Bitcoin makes another trial to break the mighty $47,000 resistance level, as the price surged again today. After making a bullish rally from $30,000 to this point, Bitcoin will probably need rest before taking off again for higher levels.
Until now, the $47,000 point was acting as a support point as it absorbed massive corrections back in March 2021, late April 2021, and early May 2021.
Breaking this level as a support point started a bearish path that lasted less than three months.
This could be a critical point for the market as a pass on the upper side, above $47,000, would mean that there would be another “war” to sustain the price at higher levels.
This challenge was addressed in the past by adding more hype to the market. Elon Musk, Tesla’s purchase, more and more institutional investors were getting involved, and the meme stock mania brought Bitcoin’s price to all-time high levels.
The all-time high rejection brought more skepticism in the crypto world, and the correction was inevitable.
The compression trend formed around $36,000 was the previous step, while now, we see that the price is compressed again around $47,000, waiting for the next big thing to take place to make things shift on one side or another.
The trading volumes remained on the same levels during the last week, and the moving averages have remained at close distance, in bullish formation always.
On the short-term diagram, a minor compression trend has started to appear just below the $47,000 resistance level, showing that there is enough market depth to absorb any sudden move from the bulls until there are many of them.
MACD index remained negative, showing that the market has not yet brought more momentum to break the resistance level, and we will need to wait for more. The RSI index moved to value = 65, showing more potential for another uptrend in the short-term future.
Ethereum’s price rebounded again, landing at $3,200 and bringing the market to the bullish path. As the previous local high level stands around $3,300, there is a need for breaking it in the next few days.
This need derives from the fact that a market that marks lower high levels will soon become a bearish change.
If this minor trend hits higher levels than $3,300, we expect the market to continue to thrive and try to reach all-time high levels again.
On the fundamental side, the London fork will also play an important role as Ethereum’s scalability will improve, and it will attract more investors that rely on purely fundamental reasons to buy an asset or not.
From a technical point of view, the market has not developed enough “history” on those high levels, so it’s difficult to find any support or resistance levels that will hint at what’s next in the price action.
The all-time high level at $4,400 is the ultimate goal for now, but we need to prepare for more action in the next few days.
The trading volumes are making some ups and downs, without any surprising spikes. The moving averages remained on bullish formation, without any change in the process.
MACD index surged but remained negative, predicting a slower return on the positive momentum era. The RSI index remained between values 60 and 65, showing that the price has more potential to go up rather than go down.
A similar situation can be depicted in the Ripple market as the price heat up again and reached $1.23, just like a few days ago. The Ripple market has remained massively volatile above the $1.00 line, which could become a destabilizing factor when explaining the market in technical terms.
The previous bullish period was more volatile as the market, and the investors were clueless about those prices and didn’t know how to react. As more time has passed, the established market depth will probably give us another perspective for the next trends in the Ripple market.
The expectations for the current trend are the price to climb until the major resistance level at $1.60, and the best-case scenario will be to hit the highest price at $1.80 in the next months again.
Those expectations should be accompanied by increased liquidity and interest from the investing community.
The trading volumes look higher than in the previous period, while the moving averages have been placed away from each other, creating a bullish feeling for the market.
MACD index has remained positive, indicating that the market has added more momentum in the price formation process. In contrast, the RSI index moved to value = 70, indicating that the bullish trend might reach an end for now.
Litecoin’s price returned in the compression average of $175, showing enough space in the chart to fill with more market depth. As mentioned in previous articles, Litecoin is a slow-moving coin that cannot adapt easily to the market dynamics and needs more boost from the market dynamics.
The bullish trend will try to bring Litecoin out of the compression trend, break the $200 resistance point, and start a new bullish path to higher price levels.
The expectations should remain low at this point as Litecoin doesn’t seem to have enough power to handle a new bullish wave that could lead the price to $300.
The trading volumes have started to grow slowly, indicating that a bullish scenario might bring new air into the market.
The moving averages have remained close to each other, but it is unlikely to meet each other and change the trend.
MACD index is approaching value = 0, indicating that the market will remain on the same spot without acquiring more momentum from the market. The RSI index started to grow beyond value = 60, showing that there is enough positivity in the market to attract more investors’ interest.
Bitcoin Cash has performed an even slower adaptation of Bitcoin’s bullish dynamics and tried to land at $660.
The chart below can show us that the market cannot absorb enough power to bring the market above the $700 - $800 level.
This inefficiency in the Bitcoin Cash market could cost several days of delaying an uptrend or delivering a better result to its investors.
The expectations are also low for Bitcoin Cash as it seems that it cannot bring the market to sufficient levels, where we can safely speak about a clear bullish trend.
The trading volumes have remained on the same level, depicting a stable situation for the market. In contrast, the moving averages have sustained a small distance between them, which ensures the bullish formation.
MACD index has remained in the “green” area, indicating that the market is moving slowly but with a positive outlook to look for. The RSI index also gives a positive perspective in the market analysis, as it lays between values 60 and 65.
Bitcoin / Ethereum = 0.98 (+ 0.06), Bitcoin / Ripple = 0.79 (+ 0.01), Bitcoin / Litecoin = 0.94 (+ 0.01), Bitcoin / Bitcoin Cash = 0.86 (+ 0.01)
The correlation field remained on the same levels as the minor surge in the Bitcoin market made every cryptocurrency jump on higher levels, bringing the market better results than before. T
he expectations are higher for cryptocurrencies like Ethereum and Litecoin, whose correlation has been marked to higher values.
In contrast, Ripple and Bitcoin Cash have remained on the higher pillar of correlation but with smaller values. We believe that every correlation will move to higher values as the rest of the market absorbs dynamics from the Bitcoin market and shapes the next steps for each.
