Bitcoin / US Dollar
Price Analysis
Bitcoin's price remained stable at around $11,400, indicating a small halt in the observed downtrend during the previous week. This second internal wave of the downtrend seems to be the decisive move for the bearish market to start. As we told in the previous article, the price peaked around $12,400 and then it corrected $11,600. The established bullish trend didn't let the price slip further and form a kind of rolling resistance for some days in a row.
This didn't happen over the last days as the price broke the support level and fell even more at $11,350. This fall had consequent effects on the crypto market, creating a bearish mood in the market and making many investors liquidate their positions in Bitcoin and other cryptocurrencies. The volatility in the market seems to increase from the daily candles in the chart, showing that bearish and bullish investors fight along the day to establish their positions and win the everyday battle.
We can observe that the volumes are lower from the bullish period, showing that major moves are not expected during the next days but the trend has changed since the last peak. The "red" days have much higher trading volume than "green" days, indicating that a large proportion from the investing community is trying to capitalize on their profits in every small uptrend and collect every opportunity for profit. The moving averages are still close, having the reverse "Golden Cross" formed two days ago as another bearish signal in the market.
In the short-term diagram, we can observe that the downtrend has milder reactions regarding previous downtrends, showing that the market has sufficient depth that can support a possible downtrend, allowing investors to think and take decisions in their time, without panicking or making irrational decisions. The market depth is an important fundamental factor in any market that derives from the market's trading volume and the size of buy and sell orders.
Indicators
MACD index halted its downtrend, showing that the price's fall might stop for a little at this moment, creating a possible support level during the bearish market. According to the RSI index, the price is between remaining stable for the next few days or continuing its downtrend immediately. This dual outcome is not helpful at this moment and we better concentrate on other technical factors.
Ethereum / US Dollar
Price Analysis
The $385 point seems to be an important step for Ethereum as the price downtrend halted for the week, creating a support level for the market. This support level could also predict the further fall for Ethereum's price as there is a "head and shoulders" signal in the market. As we told in previous articles, the "head, and shoulders" signal is a bearish formation that shows that the market is not strong enough to break the peak level and it collapses after stopping at the previous support level. This is a possible scenario for Ethereum at this moment, given that the entire crypto market is in a bearish mood.
The "shoulders" level between $380 and $400 was a crucial level for Ethereum as it seems that the market was running out of "gas", making another sustainable uptrend almost impossible for this period. The "gas", in this case, was the new investors' entrance that will give the market a new boost and more depth regarding its structure.
At this moment, we can observe that the first "shoulder" on the diagram has much higher volumes than the second "shoulder", showing that the market has enough depth at those levels to support a potential downtrend. Many of those investors possibly liquidate their positions during the jump at $440, leaving the second "shoulder" with less depth and severe weaknesses. The reverse "Golden Cross" is another signal that indicates the bearish trend that has or will start in the market.
Indicators
MACD index shows Ethereum's steady fall in the market, depicting that the negative momentum has passed in the investors' mood and determines their next moves. The RSI index is just above value = 50, showing that the market looks relatively stable for the moment but that could change very quickly.
Ripple / US Dollar
Price Analysis
The bears in the crypto market have found a tremendous opportunity for taking profits and this is the Ripple market. The price fell at $0.26 yesterday, establishing the bearish trend in the market and make it lucrative for more bearish investors to come. As we can observe from the diagram below, Ripple was one of the cryptos that had consequent and consistent "green" days during the bullish period, which makes the market much more vulnerable than in other coins.
The weak market has much more chances to develop volatile trends that might work for day-traders but are not welcome for long-term investors. The speculation characteristic is more evident in the Ripple market where the price tends to follow the market trends and not the core fundamentals of the currency. The continuous drops for the price show that the market had overvalued Ripple and this was the time for major corrections. This fact can be found in the reverse "Golden Cross", which indicates a bearish reversal for the market, following the rest of the crypto market.
Indicators
The negative momentum is much stronger in Ripple's case as depicted in the MACD index while we can see that the RSI index shows that there would be more correction in the market during the next days. We wait to see where would be the support level that the price would stop falling.
Litecoin / US Dollar
Price Analysis
The last of the examined markets where there wasn't a reverse "Golden Cross" in the diagram, just fell. The Litecoin market has officially entered the bearish trend and we could see that it definitely will follow the stronger currencies in the market, trying to hold any support levels in the near points. The price fell from $62 to $56 in just three days, showing that the negative momentum could affect heavily Litecoin and shape its new trend.
Of course, we want to see if the support level at $54 would stand in the bearish trend but it is highly impossible as there is no major depth that could surpass the overall bearish momentum in the crypto market. The volumes tend to be at the same levels as the stability period, showing that the market is waiting for new signals to occur to shape its next trend.
Indicators
MACD index shows that the negative momentum is growing in the Litecoin market and could reach new highs, affecting the currency's ability to hold its price at certain levels to remain lucrative for the investors. The RSI index moved at value = 46, indicating a further drop in the price during the next days.
Bitcoin Cash / US Dollar
Price Analysis
The crucial level at $280 broke yesterday, showing that the Bitcoin Cash market is still weak and could not be as independent as it wants to be. The price fell at $265 yesterday, setting already the base for returning in the previous price levels around $250. This could make some investors think that the asset will soon be undervalued and prepare themselves for buying in the future. Until then, most investors hold a neutral position towards it.
The volumes seem to be much lower than expected, proving that the price drop brought investors to the dilemma to wait until it drops more. The future drop will be the motive for waiting and it can be proved with the reverse "Golden Cross" which appeared twice during the previous week.
Indicators
MACD index was laying under the zero-line, indicating that the momentum in the market is aggressive and might eliminate any profits from long-term investors. On the other hand, the RSI index moved at value = 40, a crucial point for the market which indicates that a future fall might activate a "buy" signal for some investors.
Correlations
Bitcoin / Ethereum = 0.81 (+ 0.03), Bitcoin / Ripple = 0.94 (+ 0.02), Bitcoin / Litecoin = 0.76 (+ 0.03), Bitcoin / Bitcoin Cash = 0.94 (+ 0.05)
The stability in the market creates positive correlations during the last days between Bitcoin and the examined altcoins. A stable period for the market means that every currency remains at the same level, thus creating stronger positive correlations between them. Given that many capitals have been liquidated and exited the crypto market, we saw that the market moves towards the same direction, creating the base for future analysis and predictions. An integrated market is easier to predict and position yourself in it, claiming the best returns for your portfolio. If the entire market moves to "red" during the next days, prepare yourselves for a strong discount period for winning more.
