Price Analysis (22 March): The high levels exist & prepare next trends

News • 2021/03/22 • by

Bitcoin / US Dollar

The new compression point around $58,000 seems to strengthen at this point as the market continues to move towards this point. The previous all-time high level around $56,000 has given enough power in the market to sustain a high level to fuel the next all-time high level at $61,000. The positive fact in this situation is that the compression point lays above the previous all-time high level, meaning that the market has established a higher press point above $56,000.

This fact gives a more positive perspective on the Bitcoin market as more investors would like to enter the market at this point. On the other hand, we have observed that there is a symmetric triangle formed around the current price levels. This symmetric triangle is often a negative signal for the market formation as the compression often leads to a correction in the price. This was also evident in early January when there was a similar compression situation around $36,000 that lead to another minor correction around $29,000.

A move like that could be replicated and we might observe a minor correction towards $50,000. We expect that a continuous compression move in the market will bring a minor correction in the market while a sharp move could have the opposite results, creating a new bullish market.

The trading volumes have remained at low levels, indicating that investors are looking for new involvements in the future. The moving averages are heading towards each other, bringing new standards in the future market.

In the short-term diagram, we can observe that the compression is much more intensive, indicating that the next move in the market will be crucial for the short-term future price development. We expect that the next price move will establish the next trend in the market development.

Indicators

MACD index has passed in the negative area, indicating that the price will not be affected by the momentum while the RSI index has moved below value = 60, making the price move towards a more stable environment.

Ethereum / US Dollar

The price has remained on the same price levels, indicating that there is no major effect in the market that could make it change in any direction. The price has been stabilized around $1,800, which is the step before reaching the all-time high level of around $2,000.

It is important to note that the more compression is fitted in the market, the sharper the move the next move will be. In this case, there is more power absorbed in the current point and the next scenarios are two.
The first one is the $2,000 point climbing, which will mean that the market will continue to grow at a slow pace, without any significant change. The second scenario depicts a further correction towards the $1,400 zone, which will bring less attention to the market formation.

We expect that the price formation will be correlated with the Bitcoin trend, giving less independence in the market development on the current situation. The trading volumes remained at lower levels, indicating that the investors’ interest has remained at low levels. The moving averages have moved closer to each other, indicating that a change in the trend would be possible in the next period.

Indicators

MACD index has passed on the negative side, showing that the market momentum will become negative in the price formation. The RSI index moved to values between values 50 and 55, indicating that the price will move at a more stable path in the next period.

Ripple / US Dollar

The most surprising element in the crypto market was Ripple’s price formation. The coin jumped at $0.58, forming a new bullish trend for now. Those levels seem quite familiar for Ripple as the previous situations have been brought before correcting again at lower levels.

If the price continues to surge, we expect that a new bullish trend will emerge, bringing new interest in the market for new investors. If the past scenario was brought into reality, we expect that the price will follow past paths, which tend to bring lower levels, down to $0.30. The price formation has been unexpected as there is less correlation with the market leader, Bitcoin.

We believe that there would major changes in the market formation that will establish Ripple as an alternative investment option for crypto investors. The trading volumes have been brought at lower levels, indicating that the price surge was fake. The moving averages were crossed several times during the last days, indicating that the stability in the market brought fake signals for the market.

Indicators

MACD index was trying to grow during the last days, indicating that the market momentum is on its side, capitalizing on its current move. The RSI index moved around value = 70, showing that the bullish trend might continue for a little bit more.

Litecoin / US Dollar

The Litecoin market is moving slowly towards a bearish trend, dropping below $200 and reaching $195. The high levels have been sustained, for now, indicating that the bullish market has been in a stable mood.
The next support level at this moment lay around $180, which will become more resistant if the price touches this level again.

The major compression level at $210 seems weaker at this point while it would the return point for the market if there is a bullish turnover from stronger coins like Bitcoin or Ethereum.

The bearish trend has not been established at this point but there is still a road for the next support levels. The trading volumes are lowering every day, indicating that the market has not found a current trend. The moving averages will probably meet each other at a reverse “Golden Cross”, a bearish signal that will change the market momentum at this moment.

Indicators

MACD index has moved deeper on the negative side, bringing less traction in the market while the RSI index moved to values below value = 50, indicating that the market is moving to bearish paths as there is less momentum in the market formation.

Bitcoin Cash / US Dollar

The same stable situation has been depicted in the Bitcoin Cash market as the price lands around $520. The compression at those levels seems to be more inefficient as no action in the market would derive from a compression trend. The first return point in the situation was the $600, as the market will try to find new bullish paths.

The bearish scenario depicts that the $360 point will be the next support level, which will bring more correction in the market. The market will be affected by the rest of the market coins and the established trend will bring more attention to this market.

We expect that the market will follow the established trend without any deviation from the major trend. The trading volumes have been lowered since the last period, indicating that the investors have lost interest in the market. The moving averages will probably meet each other in the next few days, bringing the market in a bearish mood.

Indicators

MACD index has moved on the negative side, bringing more negative momentum in the market spectrum. The RSI index moved towards value = 45, which indicates that the market will remain on the same price levels but with a negative outlook in the near space.

Correlations

Bitcoin / Ethereum = 0.85 (- 0.05), Bitcoin / Ripple = 0.12 (- 0.12), Bitcoin / Litecoin = 0.84 (- 0.09), Bitcoin / Bitcoin Cash = 0.79 (- 0.08)

The correlations seem to develop a decreased trend towards Bitcoin, indicating that the market has developed a less aggressive approach in the price formation process. Ethereum and Litecoin have sustained a strong relationship with Bitcoin, even if their stability seems to establish a weaker dynamic with it.

The same reaction was evident in the Bitcoin Cash market, indicating that the markets are moving at a weaker correlation point. On the other hand, Ripple continues to move in the lower correlation zone, indicating that its movements depict no correlation between the coin and the rest of the crypto market.