Bitcoin / US Dollar
Bitcoin is making another try to break the $24,000 point and establish a new all-time high level before 2020 is a past. The bullish trend that started in 2020, is continuing with no brake in the meantime, making investors feel more optimistic about its development and future. At this moment, we have to highlight for another time that at this moment, no investor has to lose money from Bitcoin.
This means that the only factor that could drive Bitcoin's price at higher or lower levels is the greed from the current investors that want to achieve a certain level of returns from their positions in Bitcoin. This could lead to the market in the expected levels at a certain amount of time, given that the investors who have taken positions in the market during lower values are not willing to liquidate and wait for more uptrend.
This could become a trap for new investors that enter the market at all-time high levels as many investors are happy with their accumulated return and are willing to liquidate their positions and claim their profits. This happened when Bitcoin reached $19,000 when some investors believed that Bitcoin couldn't surpass it and liquidate a part of their investing positions.
The trading volumes have been sustained at normal levels for the bullish market, showing that investors have not panicked from the last moves in the market. The moving averages are still way apart from each other, indicating a continuous bullish move.
In the short-term diagram, we can observe that the price was compressed around $19,000, the previous all-time high point, before releasing its power and establishing a new all-time high level. This is a common pattern that we see in any crypto market and could be translated as a dynamic move released towards any direction after the compression.
Indicators
MACD index continues to lower for the third day, taking small steps in the positive field, which can't be described as a negative signal. The RSI index moved again in the "selling" zone, indicating that a new all-time high level will make more investors think about selling its Bitcoin positions.
Ethereum / US Dollar
Ethereum had another try in the meantime to establish new 2020 high levels but it seems that this would be delayed according to Bitcoin's dynamics. Having reached $660 as the 2020 high level, the price lands today at $615, indicating that the support level at the high levels, got into work but there is a need for more to be done. The strong correlation with Bitcoin enabled the market to climb at high levels but there is a need for more fundamental for achieving new high levels.
The $610 level will be tested soon and it will show if it is enough to create more momentum in the upper level of the $600 zone. The bullish trend in the Ethereum market has not been so aggressive, creating smaller margins for investors while the fundamental elements like the Ethereum 2.0 launch didn't provide any extra support in the market formation.
The trading volumes have remained at a higher level than normal, showing that investors are looking to take advantage of any opportunity that may occur. The moving averages have tried to get apart from each other to create more bullish momentum in the market.
Indicators
MACD index passed on the negative side, showing that a negative turn might be around the corner if there is a correction in the Bitcoin market. The RSI index has remained around value = 55, indicating that the price will move on a stable mood with a positive outlook.
Ripple / US Dollar
After a short-term breakout, Ripple seems to turn back in its previous price levels, continuing its current correction trend. The price lands at $0.35, creating a solely negative trend in the diagram. The next support level for the market lays at $0.30, which was the previous resistance level.
This resistance point enabled the market to break it and make a bullish run that reached almost 200 % return in just a few weeks. This bullish run was made without any sustainability framework and we knew that it could collapse at any given time. This time might have come and the majority of investors are liquidating their positions in it. We will watch if the $0.30 point would be proved as a solid support point and enable Ripple to turn back in the bullish channel.
The trading volumes have topped the last two days, showing that more and more investors are selling their Ripples to claim any profits from the previous trend. The moving averages have been at bearish positions, indicating that this trend will continue for now.
Indicators
MACD index is moving deeper every day that passes, making the market momentum much harder to reverse in the current situation while the RSI index moved below value = 35, indicating that the price will continue to fall for the next period.
Litecoin / US Dollar
Litecoin remained on the same high levels, around $110, showing that it could establish new 2020 high levels. The bullish trend has been continued during 2020, showing that the strong relationship between Bitcoin and Litecoin has been established in the market and create new standards for the crypto market.
As long as this situation continues to produce results, we believe that Litecoin will aim for higher levels in the next period. On the other hand, a reversal in the bullish trend for Bitcoin will make Litecoin much weaker and it will probably not stand for long in the same position.
The trading volumes have been sustained at high levels, indicating that investors continue to invest and support Litecoin, having seen its previous performance and close relationship with Bitcoin. The moving averages are still way far from each other, making the bullish trend more efficient in this period.
Indicators
MACD index is still on the positive field but continues to drop with small steps. The RSI index moved back in the "safe" zone but remained at higher values, indicating that there is a chance for a future uptrend.
Bitcoin Cash / US Dollar
Bitcoin Cash moved towards a contrarian move that might be corrected in the upcoming days. The price moved just below $300, a price that could move back during the day but at this moment it looks like a bearish signal in the market. During the day, we saw a "flash-crash" at $280, indicating that a sell-off took place in the market and create a supply surplus that was not covered immediately.
At this point, the major support level for Bitcoin Cash in the bullish market lays at $260, which might be the end for a reversal in the market. Until then, everything is possible between the volatility cluster, which expands from $350 until $260. A breakout from this space will make the market to create a new trend that will be held independently from the rest of the market.
The trading volumes have surged during the last days, indicating that many investors are taking and leaving positions in the market, trying to create profit margins while the moving averages are still apart from each other, creating no fear about a future downtrend.
Indicators
MACD index dropped even more but remained on the positive field, creating some hope for the future. The RSI index moved back to value = 50, indicating that there would be no major moves in the next period for the coin.
Correlations
Bitcoin / Ethereum = 0.90 (+ 0.02), Bitcoin / Ripple = - 0.33 (- 0.23), Bitcoin / Litecoin = 0.99 (+ 0.01), Bitcoin / Bitcoin Cash = 0.89 (- 0.04)
The correlations have established a status quo in the current market, creating a standard set of moves that could be followed in a turn of events. Ethereum and Bitcoin Cash have sustained themselves in the "strong" correlation zone (with small doubts for Bitcoin Cash after today's moves) while Litecoin has a complete correlation with Bitcoin, meaning that every move in the market will be depicted in Litecoin's price formation. On the other side, Ripple continued to correct today, diving even more in the negative correlation field. This could lead to more updates on its market development.
Key Notes For Today
Bitcoin is making another try to establish a new all-time high level above $24,000
Ethereum remained around $610
Ripple continues its correction trend, landing at $0.35
Litecoin remained at $110
Bitcoin Cash starts to correct, landing just below $300
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.
