Bitcoin / US Dollar
Price Analysis
Even though the technical indicators showed that a further slip will appear in the market, Bitcoin proved them wrong and rose back to $11,600, on Sunday. The positive uptrend had started from Friday but the major leap made on Sunday. This was quite unusual as weekends are often a calm period for cryptocurrencies The price created a local bottom at $11,300 but found support at that level and rose up to $11,600.
This positive correction didn't manage to change the entire trend in this case but it could create confusion at this moment for some investors. What we mean is that the previous bullish trend has been reversed since the price broke the parallel bullish channel that was created between $11,600 and $12,000. This channel determined the bullish run and created profits for short-term and long-term investors.
After breaking the channel, the price slipped downtrend and showed that a bearish trend will come after. The reverse "Golden Cross" signal was also an indicator that was helping on that statement also. We believe that the uptrend was a weekend reaction for the market and it should not be taken so seriously. What helps us in this analysis is that the volume is rather small, comparing to previous and price actions. We have to highlight that this uptrend has a massive effect on the entire crypto market, creating unexpecting profits for many altcoins. This mass effect shows that a surprising move in the Bitcoin market might have multiple effects on the rest altcoins and create new standards for the market.
In the short-term diagram, we can observe that the market moves in waves regarding its ups and downs, creating opportunities for day-traders. After any major correction, there was a small or large uptrend that could create another higher peak for the price. This didn't seem to happen over the last days but the support levels work much earlier and prevent a further fall.
Indicators
MACD index shows that the momentum is still on the negative side but it slows down and tries to make a turn towards to positive side. This could be distracting from the current market position and trend but we should compare it with other technical indicators to extract safer conclusions. The RSI index moved above value = 50, showing that the price will have certain stability in the near future but according to the current situation, this is highly unlikely to happen.
Ethereum / US Dollar
Price Analysis
As we told in previous articles, Ethereum is the definite winner for the previous bullish run. This was proved again during the weekend when the price rose from $380, the current support level, to $420, prospecting for more. The support level at $380 proved strong during the downtrend and in combination with the general uptrend, the price rose at unexpected levels. The "head and shoulders" formation was proved wrong, at least for this moment, where many hopes are laid on the momentum factor for the market.
As we can see in the diagram, the trading volumes remained low during the weekend, without creating much depth in the market and showing that the uptrend won't last for a long time. The momentum factor might enable the market to attract more investors that will boost the market to higher levels than the current ones. The moving averages, which had already made a reverse "Golden Cross" during the previous week, are moving back to establish a "Golden Cross" and create more confusion in the market.
Indicators
MACD index remained on the negative side but it seems to turn over and move back to the positive side, creating a new positive trend. If the bearish trend continues to exist, we hope that the positive values won't appear in the market because they will create much more confusion among the investors' community. On the other hand, the RSI index moved at a value above 60, indicating that we should expect a further uptrend. This could be a fake signal as the entire market is still moving on the bearish reversal and it could be hard to anticipate another change in the same timeframe.
Ripple / US Dollar
Price Analysis
After reaching $0.26, Ripple found a support level, which didn't exist until then and rose back to $0.28. The uptrend is considered to follow the rest crypto market as the general positivity can overcome fundamental and technical factors and create new routes on the crypto diagrams. Ripple had broken some support levels during the downtrend around $0.29 and the majority of analysts believe that the downtrend would continue for much longer.
We should take into account that the trading volumes during the weekend are much lower than expected, creating doubts about the trend sustainability and its ability to move forward during the upcoming weeks. The reverse "Golden Cross" is another bearish signal that made the market to turn over a bearish trend, creating a different perspective from the one that we look now. In any case, we should wait and see if the trend would continue during the next week or it would blow after a few days.
Indicators
MACD index is still in the negative values but the negative momentum seems to slow down and try to overturn on the positive side. The same thing happened to the RSI index as it moves to values above 50, showing that there might be stability during the next days in the market. Both signals might be affected by the current uptrend and give fake signals to investors, so we have to be more careful about them.
Litecoin / US Dollar
Price Analysis
Litecoin's roller coaster seems to continue its ride and offers many chances for investors to come back any time and try to get profits out of it. As we saw on Sunday, the mighty support level at $57 held strong and the price didn't slip further at lower levels. After that, the price jumped at $62, creating a 9 % profit margin in a single day. This jump could overthrow technical indicators that show there would be a bearish trend in the next period.
For example, the moving averages formed a reverse "Golden Cross" last week, showing that a trend reversal might be possible during the next period. The trading volumes remained at low levels, showing that there is not enough depth in the market to support a further uptrend or prevent a possible downtrend in the near future. We expect Litecoin to follow the crypto market's trend and create a similar pattern with other cryptos.
Indicators
MACD index still remained on the negative side but its value seems to turn up and try to move towards the positive side. On the same page, the RSI index moved above value = 55, indicating that a future uptrend is possible without any support from the fundamental perspective.
Bitcoin Cash / US Dollar
Price Analysis
Bitcoin Cash experienced the most severe correction in the crypto market, from $320 to $265 in just a week. The price broke the support level at $280 and continue to move downwards, meeting no resistance at all. The support level created at $265, as a result of the general trend for the crypto market and not as a healthy result from the currency. The price bounced back at $275, creating a small uptrend in the market, which is not considered equal with the other currencies' prospects and uptrends.
The reverse "Golden Cross" is considered to be right as the price moved downtrend and create local lows in the market. The trading volumes are much lower than expected and this should make us think that the uptrend will not last for many days and the downtrend will continue to move the price at lower levels.
Indicators
MACD index is moving on the negative side, below the zero lines, creating negativity in the market and preventing a possible uptrend from happening. The RSI index is still below value = 50, creating a stability outlook in the market that should not be taken into account as there are contrasting views for other indicators.
Correlations
Bitcoin / Ethereum = 0.82 (+ 0.01), Bitcoin / Ripple = 0.93 (- 0.01), Bitcoin / Litecoin = 0.79 (+ 0.03), Bitcoin / Bitcoin Cash = 0.92 (- 0.02)
The market correlations didn't move in unexpected or steep turns during the market change. This happened due to the fact that the majority of altcoins moved towards the same direction with the Bitcoin uptrend, following the positive trend for Sunday. The market seems to establish a common direction during the last days, creating prospects that no currency will be distracted from the current trend, creating different conditions in its market and less predictable moves in the near future. This fact could lead to more integration in the market and fewer distractions for current and future investors.
