Bitcoin / US Dollar
The price is heading for another uptrend, as it climbed from $33,000 to $36,000 in just two days. As we have highlighted in our previous articles, the two major compression points in the market will determine the next trend in the market. The compression points at $30,000 and $36,000 respectively and their break will mean that we have strong indications about a future bearish or bullish market.
At this moment, the price is touching the upper compression point around $36,000, meaning that there are greater possibilities for a positive outcome from the situation. In the next days, if the price continues to surge and breaks the compression point at $36,000, we believe that the next stop will be around the all-time high level of around $41,000.
If the price corrects towards the $30,000 point, we believe that the compression trend will continue to exist and the decisive move will be delayed once more. The price movements will be related to the respective trading volumes, which will give an extra boost to the trend. The trading volumes have been sustained at normal levels, indicating that a strong entrance will give the decisive hit for a fully bullish market. The moving averages are about to cross each, at a bullish formation, indicating that a break of the $36,000 compression point might lead to a further uptrend.
In the short-term diagram, we can observe that the compression trend has been much more intense and we expect that a break of that trend will establish the next major trend, bullish or bearish. Usually, a compression trend lasts for several weeks before release, so we expect a new trend-setting period over the next weeks.
Indicators
MACD index passed on the positive side, adding another index that claims we have entered a more positive period while the RSI index has passed between values 55 and 60, indicating that there are positive prospects in the market.
Ethereum / US Dollar
A new all-time high level was recorded for Ethereum as the coin broke the previous high level around $1,420 and established a new one at $1,550. This positive trend indicates that Ethereum has formed an independent bullish trend that aims to create more profits. After sustaining its high levels during the previous period, Ethereum's price made more investors trust it and create a unique momentum that enables it to capitalize on this trend.
As we know from previous cases, breaking the all-time high level should be done with fierceness, otherwise, the resistance level will hold the trend and the price will stop its rise. In this case, Ethereum breaks the previous resistance level and reached new levels, finding itself in a favorable position.
The next period will be a price discovery period for Ethereum unless there is a stiff correction in the market collapses the market development and the price returns at lower levels. We expect that Ethereum will affect the rest of the crypto market much more heavily than before, creating more important inter-correlations with other cryptocurrencies.
The trading volumes have made small spikes during the uptrend, indicating that investors have entered the market with specific purposes. The moving averages have sustained a steady path, shaping the positive trend since its start.
Indicators
MACD index passes on the positive side, creating more bullish prospects for the future while the RSI index moved around value = 65, indicating that the positive trend will continue for more, extending Ethereum's profitable positions.
Ripple / US Dollar
Ripple's price corrected after the hype created from the Wall Street madness slowed down. In this weird story, individual investors passed from "memes" stocks like GameStop, AMC, and Nokia to the "meme" coin, Dogecoin. After this heat, a critical mass of this trend passed on Ripple, driving its price to $0.75.
This surge didn't last for long as traders claimed their profits and liquidate their positions, leading the price to lower levels, around $0.38. Even if this is a major correction in the market, the price landed at a higher level than expected. This could mean two things. The first thing is that there might be another corrective trend in the market, leading the price to the previous price levels between $0.20 and $0.30.
The second thing is that there might be a positive evolution from the current position if the fundamental issues seem to get better. If the second scenario comes into reality, the surprising element will continue to dominate the market.
The trading volumes have been formed a spike during the last days but things seem to get more normal while the moving averages are still at bullish formation.
Indicators
MACD index has remained on the positive side for a long time, indicating that the prospects for the market were always positive. On the other hand, the RSI index returned on the "safe" zone, landing around value = 55, indicating a certain stable projection with a positive outlook for now.
Litecoin / US Dollar
Litecoin is making another positive move in the market, depicting Bitcoin's effect on the market formation. The price rose from $130 to $150 during the last two days. Those moves could be milder than expected as Bitcoin's moves have more impact on the market but there is no trading capacity to fill them out.
In any case, the Litecoin market has remained on a compression mode for long enough to sustain this provision shortly and this trend will have the same luck with Bitcoin's established trend. The trading volumes have remained on the same spot, confirming the stability projection for now. The moving averages are close enough to cross at a bullish formation, indicating that the established trend will follow Bitcoin loyally.
Indicators
MACD index passed on the positive side, following that Litecoin is following Bitcoin's trend closely and it won't escape from that soon. The RSI index moved between values 55 and 60, predicting a stable period with a positive outlook for the coin.
Bitcoin Cash / US Dollar
A similar scenario is depicted in the Bitcoin Cash market, as the price rose to $430 during the last few days, making a try to break the negative trend formed during the last month in the market. A positive trend will overthrow the previous trend and try to bring Bitcoin Cash on the winning side.
We expect that Bitcoin Cash's recovery will be much slower than in other coins and it could not reach the previous high, formed around $600. The trading volumes have remained at normal levels for Bitcoin Cash while the moving averages are at bearish positioning, indicating that there is a need for more uptrend before the market enters a positive path that will lead to better-performing results.
Indicators
MACD index remained on the negative side, indicating that even if the price surges, the momentum has not come back in the market. The RSI index remains around value = 50, showing that the market will move at a stable rate during the next period.
Correlations
Bitcoin / Ethereum = 0.26 (+ 0.42), Bitcoin / Ripple = 0.18 (+ 0.13), Bitcoin / Litecoin = 0.81 (- 0.02), Bitcoin / Bitcoin Cash = 0.74 (- 0.12)
The correlations started to split again on the table, creating a different image from the previous week. From the current situation, we can extract that Ethereum is making a leading move in the market and tries to push Bitcoin on the same page. Ethereum's try to establish a leading position in the market brings another set of standards in the crypto market, that probably be evident in the correlation vector. Ripple has started to grow again but today's correction will bring it to the normal levels. Litecoin and Bitcoin Cash has remained on the same page, sustaining a positive stance against Bitcoin for the current period and hoping for another uptrend.
Key Notes For Today
Bitcoin is making positive steps, reaching the upper compression point at $36,000
Ethereum hits a new all-time high level at $1,550
Ripple corrected after the spike at $0.38
Litecoin made a rebound at $150
Bitcoin Cash continues to grow at $430
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.
