Price Analysis (17 February): Bitcoin (BTC) breaks the $50,000 point, leading the market to new bullish paths !!!

News • 2021/02/17 • by

Bitcoin / US Dollar

Today is a historical day for Bitcoin as its price surpasses the $50,000 point and established at $51,000, pushing the current bullish trend at higher limits. From a technical perspective, it is impossible to figure out when and how the trend will stop and there would be a correction in it. Every day seems to be different in the market, making the investors wait for the next big story (the X company buys a Y amount of Bitcoin or another cryptocurrency) for the price to take another boost and establish a new all-time high level.

Apart from remaining optimistic and positive about Bitcoin’s future, we have to understand that bullish trends are not forever and there would be a future time that a correction trend will hit the market. Thus, we have to be prepared for such an incident, plotting our next move for the portfolio allocation.

A typical correction trace-back after an all-time high level lays around 40 %, meaning that Bitcoin’s price could fell to $30,000. As we have mentioned several times in previous articles, the $30,000 point was an entry point for many institutional investors, creating enough market depth to absorb any bearish moves. Before that, we can observe that a minor support level exists around $46,000, indicating that if the price fell below the $50,000 point, there is a chance to stop at this level.

We expect the price to compress above the $50,000 point before there is another major move in the market in both directions. The trading volumes have remained at normal levels while the moving averages have diverged, even more, creating a more bullish perspective.

In the short-term diagram, we can observe that the short-term outlook for Bitcoin is fully bullish for another time, indicating that even short-term investors could enter the market with remarkable profits until the current position.

Indicators

MACD index remains on the same positive levels, indicating that a slow growth model could be implemented in the current situation. The RSI index has remained above the value = 70, indicating that there is always a chance for corrective trends in the market.

Ethereum / US Dollar

Ethereum’s price has remained around the all-time high levels, indicating that investors are willing to keep their positions and hold them, without any short-term liquidation plans. The optimistic projection for the current situation and a psychological barrier for Ethereum is the $2,000 point, which could be characterized as the respective $50,000 for Bitcoin.

If this happens during the next few days, we believe that Ethereum could claim the “influential” title along with Bitcoin as it could be in a position for its moves to have an impact on other cryptos with smaller market caps. The next moves for Ethereum will be milder for sure as we can observe in the chart below, there is a steady growth in the market with several ups and downs.

The characteristic that misses from the Ethereum market is there is no major period of compression, leading to the conclusion that Ethereum’s price formation has adapted several trends from the Bitcoin market with a milder approach and more careful handling. It is worth noting that Ethereum was on the interesting spot for institutional investors, just before Tesla’s announcement about Bitcoin’s buy. This means that more cash flows are expected in the market when the situation returns to normality.

The trading volumes have remained at normal levels while the moving averages have made a steady projection for the gap between them, providing a stable outlook for the coin.

Indicators

MACD index passed on the negative side, indicating that the stability in the market might be succeeded from a correction trend while the RSI index remains steadily around value = 65, showing that the market could drive the price around $2,000 in the next period.

Ripple / US Dollar

Ripple starts to behave as a contrarian asset again, dropping to $0,50 to $0,53 during the last days. The current price levels could be evident in the past, especially around late December, indicating that a similar situation could lead to the next trend in the market.

The previous similar trend was a bearish one, starting when SEC started to apply charges towards Ripple’s founders for “illegal financing and investment fraud”. This was the crucial point for Ripple, which was banned from several crypto exchanges. Although, the situation is different now (seems that the market has forgotten about SEC’s case), we expect a corrective move to happen again, leading the price at lower levels.

The market depth is strong around the $0.25 - $0.30 levels, creating a stable position for the market development. These levels saved the situation last time and we hope that this will happen in the future. The trading volumes have been sustained at stable levels and the moving averages are getting closer to each other, raising concerns among investors for the coin’s future.

Indicators

MACD index has moved near to value = 0, indicating that there are small margins for positive momentum in the market. The RSI index moved near to value = 60, showing that there are positive changes for another bullish trend in the meantime.

Litecoin / US Dollar

Litecoin has sustained its high-level prospects, landing around $220. This is the top of the current bullish trend, indicating that there might be stability in the price formation over the next few days. The next goal for Litecoin is to reach its all-time high level of around $240.

Reaching this goal, Litecoin will become a member of the club for 2021 all-time high levels, making investors think Litecoin more seriously and try to drive it at higher values. We expect this trend to continue, boosting the market for an alt-season break-out in the next period. An alt-season will break out if more and more altcoins continue to surge and create a parallel trend with Bitcoin.

The trading volumes in the current situation have surged at higher levels than expected, indicating that Litecoin has moved into a more bullish condition. The moving averages are diverging from each other, confirming the statement above.

Indicators

MACD index has remained at high positive levels, making the trend to be fueled by the positive momentum in the market. The RSI index passed again on the “overvalued” side, showing that the trend has topped and a correction is possible for the next period.

Bitcoin Cash / US Dollar

Bitcoin Cash’s price remained at high levels, after a battle between bulls and bears that happened on Monday. On Monday, the price went on a fully volatile session, from $770 to $600, creating a war mode in the market, that resulted in a draw. The price remained at $710, showing that the investors’ interest has been sustained for now.

We don’t know for how long this trend will be sustained but it needs more support to be viable in the future. If the trend is a part of an alt-season break-out, more altcoins need to join the trend for supporting the general momentum and lead the prices to a higher level. If Bitcoin Cash starts to capitalize on Bitcoin’s and Ethereum’s trends, the price will remain on the same level until there is a major move in those markets.

The trading volumes surged during the last days, indicating that a critical mass of investors entered the market for exploiting this chance. The moving averages have created a sufficient gap between them, establishing a bullish position.

Indicators

MACD index has moved even more in the green area, indicating that positive momentum is established in the market. The RSI index has moved at a value = 75, indicating that the positive trend might be over for now.

Correlations

Bitcoin / Ethereum = 0.91 (- 0.02), Bitcoin / Ripple = 0.77 (- 0.05), Bitcoin / Litecoin = 0.94 ( 0 ), Bitcoin / Bitcoin Cash = 0.87 (+ 0.02)
The correlations have remained on the same spot, indicating that the effects from the recent Bitcoin break above the $50,000 will become more evident in the following days. Ethereum and Litecoin have remained on the top correlation zone, showing that any move in the Bitcoin market will surge the two coins at higher levels. On the higher correlation zone, Bitcoin Cash is also included with a stable outlook towards Bitcoin, which will shape its future position. On the other hand, Ripple started to react oppositely to Bitcoin’s surge, showing that there is no consistent trend or move in the market that could depict a steady future path for the coin.