Bitcoin / US Dollar
Price Analysis
The price broke the current support level at $11,600, a weak support level formed during the previous week. The overall trend remains positive as the second support level formed during the last boom was around $11,200. These two points show us that investors might liquidate their positions even more in the upcoming days, indicating the full reverse in the market towards a bearish trend. We should be very careful regarding our positions in Bitcoin as many investors, who have entered the market lately, they push for more uptrend in order to enlarge their profits.
The volumes were quite high for this time period, indicating that a sufficient amount of investors are trying to enter or leave the market. As we have told many times in those articles, major moves require larger than expected volumes, which will lead the market in new standards, depending on the buyers' and sellers' orders.
The moving averages are getting closer to each other and it is highly possible to form a reverse "Golden Cross" in the upcoming period. A reverse "Golden Cross" will establish the start of the bearish period, when Bitcoin and probably other cryptocurrencies will drop from the current price levels. We should point out that a reverse "Golden Cross" signal will be much more effective if the price tends to be more volatile and the trend formation is more clear in any case.
In the short-term diagram, we could observe the transition from the first phase to the second one. The change happened in just one day with the largest volume, creating a new bullish trend in the market and forming new support and resistance levels, according to technical analysis indicators.
Indicators
MACD index moved to the negative area, showing that the momentum in the market is not so high and the bearish trend will start to form if there is more action towards that position. We can also observe that the RSI index moved at value = 60, showing that there is more potential in the market for bearish signals than for bullish ones.
Ethereum / US Dollar
Price Analysis
The price drops for Ethereum and the trend seems to bend, creating a new zone that will determine the Ethereum's future regarding its price formation. The peak of this period was at $400, a local high for 2020 while the closest support level that was formed during the last period was around $380. The market depth, in this case, wasn't very large, meaning that a bearish move might disappear any profits from the market, indicating the start of the new trend in the market.
The volumes remained at higher than expected levels, showcasing that many investors are still active on the market, liquidating or increasing their positions on Ethereum. We expect the last investors in the price boom to continue to push the price for another jump but it would be more difficult as the time passes. We expect more liquidations in the upcoming future, as the realized returns on the market exceed short-term expectations for many investors that reach their investment goals for the given period. We should also point out that the two moving averages start to get closer to each other, giving out the potential for a reverse "Golden Cross" in the upcoming future.
Indicators
MACD index moved to the negative zone, after almost 3 weeks on the green side, indicating the trend change in the market that might have started at this moment. In parallel, the RSI index moved back to the "safe" zone, around value = 65, a point where it is still possible to turn around and climb again for a little bit.
Ripple / US Dollar
Price Analysis
The price drop is much more evident in the Ripple market, just like the change in the trend formation. The transition on the bearish trend can be depicted with the local peak at $0.31 and continuous negative returns and close prices down to $0.28, where it lays now. The bearish trend formation is pretty early for Ripple, taking into consideration that the rest crypto market is still on the edge for moving clearly on the bearish side.
The volumes have increased during those days, showing that many investors liquidate their positions in the market. Another signal for entering the pre-bearish period is that the 50-day average is moving downwards to meet the 200-day average for the reverse "Golden Cross" signal. As we have told several times before, the reverse "Golden Cross" is the indicator for a further drop in the market but it should be accompanied by other technical signals and trend formation to be taken into account.
Indicators
Like most cryptocurrencies at this moment, the MACD index moved on the negative side, creating the signal for change in the market, regarding the trend formation. Negative momentum will have an impact not only on the price ups and downs but also in the trading volume, with the consequential results. The RSI index moved in the "safe" zone at value = 65, showing that the downtrend will continue after the first shock in the market.
Litecoin / US Dollar
Price Analysis
Another major drop in the crypto market was the Litecoin. The price seems to compress around the $57 point, with a descending triangle that predicts a negative upcoming result. The signal became a reality when the price dropped at $54, showing that many investors realize that there is enough in the market and capitalize on their profits from the previous periods.
The volumes are considered higher than normal, indicating the previous statement regarding profit capitalization and liquidations. We expect the fall to continue in the next days, stopping around $49, where there is a major support level from previous periods. In addition, the moving averages are moving to form a reverse "Golden Cross", indicating that the trend formation is definitely bearish at this moment. The 50-day average has already started its downward move and it is possible to meet the 200-day average in the next days.
Indicators
MACD index had already moved in the negative zone, a couple of days before the rest cryptocurrencies. This shows that Litecoin's investors had already tried to liquidate their positions and take bearish positions towards the currency. The negative momentum will create more opportunities for bearish investors in the upcoming days. The RSI index has moved between values 50 and 55, showing that the price might remain stable for this moment, without any major moves to happen in the market.
Bitcoin Cash / US Dollar
Price Analysis
The same picture as Litecoin can be observed in the Bitcoin Cash market. After ups and downs and a small price compression during the last days, the price broke negatively from its peak at $320 to $285, in a 10 days span. The trend formation is a little bit vague at this moment as we can observe that there is no major bullish or bearish trend in the market at this moment.
We can observe in the volume's picture that negative days have larger volumes than positive days during the last month. This means that bearish investors are trying to enter the market in coordination and take the most out of the situation at this moment. Regarding the moving averages, the two averages are getting closer and it is possible to form a reverse "Golden Cross" in the next days. We expect Bitcoin Cash to follow the rest crypto market and move according to them.
Indicators
MACD index moved to the negative zone, showing that market momentum has changed and we are entering a new phase in the market. The RSI index dropped between values 50 and 55, indicating relative stability in the price in the next days period.
Correlations
Bitcoin / Ethereum = 0.87 (- 0.04), Bitcoin / Ripple = 0.84 (- 0.03), Bitcoin / Litecoin = 0.91 (- 0.05), Bitcoin / Bitcoin Cash = 0.93 (- 0.03)
A shortfall was depicted in the correlations between Bitcoin and the other altcoins, indicating that the market is slowly trying to move towards its next phase. Ethereum and Ripple drop below 0.90, showing that both have started to diverge from the leading cryptocurrency earlier than the other two, Litecoin and Bitcoin, whose correlations are still above 0.90. The difference between the two groups is that the first group seems more independent in bearish trends rather than the second group, whose dependence is much more evident in the price formation.
