Bitcoin / US Dollar
Price Analysis
Bitcoin corrects during the weekend, wiping out long positions' profits if not liquidated. The support level around $ 8,500 holds the downtrend, forming an upper triangle, topping at $ 10,000. The correction for the market is not something that we didn't expect as the prices are moving within the boundaries of the trending channels.
This time, we are going to examine Fibonacci Retracement, an indicator that tries to predict the price's next moves according to Fibonacci's sequence. In the below diagram, we should highlight 3 points. The first retracement is the short-term retracement in value = 1 when the price reaches $ 9,500, a possible outcome in the near days. Taking into consideration Bitcoin's volatility, the bottom for Fibonacci's index is near $ 6,500, a bearish outcome. On the other hand, the bullish outcome in value = 1.618 (the golden ratio) is around $ 11,350.
In the short-term diagram, we saw a retracement around $ 8,800, developing a long position that could reach $ 10,000 and a short position that could reach $ 7,600. The $ 7,600 point forms a resistance point, that if it breaks, the price could slope even at $ 6,900. All the above numbers are proposed from Bollinger Bands use. Using this strategy, we expect more downtrend in the upcoming days for Bitcoin while absorbing power for a further rise in the future.
Indicators
The MACD index breaks the baseline downside, creating a bearish signal after almost a month with positive values. On the other hand, the RSI index, predicts successfully the correction as the overbought signals appeared last week. The RSI value is around 53 points, showing that there is stability in the market at this moment.
Ethereum / US Dollar
Price Analysis
As expected from the previous analysis, the horizontal channels break with a sharp move. This time, the sharp move was downwards, breaking the $ 195 down limit, reaching $ 185. The same spot formed a support level, similar to early-March, which stops the downtrend for some days. After we examine the Fibonacci retracement to highlight some points. The first point is on value = 1, at $ 195, the down limit for the horizontal channel, a possible outcome for the next days. At value = 1.618 (the golden ration), the bearish outcome is $ 175, an 8 % downtrend while at value = 0 , the outcome is $ 227. The bullish scenario remains extremely ambitious for the moment unless there is a fundamental change in Ethereum that will shape another trend.
Indicators
Like Bitcoin, MACD breaks downside the baseline creating negative values after mid-March. In the RSI index, the values are in the middle of the boundaries, with no clear signals regarding a major change in trends.
Taking into consideration, trading volume with technical signals we expect a further correction in the next days, in correspondence with the Bitcoin trend. The correlation between the two assets will be examined in the next days.
