What will happen after the corrections?

News • 2021/04/19 • by

Bitcoin / US Dollar

After hitting an all-time high level at $64,000, Bitcoin continues to correct during the previous week, breaking the psychological barrier at $60,000. As expected the major support level around those levels was around $57,000 - $58,000. The support point around those price levels is familiar in the Bitcoin market as it was the previous compression point from mid-March until now.

The compression point indicates that the market will probably enter a new stable movement for the next period until there is a new positive or negative story or event that will bring new data to the market. The correction after the all-time high-level achievement was an expected action as this a common scenario in previous all-time high hits.

A positive or a negative event will break the compression line once more, shaping the next period for Bitcoin development. The fact that the market has been developed massively during the last year, shows that the market depth will sustain the positive direction at least for now. The trading volumes made a spike during the recent sell-off and they returned to previous levels today. The moving averages have sustained a bullish perspective for now but they remain close to each other, showing that a sharp move could change the momentum in the market.

In the short-term diagram, we can observe that the market has been more compressed than ever and the positive spike that was evident, became a crucial path for the market to explore new paths in the price discovery process. The next outbreak in the price formation process could stand on the negative side and could towards a new bearish trend.

Indicators

MACD index passed on the negative side, indicating that the recent correction brought negative momentum in the price formation. The RSI index fell below value = 50, indicating that the market has passed on the bearish side but with stable trend-setting vibes.

Ethereum / US Dollar

The new all-time high level was established at $2,500, making the market look stronger than ever. Influenced by the situation in the Bitcoin market, Ethereum’s price started to correct in the same day with the rest of the market, landing today at $2,250, a 10 % decrease from the all-time high level.

As we have mentioned in the paragraphs above, this was an expected move as every time that a new all-time high level is established, a part of the investing community is choosing to liquidate part of their positions and claim their profits.
The positive fact in the Ethereum price formation is that the price didn’t fall in the first support level, which is placed just above the $2,000 zone. This means that the market is looking to expand at higher levels, taking as a base a higher point in the current position.

If the positive vibes continue to exist in the market, we believe that the price will soon establish a new all-time high level. In the opposite scenario, we expect that the price will reach the $2,000 zone, where there is more market depth that could absorb any bearish vibes.

The trading volumes made a spike during the correction process while the moving averages have maintained a steady bullish gap between them, which could be useful for future uptrends.

Indicators

MACD index is on the verge between positive and negative areas, showing that the market has been affected by a decreasing momentum over the last week, which could lead to further price stability. The RSI index moved below value = 60, which indicates that the market will follow a mild approach in the price formation for the next days.

Ripple / US Dollar

Ripple has been the definite winner of the past month, achieving extraordinary returns throughout the last month. The price on 1 January 2021 was around $0.25. Ripple’s price on 12 April 2021 was $1.80. This means that investors that trusted Ripple in its lower point, have accumulated a massive 700 % return in their investment, in just a few months.

The correction was a normal reaction in the market situation and the price fell at $1.40, which indicates that the long-term vision has been kept alive for now. Apart from this, we have constantly highlighted in our articles that Ripple should be used for short-term investments where profit-taking should be instant and the new positions should be opened with consciousness. The next move in the Ripple market is a riddle as the next support level lays around $1.00 while an early move could establish a new all-time high level.

The trading volumes have been sustained at higher levels than before due to increased interest from investors’ side and the sell-off during the last days. The moving averages have been moved away from each other, making very difficult a prediction for the short-term future.

Indicators

MACD index has moved down to value = 0, showing that the positive momentum has been disappeared from the current market situation. The RSI index moved back to value = 60, indicating that there is still a positive outlook in the market.

Litecoin / US Dollar

The bullish market was particularly good for a slow coin like Litecoin as it established a new all-time high at $340, almost $100 above the previous all-time high level. The correction was inevitable at this point as the entire market has made this turn in the bears.
Litecoin’s price corrected at $270 while the major support zone lays around the previous all-time high level at $240. If there is a stop in the bearish trend before the price reaches the $240 level, we expect a positive turn in the market that might lead to new all-time high levels soon.

We expect that the price formation could be delayed from the current market situation as Litecoin’s reaction is mild at any move from the major crypto markets like Bitcoin and Ethereum. The trading volumes have been skyrocketed since the last period, indicating that more and more investors enter the market to place their capital in the coin. The moving averages have sustained a steady gap between them, making a change in the short-term momentum a far chance.

Indicators

MACD index has been sustained at positive levels, showcasing that the positivity has remained in the market, making the price move at an uptrend. The RSI index moved around value = 60, indicating that there is still a positive perspective in the market for the next move.

Bitcoin Cash / US Dollar

Bitcoin Cash hit a high level of around $1,200 during the last days, marking incredible results for the coin, which was a result of multiple compression and positive reaction in Bitcoin’s all-time high-level achievement. The correction that was brought in the entire crypto market, made Bitcoin Cash take a step back, dropping at $960.

The real question in Bitcoin Cash’s case is for how long it would manage to sustain its price above $700, which is the crucial support point for the current trend. Managing to stay above this level, will bring more investors into the market and we can see the definite potential for further growth in the short-term future.

The trading volumes made a severe impact in the recent uptrend while the moving averages have sustained a positive outlook for the market.

Indicators

MACD index remained at a positive field, showing that the positive momentum will try to reverse this trend. The RSI index has remained around value = 70, which means that the price has been at high levels and it might correct further.

Correlations

Bitcoin / Ethereum = 0.71 (- 0.15), Bitcoin / Ripple = 0.65 (+ 0.07), Bitcoin / Litecoin = 0.54 (- 0.21), Bitcoin / Bitcoin Cash = 0.30 (- 0.43)

After the new all-time high levels, a massive correction wave hit the market and make every single cryptocurrency return at previous price levels. The correlations went on a new structure to form a new way that will shape the next period in the crypto market. Every coin is in the medium correlation zone, showing that the market will probably move in the same direction. Even if Bitcoin moves in a single direction, the rest of the market will probably follow the same direction but with different intensities. The intensity will be determined from the current resistance and support points in every market.