The entire crypto market remained positive with Bitcoin to lead the way for a new bullish period and extensive green candles in the charts. The market seems to move in the same direction and many analysts believe that future changes in the market will start from this point and on.
Bitcoin / US Dollar
Price Analysis
Bitcoin's price remained above $11,000, laying at $11,200 yesterday. This small period of stability shows us that bullish investors try to raise their positions in Bitcoin, even if old investors are willing to liquidate their positions. The volume is decreasing after the major uptrend move but it remained at higher levels than the previous period.
We should point out that the moving averages' are at the same level as in early-May when the uptrend was at its end. This could possibly showcase that the uptrend is moving towards a halt. This is not a bad case for the market as the previous resistance level (the $10,000 point) will become the new support level that will start a new cycle for Bitcoin and the entire crypto market.
The new cycle will be determined from many factors, not only technical but also fundamentals like the difficulty in the mining process and the rate of active wallets in the market. Both of the two above factors have a positive correlation with the Bitcoin price as more power rigs are connected to the network, more users will be able to use the network and confirm their transactions. Additionally, more wallets mean that more users have bought Bitcoin and the adoption rates are growing.
In the short-term diagram, we can observe that the recent uptrend is following an exponential growth regarding its curve. The exponential shape shows that the curve was starting slowly to rise while the second phase was much more rapid in terms of growth. The shape of the curve shows that the price growth was expected during the last days before the jump.
Indicators
MACD index continues to remain in the positive area but the momentum seems to slow down. The slowdown of the momentum is a signal for stability that led to the new phase of Bitcoin. On the other hand, the RSI index remained on the strongly "overbought" area, which indicates a strong preference for selling Bitcoin and the start of the bearish period. We should notice that the RSI index takes into account the last 14 observations for any asset, meaning that if Bitcoin remains around this price for at least 14 days, the index will turn down, even if there is no change in the price.
Ethereum / US Dollar
Price Analysis
Ethereum's price took another jump from $320 to $340, creating a daily return of 6 % for day-traders. As we told in previous articles, Ethereum took the largest portion of new capitals that flow in the crypto market, showcasing that there is potential in the market for capitalizing on that point and continue its development. During the previous large bull run, around December 2017, Ethereum reached $1,000 (an all-time high), outrunning Bitcoin in terms of excessive returns.
The volume in the market is increasing and remained at higher levels than in the previous period. The increasing interest in Ethereum is connected with the recorded volumes in different exchanges. The moving averages are moving apart from each other, creating a huger gap between them, much larger than the one in the previous bullish run in early-May.
We expect that Ethereum will move in the same direction as Bitcoin and the rest crypto market as there is no evidence that any altcoin will drive apart from each apart and follow a different route.
Indicators
MACD index is moving on the strong positive side, with no sign of slowing down. This means that Ethereum is still outperforming Bitcoin in terms of daily returns. On the other hand, the RSI index is moving to even stronger areas for the "overbought" signal, showcasing that Ethereum is overvalued and there is a high possibility for a reverse in the current trend.
Ripple / US Dollar
Price Analysis
The same situation is pictured on Ripple's market. Ripple continues to surge during the last days, capitalizing not only on the new investors' money that enters the market but also investors that liquidate their positions in Bitcoin and want to use the profits for buying other altcoins, that might rise quicker and steeper. Like other cryptos, the moving averages are creating a large gap between them, showcasing that the trend is still bullish with no evidence of falling.
The volume is increasing during the last days, indicating an interest in the currency and depicting the rise in the market also. The bullish run in the Ripple market made Ripple reach new highs for this year while there are expectations for a further uptrend in the upcoming days. This will be determined from the rest crypto market and possibly from the news that arrived regarding new business cases with Ripple. As you may know, Ripple is a pre-mined cryptocurrency that is widely used in the banking sector. New adaptations from new customers might affect the price and give another boost in Ripple except for the market momentum.
Indicators
MACD index is solely and aggressively positive since the last month, indicating that Ripple's rise was much earlier than other cryptos, giving excessive returns to its investors through the momentum strategy. On the other hand, the RSI index moved to value = 80, which indicates that the index tells us to "strongly sell" Ripple at this moment. Although this is a common recommendation for the entire crypto market, we should note that if the leading asset doesn't turn on bearish mode, then none of the rest cryptocurrencies will reverse their trends.
Litecoin / US Dollar
Price Analysis
Litecoin's price reached its second-to-all all-time high at $57. After many weeks in compression, the price jumped in higher levels, breaking the strong resistance level at $49, which was formed in early-May and a week ago.
The moving averages are tearing apart while the volume moves to 2020 high levels. The high volumes indicate that many investors try to find more attractive returns in other cryptos except Bitcoin and diversify their portfolios in cryptos like Litecoin. Although Litecoin is considered one of the cryptos with lower volatility levels, it was targeted by many investors during the last altseason, creating new trends in the market and participating in the general rise.
Indicators
MACD index is rising aggressively during the last week, showing that Litecoin momentum is definitely on the investors' side and it is a solid investment for the alt season. The indications are completely different regarding the RSI index that shows that Litecoin is overvalued and investors should sell any assets that they possess. The signal is not too strong as other cryptocurrencies but we expect to move towards the same direction with other cryptos.
Bitcoin Cash / US Dollar
Price Analysis
Bitcoin Cash was following the market trend this time in coordination with the rest cryptocurrencies. During the trading day, Bitcoin cash reached $300, a crucial point for the market, especially for the traders' psychology and momentum creation. The moving averages have the same position as other cryptos like Litecoin while there is no difference between them and other indicators in other coins.
The volume increased through the days and remained higher than the normal levels, indicating that investors start to observe Bitcoin Cash as a potential add in their portfolios. The most important part of Bitcoin Cash's case is that its moves are now compatible with the market. A week ago, Bitcoin Cash could not follow the market regarding trends and liquidity. This seems to be improving during the last days but there is a way to go.
Indicators
MACD index is solely positive during the last week but it seems to slow down, indicating that its momentum could be lost. As we told in the analysis above, Bitcoin Cash abstract from the rest currencies and follow different routes. The RSI index, like in every major coin, is on the "overbought" area, indicating a possible bearish reverse in the market.
Correlations
Bitcoin / Ethereum = 0.93 (+ 0.02), Bitcoin / Ripple = 0.97 (+ 0.01), Bitcoin / Litecoin = 0.98 (+ 0.01), Bitcoin / Bitcoin Cash = 0.98 (+ 0.02)
The correlations for every major cryptocurrency are moving towards 1, which means that the crypto market is moving on the same line, without distractions or exceptions, at least at a high level. The lack of diversification at this period makes no difference between the assets as every asset pays out returns to the investors. In this case, diversification is not important for a crypto investor as no other option will protect him from a severe drop in the market. The integration in the market leads to single picks from investors as all the assets claim the same profit margins, meaning that any asset pick will be profitable.
