Bitcoin / US Dollar
After a positive weekend(where the price reached $19,300) the price remained today at the same level, creating anxiety in the market about what will happen in the near future. As we can see in the diagram below, the price has reached a certain high level during the last weeks and there is no major correction under it. This face means the majority of investors have not liquidated a significant amount out of their portfolios to start a bearish trend on this level.
It is quite possible though for a bearish trend to happen as the price has remained at all-time high levels for quite a long time (taking into consideration that the previous bullish trend in the same levels around late 2017 didn't last even for a week). The price's inability to establish a price level above $20,000 might cause tiredness in the investing community and lead investors to believe that the current levels are the peak for Bitcoin and it won't grow above that. This would mean that investors will liquidate their positions and hope for another drop in the price to buy again.
If this scenario does not happen, the price would move above $20,000, create more hype and momentum in the market and ignite investors to place more capital in the market. The positive scenario needs more fuel and boosts from external factors to happen but we should not exclude it from the discussion as cryptocurrencies have made a lot of traditional analysts lose their sleep.
The trading volumes are following a descending trend, indicating that the market momentum has not enough power to fuel another bullish trend. The moving averages have come closer but only a negative turn in the current situation will bring a cross between them.
In the short-term diagram, we can observe that the market formation in the last 3 weeks has grown above $16,000, creating a bolder view on the price, that might help in future conditions when more support from a technical perspective will be needed.
Indicators
MACD index dropped again, showing that the market momentum has lost its power in the current situation and will turn positive again if the price surpassed the $20,000 point. The RSI index laid at value = 60, indicating that a bullish move is on the path for happening.
Ethereum / US Dollar
The price remained just $600, showing that Ethereum has found its spot for waiting for the next period and trend that will change the status quo in the market. The strong correlation between it and Bitcoin will shape the next moves as the Bitcoin price has remained in the $19,000 spot.
As long as Bitcoin remains on the same spot, Ethereum is unlikely to make another move on both sides. This means that it won't reach its all-time high level (around $1,000) in the upcoming period as that will mean an independent move from Bitcoin's trend. In the opposite scenario, Ethereum has a bolder approach in the support levels as the previous 2020 local high point laid at $480, which is much closer than Bitcoin's strong support levels.
We believe that market integration will continue to exist even if the relativity between the moves will weaken over time. The trading volumes have shrunk, showing weak market momentum, and lost hype. The moving averages are still way apart from each, indicating no changes in the current situation.
Indicators
MACD index continues to plummet, showing that the market has lost its momentum while the RSI index dropped to value = 60, making a bullish move much more possible than before as more space has been created in the market.
Ripple / US Dollar
Like the rest of the market, Ripple has remained on the same spot just before the weekend, around $0.60. As we have mentioned in previous articles, Ripple can be categorized as one the winners in the current bullish trend as it managed to grow over 100 % in a few days and retain its position, creating a lot of profits for the holders.
This position is still fragile for Ripple as it could move in any direction as there are no previous support levels at least during the last 3 years. This means that we could experience another bearish drop of around 50 %, which will end up at $0.30. In the opposite scenario, there is no top or resistance level for Ripple as the only frontier in its growth is the market dynamics. If the entire market moves bullish, then Ripple will probably follow (with some delay).
The trading volumes have dropped since the last weeks' high levels but they still remain higher than those made in the stability period. The moving averages are still far from each other but they are coming closer.
Indicators
MACD index is continuously dropping through the last weeks as the price peaked, corrected, and remained on the same level for a long time. The RSI index remained at value = 60, creating a potential bullish background for future moves.
Litecoin / US Dollar
After the weekend's steep correction, the price rebounded, and reached $85, a positive signal in the market. Litecoin is making a strong statement in the current bullish market, creating prospects for many investors. The main reason behind it is its close relationship with Bitcoin. The strong correlation created a favorable relationship that drove the price at high levels and manages to sustain them until now.
If there is an unbundling in this relation, we believe that Litecoin will move independently, possibly towards a bearish trend. This bearish trend could be supported by the $70 and $67 support levels that could hold the trend at manageable levels.
The trading volumes have dropped significantly as investors wait for the next established trend to enter or exit the market. The moving averages diverge again, after almost crossing each other and create a bearish signal.
Indicators
MACD index remained on the negative field, indicating that the momentum has not recovered after the positive weekend. On the other hand, the RSI index lays below value = 60, indicating that the price will follow a stable move with a positive outlook.
Bitcoin Cash / US Dollar
Bitcoin Cash's price shows a severe weakness to capitalize on the positive weekend in the crypto market and move to previous levels. This weakness was also evident in previous cases where Bitcoin Cash wasn't able to move along with the market and missed great opportunities.
The best-case scenario for Bitcoin Cash, at this moment, is to drop even more to be lucrative for investors and attract them again with a different approach in the market fit. The trading volumes have plummeted once more, indicating that the price will probably follow a corrective trend in the next days. The moving averages are moving in parallel positions but they stand very close to each other, threatening a potential bullish move to enter the market.
Indicators
MACD index is dropping continuously, showing that the market is not responding in the previous bullish period while the RSI index remained at value = 50, showing that the stability in the market will continue for the next days.
Correlations
Bitcoin / Ethereum = 0.78 (- 0.07), Bitcoin / Ripple = 0.44 (- 0.20), Bitcoin / Litecoin = 0.85 (- 0.07), Bitcoin / Bitcoin Cash = 0.57 (- 0.14)
The correlations with Bitcoin took a major hit during the last days as Bitcoin is trying to establish a higher level of stability in the market to fuel the next bullish trend while the rest of the market is making smaller moves in terms of impact in the price formation. Etheruem and Litecoin remained on the "strong" correlation zone, creating a heavier frontier between them and Bitcoin while Ripple and Bitcoin Cash have dropped in the "medium" area, even if the correlation corrections were much stronger on their case. The correlation unbundling might lead to new formations in the crypto market that will bring us in the next period.
Key Notes For Today
After the positive weekend, Bitcoin remained above $19,000, landing at $19,200
Ethereum hold its position around $600
Ripple remained on the position around $0.60
Litecoin rebounded at $85
Bitcoin Cash remained at $285
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.
