Bitcoin / US Dollar
The price took a small correction today, landing at $19,000. After peaking at $19,300 yesterday, the price remained on the same levels, without setting a dominant trend in the market. This move was considered as a positive situation as the trend has not collapsed from the current setting. The high prices have been sustained for quite a time, given the previous bullish trend in late 2017, which was much more intensive.
The stability in the current trend-setting will enable the market to build a support level for future use while if there is a major correction at this point, we will discover another resistance level that will become the goal for any bullish trend in the future. We told in the previous article that establish stability in the current situation will shape a "head and shoulders" formation, that often predicts a bearish move in the next period.
We believe that a decisive move upwards will break the current stability mode and create a better "infrastructure" for future uptrends. The trading volumes have been significantly lower than in previous days, showing that investors are trying to figure out if Bitcoin will continue to rise and establish higher price levels or it will correct at lower support levels. The moving averages are coming closer to each other day by day, creating a basis for a potential downtrend in the next period.
In the short-term diagram, we can observe that the short-term horizon is moving above $16,000, showing that the last three weeks have been positive for a much longer time than in the previous bullish trend in late 2017. The differences between the current and the previous bullish trend are making investors more optimistic about the next steps above $20,000.
Indicators
MACD index decreased again, making market momentum less effective in the price formation while the RSI index moved near value = 60, indicating that a potential uptrend will find a prosperous field in the current situation.
Ethereum / US Dollar
The price was brought again below the $600, creating more volatility in the current situation. This volatility is derived from the market's need to find an established trend and follow it strictly. At this moment, the price has reached a local high level that will become a resistance frontier for the rest of 2020.
The current trend is strongly correlated with Bitcoin's trend, indicating that there is no more market uptrend if Bitcoin didn't make a decisive move. The independence from the rest of the market might enable Ethereum to reach its all-time high level of around $1,000.
We believe that a future unbundling will shape the future of the market, creating a sustainable move towards an uptrend or downtrend. The market situation is going to be affected by the Ethereum 2.0 launch, which will start to deploy in the market during the next month. We will discover if this fundamental issue will affect the price formation and development in this period.
The trading volumes have been much lower than before, creating a bearish feeling in the market while the moving averages are trying to get closer to each other, making investors believe that the trend reversal might be close enough.
Indicators
MACD index decreased by a little but remained in the positive field, indicating that there is still hope in the market for better days to come. The RSI index moved at value = 60, indicating that a potential uptrend will not find resistance in the upper levels.
Ripple / US Dollar
The price remained around $0.60, creating a stable mood for the current time period. We know from the recent past that Ripple tends to compress its price at a certain level. This price compression is often followed by a decisive move in both directions. The direction determination will be shaped by the market dynamics and the bullish or bearish mood which is dominant in the market.
The previous price compression leads to a surprising bullish trend that rewards holders for over 100 % in just a few days. The price drove from $0.25 to $0.60, creating a tremendous price uptrend for establishing a bullish situation. The current price compression will probably lead to a correction in the market as the market dynamics from the rest of the market show that there is a weakness in creating long-term trends at higher price levels.
The trading volumes have been lowering every day but there are still higher than in the previous stability trend. The moving averages are still way apart from each other, creating hopes in the investing community that the price will hold in the current levels.
Indicators
MACD index is slowly decreasing every day, making slow progress in the price stability towards the value = 0. The RSI index moved between values 60 and 65, indicating that a potential uptrend will bring more support to the established trend.
Litecoin / US Dollar
The price corrected in a minor way, landing at $84, a little bit lower than the previous situation, around $90. The price is considered high at this moment, giving a positive feeling in the market. The price has formed a "double peak" situation, indicating that there might be a correction in the market, after the price fails to break the $90, the 2020 high level.
This signal might comes ineffective as the price is heavily affected by Bitcoin's trend, which is the market leader since the start of cryptocurrencies. The correlation and the market signals could not match but the market dynamics seem more important at this moment, as Litecoin lacks fundamental elements to drive the price higher.
The trading volumes have been lower than in previous days while the moving averages are almost in the same position, ready to form a reverse "Golden Cross", a bearish signal that might spark negative situations in the market.
Indicators
MACD index lands at value = 0, indicating that there is no market momentum to drive the price organically in the current situation. The RSI index dropped below value = 60, indicating that there is a growing chance for stability in the market during the next days.
Bitcoin Cash / US Dollar
The same situation is depicted today in the Bitcoin Cash market when the price drops below $290. The stability in the current situation can be considered as a negative signal as the rest of the market is trying to break high levels while Bitcoin Cash is trying to find its new direction in the market.
If Bitcoin Cash moved away from the market situation, it is possible to observe a continuous bearish move that will lead to lower price levels than before. Of course, there is a repeated over the $260 point, which will function as the first support level.
The trading volumes have been at normal levels for Bitcoin Cash while the moving averages will probably cross each other in the next days, forming a reverse "Golden Cross" in the market, a bearish signal.
Indicators
MACD index decreased, even more, moving on the negative field, showing that the market momentum is not in favor of the price formation. The RSI index lands at value = 50, indicating that more stability is coming in the next days.
Correlations
Bitcoin / Ethereum = 0.85 (- 0.01), Bitcoin / Ripple = 0.64 (- 0.04), Bitcoin / Litecoin = 0.92 (- 0.01), Bitcoin / Bitcoin Cash = 0.71 (- 0.01)
As we have described during the last days, the market has shown an impressive cohesion among its elements, creating a fully predictable line-up. This means that every move from Bitcoin in the current situation will be depicted in the other cryptocurrencies. The current situation is much more evident in Ethereum and Litecoin, which are correlated "strongly" with Bitcoin while Ripple and Bitcoin Cash are reacting much softer in the price changes. We believe that a decisive move in the Bitcoin market will bring an unbundling in the current situation, giving a small delay in the price following.
Key Notes For Today
Bitcoin made small corrections in the price diagram, landing $19,000
Ethereum dropped below $600, landing at $590
Ripple remained stable at $0.60
Litecoin corrected in a minor way, landing at $84
Bitcoin Cash dropped a little at $293
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.
