BTC Set to Regain Bullish Momentum after Short-term Market Correction

In that case, further correction is on its way with Bitcoin being famously known for head and shoulder patterns.

The first few hours of the day are extremely important not just for Bitcoin but overall market trend as well.

Bitcoin (BTC) marched upward on Saturday after a solid retest of the $50,000 and $50,844 marks, with bulls stepping in to push BTC over the $49,350 resistance line.

The conflicting attitude following a few events allowed BTC to hold above $48,083 levels before surpassing the first resistance level of $48,000.

The expiration of $330 million worth of BTC options has also supported the rise for many days now.

Since the turn of this month, Bitcoin's Relative Strength Index (RSI) broke out of a seven-month slump for the first time.

As can be seen frpm the image above, the RSI had been making lower highs.

But suddenly upward momentum has risen high enough to break the pattern of lower highs in momentum, resulting in a local higher high.

After bitcoin temporarily dwindled off these positive vibes for the third time, this indicated that there had been some bullish push.

The $47,035 Bollinger band is an important support level for the king of cryptocurrencies.

RSI is below the previous four-hour chart, indicating the same chance for the bulls to regain control.

Bitcoin is in one massive ascending channel that will likely break to the upside, and ascending channels have a 68% chance of breaking to the upside.

Indicators

The RSI resurgence could be the start of more upward movements, or it could signal a dip in price.

With bitcoin fluctuating throughout the previous two months since it initially reached these levels in May, the former is more plausible.

Instead, the development of any bullish momentum could be cautious and slow since bulls have to build confidence by maintaining ground and pushing higher incrementally if this breakthrough remains.

While the bulls still hold the upper hand inside their area, it doesn't mean the battle is over.

The MACD has been on a downward trend for the last few months.

ETH/USD

ETHUSD price has stayed flat in the last seven days while breaking the over eight-month trendline.

ETH/USD started at $3226 today, down 1.50 percent from yesterday, with an inter-day high and low of 3231 and 3145, respectively.

ETHUSD fell through the first key support level at $3135 as a result of the reversal.

From a technical point of view, the overall trend for ETH is bullish, even though the current bearish trend in the coin's outlook portends a short-term opportunity for traders and investors with the Exponential Moving Average being above 20, 50, 100, and 200, respectively.

Suffice it to say that there is a general feeling that ETH will attain a new all-time high in the next two weeks.

This week, it looks primed for a pump; bands are tight on the daily and delicately poised for a surge.

This would be great news to investors far and near who have been speculating that the coin would eventually surpass BTC in respect to performance.

Indicators

The MACD curves are currently in the positive region, indicating bullish momentum in the coin, with the RSI also indicating a bullish trend formation with a value of 55.

XRP/USD

XRP/USD has endured a bearish season for the better part of the last two months.

Today, XRPUSD is up 0.42 percent. XRPUSD opened today at $1.14352 after gaining 1.02 percent yesterday.

XRP/USD experienced an early morning low of $1.12000 and then hit an intraday high of 1.14499 at the time of this writing.

The present price is only slightly higher than the 200-day moving average price of $0.61.

The average volume has been declining since then until lately. XRP price chart reveals that the pair is ready to retest the 1.20 mark.

Even though the candlestick chart indicates that the pair is currently in a bullish vibe, with the volatility of the price being between 1.14 and 1.7 positions

It is more likely to either break the 1.7 resistance or dip to the 1.10 mark.

The current price is only slightly higher than the 200-day moving average, and average volume has been dropping since then until lately.

The current average volume of 138,485,968 is somewhat lower than the 200-day average volume of nearly 200,000,000.

But it is considerably greater than the 50-day and 20-day average volumes.

Indicators

A RSI of 55.39 percent indicates that the market is in a recovery state. It is also a vast improvement from last week.

This obviously implies that more people are purchasing. On the flip side, the MACD remains reddish, with the bear and bull curves nose-diving.

In the coming days, the average price of XRP may theoretically improve.

LTC/USD

Looking across several timeframes, no particularly clear upward trend is seen and that is just a proof that the pair is volatile.

At the current price of $172.76, the pair is still a strong point away from the all-time high of $410.26.

Two months ago, LTC/USD resisted the downtrend and rebounded back up from $105 to demonstrate that the bulls are taking advantage of the situation and going with it.

The bull is definitely straining and attempting to keep the price up at a 5-day moving average of $131.17 and slightly bending the knees.

The bull and bear curves of the MACD are in tight battle, indicating that although the bulls are attempting to maintain an uptrend.

The bears are not becoming any weaker, with the RSI marginally pointing downward.

LTC opened the day at $174.48 and has since then been trading above the $173 mark away from yesterday's closing price with a day high and low 175.29 and 170.88, respectively.

As it stands, no clear resistance point can be seen.

Indicators

With the MACD curve pointing downwards and the histogram still in the red color, an RSI of 52 percent heading upwards is indicating a relatively strong defense against the bears.

This battle will undoubtedly go a long time, and because the bulls are not giving up, the bears are likely to follow suit, and we shall witness the outcome in the following days.

BCH/USD

The pair opened the day at $636.15 and had dipped by -1.76% with an intraday low of 641.79.

As of the time of this analysis, BCH is trading at $647.90. The bulls are now defending the 20-day EMA, which is a glimmer of hope.

BCH is on the verge of deciding which portion is best for it.

Regardless of who takes over the market between the bulls and bears, this choice will be made soon.

At $648, BCH has just achieved a fresh support level, with the pair heading higher over the monthly chart, after pulling back from the MA lines.

The coin is on a bullish trajectory with major support levels at 580 and 490 and significant resistant levels at 720 and 810 marks.

We see the pair making a return and establishing fresh support above the present level.

Although the short-term outlook may seem gloomy, now is the ideal moment to purchase the currency and wait for a pump.

Indicators

The RSI, which is now at 54.42 percent (up approximately 2% in the past three days), is exhibiting some signs of weakness (in the short-term). This is still a valid argument, and as previously mentioned, now is the ideal time to purchase. The MACD, on the other hand, is in the negative zone, emphasizing the pair's short-term weaknesses as well as its long-term possibilities.

Correlations

• Bitcoin / Ethereum = 0.88
• Bitcoin / Ripple = 0.76
• Bitcoin / Litecoin = 0.80
• Bitcoin / Bitcoin Cash = 0.80

Since the beginning of the month, the correlations have been relatively stable, demonstrating that Bitcoin's success directly affects the market.

As Bitcoin pumped above the compression threshold of $48,000, the rest of the market rose with it, with salubrious effects for other cryptocurrencies.

Altcoins like ETH, XRP, LTC, and BCH have developed a strong connection with Bitcoin over time.

This implies that with this latest bullish wave occurring for BTC, the market will likely continue in the same direction.

We anticipate a further rise in the correlation field in the coming days due to the compression.

Key Notes for Today

• BTC has been going through corrections in the past one to two days.
• ETHUSD fell through the first key support level at $3135 as a result of the reversal.
• XRP price chart reveals that the pair is ready to retest the 1.20 mark.
• XRP establishes a foot in the bullish trend.