More Ranging, more Waiting for Investors

In the support zone, the levels between $30,000 and $36,000 were entry points for many institutional investors in the crypto market. Institutional investors tend to hold their investments for larger periods without liquidating unless there is a strategic option that makes us believe that the price won’t drop more in the current situation.

If there is a massive sell-off from large wallets, the $30,000 support zone will vanish into thin air, but this is far from now, from a technical point of view. We expect that a new story will make the price follow a new path.
The trading volumes have remained on the same levels while the moving averages will cross each other in the next days, forming a bullish “Golden Cross.”

In the short-term diagram, we can observe that the compression period is entering a single price chart, meaning that its focus and potential change in the trend could become more massive in the short-term future.

Indicators

MACD index moves in the positive area, indicating a positive potential for the next trend in the market. In contrast, the RSI index moved below value = 40, showing that another downtrend is possible.

Ethereum / US Dollar

An ascending triangle has formed in the Ethereum market, predicting a break move in the recent future. This formation often predicts a bearish change in the market as the upper level, which is a resistance point, has been proved strong, and the market trend can’t break it during this period. Thus, the market collapses towards a lower point with more market depth and tries again to climb back.

In this case, Ethereum has found a local resistance point around $2,800 that will serve as the next frontier for passing in the next trend. Suppose Ethereum manages to break this resistance in the next few days and establish a higher level, preferably above $3,000. In that case, the bullish market will become the major trend in the market, probably affecting more altcoin markets.

On the other hand, if Ethereum couldn’t manage to break this level, the possibilities of a new bearish wave will be much higher than before. We expect a change in the market after a couple of days, depending on the action regarding the $2,800 level.
The trading volumes have returned to previous levels while the moving averages formed a “Golden Cross,” meaning that the market will bring more positive feed in the current situation.

Indicators

MACD index continued to rise in the bullish area, proving that more positive momentum has poured in the market while the RSI index has climbed to value = 50, predicting a stable movement from this point and on.

Ripple / US Dollar

The compression trend in the Ripple market continues to establish along with the $1.00 point. After making moves on the upper and the lower side, the trend seems to come back at this point, reaching $0.96.

In this case, we need to refer to some analysts’ views about Ripple and its future. The “stable $1.00 scenario” depicts a future for Ripple, which serves as a stablecoin for a vertical market or applications, providing a blockchain network with concrete security layers and scalable potential. This means that Ripple will stop being a speculative asset without price divergences and fluctuations.

This is a strategic option that will bring Ripple out of trading interest, reaching customers outside trading markets. The established deals from the financial world could bring Ripple on the verge of this kind of decision, and the management team will be responsible for that.

From a technical point of view, the compression will suddenly change the trend, which remains difficult to predict as there are no signals for one direction or another.
The trading volumes moved at lower levels, showing that investors wait for another move while the moving averages are about to meet each other and form a “Golden Cross.”

Indicators

MACD index has passed on the positive area, pouring a bullish vibe in the market. The RSI index moved around value = 45, meaning that the market will bring stability in the price formation.

Litecoin / US Dollar

Litecoin’s price reached $180, moving in the boundaries of the compression zone, between $140 and $200. Both Litecoin and Bitcoin Cash seem weak to break any new ground and wait for confirmation from larger coins to move. As we have told in previous paragraphs, the compression leads to a breakout and new trend establishment.

In Litecoin’s case, this would be more difficult as the asset will have to get out of the zone, with a decisive move, bullish or bearish. This will require more effort in the price formation, leading to milder reactions from the investors’ side. We expect a change in the market mood once a decisive move from larger markets like Bitcoin or Ethereum.

The trading volumes have lowered significantly since the last period, and the moving averages will probably meet in the next days, forming a bullish “Golden Cross.”

Indicators

MACD index has moved positively in the green area, showing a potential uptrend for the market, while the RSI index moved between 40 and 45, establishing a stable outlook for the market.

Bitcoin Cash / US Dollar

An asymmetrical triangle has been formed in the Bitcoin Cash market, showing that the compression has strengthened and delivered more pressure for the next trend’s establishment. The major compression point lays around $700, while the price has been around $660 for now.

If the compression continues to strengthen during the next days, we expect a change in the price formation that will follow the established mood in the rest of the crypto market. The positive scenario will hint if the market manages to break the upper level around $800 and bring more investors that will lead the market above the $1,000 line.

On the other hand, the major support level lays at $550, bringing a solid approach to the current situation. The trading volumes have lowered since the last period, and the moving averages will meet in the next days for a bullish cross between them.

Indicators

MACD index passed on the positive side, bringing more bullish energy on the field. The RSI index moved around value = 40, predicting a potential downtrend in the next period.

Correlations

Bitcoin / Ethereum = 0.66 (- 0.28), Bitcoin / Ripple = 0.80 (- 0.11), Bitcoin / Litecoin = 0.85 (- 0.09), Bitcoin / Bitcoin Cash = 0.86 (- 0.09)

Even if there are still under compression pressure, the moves in the crypto market show that the change might come earlier than expected in the established trend. The correction was evident in all major altcoins, with Ripple, Litecoin, and Bitcoin Cash to diminish their correlation with Bitcoin.

Although there was a reduction in the correlation, they remain in the strong zone. On the other hand, the bearish vibes from the Ethereum market made the coin separate itself from the rest of the market and dropped in the medium correlation zone. This change in the market formation could be an early signal for a new trend development that could shape the next period in the crypto market.

Key Notes For Today

• Bitcoin remained around $36,500, continuing to press on the compression point
• Ethereum hit the upper level of the compression zone at $2,800
• Ripple tries to reach $1.00 as its center of the compression trend
• Litecoin made a small move in the compression zone, at $180
• Bitcoin Cash remained at $660, with no significant change in the market formation