Bitcoin / US Dollar
Price Analysis
BTC price jumped out from the parallel channel last Friday, leading to a positive weekend, without any exaggerations and with certain stability. The price rose to $10,700, which is just a little bit lower than the crucial bullish point at $11,000. The parallel channel was served as a turning point for the market, creating the needed support for the market's depth but also the waiting time for investors to collect power and capital to reinvest in the market.
A possible scenario in this case could be the following. If Bitcoin continues to move consequential up and down moves during the next weeks or months, there would be a larger parallel channel formed in the diagram, like the one that was created during the "stability" period between May and July 2020, with a price range from $8,600 to $10,000. A new parallel channel will depict the new waiting period for the Bitcoin market before it enters a new phase of growth. Given that the previous channel was formed at a lower level, the new potential parallel channel will lead to new highs for Bitcoin and possibly for the entire crypto market.
The trading volumes remain at low levels, indicating that a stable period is possible to appear soon, establishing its trend in the market. On the other hand, the moving averages tend to get closer during the last days and they will possibly cross each other, forming a reverse "Golden Cross", which is a bearish signal. The bearish signal will overthrow the previous "Golden Cross" signal, creating mixed feelings in the investing community. Multiple signals in the moving averages sector are quite often when there is a stability period in the market, where the calculations are often misleading for taking new investment decisions.
In the short-term diagram, we can observe that the price range has been much more compact since the last period, indicating that the market has passed on another stage of development and looks for more support in the current levels. As we told in the previous paragraphs, a higher level of support in the current market trend will lead to higher price levels in the next bullish market.
Indicators
MACD index continues its slow growth in the positive area, indicating that there is hope for a stable trend over the next days. The continuous growth with a slow pace might lead to minor liquidations in the market, which will stabilize the price in the current levels. Even if the short-term volatility seems to decrease, the mid-term volatility will be boosted, creating trading opportunities. The RSI index remained stable at value = 50, creating the perfect setting for predictable stability over the next days.
Ethereum / US Dollar
Price Analysis
Ethereum's price climbed up since it broke the short-term support level at $330 and pushed back from the mid-term support level at $320. The price jumped at $350, trying to meet the descending trend line at $360. The trending line depicts a mid-term provision for the price and if it breaks, it will mean that we can pass on a bullish market.
The most possible scenario for Ethereum, at this moment, will be to continue its slow growth until it meets the previous points in the market diagram. The space between $360 and $400 will be crucial for Ethereum and will establish the next trend for the market. This space and the market depth that will be created will lead to a potential bullish market along with the rest crypto market or it will sustain the market at a certain level before correcting back to previous levels.
The moving averages are close to each other, without forming a "Golden Cross" yet and it would be realistic to observe a signal like that during the next days. The signals will follow the market and the next trend will be determined horizontally.
Indicators
MACD index is still on the negative area but with an ascending trend to continue this time, making us believe that the price will follow the path. On the other hand, the same momentum is not depicted in the RSI index, which reached value = 46, which makes us believe that the price is quite unstable at this moment.
Ripple / US Dollar
Price Analysis
Ripple's price rebounded during the last days, making $0.22, a standing point for the currency as there wasn't something before. The rebound was made at $0.24, reaching the previous curve's levels. Even if, it would be hard for Ripple to reach the ultimate goal at $0.30, there is a possibility for creating a strong support/resistance level around $0.24, which will mark the next period for the market. As we observe in the diagram, Ripple's price is moving in curves, making lower low points and trying to rebound every time. This means that is has a strong community behind it, who will support it.
The moving averages are getting closer to each and a "Golden Cross" signal is highly possible to appear in the market, creating hopes for newly-come investors. The combination between the signal and the trading volume will provide us with sufficient data and details that will help us to determine our next moves in the market.
Indicators
MACD index moved up and down during the previous days, creating confusion in the market regarding the price's next moves. On the other hand, the RSI index is moving at value = 46, which predicts a stable and cautiously negative move in the next days.
Litecoin / US Dollar
Price Analysis
The price jumped out from the parallel channel at $46, creating a scenario for reaching back at $48, which was the previous support level in the mid-term horizon. Litecoin's price is highly unlikely to move in unpredictable or game-changing ways, especially during a stability phase for the crypto market.
At this point, the price will either return on the parallel channel or it will reach the $48 point. Both actions don't require a major move and a sufficient trading volume and it will be easy to accomplish. The moving averages continue to move away from each other and a cross between them is not expected in the next days.
Indicators
MACD index passed on the positive side, creating a chance for the price to follow the momentum and make the breakthrough for higher levels. This should be accompanied by the RSI index, which is near value = 40, a negative value for the price's future.
Bitcoin Cash / US Dollar
Price Analysis
Bitcoin Cash's price return back to normal levels, reaching $225, which stands on the long-term support line, which was created from the stability period between May and July 2020. The price is expected to follow the general momentum in the crypto market, with convergence towards the established trend in the core market.
The trading volume remained at low levels while the moving averages are getting close to each other but without crossing each other. This means that at any time, there is a possibility for crossing, which will generate bullish or bearish signals in the market, distracting investors from the core fundamentals.
Indicators
MACD index remained on the positive side, creating a continuous momentum for the price, that is not depicted directly in the market. This means that a certain amount from the market momentum derives from correlations with other cryptocurrencies rather than core fundamental elements. The RSI index is also on an ascending trend, reaching value = 45, which indicates future stability over the next days.
Correlations
Bitcoin / Ethereum = 0.56 (- 0.13), Bitcoin / Ripple = 0.62 (- 0.05), Bitcoin / Litecoin = 0.17 (- 0.08), Bitcoin / Bitcoin Cash = 0.55 (- 0.03)
The volatility hit the correlation coefficients also, making their values to drop for another weekend, while the market is moving on the same page. Most of the major altcoins are moving on the "medium" correlation zone, creating opportunities for predicting a potential uptrend or downtrend with limited success. The current short uptrend might be caused by a market reaction to previous technical and fundamental trends, without any obvious and stable reason. This means that the majority of the current volatility levels remain unexplained and it's getting really difficult for any analyst to predict a certain movement in the market, at this moment.
The difficulties in the market prediction are hard to make as the price movements will continue to fluctuate in the next days, until they find their final route towards a certain direction.
