Bitcoin / US Dollar
Bitcoin made another impressive move today and broke another psychological point in the current bullish market. The $17,000 point is another winning point in the Bitcoin bull market, showing that the bulls have not stopped running since the start of the year, waiting for more profits every single day. As we highlighted in yesterday's article, the bullish moves above $16,000 are short-term and very intense, creating a lot of profits in a few sessions or days.
The intensity of the trend can be evident as the price jumped almost $1,000 in just 1 -- 2 days, releasing a tremendous amount of power in the market. This means that there are a lot of investors that want to be a part of the current financial revolution. As many investment firms and companies chose Bitcoin and other cryptocurrencies for establishing a preventive method for cash equivalents, more investors are getting persuaded and want to increase their positions in it.
The current price level has not been seen in the market since 2017 so any investor that has to enter the market except a small period of days is on the winning side. This means that investors who have already made a certain amount of profit will be happy to liquidate their positions and claim them. Of course, some investors want to ride the curve and lead the price to higher levels, onboarding more and more people in that.
As we have stated in a series of articles, the technical indicators show that the market is overvalued but this could not mean anything for Bitcoin as it rides for new high levels. The trading volumes have made some spikes during the last period but it could be higher, regarding the price volatility. On the other hand, the moving averages are moving in parallel positions, with no effective signal from their side.
In the short-term diagram, we can observe that the same pattern is followed over and over again, showing that a small period of stability (usually 3 -- 4 days) is followed by a bullish spike that makes the entire market to change level and enter new bullish channels.
Indicators
MACD index rose in the last days, making the market momentum to increase and help in the $17,000 establishment. On the other hand, the RSI index moved even deeper in the "overvalued" zone, making part of the investing community concern about its earnings.
Ethereum / US Dollar
Ethereum is making another effort to reach the 2020 high level of around $480. After small corrections in the market, the price climbed again at $470, being just a step away from the 2020 high level. If the trend continues to exist in its current form, this level will be in the past and new standards will arrive in the market.
The difference between Bitcoin and Ethereum is that Bitcoin has already reached its all-time high level while Ethereum has been in the middle of the road for achieving that. This means that Ethereum has a lot more to do to establish new records for it and its ecosystem. The majority of new cryptocurrencies are published through Ethereum tokes, creating an extra layer of value for the cryptocurrency.
We expect a resistance stop at $480, according to market dynamics. The trading volumes are still low without any strong momentum while the moving averages are still in parallel positions.
Indicators
MACD index is still on the positive side, without major momentum breaks during the last days. On the other hand, the RSI index moved above value = 60, indicating that there is room in the market for more uptrend.
Ripple / US Dollar
One of the winners in the current bullish trend is Ripple. The price grew during the last days, reaching the ultimate goal for the current market, which was at $0.30. As we can see in the diagram below, the $0.30 zone was the bullish zone during the last period and it will probably serve as a bullish period for this time also.
We expect the price to stand at these price levels as there is more and more uptrend in the crypto market, that can be transformed into higher price levels. At this point, the price might face resistance from the market as the investors in waiting mode will want to liquidate some of their positions and claim their profits. The trading volumes have surged during the last days, making a good impression in the market and making the moving averages diverge even more under this situation.
Indicators
MACD index is moving on the positive side for the last few days, making the market momentum to work in favor of the price formation. On the other hand, the RSI index moved in the "overvalued" area, showing that the price is at high levels and investors should reconsider their positions in that.
Litecoin / US Dollar
Litecoin was the largest surprise in the crypto market after Bitcoin as it reaches new high levels for 2020. The price broke the $67 price level, which was the 2020 high level, and establish itself at $73. This means that Litecoin has set new standards in the market and will drive the price at new levels that weren't visible since years ago.
As we can observe in the diagram, Litecoin has made a severe effort in establishing a bullish trend as there were many ups and downs during the last period, which lead to the current position of new bullish waves. The trading volumes were skyrocketed during the last days, showing that investors are trying to push the markets to new high levels while the moving averages are diverging even more in the current market.
Indicators
MACD index moved to higher levels, making the market momentum has contributed to the price formation, adding more and more dynamics every day. The RSI index passed on the "overvalued" zone, making investors think that this price level will be the peak for this trend. As we have observed in many cases in the past, the RSI index should be taken into consideration if several technical indicators converge in this way.
Bitcoin Cash / US Dollar
On the opposite side of the crypto market, Bitcoin Cash remains at low levels, without any market momentum or dynamic that could help it to move forward. The price remained around $250, indicating that there is a lot to be done before entering a bullish trend. The next support level lays around $245, just a step below the current situation.
The price has moved in the channel between $240 and $280 for the last month, creating more and more uncertainty about its integration in the rest of the crypto market. The lack of integration makes the market weak from the investors' perspective as it could not handle the bearish situation on its own. We expect a delayed rise in the market after the massive hype calms down.
The trading volumes are at a very low level, indicating the lack of interest from the investors' side. The moving averages are on the same spot, showing that a bullish spark will make a "Golden Cross" to appear in the market diagram.
Indicators
MACD index remained on the negative side, making investors even more concerned about its future. The RSI index moved below value = 50, making predictions more pessimistic about its future.
Correlations
Bitcoin / Ethereum = 0.94 ( 0 ), Bitcoin / Ripple = 0.87 (- 0.01), Bitcoin / Litecoin = 0.90 (- 0.02), Bitcoin / Bitcoin Cash = - 0.26 (+ 0.06)
The correlations were brought on a stable line today, indicating that the market has started to move in the same direction. The established positions in the market showed that Bitcoin and its bullish trend have made the entire market to dance with it. The most correlated assets seem to be Ethereum, Ripple, and Litecoin as the last two have settled new 2020 high levels and are ready to break new records in the next days. On the other hand, Ethereum tries to surge again and again but it seems that investors have got what they want and prefer other cryptos for faster growth. Bitcoin Cash is the opposite case for the crypto market as it continues to move in the opposite direction.
Key Notes For Today
Bitcoin breaks the $17,000 point
Litecoin established a new 2020 high level at $73
Ripple reached the 2020 high level at $0.30
Ethereum is trying to surge in the previous bullish levels
Bitcoin Cash didn't achieve to move in bullish levels
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.
