Bitcoin / US Dollar
Price Analysis
BTC price slipped through the previous days but as usual, weekends remained a calm period for cryptocurrencies without any severe breakthroughs or changes. The market has positive momentum in a general sense but in the short-term period, it appears to have multiple ups and downs, which create opportunities for day-trading profits.
The ascending parallel channel started from $11,000 and extends to $12,000 with some breakthroughs, especially the last one at $12,400. The last breakthrough at $12,400 was the last standing for the short-term period of Bitcoin as it the price immediately corrected back to $11,600. At this moment, we should wait and look for a potential break of the channel in the lower line, a move that will indicate a total reverse in the market trend for a full bearish mode.
The ups and downs can be correlated with the decreasing volumes in the last days, which indicates that the market is losing momentum and it would be difficult to rise again shortly. The mid-term stability in the Bitcoin market has created a decreasing momentum which can be depicted in the moving averages convergence. The moving averages are getting closer to each other and a reverse "Golden Cross" will appear possibly during the next days. If the reverse "Golden Cross" combined with a channel break, the bearish trend will be much stronger and will dominate the market during the next period.
In the short-term diagram, we can observe that the short-term moves tend to be rising and broke the channel several times. This wasn't reverse in the general trend as there was no evidence for the further uptrend from a technical or fundamental perspective. We should wait and see if there would more action in the market that will determine the next market status.
Indicators
MACD index slips further on the negative side, creating a stronger direction for the entire market and moving the expectations of investors in the bearish side. The RSI index is on value = 55, indicating future stability in the short-term future regarding the price and technical metrics.
Ethereum / US Dollar
Price Analysis
Ethereum's market took a major hit during the last weeks, turning from a top performer in the market to previous price levels. The price, after hitting a 2020 high point at $440, returns at $400 and lower than it. $400 was a crucial point for Ethereum as it remained as a major resistance level during last month, which broke to create larger returns in the market.
We wait for a stable move for Ethereum during the next days, as the $400 point has built enough depth to sustain this level even in worse cases. Apart from that, the uptrend in Ethereum is running since April, creating profits around 400 % for the long-term investors. For the above reasons, a correction is possible in the market along with other currencies. The volumes are decreasing, showing that the fuel in the market is getting lower and lower, boosting the bears to take more positions on that side. Last but not least, the moving averages will cross during the next days, forming a reverse "Golden Cross" and setting the pace for a bearish trend to continue.
Indicators
MACD index is moving even deeper on the negative side, predicting the start of a bearish trend that will determine the next cycle for the crypto market. On the other hand, the RSI index moves between values 55 and 50, a value that predicts a stability period for the market.
Ripple / US Dollar
Price Analysis
Ripple's market has started to recover after the two peaks created in the market. As we told in the previous article, Ripple is on the way to form a "triple high" signal, which indicates the start of a bearish trend as the price couldn't manage to break the resistance level and collapse afterward. For Ripple's case, the resistance point lays at $31, which has been reached two times already during the last 10 days. A possible uptrend soon that will reach $0.31 might spark the bearish trend to be established this time.
Regarding the support levels, Ripple seems to stop every time it falls at $0.28, giving hopes for the rest crypto market that no more capitals will leave from the market. Ripple was considered one of the contrarian currencies in the market, moving in a different direction from the entire market. This characteristic made it lucrative for many investors that want to diversify their portfolios and add more investment options for themselves.
At this moment, the volumes have fallen to previous levels, showing that the market is waiting for a major event to happen to find the next direction for it. Following the bearish mood, a reverse "Golden Cross" appeared in the market, indicating that the bears are ready to enter the market and make the price fall with series of liquidations.
Indicators
MACD index moved even deeper +on the negative side, creating a negative perspective for the currency. On the other hand, the RSI index moves between values 55 and 50, which indicates a stability period for the next days.
Litecoin / US Dollar
Price Analysis
Another strange pattern was formed in the Litecoin market. The market seems to expand in an unusual way, creating opportunities for crypto investors that want to pick new currencies for their portfolios. After the descending triangle, the price fell to $54 and it immediately rose again at $68, creating a new 2020 high. The correction came afterward to $60. During the weekend, the price rose a little bit at $61, creating a divergent trend from the rest crypto market.
Market expansion is often leading to stability periods where the market remains paused for a certain time, waiting for another major event to determine the next moves in it. In Litecoin's case, the market expansion is not clearly evident and its consequences will lead to other situations than expected. The next move will probably follow the rest cryptos in terms of direction.
The trading volumes have fallen during the last days, showing that some investors liquidate their positions during the last sell-off. In contrast with other currencies in the market, the moving averages are still apart and they will not cross each other in the next days.
Indicators
MACD index remained at the negative zone, creating a contrast momentum as Litecoin's price was uptrending during the last week. The RSI index is on value =56, creating prospects for a stable period during the next days for the market.
Bitcoin Cash / US Dollar
Price Analysis
The market expansion is evident in the Bitcoin Cash market also where the price topped at $320 and it corrected at $280. The same pattern took place twice during the previous month, indicating that there is a possibility for multiple signals to appear in the market. At this moment, there are already two local peaks and two local bottoms which both of them could lead to bullish and bearish signals. The price has just hit the second bottom and we should wait and see if there is more action in the market.
Litecoin's volumes have decreased since the last period, meaning that another major move is unlikely to happen in the next days. Regarding the two moving averages, there are three "Golden Crosses" which all of them have to cancel the previous. The first reverse "Golden Cross" was canceled the next day with a "Golden Cross". After a couple of days, another reverse "Golden Cross" which might activate a bearish market during the next days.
Indicators
MACD index is moving on the negative side, creating a continuous negative momentum in the market, and this leads to a lack of major actions for the price. The RSI index has been steady at value = 50, showcasing stability for the next days for the price.
Correlations
Bitcoin / Ethereum = 0.74 (- 0.01), Bitcoin / Ripple = 0.85 (+ 0.49), Bitcoin / Litecoin = 0.77 (+ 0.09), Bitcoin / Bitcoin Cash = 0.81 (+ 0.07)
The correlations tend to have mixed directions regarding the overall market momentum as there was no single approach to them. Ethereum remained stable regarding its direction but Litecoin and Bitcoin Cash rose over the last days, following the negative momentum in the crypto market. The surprise in the market came from Ripple, whose correlation was completely turned upside down, following the strong negative trend that was formed in the entire crypto market. Ripple's reversal shows that the overall market status affects every single currency, creating more integrated and predictable markets.
