Bitcoin/US Dollar
Price Analysis
Another calm weekend for Bitcoin's price as there weren't any sharp or sudden moves during the previous days. The lack of surprise element has reduced the volatility in the Bitcoin market, making it more predictable and less risky in the short term period for day traders. If we want to separate the investors to value investors and day traders, there are fundamental differences in the attitude and their approach to volatility standards.
Value investors look for fundamental value like cash flows or potential future growth depending on macroeconomic factors. On the other hand, day traders look for price movements which will enable them to get profit from their positions. The volatility reduction may lead to a halt in daily tradings for several days, as there will be no profits to sustain their system. Value investors have the time to understand and decide if it is the right time to invest in Bitcoin or they should wait for a price reduction.
The power absorption over the last months may have two outcomes. The first possible outcome is a sudden rise or fall (over 10%) shortly, which will change the Bitcoin space and create new dynamics in the market. The second and less possible outcome is the "fair price" scenario, where the price may remain around $10,000 for a long time, as it has been valued from the market and will not change in the foreseeable future.
In the short term diagram, we can observe that the new, smaller parallel channels have been created between $9,300 and $9,550, a narrow path that indicates stability, similar to the traditional stock market. The creation of new standards in Bitcoin may be at our front door.
Indicators
MACD index continued its negative slope, reaching almost a value of - 50 while the lower bound touches zero. In parallel, the RSI index reaches a value of 50. The combination of the two above indexes shows that there is no evident signal in the market for potential rise or fall.
Ethereum / US Dollar
Price Analysis
As expected from the previous analysis, Ethereum broke the triangle positively without a decisive move with momentum. The bullish signal may become a reality but the lack of momentum did not allow a more decisive move for Ethereum. This can be explained through Bitcoin - Ethereum correlation effect, as Bitcoin did not move accordingly. It's too early to say a new trend is established in the Ethereum market.
We expect a similar move in the next days as Ethereum will try to capitalize on the positive moves in short-term profits for Ethereum traders.
Indicators
MACD index remained negative but the lower bound seems to turn upside, allowing a momentum strategy over the next week. On the other hand, the RSI index seems to move above value = 50, towards value = 60, giving investors the hope for a further rise in the coming weeks.
