Bitcoin / US Dollar
Price Analysis
Bitcoin's stability continued over the last days, absorbing power for the next period. After the formation of a long-standing parallel channel between $8,600 and $10,000, a second smaller pair of parallel channels between $9,300 and $9,600, showing relative stability for Bitcoin's price.
As we have mentioned in previous price analysis, the stability in the market is frequently followed by a sharp or sudden movement in both directions. In this case, it's quite possible to see a downward move, especially if the stability continues to exist in the next days or the next week. The lack of positive returns shows that investors who had bullish positions, have no more fuel to increase their positions, and just hold them in case of an uptrend.
This scenario has a severe impact on day-trading, as long as the term has stabilized their positions while day traders are trying to buy and sell smaller positions in a much faster time pace. Day trading is also the main feature for Bitcoin's volatility as many days -- traders might work for larger institutions, trading larger volumes than individuals. All of the above factors can explain why the Bitcoin has remained for such a long time at a relatively stable price.
In the short term diagram, it's far more obvious to see that every time the price tries to go up, there is a reverse reaction on that. Based on that, we expect that there might be a try for breaking the $10,000 resistance which may fail again, reaching again the lower parallel channel at $8,600.
Indicators
MACD index is reaching new lower points, showing that the investors haven't created any momentum for the market while the RSI index reached values below 50, showing that there is a possibility for an upturn in the upcoming days.
Ethereum/US Dollar
Price Analysis
In Ethereum's market, similar stability seems to appear also. In this case, another triangle is formed, that indicates future bullish moves. The support level remained untouched while the price upturns tend to get absorbed towards the support level. All this procedure tends to indicate that the price will boom from day to day support from the previous level.
We have to consider also that the Bitcoin - Ethereum correlation is one - way strong and a decisive move in the Bitcoin market will affect Ethereum's market accordingly. The best way to protect our investments and our profits is to diversify our positions between different assets in the crypto market and rely on our analysis for investing the amounts we can.
Indicators
In the indicators' part, the MACD index is slowly getting apart from the two lines, showing that market momentum could slowly become less evident, leading to many momentum strategists to abandon this strategy. On the other hand, the RSI index reached value = 50, showing no signal for uptrend or downtrend in the future.
