Bitcoin / US Dollar
Bitcoin had another great day today as the price surpassed the $19,000 barrier, shaping the path for the short term goal, which is the $20,000 point. The last days have shown us that Bitcoin can achieve massive profits in a matter of days or weeks, without any previous signals for such an intense surge. The same scenario was also evident in 2017's last months when the price surged from $10,000 to $20,000 in just 1 and a half months, making many investors jump around happy that they found the perfect investment for them.
This scenario is possible to happen this time also but there are many voices in the market that the $20,000 will be surpassed and new all-time high levels will be reached. This is a difference between the current trend and the 2017 respective one. The previous trend was mostly fueled by the hope that Bitcoin will continue to rise forever and sometimes it will stabilize at high levels. The current trend is mostly fueled by beliefs that institutional investors will back up the cryptocurrency in any case and try to save its value if there is a sell-off in the market.
The major weakness in both cases has remained the same one, which is the quick surge in high levels, without any support levels formed in the meantime. This might lead to a quick and steep fall after the bullish market ends. The lack of support levels during the bullish market is always "dangerous" as the investors have no secure positions or points that are prepared to liquidate some of their positions.
The trading volumes have been at a lower point than in the previous days but they remain at bullish levels while the moving averages have shown no signal of convergence to change the current trend.
In the short-term diagram, we can observe that Bitcoin's price is making "green" jump every 3 or 4 days, making the bullish market much more intense than before and establishing the point that 2020 was a full bullish year, starting from $3,000 and ending up to $19,000 or more.
Indicators
MACD index continued to grow today as the price made another jump, making the market momentum to follow it while the RSI index moved above value = 80, creating more concerns to investors that want to liquidate their positions as they are happy with what they have gained until now.
Ethereum / US Dollar
Etherum's price stabilized around $600, making the market to have another chance to grow at higher levels. Yesterday, the price moved even at $608 and today made some corrective moves, without losing any of the positive momentum. The market will probably follow Bitcoin's trend at this moment as there are no technical indicators that predict the price's surge or fall for the next days.
The market is obviously on "overbought" levels but this should not prevail any investor from joining the market as the market momentum is dominating the trend formation and this seems to last for now at least. The goal for this trend is to reach the all-time high level of around $1,000, which will create more hopes between investors about Ethereum's future regarding Decentralized Finance.
As we have mentioned in previous articles, one of the fundamental elements that we should take under consideration when we analyze Ethereum and its price formation is that it is the backbone of Decentralized Finance and all the projects in this field use Ethereum for deployment. The more projects on the DeFi ecosystem, the more ethers will be on-demand for financing these projects.
The trading volumes are at 2020 high levels, showing that investors are trying to get back in the Ethereum market while the moving averages are still at parallel positions for now.
Indicators
MACD index continues to grow for 5th day in a row, creating more and more positive momentum in the market. On the other hand, the RSI index is still over value = 75, creating more concerns to investors about the added value currently available in the market.
Ripple / US Dollar
One of the most interesting diagrams of the day is that of Ripple. After a tremendous surge to $0.50, yesterday closed around $0.60, creating more profits for investors. During today, the price surge, even more, reaching values above $0.90 (!!!), creating daily profits of 50 % return in just a few hours. The price corrected immediately during the day but it was still an impressive call for any investor to stay on alert.
The price development was amazing for any investor during the last days and it hard to know how long this period will last. The most possible scenario is the bullish period to last as long as Bitcoin's price starts to decline. We expect that this kind of move to happen in the current period but there are not many investors that take advantage of them as they are very time-limited.
The trading volumes exploded yesterday and today, making investors move massively in this market while moving averages diverge even more.
Indicators
MACD index exploded, closing a straight week of growing market momentum with intense price development. The RSI index has moved almost to value = 90, meaning that there is a lot of "unnecessary" value in the market and it will quickly move to lower levels.
Litecoin / US Dollar
Litecoin's price remained around $90, trying to stabilize the market momentum and take advantage of the general bullish feeling. Litecoin was the first crypto that tries to follow Bitcoin in the current bullish run, creating early profits for its investors and make them believe that it could be the second altcoin in profitability for 2020.
The price surge was made progressively, creating support levels in the meantime. We can say that the price development was much healthier in Litecoin's case as the progress was slow and adaptive, with no rushes. The trading volumes have been at a high level for the last week, compromising that Litecoin has raised interest from many investors while moving averages continue to diverge at a faster pace than before.
Indicators
MACD index continues to remain in a positive field, without growing so much while the RSI index continues to remain above value = 70, indicating that the market is still considered "overvalued" from the technical perspective.
Bitcoin Cash / US Dollar
Another surprising diagram appeared today in Bitcoin Cash's case. The price surged above $300 during the last days while yesterday, it landed above $320. Today, the price reached even $370 for some minutes during the day, but immediately corrected back at $330. Bitcoin Cash has followed the most strange route regarding its price development due to the previous unbundling with the rest of the market.
The $320 point broke yesterday and the price made it to land in new 2020 high levels, creating more positive perspectives. The trading volumes have surged at new 2020 high levels indicating that there is more hope in the market to lead at new high levels. The moving averages are trying to diverge even more to create more bullish momentum.
Indicators
MACD index grew up for the 4th consecutive day while the RSI index moved to values above 70, showing that the market is starting to be considered "overvalued" and there might be concerns for another surge in the next days.
Correlations
Bitcoin / Ethereum = 0.85 (- 0.01), Bitcoin / Ripple = 0.79 (- 0.02), Bitcoin / Litecoin = 0.96 ( 0 ), Bitcoin / Bitcoin Cash = 0.62 (+ 0.05)
The entire market starts to move in the same direction at this moment, making the correlations to stand on the same point. Ethereum, Ripple, and Litecoin have remained on the "strong" correlation zone, showing that any bullish or bearish move from Bitcoin's side in the future will be followed by the rest of the altcoins. The same phenomenon will probably happen in Bitcoin Cash's case, where the correlation seems to rise day by day, creating a more integrating and unique approach in the market formation.
Key Notes For Today
Bitcoin made another jump to $19,000
Ethereum stabilized at $600
Ripple stabilized at $0.60 after an impressive intra-day surge
Litecoin reached $90
Bitcoin Cash made more progress at $330, with an intra-day spike at $370
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Remitano.
Every investment and trading move involves risk, you should conduct your own research when making a decision.
