Bitcoin / US Dollar
After flirting with the $50,000 zone in the last few days, Bitcoin’s price jumped above it and landed at $52,000. This move was a positive signal that the market is trying to rebound from the recent correction and establish new positions above this line. We have commented in previous articles that this point is crucial for price development, both in terms of technical and psychological development.
The technical features for this pass above the $50,000 line show that there is more positive momentum in the market until the price reaches the all-time high level at $58,000. The all-time high level at $58,000 will probably be a resistance point for the bullish trend.
Like in past situations, when the price is close to establishing a new all-time high level, this happens with a spark that brings the price above the high level, without “touching” it. At this moment, we expect that the price will probably grow until the $58,000 price level and find resistance around it.
On the other scenario, we believe that there would certain stability around the $50,000 point, trying to find the next trend in the market, according to new announcements from investing forces that will shape the Bitcoin market in terms of momentum. In this case, we believe that the market development will reduce the reaction time in the market and will provide downtime among investors to take a new decision.
The trading volumes have remained on the normal levels for the market while the moving averages are close and we might lookout for another cross between them, that will bring a correction in the previous signal.
In the short-term diagram, we can observe that the market has passed on the highest price level that was ever evident. This means that the market needs to build more depth in those levels to sustain a bullish trend above those levels. This depth will be found if more transactions will confirm investors’ decisions about Bitcoin’s future.
Indicators
MACD index is trying to climb on the positive side but this seems to be far from now. We expect that this will change if there is another positive move in the market. The RSI index moved to value = 60, indicating that the market momentum has turned positive and we might observe more positive moves in the short-term future.
Ethereum / US Dollar
A similar move with Bitcoin has been observed in the Ethereum market as the price fell into a local bottom point around $1,450 and it went up today around $1,650. This move was made in coordination with Bitcoin’s moves, indicating that the crypto market has identified Ethereum as the second key player that can shape the market dynamics.
Like Bitcoin’s case, Ethereum will try to reach new high points in the market. The first resistance level will be found around $1,800, which was the previous resistance and support level before the price hits the all-time high level at $2,000. The ultimate goal for Ethereum’s price is to establish a deeper position around the all-time high level to find a new dynamic that will bring it above this.
We expect that the market will find resistance in the abovementioned levels but we hope that the market will find an answer through its correlation with the market leader, Bitcoin.
The trading volumes have been diminishing, for now, indicating that there would be a need for higher volumes. The moving averages have made a severe divergence between them and there would a sufficient amount of time for a change in the trend.
Indicators
MACD index is moving in the same direction as Bitcoin’s indexes, bringing the coin in the same pot in terms of momentum for the market development. The RSI index moved around value = 50, indicating that the market will face more stability in the short-term future.
Ripple / US Dollar
Ripple has adopted a mild approach in the price formation, moving towards $0.45 - $0.46. The price in the market seems to follow a stable position at higher levels than expected from the previous period. After achieving a local high level of around $0.65, the price corrected back at lower levels, bringing a new outlook in the market.
The positive scenario, in this case, will be the stability around the current levels, which will bring more attraction to the market. The fact that the previous stable levels around $0.25 - $0.30 has been a roadmap for the next steps.
The next successful step for the coin will be to establish new stable levels at higher price levels that will attract more investors. In parallel, the fundamentals will play an important role in future price formation, once the SEC case is discharged.
The trading volumes have been at lower levels for now while the moving averages have been far from each other, creating a foggy environment for now.
Indicators
MACD index is also trying to pass on the positive side, but its dynamic has not been so vast that this will happen soon. The RSI index moved around value = 50, indicating that the market will have a stable outlook for the short-term future.
Litecoin / US Dollar
A similar position with Bitcoin and Ethereum has been observed in the Litecoin market. The price, after finding a local bottom point around $165, jumps around $195, just a step before the psychological level of $200.
The situation in Litecoin will find two resistance levels for establishing a new bullish market. The first one has been established around $200 - $205, which was the previous resistance level before hitting the all-time high level at $240.
The $240 price level has been the all-time high level which didn’t break in the previous market and there is a potential uptrend at this time. We expect that the price will follow the market dynamics from Bitcoin and Ethereum, without any given force from the fundamentals’ side.
The trading volumes have remained at low levels while the moving averages have diverged from each other and there would be a need for more uptrend to change the trend.
Indicators
MACD index will try to pass on the positive side just like every other coin in the crypto market while the RSI index has been established around value = 55, a value that predicts a stable outlook but with positive vibes in it.
Bitcoin Cash / US Dollar
The recovery in the Bitcoin Cash market has been less efficient, bringing the market at a worse position than other coins. The bottom point was found around $460 while the current uptrend jumps at $550. We expect that the bullish trend will bring the price to the crucial level of $600, which was a turning point in the higher levels for the coin.
The $600 point will be the first resistance in this trend while the $720 point, which is the local high level, will become the second and major resistance level. The resistance in the $720 level could be confirmed as a strong resistance point as depicted in the chart below and there would a battle for overtaking it.
The trading volumes have been positioned at lower levels while the moving averages are positioned far from each other, creating a bearish feeling in the market development.
Indicators
MACD index has been on the negative side of the chart, indicating that the uptrend will need to continue to turn the trend upside down. The RSI index turned back at value = 50, indicating a stable outlook for the short-term future.
Correlations
Bitcoin / Ethereum = 0.70 (+ 0.03), Bitcoin / Ripple = 0.32 (- 0.03), Bitcoin / Litecoin = 0.69 (- 0.04), Bitcoin / Bitcoin Cash = 0.57 (- 0.08)
The correlations have brought on different directions, for now, creating a new window for market integration between the coins. Ethereum has continued to strengthen its position against Bitcoin, making the market look its position more positive than before.
On the other hand, Litecoin and Bitcoin Cash are slowly decreasing their correlation with Bitcoin, making their markets adopt milder adoption rates when there are changes in the Bitcoin price. Lastly,
Ripple is also moving slowly in the lower end of the correlation zone, creating more concerns among investors for its future. We should mention that all of the above cryptocurrencies are positioned in the medium correlation zone.
Key Notes For Today
- Bitcoin made a positive move, breaking the $50,000 point and lands at $52,000
- Ethereum made a similar move at $1,650
- Ripple stabilized at $0.45
- Litecoin moved back at $195
- Bitcoin Cash retraced at $550
