Bitcoin / US Dollar
Price Analysis
The mood in the Bitcoin market is definitely on the bullish side, creating a bullish trend channel. The new parallel channel that was formed during the last week shows us that Bitcoin and the entire crypto market have elevated at a different level and tries to create a new price level that will determine the next period.
The new, small parallel channel is formed between $11,000 and $11,400, which is an ambitious level for a further uptrend in the future. The break on this parallel channel was made at $11,800, touching for some hours the $12,000 point, but it immediately corrected due to an instant sell-off in the market. The volume has dropped significantly, showing that the market has reached a local equilibrium where buyers and sellers seem to agree that the price has reached a fair level for this time.
The moving averages are still apart from crossing but there is a small slow down in the 50-day average, showing that the market has been stabilized around the $11,300 point. The stability period will last for as much as there are new flows in the market or new liquidations that will create a new bullish or bearish trend. We expect the market to continue its stable movement unless there are severe liquidations from investors that had claimed their profits and want to find new investments for their portfolios.
In the short-term diagram, we can observe that the new parallel channel has a clear bullish prospect that could lead to the next trend in the market. As we have mentioned several times in those articles, the parallel channels absorb power from the market and then release in an uncertain direction. When the stability period comes to an end, there are two scenarios that will shape Bitcoin's future.
The first scenario is the continuation of the uptrend with new support levels around the current prices, with a possibility to reach $14,000 during the next period. This scenario is extremely ambitious but it happened in late-2017 when Bitcoin and other cryptos skyrocketed in just 9 weeks. The second scenario is the downtrend in the previous price levels, the parallel channel between the $8,600 and $10,000, which will mark another stability period for the crypto market, as many investors have retained their positions around those levels.
Indicators
MACD is still on the positive side, with the two lines to move closer to each other, showing that the momentum is slowly declining in the market. The momentum decline might indicate that the market might enter a new phase for the entire crypto market. The RSI, the index remains on the "safe" area where no signal shows that the recent uptrend is considered as an "overbought" signal. As we told in previous articles, if Bitcoin remains at the same levels, the index will correct the signal as it happens this time.
Ethereum / US Dollar
Price Analysis
Ethereum continues its positive trend reaching $400 during the day and closing at $390. The new 2020 high indicate that Ethereum might collect more interest from investors than other cryptos. The uptrend continues without any sign of slowing down, even if the Bitcoin market seems to enter a stability phase. This uncorrelated move with Bitcoin, the market leader, shows that Ethereum might be preferred in the current phase from investors due to excessive returns.
The uptrend might slow down during the next days, following the overall trend in the market but this doesn't mean that Ethereum is considered as the winner in the current situation, producing profits every single day for its investors. The moving averages have not to bend yet to enter the new phase so we expect more to come in this case. The volume has remained at higher levels, showing that investors are still engaged in the market and there are still unfulfilled expectations from them. We should observe what will follow in the upcoming days that will determine Ethereum's next phase.
Indicators
MACD index remains on the positive side, but the momentum in the market seems to decline in the last days, but with no sign of pulling back at previous price levels. On the other hand, the RSI index strongly suggests selling Ethereum as the overbought signal has been activated almost two weeks ago. The index will not correct its suggestion until the price stabilizes at a certain level, with increased volume around it.
Ripple / US Dollar
Price Analysis
Ripple correct during the last sessions, dropping off the $0.30, which was a 2020 high for the coin. The price reached the new high levels, boosted from the entire market boom and it will try to stabilize the market in the next days. After continuous green days, the correction reached, showing that many investors liquidate their positions in the market. Considering the local lower point in the market, the profits accumulate to almost 90 %, since yesterday, an astonishing return for just a month.
The moving averages are still widely separate while the 50-day average has not to bend yet, showing that there is more potential in the market if the conditions allow it. Ripple is considered another winner in the current bullish situation along with Ethereum, producing excessive returns comparing to other major cryptocurrencies. We expect Ripple's price to move according to the market's general momentum without any declines from it. The only thing that worries us, both in Ethereum and Ripple, is that the market has not created enough depth to absorb a sudden shock or a liquidity problem that might occur at unexpected times.
Indicators
MACD index is moving positive, with the upper line to bend a little bit over the x-axis, showing that the momentum is slowing down. The RSI index is still on the "overbought" area, indicating strongly for sale. As in Ethereum's case, the index will correct its signal if the price got more stable, and lower volatility appears in the market.
Litecoin / US Dollar
Price Analysis
Litecoin got a lighter approach on its uptrend during the last days, showing absorption of the price around $58. The absorption shows that the market momentum has concentrated the investors' interest during the uptrend and now there is uncertainty in the market regarding the next move.
The moving averages look to start the bending towards each other, showing that the momentum in the market starts to slow down. The volume seems to decrease but we should point out that Litecoin's volume was rather volatile during the uptrend, showing us that we cannot base our predictions based on that.
Indicators
MACD index starts to bend over the line, creating decreasing momentum in the market that might turn into negative values in the upcoming days. The RSI index came back to the "safe" zone after spending a week in the "overbought" area. We should point out that an immediate correction in the market will turn Litecoin into the first asset that proved right to the RSI signal.
Bitcoin Cash / US Dollar
Price Analysis
The same situation could be spotted in the Bitcoin Cash market. The price, after the uptrend, took a hit and stabilize around $290. Bitcoin Cash faced the sharpest correction in the last three days, showing that the market is still highly volatile and lacks depth at the highest price levels.
These facts show us that Bitcoin Cash remains a heavy volatile asset that creates opportunities for long and short positions on the short-term horizon. The moving averages start to bend to each other, showing that the momentum in the market starts to change and might move towards a turn in the market. In the case of a bearish scenario, the first support level lays on the upper boundary of the parallel channel, around $250. Additionally, the volume seems to decrease but remains at higher levels than in the previous period.
Indicators
MACD index remains positive but the two lines have started to move towards each, indicating that a reverse momentum might enter the market On the same page, the RSI index moved below the "overbought" area, at values around 60, indicating a possible downtrend in the near future.
Correlations
Bitcoin / Ethereum = 0.93 (- 0.01), Bitcoin / Ripple = 0.87 (- 0.02), Bitcoin / Litecoin = 0.99 ( 0 ), Bitcoin / Bitcoin Cash = 0.98 ( 0 )
The correlations stood up at the same level during the last days, showing that the market still remains on the same page, slowing down from the previous bullish run and creating a new stable present during the last days. Ethereum and Ripple are moving on slightly falling levels while Litecoin and Bitcoin Cash's correlations stayed untouched, nearly close to 1. This fact shows us that the last two currencies can't be considered at this moment as diversifying moves for investors, as they create the exact same profits and losses.
