Even more Waiting as the Market Slows down

Noticias • 2021/06/02 • por

Bitcoin / US Dollar

The price dived even more in the compression point around $37,000, pressing the market to bring a new trend on the eyesight. The expectations for the next trend have been formed in more waiting for the current situation, as the majority of investors wait for a major story to hit the headlines and shape the next trend in the market.

The compression around $37,000 point will probably repeat the previous period’s scenario about its development. The core characteristics of the short-term projection is a small dive at $30,000 support level and a break above the $40,000 line, that will mark the next bullish cycle, with the major goal to be set at $47,000 point, which was the entry point for Tesla and Elon Musk.

The probability of a small correction at $30,000 will become higher if there is news in the market about environmental concerns around mining or another major liquidation from an institutional investor that decides to exit the market. We should remember that many institutional investors have entered the market at $30,000, meaning that they have gained a 20 % profit on their investment and want to claim it.

On the other hand, the $40,000 point has become a resistance point that will indicate whether the market will pass on the bullish side. A sudden break of this point will mean that a major move has been done on the investing side, sparking new positive reactions among investors.

The trading volumes have lowered during the last few days, sending another message in the market about the waiting period that we have entered. The moving averages are getting closer to each other, bringing more ambitions in the market for a bullish change in the next period.

In the short-term diagram, we can observe that the descending trend was a daily habit for the Bitcoin market before reaching a compression trend. We expect a break in the next few days for shaping the next actions in the market.

Indicators

MACD index passed on the positive side, showing some early signals about the next trend that could be brought into the market. The RSI index points on the opposite side, below value = 40, which means that there could be a further correction in the price.

Ethereum/ US Dollar

The Ethereum market has been moving around the $2,500 average. At this moment, the market looks more optimistic as the price lands at $2,700 and trying to make an expanding move above $2,800. The $2,800 point has been the upper point for the current compression period and a break at this point will bring a bullish spark in the market development.

As we can observe in the diagram below, the next support levels lay at $2,000, which was the starting point for the current bullish explosion, and at $1,800, which served as the core resistance point in the previous period. We believe that a coordinated move in the crypto market will have an accumulative result at every coin and, most importantly, in the two major markets, Bitcoin and Ethereum.

From a technical perspective also, we believe that the current compression looks quite expanding, with more probabilities to break in the next period than slowing down. The trading volumes have returned to normal levels for the coin while the moving averages have moved closer, indicating a potential positive turn in the next period.

Indicators

MACD index has increased, reaching almost value = 0. This shows that a positive momentum period could start in the market and provide more uptrend in the situation. The RSI index moved just below value = 50, indicating that the price will remain stable for the current period.

Ripple/ US Dollar

The Ripple market has reached the most crucial point in the price development, landing at $1.00. The $1.00 point has been established as the turning point between bulls and bears. The bulls, on the one hand, believe that any action above the $1.00 will bring more investors in the market and more surge will be achieved. On the other hand, if the $1.00 support level breaks down, few support levels could stop a bearish trend.

We believe that the compression trend in the crypto market will sustain the $1.00 point for a small period, before getting affected by the trends in the rest of the market.

The trading volumes have returned at previous levels, showing that investors have retained the same behavior as before. The moving averages have been more close to each other, predicting a potential change in the trend, along with the rest of the market.

Indicators

MACD index just passed on the positive side, showing similar signals with the Bitcoin market and predicting a potential bullish change of momentum in the next few days. The RSI index lands at value = 45, indicating that the market will sustain a stable outlook for the next period.

Litecoin/ US Dollar

Litecoin market has taken the slowest way in its development, showing that the investing community has not been interested in this market in the recent period. The price has landed around $180, making the compression trend become even stronger and accumulate power for the next move.

The compression around $150 and $200 has become stricter and implements clearer signals about passing in a new direction. Breaking the $200 point will bring the market to a more positive situation, following the next established trends from stronger coins in the market. From a technical point of view, the compression trend is getting closer and closer, putting more pressure on the next move in the market.

The trading volumes have been placed at higher levels than before, showing that investors are getting more involved in the market. The moving averages have approached each other, following the trend in the crypto market that will bring more positivity in the market development.

Indicators

MACD index has risen near value = 0, showing that a positive move in the market will increase the bullish momentum and add vibes in the price formation process. On the other hand, the RSI index has reached value = 40, meaning that the market will remain on a stable trend but with a negative outlook.

Bitcoin Cash/ US Dollar

The compression trend in the Bitcoin Cash has been established as a lower point from the $700 - $800 zone, just below $700. This means that the market will need more power to get above this support zone and establish a strong bullish recovery in the next period.
On the bearish scenario, we expect clear support in the $550 point, which has been tested during the last days and recovered successfully from that. In any case, the high correlation between Bitcoin Cash and the rest of the major cryptos will make the market follow any decisive move that will take place.

The trading volumes have been established at lower points than in the previous period while the moving averages are approaching each other, meaning that they will meet in the next period, changing the momentum along with the rest of the market.

Indicators

MACD index is still on the negative side but continues to rise day by day, showing that there is a chance for a change in the momentum. The RSI index lays between values 40 and 45, predicting a slow change in the price formation.

Correlations

Bitcoin / Ethereum = 0.97 (- 0.01), Bitcoin / Ripple = 0.89 (+ 0.05), Bitcoin / Litecoin = 0.96 (- 0.01), Bitcoin / Bitcoin Cash = 0.98 ( 0 )

The correlation field has not changed a lot since last time, showing that not a single asset has managed to outstand with its performance. Every asset (Ethereum, Litecoin, and Bitcoin Cash) has almost topped its correlation with Bitcoin, indicating that a single move in the Bitcoin market will spark actions and changes in the rest of the market. The change in the market might activate in the first or second time but there would be a need for consistent development over the next period. Ripple, which was the least correlated asset with

Bitcoin, seems to jump on the train also and follow the compression trend.