Bitcoin / US Dollar
Price Analysis
The market corrected heavily, reaching $10,200 during the weekend, and finding a long-term support level just above $10,000. The support level at $10,000 seems to hold for the moment, creating a pillar of safety for long-term investors who don't want their asset value to disappear in just a few moments. Several reasons led to this move. From a technical perspective, we can identify two of them.
The first reason is the reverse "Golden Cross," which appeared ten days ago and warned investors about the market situation. The market looked stagnated back then, and the 200-day moving average had climbed to the same levels as the 50-day moving average, creating a direct moment for the market which had run out of fuel. This signal made investors think that the bull run is over and liquidate their positions.
The second reason is the lower low points the appeared in the market. More specifically, after peaking $12,500, the price was corrected back at $12,000. The next correction was at $11,500 and the next at $11,250. This sequence of low points for the established trend showed that investors were willing to let the price slip further as they had to claim their profits. In the next few days, we will see if the $10,000 point will hold the bearish trend and stabilize the movement around it, or it will break and create a new standard for the market shown in previous levels. In any case, Bitcoin will show the next trend in the market, leading the rest of the market to new paths, hoping for better and "greener" days.
We should highlight that the correction was accompanied by major changes in the trading volume, establishing the current trend in the new levels.
In the short-term chart above, we can observe that the trend's peak was at $12,300 before starting to fall at lower levels. Last week was a confusing one, as the price tried to rise with all the technical signals indicating an inevitable fall. This confusion was injected into the market, and the downtrend continued, setting the base for further fall in the upcoming days.
Indicators
MACD index moved deep in the "red" zone, creating a massive negative momentum in the market. This negative momentum is still on the rise as it is stronger during the first days before continuing at milder paces. In parallel, the RSI index moved at value = 35, which indicates that a further downfall will spark a "buy" signal in the market as BTC will be majorly devalued. It will become a great chance for any investor in the market, new or old.
Ethereum / US Dollar
Price Analysis
Ethereum moved towards the same direction with Bitcoin, lagging a day on the produced results. After the tremendous performance last week and the price rose to $480, Ethereum price corrected back at $380, a short-term support level. After that, the support level broke and the price fell to $350, indicating a new period for ETH.
If the bearish trend continues, the next support level lays around $320 (a weak one according to trading volume made) while the next strong one is at $240. Even though $240 seems far from the current situation, we should not overlook that significant changes could happen in the crypto space, especially during the first few days of a new trend. The trading volume was nearly doubled during the past few days, indicating a massive sell-off from investors that want to have new capital on their hands to wait for the next turn.
In parallel, we have to observe that the moving averages had formed a "Golden Cross" signal three days ago, which was proved wrong as the price was immediately corrected at lower levels.
Indicators
MACD index moved deeper in the negative area, showing that the downtrend momentum will have a dominant effect in the market and this might last for several weeks. On the other hand, the RSI index moved at value = 40, indicating that a downtrend is highly possible during the next days until the investors found the price lucrative enough to re-enter the market.
Ripple / US Dollar
Price Analysis
The bear market also affected Ripple as the price rolled down to $0.24, creating new lower points for the market. After the reverse "Golden Cross" signal was created last week, the price dropped every two days to lower levels. The lower lows sequence was a bearish signal for the market and besides, other technical indicators have predicted that the market will turn towards this direction.
The latest downtrend was the third one for XRP during the previous month. This shows that XRP is unable to sustain its power and positions after a bullish run. The downtrend will possibly continue at milder paces during the next few days as the next major support level is $0.20. This means that Ripple might face another massive correction soon.
The trading volume remains at normal levels while the liquidations might be from investors that panicked from the entire crypto fall and decide to "wipe clean" their portfolios and wait for the right time to enter the market again.
Indicators
MACD is in full "red" mode, passing below the zero lines and adding more negative momentum in the market. On the other hand, the RSI index moved below value = 40, indicating that a further downtrend is highly possible over the next days.
Litecoin / US Dollar
Price Analysis
Another major correction happened in the Litecoin market when the coin lost almost 30% of its value during the past three days. LTC price dropped from $63 to $48, indicating that the market is full bearish and we need to study the support lines. The first support point was at $48, where there was a little resistance in the previous bull run. The next support level lies between $46 and $42, where the coin has enough market depth to absorb any crash and hold the price stable.
The reverse "Golden Cross" that appeared in the market was correct. The trading volume was held at higher levels than expected, indicating that many investors were trying to liquidate their positions desperately. In any case, LTC will probably follow the rest of the market without any major surprises.
Indicators
The negative momentum is heavily depicted in the MACD index, showing that the market made steep corrections that might cut down future opportunities for rising. In parallel, the RSI index moved to values below 40, indicating that a further downtrend is highly possible during the next few days.
Bitcoin Cash / US Dollar
Price Analysis
Looking at the chart and technical analysis, we can say that Bitcoin Cash faced the hardest correction when compared to other major cryptos. The price dropped from $290 to $230 in just two days, creating a whole market environment. The sequential drops were evident from early August but the decisive moves took place during the last days.
$230 was a long-term support level for Bitcoin Cash that could have been hard to break, even if the market moved in a different direction. If the long-term support breaks, then Bitcoin Cash will face fundamental problems with mining and transaction costs.
The trading volume spike during the sell-off while the reverse "Golden Cross" in the market was proved right for this time.
Indicators
The negative momentum continues according to the MACD index, indicating that the downtrend will last for few more days. On the other hand, the RSI index was at value = 35, creating a framework for a little more downtrend before the activation of a "buy" signal in the market.
Correlations
Bitcoin / Ethereum = 0.71 (+ 0.11), Bitcoin / Ripple = 0.97 (+ 0.03), Bitcoin / Litecoin = 0.97 (+ 012), Bitcoin / Bitcoin Cash = 0.97 (+ 0.05)
The correlations raised as expected during the weekend as the entire market enters the main phase of the bearish trend, creating more integration in the market while parallel moves are more often and predictable. Litecoin, Ripple, and Bitcoin Cash have skyrocketed regarding Bitcoin's correlations, showing that Bitcoin's negative momentum has panicked investors in every altcoin, sparking a series of liquidations in every altcoin market. The only exception is the market at this moment is Ethereum, which still stands in the medium correlation space, creating hopes for a different route in the short-term period. In any case, the bearish trend is evident in the market and we brace ourselves for more to come in the upcoming days.
