Bitcoin / US Dollar
Price Analysis
Bitcoin's price moved positively yesterday, breaking the internal support/resistance level in the middle of the large parallel channel. The momentum didn't last for long as the price return on the same level over the day, remaining steady around $9,300. Although there was not an important move in terms of returns, there was a huge momentum in the crypto market, that affects every cryptocurrency.
This showed that a small, positive move from Bitcoin can have a multiplication effect on the market, driving altcoins' returns at higher levels. The investors' expectations are multiplied in the market, as they believe that an inflow in the crypto market will drive the prices up and sustain the positive returns for longer periods.
Regarding the moving averages, there is more space for the "Golden Cross" signal to appear in the field, showing that there is a possibility for a further uptrend in the next days for Bitcoin. What we expect to happen is a small rise in Bitcoin's price, without any major change in the technical field that will indicate a turn on the market in either direction. The internal support/resistance level has been established over the last two months, showing that many investors have concentrated their positions around this level, expecting rises and drops near it.
In the short-term diagram, we can observe that the bearish trend, formed in the last two weeks has been slowing down, setting the pace for a potential rise in the next days. The volume moves across the expected levels while there was nothing unexpected in new formations for trend lines.
Indicators
MACD turned positive, showing that positive momentum is created in the market. The shadowy item in the analysis is that the positive momentum cross happened in the negative zone, showing that a lack of momentum might continue in the near future. On the other hand, the RSI index is moving towards value = 60, a crucial point that might indicate a sharp rise in the price that will lead in an overselling period after that.
Ethereum / US Dollar
Price Analysis
The "Golden Cross" signal appeared on the market, indicating a bullish trend is upcoming and there is a need for more analysis on that point. The price jumped at $240, forming the third high around that price. The former highs were around early and mid-June, showing Ethereum's inability to free itself from the Bitcoin's dependence and make its route in the crypto market.
The three highs indicate that Ethereum can't break this informal resistance level and the triple high is sometimes a bearish signal for the market. It depends also on the evolution of the third high. If the price continues to rise, then a new trend will be established and Ethereum will become independent from Bitcoin's market moves. We have to wait and observe if the peak has already been reached, then a return on $230 is quite possible. If the entire market will move upwards, then a new trend will be established and there is a need for further analysis in the new field.
Indicators
MACD index pass on positive values, above the zero lines, showing that a new momentum might be established in the market, driving the market in new high levels. The RSI index is on a crucial point, right below value = 60, where the overbought zone starts to give bearish signals for the market. We expect a small rise in Ethereum's price in the next days, in order to surpass the value = 60 on the RSI index and start to create bearish signals for that.
Ripple / US Dollar
Price Analysis
An unexpected turn happened in Ripple's market, when the cryptocurrency took a major rise during the last days, surpassing all ambitions and hopes from investors. The price went up to $0.20, a level opposed to the established bearish trend formed in the last two months. The price broke the upper boundary of the parallel channel and continue to grow.
As we have told in those articles, the price compression indicates a surge in the price but there were no expectations for such a major change. If the market wouldn't support the prices' rise, then the positive momentum will disappear from the market and the price will collapse in previous support levels. The volume remained high during the last days, showing an increasing interest in the specific cryptocurrency.
Despite the major rise in Ripple's price, there was no "Golden Cross" signal that appeared yet in the market. The difference between the two moving averages is very small but we have to wait for seeing the "Golden Cross" in the market. The sharpness of the rise didn't allow the market to digest the new trend and there is a possibility for quick back-off the previous levels.
Indicators
MACD index booms the momentum in the market, trying to move steadily on the positive side. The price increase makes the RSI index to surpass value = 60, a bearish frontier for many analysts and create new uncertainties in the market. The uncertainty is created from the fact that Ripple is always moving between the lines, rarely giving any signal about oversold/overbought signals.
Litecoin / US Dollar
Price Analysis
The positive momentum in the market found Litecoin with the same reaction, a small positive rise between the parallel channel boundaries. The price climbed until $45, showing that the price will continue to be a safe haven for many investors who don't want to take huge risks in the crypto market and prefer lower volatility assets.
The "Golden Cross" signal is quite close to appearing in the market and this will happen with a small rise in the next days. We expect that small rise to happen up to the upper boundary of the parallel channel if the market continues to move like that. The established trend in this phase is considered bearish, giving more uncertainty to several investors who don't trade on a daily basis. We expect that small rise to happen, followed by a certain stability level which may last for long.
Indicators
MACD index turns on positive values a couple of days before, indicating a possible trend reversal, without any more evidence for that except the total market momentum. On the other hand, the RSI index tries to reach value = 60, a crucial point as we mentioned before that will shape the future regarding the oversold/overbought signals. The overbought signal didn't appear for long at this market and we have to wait to see if there is such a possibility.
Bitcoin Cash / US Dollar
Price Analysis
Bitcoin Cash's price surge reached a previous level in the rise, the $240 point, an internal point in the parallel channel that has been tested several times during the last two months. This internal point is crucial for Bitcoin Cash's future as it will shape the direction that will follow in the next days. Like the other two times in the past, the rise in Bitcoin Cash's price has a certain amount of time that peaks (as you can see in the 45o triangles). There is a possibility for another triangle at this moment.
The "Golden Cross" signal didn't appear in the market, showing that there is a possibility for more uptrend in the market, up to the upper boundary of the parallel channel at $255. The "Golden Cross" seems possible to happen in the next days but it is quite impossible to create a positive trend in the market. We expect a price compression around the internal point in the next days and then a trend established from the market.
Indicators
MACD index returns to positive values but as we can observe for the diagram, Bitcoin Cash has really low volatility on MACD's moves, showing that the signals could be fake and improper for day-trading. On the other hand, the RSI index is moving towards value -= 60, indicating a possible bearish signal in the near future.
Correlations
Bitcoin / Ethereum = 0.81 (- 0.07), Bitcoin / Ripple = 0.70 (- 0.13 ), Bitcoin / Litecoin = 0.79 (- 0.11), Bitcoin / Bitcoin Cash = 0.81 (- 0.11)
The correlations between the different assets drop significantly as many altcoins had larger returns during the last day, overthrowing their relation with Bitcoin's price. The correlation coefficients seem to play an important role in the day-trading process, as the correlation coefficient used to return in higher levels, according to price movement. A drop in the correlations might indicate a turn in the entire market, as its integrity is moving apart and the diversification between the assets is much more evident. The independence observed the last day may be a start for more developments and news to arrive in the technical analysis field.
