Price Analysis (17 March): The high levels brought Bitcoin at $55,000

News • 2021/03/17 • by

Bitcoin / US Dollar

The price has remained at the same levels, around $55,000, bringing the market at a marginal level about the next steps in it. The trend will probably form a compression point around the previous all-time high level, which is normal as many investors have surrounded this point and will create more market depth in it.

The compression will also make more power to behold at those levels and it will be released when there is another major news that will bring Bitcoin’s fundamentals at a new level or the technical features on new standards.

If the compression trend continues for more days, then we will experience a similar situation to what happened last week, when the compression around $50,000 made the price climb at a new all-time high level at $61,000.

The bullish scenario will follow a path for achieving new all-time high levels but there would be a need for increased trading volumes and more investors to enter the market with higher stakes on it. The bearish scenario will drag the market back to $50,000 and probably to $47,000, creating a potential start for a stronger bearish trend that could last for more.

At this moment, the stakes are on the bullish side as there are no negative perspectives in the current situation and the market doesn’t seem to be tired from that. We expect that there would be a major move in the next period but the situation remains vague.

The trading volumes have made some spikes in the last few days, indicating that the market is moving at stronger levels while the moving averages have sustained their positive outlook for now.

In the short-term diagram, we can observe that the compression point around $55,000 has been traced over a month ago since it was the previous all-time high level. This means that the market is trying to expand its short-term cycles and establish stronger positions, taking the market at new standards that could become a reality for the next periods.

Indicators

MACD index is moving to value = 0, indicating that the market momentum will disappear from the situation if the compression continues to exist at this point. The RSI index moved around value = 55, which means that the price will remain stable with a positive outlook in it.

Ethereum / US Dollar

Ethereum continues its movement around the previous price levels around $1,800, indicating that there is more to be done for a newly established trend. The compression around the step before the all-time high level has created the standards for two scenarios that will become effective in the next period.

The bullish scenario will indicate that the price will climb back to the all-time high levels around $2,000 and if there is enough market power, it will break them, establishing a new all-time high level. This has to be done with power as there would be enough resistance in the top levels.

The bearish scenario will bring the price around $1,400, which was the shifting point for Ethereum to join the bullish side. This time, the $1,400 level could work as a support point for fueling the next bullish cycle.
The trading volumes have remained on the same levels, showing that there is not enough interest from the investors’ community to support a quick uptrend at this moment. The moving averages have remained at the same levels, indicating price stability for the next period.

Indicators

MACD index has remained on the positive side but decreasing down to value = 0, indicating that the momentum has not enough power to move the price. The RSI index moved between values 50 and 55, indicating that the price compression will probably continue at this point.

Ripple / US Dollar

The slow movements have continued to exist in the Ripple market as the price moved to $0.46, without creating a major trend on the bullish or bearish side. The price compression around the $0.45 level has been established as the standard for the current situation, without being affected by the Bitcoin market’s moves.

The compression around this price level could work as a leverage point for the market to exploit a future position for the price. The bullish scenario seems much promising for the coin but there is no fundamental support to reach higher levels above $0.60. If there is a resolution in the SEC case, we expect that there would be another round of running bulls in the market.

The bearish turn of the market will mean that the price will return at lower levels around $0.25 - $0.30 as has been mentioned in previous articles. The trading volumes have remained at low levels, indicating that investors are still in waiting mode for the market. The moving averages are on the same spot for several days, indicating that the price has not received any forces on either side to move at it.

Indicators

MACD index moved around value = 0, showing that there is no momentum in the market to make the price move at new levels. The same scenario is confirmed from the RSI index, which has remained around value = 50.

Litecoin / US Dollar

Litecoin has moved in a more corrective mode than before, breaking the support level around $200 - $210, landing around $195. Breaking the first support level in the bullish trend has been an early signal for the next steps. The next support level that could bring the price at the previous high levels lays around $170 - $180.

This support level doesn’t make the market turn at a bearish mode but there would be a new standard for the market. We expect that the market depth will be stronger at lower levels but Litecoin is heavily affected by Bitcoin’s trend, which is in stale mode at this moment.

The trading volumes have made their ups and downs during the last days, indicating that the investors are experimenting with the coin and wait for a major move in the coin. The moving averages have a small gap between them, indicating that the market has sustained a bullish mode for now but there is a probability of changing on the other way around.

Indicators

MACD index has remained on the positive side, just a pinch above the line = 0, indicating that the price will remain at the same levels. The RSI index stayed around value = 50, showing the same outlook as the MACD index.

Bitcoin Cash / US Dollar

Bitcoin Cash didn’t move since the last days, landing at $520, which is a price level when there was no previous compression experience. The market dynamics seem to affect the price formation, indicating that the price will move according to Bitcoin’s trend in this period.

The $600 point is a start for joining the bullish side again while there are no major support levels until the $360 point, which was evident from the previous period as the major resistance level. For this situation, we have to watch the rest of the market to predict the next move in the Bitcoin Cash market.

The trading volumes are increasing a little bit since the last period, indicating that there is a possibility for better days in the future. The moving averages have a small gap between them, which is bullish but not sustainable for a long time.

Indicators

MACD index passed on the negative side, indicating that the price won’t be helped in this situation from the momentum. The RSI index moved at value = 45, which means that the price will start to have a negative outlook in its development.

Correlations

Bitcoin / Ethereum = 0.92 (+ 0.01), Bitcoin / Ripple = 0.28 (+ 0.03), Bitcoin / Litecoin = 0.96 (- 0.01), Bitcoin / Bitcoin Cash = 0.92 ( 0 )

The correlations remained on the same levels, making the market move in the same direction. While Bitcoin’s price has been sustained on the same levels, the rest of the coins have been correcting at support levels that are not so strong and they can’t provide enough long-term stability.

Ethereum, Litecoin, and Bitcoin Cash have remained on the higher possible levels, indicating that the market integration might lead to a certain direction the entire market. On the other hand, Ripple continued to remain at low correlation levels, showing that any move in the Bitcoin market will affect Ripple on a small scale.