Bitcoin / US Dollar
Bitcoin had another winning day today, reaching $16,000. The price landed at $15,900, indicating that the uncertainty in the traditional market is fueling the crypto market and more specifically Bitcoin, which remains the center of attention. As we can see in the diagram, the level around $15,000 created some depth in the market, with more volatility and more chances for building new positions in the chart.
An experienced investor or at least someone that knows basic stuff about investing will build his position according to several metrics and will take into account the trends and how much he should buy or sell, according to the status of the market. In a bearish trend, a thoughtful investor is always trying to protect his capital by liquidating a part of his positions but also looks out for new opportunities to re-enter the market and achieve better returns in the future.
On the opposite scenario of a bullish trend, a thoughtful investor is looking actively to secure some profits by liquidating a part of investing positions while looking for several ways to exploit every possible trend in the market. This is the proper approach for rational investors that want a healthy amount of risk and return in their portfolios. In the current situation of the Bitcoin market, the price has been at 2020 high levels and it would be normal for some investors to be happy with their returns and will start to liquidate their positions in the market. On the other hand, the decentralized and deflationary nature of Bitcoin and its excessive returns have attracted many institutional investors with larger wallets that have and will inject more cash in the market, creating bullish perspectives.
On the technical side, we expect the market to continue to grow above $16,000 in the next days with a possible correction of around $15,000 at a first step and around $12,000 at a second step. If the correction trend remains above $12,000, the next price surge will be much higher than the current one. In the opposite scenario, the price surge will continue above $16,000 and it will possibly break the previous all-time high level above $20,000.
The trading volumes have been sustained at high levels during the last hours while the moving averages are on the safe distance between each other.
In the short-term diagram, we can observe that the only correction time in the short-term bullish trend is the level around $15,000, where the market made a small stop. This stop might be correlated with Pfizer's announcement about the coronavirus vaccine, which predicts a safer future with fewer uncertainties in its formation.
Indicators
MACD index continued in a positive field, without any major breakouts but providing the market with steady momentum from period to period. The RSI index continues to grow above value = 70, indicating that investors should consider selling the asset as it is considered "overvalued".
Ethereum / US Dollar
Ethereum remained stable today, landing at $460 and trying to reach the previous 2020 high level at $480. As the market tried to consolidate powers in the $450 level, another major power from Bitcoin correlation came and force Ethereim's price at higher levels. The goal for this period is to reach $480 and establish over it, giving the investors the chance to build positions above that level.
In the opposite scenario, the first major support level lays at $400, which is derived from the previous bullish trend. If this level breaks down, then the bearish market is quite likely to happen and establish in the Ethereum market. We expect Ethereum to grow and drop along with Bitcoin as it remains the only cryptocurrency in the market with a strong correlation with Bitcoin.
The trading volumes indicate that investors are still trying to enter the market at this point while there is hope as we see moving averages to move far from each other, shaping a more bullish field in the market.
Indicators
MACD index remained on the positive side for today, indicating a continuous market momentum flowing in the market while the RSI index is touching the "sell" signal, with little more room to grow in the next days.
Ripple / US Dollar
Ripple continued its path to neutrality as the price has moved since yesterday, staying at $0.25. As we have highlighted multiple times in previous articles, we cannot classify Ripple in a bearish or bullish trend unless it breaks one of the two frontiers in the current situation. The bearish trend will be established if the price drops below $0.24 while the bullish trend will be established if the price moved above $0.26.
The stability period is often followed by a major move that functions as the market changer and determines the next trend in the market. Given that the Bitcoin -- Ripple correlation is on the rising path, we believe that the major move will be positive and establish Ripple's price above $0.26.
As we can see in the diagram, the trading volumes have been remained stagnated during the last two months while the moving averages cross each other, forming a "Golden Cross", a bullish signal that makes the bullish prediction much bolder.
Indicators
MACD index continues to grow over the last three days, giving hopes to many investors about its future while the same positive vibes derive from the RSI index, which shows a stable outcome with a positive outlook.
Litecoin / US Dollar
Litecoin's price remained above the $57 support level, showing that there is enough market depth in the current situation that can absorb any bearish feeling in the market. Litecoin needs to hold this support level as it will enable it to reach higher levels at $62 and $67 points for the second time.
If there is another bullish round, the two abovementioned points are the key targets for the Litecoin market and how it will be perceived by the investors. On the other hand, a bearish scenario will move the price to the $50 level, making the market more vulnerable to bearish attacks.
The trading volumes have remained in levels above the normal while the moving averages have started to diverge a little, creating more optimism in the market.
Indicators
MACD index passed on the negative side, creating negative vibes in the market which are not combined with the RSI index, which lands at value = 55, indicating stability in this levels with a positive outlook shortly
Bitcoin Cash / US Dollar
The price has remained the same as yesterday, just below $260. The market has passed from a volatile month around $260, creating a stable trend for the last month. This means that the market is looking for a major move that will bring it in the bullish or bearish path and will enable investors to get the right positions.
The support level around $245 is crucial for the current situation as its testing will bring more concern among Bitcoin Cash's investors as they will prepare themselves for another drop at $220, which is the long-term support level.
The trading volumes were at higher levels during the last days, due to several liquidations while the moving averages are possible to meet again of the price continues to rise for some more days.
Indicators
MACD index dived deeper in the negative area, showcasing a different approach from the current situation in the crypto market. On the other hand, the RSI index moved to value = 50, indicating a more stable future for the coin.
Correlations
Bitcoin / Ethereum = 0.87 (+ 0.05), Bitcoin / Ripple = 0.47 (+ 0.15), Bitcoin / Litecoin = 0.60 (- 0.02), Bitcoin / Bitcoin Cash = - 0.36 (+ 0.04)
The correlations moved in the expected path that was formed during the last days, continuing the respective trends in the crypto market. Ethereum and Ripple made their positions stronger, moving deeper in the "strong" and "medium" correlation zones respectively. On the other hand, Litecoin dropped a little bit more yesterday, establishing itself in the "medium" correlation zone for now. In the opposite direction, Bitcoin Cash is still on the negative side for correlation analysis, making many analysts believe that the situation in Bitcoin Cash will be complicated for the next period and investors should avoid extensive positions on it for now.
Key Notes For Today
Bitcoin made another jump, reaching $16,000
Ethereum is on a good path to reach 2020 high at $480
Ripple and Bitcoin Cash remained on the same spot
Litecoin made a small correction without any severe impact
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.
