Bitcoin / US Dollar
The price is taking small and positive steps every day trying to reach the previous all-time high level and surpass it. The market formation will try to establish a new high level at this moment but this will become effective if there is another bullish move that will break the $20,000 and establish the market in new standards.
The current market formation looks that it is going to form a "head and shoulders" shape which often predicts a bearish trend in the next period. Of course, the formation has not been shaped yet but if the price continues to move according to the current trend, it will be possibly coming out. The first "shoulder" lays at the point where the price didn't manage to break the all-time high level and correct back to lower levels. The "head" was formed when the price reached a new all-time high level, just below the $20,000 point.
The second "shoulder" will be formed if the price continues to remain at lower levels than the all-time high level but still didn't correct. If the price continues to move this way, we believe that there would be a steep correction in the market as investors might lose hope in Bitcoin and its ability to achieve growth in the short-term horizon.
This scenario could overcome if the price makes a bullish run in the next period and breaks the $20,000 point, a fact that will bring more momentum in the market and better market structure in terms of investing positioning.
The trading volumes indicate that the market is moving at a slower pace with a stable outlook in the next days while the moving averages have decreased their differences between them, making investors think bearish for the first time.
In the short-term diagram, we can observe that a previous "head and shoulders" was overcome during the previous week as a new all-time high level appeared in the market and disappear the bearish thoughts from the investing community.
Indicators
MACD index is continuously increasing but still remains in a negative field, making investors more skeptical about its future development and path in excellence. The RSI index has moved at value = 65, indicating that there is more room in the market for further uptrend.
Ethereum / US Dollar
The price broke the $600 frontier, just a step below the 2020 high level. The "head and shoulders" formation is also possible to appear this time, as the price has not developed at those levels that will indicate a clear bullish or bearish path in the near future.
The correlation between Bitcoin and Ethereum seems to dominate the current situation in the market and any move that happens in Bitcoin will duplicate in the Ethereum market. This could become the "vehicle" for Ethereum to establish at higher levels during 2020 and try to reach the all-time high level of around $1,000.
As we have written multiple times in these articles, Ethereum should separate itself from the rest of the market as it did in the previous bullish trend in order to establish an independent bullish trend to reach new price levels.
The trading volumes have been lower than before, indicating that there is a much calmer period than before. The moving averages have started to bend towards each other but there is still more room to meet each other.
Indicators
MACD index grew again yesterday, creating more hype in the market and what can be achieved with market momentum. The RSI index moved at value = 65, showing that there is more room in the market for further uptrend.
Ripple / US Dollar
The price remained at the same level as yesterday, showing that the price compression might start again, creating new expectations for the holders. Ripple, after an exciting trend-setting, could make another bullish trend to happen according to market dynamics.
The positive element in the current situation is that the extended surge in the price is that a steep correction could reduce the profits but it would still remain profits. This means that the holding investors would be positive again in terms of profitability, making Ripple a winner in the current situation. We believe that Ripple will remain in the current position for the next period, indicating a new era for it.
The trading volumes have lowered at normal levels for Ripple, indicating that there is a stable outlook in the current market situation while the moving averages have still a large gap between them, showing that a market trend reversal will be delayed for now.
Indicators
MACD index continues to decrease for the last week but still remains in a positive field, showing that the previous uptrend had a severe impact on how Ripple was affected by the general trend. The RSI index moved at value = 65, indicating that a future uptrend is also possible during the next period.
Litecoin / US Dollar
Litecoin had a positive day today, trying to reach $90 but stopping just below it, showing that this could be achieved through the day, taking into consideration that the volatility has surpassed the current levels.
The $90 point is a fair point for the bullish trend in the Litecoin market but it needs to be surpassed to establish a new era for it. The lack of fundamental elements is considered a unique asset for Litecoin and the market is making to work in price formation's favor. The ultimate goal for the current situation is the $100 point, which will give the psychological boost in the market to increase even more.
The trading volumes have remained at high levels for Litecoin's terms but there is still room in the market for new capital to increase its valuation. The moving averages are at crucial positioning as they will meet each other if the price continues to remain at the same levels. This will also be a bearish signal for the market and might spark new reactions in it.
Indicators
MACD index returned on positive levels, indicating that the market momentum can push the price at higher levels. The RSI index moved between values 60 and 65, which means that there is still room in the market for further uptrend.
Bitcoin Cash / US Dollar
The price remained on the same spot as yesterday, showing that the market has no certain direction to look for. The lack of direction means that the market has no independent motive to move on and waits for the rest of the market to make a move. This means also that Bitcoin Cash could be linked to any other cryptocurrency and follow its moves according to the market dynamics.
The market positioning for Bitcoin Cash is not favorable as it didn't break either 2020 or all-time high levels to establish at higher positions with more options to come after that.
The trading volumes have been lowered at previous levels, indicating that the price inactivity makes investors feel insecure about its future. The moving averages are close to each other and they will possibly meet in the near future, creating a bearish signal in the market.
Indicators
MACD index passed again on the negative side, making investors skeptical again about how Bitcoin Cash can sustain its profitability and positive trend throughout the bullish season. The RSI index moved between values 50 and 55, indicating that the market will remain at the same price levels but with a positive outlook.
Correlations
Bitcoin / Ethereum = 0.86 (+ 0.01), Bitcoin / Ripple = 0.68 (- 0.01), Bitcoin / Litecoin = 0.93 (- 0.01), Bitcoin / Bitcoin Cash = 0.72 (- 0.01)
For another day, the correlations didn't move in the market diagram, creating a comprehensive picture of the status quo in the market. At this moment, Bitcoin, as the market leader, is making small moves and try to achieve new, higher levels than those that were established during the previous period. The harmony in the moves between Bitcoin and the rest of the market creates a more predictable way for investors to plan their strategies and place their capitals for achieving maximum returns. We expect the trend to continue until there is a move in the market that will cause an unbundling situation.
Key Notes For Today
Bitcoin is making small steps towards a new all-time high level, landing at $19,300
Ethereum surpassed the $600 frontier, landing at $610
Ripple remained at $0.60
Litecoin made another try for reaching $90
Bitcoin Cash remained at $290
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.
