Bitcoin / US Dollar
The Christmas weekend was a very nice surprise for any Bitcoin holder as the price reached new all-time high levels, creating new profits for the investors. The price surged from $23,800 up to $28,000 but later traded around $27,400 for the majority of today's session. This trend seems to rush at a good pace, but we cannot predict with accuracy what will happen in the future especially when the price stops surging and starts to decline again.
This phase is called "price discovery" and it means that the market is looking for new resistance and support to establish in the next period while there is no previous information about how the price will be developed and how long the bullish trend will last. We can see that this trend might last for more if more and more investors continue to park their capitals in new Bitcoin investments, making the entire market to surge.
In the next period, we will see some kind of halt in the trend or even a minor correction as it is normal for some investors to liquidate their positions and take their profits. The accumulated returns are already at high stakes, creating euphoria among investors and much more greed for the prospective and existing investors. This greed is often leading to sharp moves that don't last for long. The current market depth could be considered as fragile as there are no mid-levels in the price formation to support a further uptrend.
The trading volumes have remained at high levels for the entire weekend, indicating that investors are trying to push the price at higher levels while the moving averages are clearly at bullish positioning.
In the short-term diagram, we can observe that a minor support level has been established in the previous high level of around $23,500, making the market to have another stop if the trend experienced a reversal in the next period. It is important to know that the market depth will play an important role in the trend sustainability and market formation.
Indicators
MACD index continues to grow during the entire Christmas and weekend period, showing that market momentum has grown at non-seen levels. The RSI index moved at "sell" levels, nearly value = 80, indicating that a correction or stability trend will become possible in the next days.
Ethereum / US Dollar
Investors also recieved thier Christmas profit from Ethereum as the price returned above the $600 level, landing at $630. As we have seen in previous periods, Ethereum's trends are not so aggressive as Bitcoin's, though it sustains a price level that is satisfying for the investing community. Ethereum should establish an independent formation to achieve better results in the long-term.
The fact that Ethereum has not beat the 2020 high levels is a depiction of the above statement, indicating that there is a need for more momentum to be acquired for another uptrend shortly. The fact that Ethereum continues to remain the second-largest coin in the crypto market and acts as a portfolio diversification asset, makes us believe that the majority of incoming investors are taking smaller positions in it, making the price to move more conservative.
The trading volumes have been maintained at normal levels for the market while the moving averages have come closer after the correction in the previous days.
Indicators
MACD index has not passed yet in the positive field but keeps on rising for the last days, creating a positive perspective for the market. The RSI index is still near value = 55, which means that the market will remain on the same price levels but with positive prospects for the future.
Ripple / US Dollar
Ripple tried to keep up with the rest of the market by making a positive move in prices on Thursday. Many analysts said that this was a reaction to the low prices which have been appeared in the market during the last period. But the positive reaction didn't last for long and the price continues to correct below the $0.30 level, landing at $0.27.
As we can observe from the diagram, Ripple has fully entered the bearish trend but we expect to stabilize at the current levels, as there is a lot of market depth in them from the previous period for the entire 2020. The previous stability trend around $0.25 had marked the coin as a stable alternative for any crypto portfolio.
The trading volume has lowered during the last days, showing that the price will probably be got more stable in the current period while the moving averages are still at bearish positioning.
Indicators
MACD index has moved deep in the negative area, showing that the price will not recover easily from that trend while the RSI index has moved near to value = 30, indicating that the price might fall a little bit more before start to a new bullish trend.
Litecoin / US Dollar
Litecoin remains Bitcoin's loyal follower, making the most out of every positive move in the market. Its price grew at $130 during the last days, making its investors more than happy. We have to underline that Litecoin reaches a new 2020 high level, meaning that its correlation with Bitcoin enables it to join the bullish trend.
As we can see from the diagram, the price had several backs and forth moves between $120 and $110, so Bitcoin made the path clear for a new 2020 high level and continue its positive trend for now. As long as Bitcoin continues to have a positive impact, we believe that Litecoin will surge or fall with it.
The trading volumes are held at remarkably high levels, underlining the interest from the investment community while the moving averages have a strong bullish positioning that will not change shortly.
Indicators
MACD index is continuously on the positive side and the RSI index has positioned just below value = 70, indicating that the potential of the market will come to an end soon.
Bitcoin Cash / US Dollar
Bitcoin Cash is making another positive trend in the current market situation, climbing above $300. The price surged at $325, which remains between the volatility levels that have been established during the last period. As we can observe from the diagram, the $350 point has been the 2020 high level, which is the short-term goal for Bitcoin Cash to establish a new bullish trend and restore the investors' faith in it.
The coin is making continuous surges and corrections, creating more opportunities for investors to join the market in the short-term horizon. The quick profits are always lucrative for day-traders and other categories of investors.
The trading volumes are surging during the last days while the moving averages are held on parallel positions, creating a steady outlook for the coin.
Indicators
MACD index is making small steps in the positive area, showing that there are possibilities for a further uptrend in the current period. The RSI index has the same opinion about it as the value = 55 indicates a stable outlook for the coin with a positive mood behind it.
Correlations
Bitcoin / Ethereum = 0.81 (+ 0.01), Bitcoin / Ripple = - 0.64 (- 0.24), Bitcoin / Litecoin = 0.98 ( 0 ), Bitcoin / Bitcoin Cash = 0.83 (+ 0.03)
The correlations remained on the same level for the majority of altcoins, showing the Christmas surge will come as a positive effect in the crypto market. Ethereum and Bitcoin Cash remained in strong positions, indicating that they will absorb any kind of positive or negative move in the next period. Litecoin has established an even more strong position at this moment, showing that it will be affected much heavier in case of a trend reversal. The opposite side of the bullish trend can be depicted in Ripple's case, whose correlation with Bitcoin has moved deeply in the negative correlation zone, making the market independent from the rest of the altcoins' moves.
Key Notes For Today
New all-time high levels for Bitcoin, reaching $27,300
Ethereum recovered above $600, landing at $630
Ripple remained in the previous levels, around $0.27
Litecoin reached new 2020 high levels at $130
Bitcoin Cash made some positive moves, landing at $325
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.
