impact of Bitcoin in the price formation at other coins seems to grow at higher levels and the market leader will bring more momentum in the next bullish phase.
Ripple has made the most severe jump among others, bringing it in the medium correlation zone along with Bitcoin Cash, which is also brought in this zone. Litecoin and Ethereum returned in the strong correlation zone, depicting a heavy impact from the Bitcoin trend in those two coins. The next established trend will bring a more cohesive trend towards both directions, depending on the future situations.
Key Notes For Today
- Bitcoin moved below the $50,000 point, landing at $47,500 and establishing a compression zone around this level
- Ethereum created a new compression zone around $1,500
- Ripple moved around the same price levels at $0.45
- Litecoin has moved at familiar price levels around $170 and $180
- Bitcoin Cash has moved at bearish levels, around $500
