Bitcoin / US Dollar
Bitcoin recorded another all-time high level on Saturday, topping at $61,000, confirming our thoughts during the last week about its surge. After reaching the new all-time high level, the price started to correct back at previous levels, a normal reaction from the market as many investors would like to capitalize their profits and close positions after turning them into profitable.
The price continues to correct today, landing in the previous all-time high level around $55,000 - $56,000. This is the first test for the current bullish jump, that will need to absorb the previous price level before reaching a new high level.
If the previous high level breaks down as a support point, the market will be traced back to previous situations and it will have to do the job from the beginning. On the other hand, if the market sustains the previous high level as a support point, there are high probabilities that we will observe a new bullish move in the market.
We expect a clearing in the market at this moment, where new believers will enter the market, confirming that the price will grow further and will establish higher value among investors. The trading volumes will play an important role in the next move as there would be a need for more investors and capital to enter the market.
At this moment, the volumes have remained at normal levels, indicating that a sudden move will bring fluctuations in the price. The moving averages have positioned at bullish formation, bringing a positive vibe in the market for now.
In the short-term diagram, we can observe that the current price level has not enough market depth and the possibility of retaining the trend is small. If it manages to do so, we believe that we will find the market with a new all-time high level soon.
Indicators
MACD index remained on the positive side, bringing positivity in the market about future moves. The RSI index dropped below value = 60, indicating that the price will remain on the same levels but with a certain kind of positivity in its development.
Ethereum / US Dollar
Ethereum merely touched the all-time high level at $2,000, following Bitcoin’s trend with less stability in it. After reaching near the all-time high level, the price (following Bitcoin’s action) corrected back at $1,800, which was the crucial step for the market before stepping at the all-time high levels.
This point is considered to be the major support point in this situation and its breakdown will make the market find support at lower price levels around $1,400. The bearish scenario would probably follow another correction from Bitcoin’s side, which is more effective at this point.
On the other hand, a bullish scenario will indicate that the price will stop falling at this level and a new wave of investors will probably enter the market and drive the price at higher levels than before. As we have mentioned in previous articles, breaking an all-time high level should be done with power and consistency and not with short and weak moves.
The trading volumes have lowered since the last week, indicating that the market is weak to produce positive results at this point. The moving averages are sustaining a bullish formation but this could be temporal due to the bearish perspective.
Indicators
MACD index has remained on the positive side, indicating that there would positive sustainability for now. The RSI index moved between values 50 and 55, showing that the price will probably move on the same price levels for this period.
Ripple / US Dollar
Ripple seems to be the most stable coin in the crypto market at this moment. The price is increasing and falling with small steps. Today, it lands at $0.43, making the compression last longer and create more absorbed power in these levels.
The situation in the Ripple market should be examined with the proper attention as the market is trying to consolidate powers to make the next move happen. This could happen if a newly established bullish trend finds the market and Ripple got enough “network and peer power” to lift its price at higher levels.
If there is another update in the SEC’s case with a negative outcome for Ripple’s founders, we expect that the correction will start in the market and it will bring the price in the familiar zone between $0.25 and $0.30. This zone has enough market depth to absorb a stronger bearish trend, making the market resistant enough for another bullish turn to happen in the meantime.
The trading volumes are moving at lower levels every day that it passes, making the market trend weaker. The moving averages crossed each, forming a “Golden Cross” but they have remained on the same level and they will probably cross each other again.
Indicators
MACD index has remained on the negative side but very close to value = 0, which means that the price has no power yet to make another move. The RSI index landed at a value = 45, which means that the price will remain stable but with a negative perspective.
Litecoin / US Dollar
Litecoin tried to make another bullish move to work in its market, following Bitcoin’s positive trend. The market tried to establish a new bullish trend, which topped at $230, finding strong resistance from the overall situation. The price landed at $205, correcting from the high level.
The support point around $200 is a crucial point that should be treated with attention as the price will move on the next trend from this point and on. The same situation can be depicted in the Ethereum market when the price is on the same level, at the previous step before reaching the all-time high level. We expect that Litecoin will probably move at the same pace as Ethereum, creating similar patterns with it.
The trading volumes have plummeted during the last few days, showing that the market is weak to form a new trend while the moving averages are placed at positive formation, depicting a bullish continuation in the current situation.
Indicators
MACD index has remained on the positive side, bringing a positive vibe in the market while the RSI index has landed at a value = 55, indicating that the price will remain on the same levels but with a positive outlook for the next period.
Bitcoin Cash / US Dollar
Bitcoin Cash has remained at lower than expected levels, making investors less happy about it. The price managed to top at Saturday, climbing to $600 but the rest was disappointing. The price broke down at $520, making investors return at previous positions without any evident profit from this move.
We have mentioned in previous articles that Bitcoin Cash is facing weaknesses to establish a better investment position, which investors fear for the long-term outlook. As we have mentioned in previous articles, the coin is more suitable for short-term trading, which will involve many entrances and exits throughout a small period. We hope that Bitcoin Cash will be affected by the rest of the market and establish a positive trend.
The trading volumes have plummeted, showing that investors are not willing to invest in it anymore while the moving averages crossed each other to form a bullish signal, a “Golden Cross”, but without any significance at this point.
Indicators
MACD index is barely on the positive side, indicating that we won’t see a major positive move in the market while the RSI index moved between values 50 and 45, which could be a start of a bearish trend in the market.
Correlations
Bitcoin / Ethereum = 0.92 (- 0.01), Bitcoin / Ripple = 0.25 (- 0.30), Bitcoin / Litecoin = 0.97 (+ 0.04), Bitcoin / Bitcoin Cash = 0.92 (- 0.01)
The recent bullish move in the market didn’t have an important effect on the correlation formation, indicating that the coins’ prices will probably follow the same price structure in the next period. Ethereum and Bitcoin Cash retained their strong positions against Bitcoin, indicating that they will try to mimic any future bullish move that may help them to increase their value.
Litecoin made its position even stronger, making its price formation on the same levels as Bitcoin’s. On the other side, Ripple’s correlation with Bitcoin has reached low levels, indicating that the moves in the Bitcoin market won’t affect the price formation in the Ripple market.
Key Notes For Today
- Bitcoin corrected at $56,000 after topping a new all-time high level at $61,000
- Ethereum corrected at $1,800 before establishing an all-time high level
- Ripple remained at $0.43
- Litecoin made a small correction at $205
- Bitcoin Cash dropped at $520
