Price Analysis (10 March): A new positive jump in the Bitcoin market!

News • 2021/03/09 • par

Bitcoin / US Dollar

The compression point broke down during the last days, making another bullish turn in the market. The price increases at $55,000, bringing new capital to the market and establishing a new bullish trend in the market. Even if this is a positive move in the market formation, we believe that the next steps in the bullish path will be more difficult and the expected resistance will be much stronger.

As we had mentioned in previous articles, the bullish market will probably climb until the previous all-time high level at $58,000, which will serve as the major resistance point in this trend. Breaking the resistance level will be a part of a new bullish cycle that will give enough boost in the market to jump above the all-time high level.

If the price climbs in the all-time high levels and stays on them, the most possible scenario would be a correction again as there would be no interest from the investors to move again on these levels. We expect the price to move positively until the all-time high levels and the rest will be drawn, depending on the future situation.

The trading volumes have remained at normal levels, indicating that the investors are still indecisive about its future. The moving averages crossed each other, creating a “Golden Cross” signal, which has brought a positive mood in the market at this point.

In the short-term diagram, the compression is much more evident in this situation, indicating that the price will remain on those levels if there is a normal reaction in the technical perspective of the market. The two crosses between the moving averages are also a misleading event that could bring less attraction in the market.

Indicators

MACD index passed on the positive side, indicating that the market momentum has changed and we believe that there would be more in the short-term future. The RSI index moved to value = 65, indicating that the price will continue to grow, at least until the all-time high level at $58,000.

Ethereum / US Dollar

Ethereum was also another positive reactor in the crypto market, bringing more positive momentum and driving the price at higher levels. The price landed at $1,830 today, breaking the first resistance and support level in this situation. This level has been the previous step before the price entered the all-time high levels around $2,000.

Apart from that, the current situation depicts a similar move like in the previous period, when the price was ready to boom and establish higher levels. We expect that the price will try to break down the previous all-time high level at $2,000 and establish a new all-time high level.

This could happen if there is a major move in the market that will make the price jump above the all-time high level and if Bitcoin continues to have a positive stand in the current market formation. We expect that the price will find resistance in the all-time high level at $2,000, where there is more compression to be done if the situation remains at the same levels.

The trading volumes remained on the same levels while the moving averages will cross each other today or tomorrow, bringing another positive signal in the market and boosting the positive trend even more.

Indicators

MACD index passed on the positive side, indicating that the market has brought more positive momentum in the price formation. The RSI index moved at value = 60, indicating that the price will continue to grow until they find the all-time high level.

Ripple / US Dollar

Ripple remained on the same price levels, around $0.47. This fact shows that the market is not flexible at positive changes, which means that it might lose a part of the bullish trend that is being formed at this moment.
The market has entered a compression trend during the last week, indicating that a sharp move would be highly possible during the next period. The two scenarios in this situation are the below:

The positive scenario will make the price climb above the $0.50 point and establish new high levels around $0.60 with a more sustainable price development over the next period. The negative scenario will bring the price to lower levels that are familiar with Ripple, moving around $0.25 to $0.30 and creating a more stable situation for what will follow in the next weeks.

The trading volumes have plummeted during the last month, with small exceptions, indicating that investors are looking for the next big move to make up their minds about the coin. The moving averages have moved close to each and we will observe a positive cross in the next days, a fact that will be without any point if the market continues at compression mode.

Indicators

MACD index has moved at value = 0, indicating that the momentum plays no role in this situation and the price will probably remain on the same levels. The same opinion is deriving from the RSI index, which has landed at a value = 50.

Litecoin / US Dollar

Litecoin was the second positive reactor in the market after Ethereum, which delivered a positive result in price formation. The most important thing was the coin topped at $200, which has remained a psychological and technical point for the market.

As we can see in the diagram below, the $200 - $210 zone was the previous step before the coin reaches the $240 all-time high level. We expect that a similar scenario will be repeated this time and we hope that the price will jump above the $240 level, establishing a new high level in the market.

If this scenario becomes a reality, Litecoin will become one of the core competencies in the crypto market, bringing more and more investors on its track and expanding its market capitalization.
The trading volumes have been sustained at the same levels, which might appear at a small decrease while the moving averages will probably meet each other in the next days, forming a “Golden Cross” and establishing a bullish trend in the market.

Indicators

MACD index passed on the positive side, bringing a new boost in the price formation through the momentum factor. The RSI index has not reacted as expected as it remained below value = 60, indicating that the price development will be much slower.

Bitcoin Cash / US Dollar

Bitcoin Cash has remained in stable mode, not able to capitalize the Bitcoin’s trend at the first sight, but adapting to this situation much slower. The fact that its price grew from $500 to $540 was a positive indication but the rest of the market is already being traded at higher levels, showing that Bitcoin Cash is lacking competitive advantages in the long-term perspective.

As we have mentioned in previous articles, Bitcoin Cash is much more suitable for short-term trading, which is a way to include it in any investor’s portfolio. The trading volumes have been at extremely low levels while the moving averages will meet each other, forming a positive signal for the next period in the market. We should highlight the volume condition, which is crucial for the next bullish trend

Indicators

MACD index is moving slowly on the positive side, but the values have not passed at it yet. The RSI index has moved at value = 50, indicating that the price will stand at this price level for now.

Correlations

Bitcoin / Ethereum = 0.97 (+ 0.05), Bitcoin / Ripple = 0.82 (- 0.06), Bitcoin / Litecoin = 0.93 (+ 0.06), Bitcoin / Bitcoin Cash = 0.85 (- 0.01)

The correlation coefficients have moved in different directions, indicating that the new positive jump in the Bitcoin market has brought different reactions. Ethereum and Litecoin have followed the jump from Bitcoin’s side, increasing their correlation with the market leader and establishing a stronger position in the market.

On the other hand, Ripple and Bitcoin Cash, although they are moving in the strong correlation zone, have not moved in the same way. They remained stable, bringing their correlations to lower levels. We expect that the market will try to move consistently so the rest of the coins will follow the major trend.