Bitcoin / US Dollar
The bearish price trend or correction seems to stop for now as the $34,000 point proved to be strong enough in the current situation. In the previous article, we described two main issues that could shape the next moves in the Bitcoin market and consequently in the entire crypto market.
The first thing is that every new all-time high level is often followed by a steep correction that depicts the portion of the market that is happy with the accumulated achieved return and decide that they should liquidate a part of their placements, adding cash in their portfolio. As usual, investor do not liquidate their entire position in the market. Rather, they continue to have an interest in that asset for the short-term future.
The second thing is the fact that many institutional investors entered the market above $30,000, indicating that not many massive liquidations will take place before the price reaches higher levels than the current ones. Institutional investing is based on a long-term decision-making process and the decision for liquidating an investing position is taken under severe consideration.
The next steps for the Bitcoin market are to find the market depth that will make the bearish market to stop for now and create the potential benchmark for continuing to grow in the future. We believe that this point will be above the $30,000 level but we have seen reports from several analysts that predict a drop in the price up until the $24,000 price level. After hitting this benchmark, the market will be clear from bears and new followers will drive the price at higher levels.
The trading volumes have remained at normal levels for Bitcoin after the sell-off spike happened a couple of days ago. The moving averages have been stabilized at a steady gap between them, providing a stable outlook for the present situation.
In the short-term diagram, we can see that this trace-back brought the market at a loop between the $22,000 and above, including the $24,000 and $30,000, two possible points when the bearish market can drop in the next period.
Indicators
MACD index passed on the negative field, indicating that no momentum in the market could make the price to rebound. The RSI index fell to value = 60, indicating that there is still hope in the market for another surge shortly.
Ethereum / US Dollar
We can see that Ethereum had the same reaction in the price formation with Bitcoin, indicating that its market is heavily influenced by it. The price stopped its short-term correction at $1,050, creating a "safe" net between the current price levels and the psychological barrier of $1,000.
The price will probably follow two main trend-setters. The first is the technical elements that are shaping the current market situation. The main technical element is the first support level that lays around $750, a point far from the current price levels. The second is the market dynamics, where Ethereum seems to be dependent entirely on the Bitcoin dynamics. This could prevent a situation where the price will move bearishly until the $750 support level and create new standards for the market.
The fact that the market depth has been accumulated at lower price levels means that Ethereum could not grow sustainably at higher levels and it will remain dependent on the market leader. The trading volumes show that the major sell-off season has been over and the market will try to look the other way as soon as possible. The moving averages have been bent at this moment and create a more stable difference between them.
Indicators
MACD index passed at a negative field, making Ethereum look again in the momentum sector and see that it needs more boost to drive the price higher. The RSI index has remained around value = 60, indicating that a price recovery is possible in the next period.
Ripple / US Dollar
Ripple's price remained on the same spot as in the previous days, showing that the price volatility has been reduced significantly during this period. This could be derived from the fact that many crypto exchanges have reduced the available liquidity in the market.
The price has remained around $0.30, indicating that the coin will move at a stablecoin model, which shows that the speculative aspect of the coin will be reduced in the short-term future and it will serve as a medium for transactions from its users. The future of the coin is pegged with the SEC charges and the price formation will be determined from the overall situation in this case. Until a final decision is made, there are little things that we can predict about Ripple's future.
The trading volumes have been lowered during the last days, highlighting the liquidity problem in the market while the moving averages have turned in a bullish formation, predicting a positive return in the next period.
Indicators
MACD index has remained on the positive side, maintaining an advantage for this period for not dropping at lower levels. The RSI index remained around value = 45, indicating stability in the market with a negative outlook in it.
Litecoin / US Dollar
Litecoin's price remained around $140, after stopping at $135. This stop was evident from Bitcoin's trend and Litecoin followed it loyally. The major support level around $130 plays also an important role in the current situation as it won't let the price slip further at lower price levels.
The market dynamics are more important in this situation as the core competence is Bitcoin, which affects the entire capital flow in the crypto market. We expect the price to continue at the same or a delayed pace according to the direction of the Bitcoin market. The next period will be crucial for this relationship and we expect more to be done about it.
The trading volumes continue to surge, indicating that the investors have placed capital in the market and want to track them as well as possible. The moving averages have continued to move towards each other, creating concerns among the investing community.
Indicators
MACD index moved for a third consecutive day at negative rates while the RSI index moved at value = 50, indicating that the price will remain in the same place for some time in the future.
Bitcoin Cash / US Dollar
Bitcoin Cash's price corrected around $450 and today it rebounded at $475, following the market's lead dynamic trend. Bitcoin Cash has been making some ups and downs during the last sessions, creating uncertainty among investors about its next moves.
The alignment with the rest of the market makes Bitcoin Cash another viable investment option for crypto investors. We expect the price to move at the same or delayed pace with the market leader, creating the profit margins that we experienced in the recent past. The trading history was not in favor of Bitcoin Cash but there are always ways that an investor could make a profit out of any situation.
The trading volumes have made some spikes during the previous days but they return at normal levels. The moving averages have started to move in the opposite direction, creating a level of uncertainty in the market.
Indicators
MACD index remained on the positive field, sending mixed signals about the future price formation. The RSI index moved between values 55 and 60, indicating that future stability has a positive outlook in it.
Correlations
Bitcoin / Ethereum = 0.96 ( 0 ), Bitcoin / Ripple = 0.44 (+ 0.21), Bitcoin / Litecoin = 0.87 (- 0.07), Bitcoin / Bitcoin Cash = 0.84 (- 0.03)
The correlations show that there is a mix in the market direction that was given after a halt in the declining prices . We can see that Ethereum has remained on the highest level of correlation, showcasing that there would be a more comprehensive approach in market integration. The other 2 coins (Litecoin and Bitcoin Cash) that follow a closer outlook towards the Bitcoin trend have made a step back, showing that they couldn't follow Bitcoin in the same positioning regarding the price formation's pace. On the other side, Ripple's correlation continues to grow as the coin seems to return in the normal trendsetting forms, at least for now.
Key Notes For Today
Bitcoin got stabilized above the $34,000 price level
Ethereum received the same stability around $1,050
Ripple remained around $0.30
Litecoin made a rebound at $140
Bitcoin Cash made also a rebound at $475
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.
