Bitcoin / US Dollar
The price slightly corrected today at $17,000, creating a potential support level, which can be used for another uptrend in the future. It is quite common to see resistance and support levels to be formed before and after a local or an all-time peak in the price. This could also happen this time. The market is accumulating more "fuel" to support future growth, without having to drop at lower levels to find stronger support levels.
The scenario of minor corrections in a bullish market is healthy as the investors who are happy with their returns, decide to withdraw their funds, and claim their profits for now. This leaves the space open for new investors to come and find value in the Bitcoin market. This scenario is considered to be the optimistic one as the market will take a break from the pushing bullish trend and deliver promising results in the future.
The pessimistic scenario predicts that the price will continue to drop until it finds stronger support in the market structure. The first strong support level lays between $15,000 and $16,000, which will become more specific when the price reaches those levels. The reason that we could not indicate a certain price level where the price will find better support and bearish halt, is that the exploding bullish trend in the previous period didn't allow the market to form specific points that could be used in the future as indicators for the next moves.
In any case, we believe that the correction will stop before the price reaches the previous dominating levels around $10,000, creating more positive vibes for the next trend. The trading volume has dropped significantly during today, indicating that the market will possibly move at slower paces and more calm moves in the next days. The 50-day moving average starts to bend today but it is still away from the 200-day moving average, to form a potential bearish signal.
In the short-term diagram, we can observe that the price has corrected only in minor ways until now and nothing can say that the trend has changed in a bearish way. The fallback has been made in the 10-day span, meaning that the profits from the last 10 days have disappeared from the market. A bearish trend would mean that the profits from a month and more would disappear from the market perspective.
Indicators
MACD index continues to drop today, showing that the market momentum will drive the price at lower levels than the current ones. On the other hand, the RSI index fell near value = 55, indicating that the price might remain at the same levels, with a positive outlook for the next period.
Ethereum / US Dollar
Ethereum's price remained on the same levels, landing at $510. At this moment, the primary goal for Ethereum must be to hold the price levels above the support zones. The first support zones lay in the previous peak at $480. The current levels above $500 are considered to be optimistic as a new hype might give the opportunity to the market to spike again in the short-term future.
If the bearish trend establishes in the market and the price continues to fall in the next period, the major support level for the Ethereum market will lay at $400, which was the start for the 2020 major bullish trend two times. This point will be the driver for any established trend in the mid-term future and how the price will move around it.
As the Ethereum -- Bitcoin remains strong, we believe that the price formation will be shaped by the Bitcoin market's dynamics and we shall move our attention mostly to the Bitcoin market.
The trading volumes will clam down in the next days, leading to a smoother transition in the next phase while the moving averages have not to bend yet to meet each other.
Indicators
MACD index has not passed yet in the negative field, rising hopes that a bounce-back will become a reality in the market while the RSI index moved to value = 55, indicating a steady position at the moment, with a positive outlook for the next period.
Ripple / US Dollar
Ripple's price remained untouched today, creating more optimism among investors that the price will continue to move at high levels, retaining the high profitability, accumulated in the previous period. Comparing to Bitcoin, Ripple has lost only 2 days of profitability, a fact that enables the price to recover quickly and reach new high levels.
Of course, this would be extremely difficult for Ripple, which is quite vulnerable in trend-setting and could flow in different directions. The pessimistic option for Ripple will depict a traceback in the levels below $0.30, where there is accumulated circulation between investors. The trading volumes have continued to remain at high levels, indicating that there is still a fight between bulls and bears about the next step. This is also accompanied by the fact that the moving averages have not to bend towards each other.
Indicators
MACD index has dropped during the last two days, but its growth during the last period won't let it drop in the negative field yet. The RSI index dropped in the "safe" zone, indicating that the market is waiting for the next move, which will probably be corrective.
Litecoin / US Dollar
Litecoin's price fell below $70, breaking the first support level at $75, heading for the next support zone around $67. We should highlight that $67 was the point where Litecoin took a major bullish hit and started to create exponential profits for the previous period.
If the price breaks the $67 point, the price levels are quite familiar to Litecoin investors and they have gained knowledge about how the price will probably react. This knowledge will create more certainty and potential in the market, preparing the market for a future uptrend. The trading volumes have remained at high levels while the moving averages started to move closer to each other.
Indicators
MACD index passed on the negative field, indicating that the market momentum will affect the market negatively from now on. The RSI index moved below value = 50, indicating projected stability in the next days but with a negative outlook this time.
Bitcoin Cash / US Dollar
Bitcoin Cash returned on a familiar level for it, around $265. This price level was evident several times in the short-term past as it was the last support level in the previous 2020 bullish trend and was tested as a resistance level during the previous stability period. We expect that this level will halt the bearish mood in the market.
In addition, there are stronger support levels below that, at $245 and $220, which have greater market depth and will possibly absorb larger bearish trends in the future, or some that might derive from the current trend. The trading volume dropped today while the moving averages have not moved yet in converging directions.
Indicators
MACD index has not passed yet in the negative field, creating hopes among investors that could surge again if a bullish dynamic appears in the market. The RSI index dropped below value = 50, indicating that a steady trend will be followed in the market with a negative outlook for the next period.
Correlations
Bitcoin / Ethereum = 0.84 (- 0.01), Bitcoin / Ripple = 0.72 (- 0.04), Bitcoin / Litecoin = 0.96 ( 0 ), Bitcoin / Bitcoin Cash = 0.63 (- 0.01)
The correlations went on a slightly negative slide as every examined cryptocurrency has different paces of dropping at the current moment. Ethereum and Litecoin have remained in the "strong" correlation zone with Bitcoin, indicating that there would have a greater impact if Bitcoin collapsed in the next days. On the other hand, Litecoin and Bitcoin Cash are floating in the "medium" correlation zone, predicting a milder transition in any established bullish or bearish trend in the next period. This mix would inevitably lead to different performances in the market structure and how investors are reacting to different events in the future.
Key Notes For Today
Bitcoin dropped minor at $17,000
Ethereum sustained its price above $500
Ripple's price remained on yesterday's spot above $0.50, the most optimistic coin for now
Litecoin dropped below $70
Bitcoin Cash reached a familiar level around $265
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.
