Elon Musk Sunk the Market !!!

As we have mentioned in previous articles during the last months, 2 crucial points around those levels will determine the price development from this point and on. The first point lays around $50,000 which acts as a psychological level for many investors and also as a turning point at least 3 times during the last period. This shows that psychology plays a crucial role for Bitcoin investors that have not experienced a drop below $50,000 after early March.

The second point lays around $47,000, which was the entry point for Tesla in the Bitcoin market. Although Tesla announced that it won’t sell any more bitcoins in the short-term future, we should take a closer look at the fundamentals that are shaped regarding the market depth around this price region and Tesla’s moves.

On the bullish side, Bitcoin could climb back in the previous compression points around $56,000 and $58,000 to start a bullish run again that might lead to another all-time high level in the next period.
The trading volumes have been sustained at higher volumes than before while the moving averages will cross each other tomorrow, forming a reverse “Golden Cross”, a bearish signal which indicates a change in the general trend.

In the short-term diagram, we can observe that this is the second time that the $50,000 point is tested, proving that there is a strong foundation in this area that could become the start for another bullish trend.

Indicators

MACD index starts to drop and passed in the negative area, indicating that the momentum is working on the negative side while the RSI index moved at value = 40, which depicts a negative approach for the next period.

Ethereum / US Dollar

After hitting a tremendous all-time high level around $4,200, Ethereum didn’t manage to flow unaffected from the overall correction mode. The correction was not so strong like other coins, showing that Ethereum’s fundamentals might be stronger than Bitcoin’s ones.

The correction made the price land to $4,000, which stands as the first checkpoint after Ethereum’s crazy surge during the last period. We expect that Ethereum will try to set a different path from Bitcoin and establish its sphere of influence. This fact will enable it to create a different approach in the crypto market development, that acts separately from the main leader.

As the price remains in the exploration phase, we shouldn’t tell any technical points that could be proved wrong in the short-term future. The institutional approval seems to contribute positively until now and we hope that it will continue to do so.

The trading volumes have remained at high levels, showing that investors tend to be on the bullish side of the coin. The moving averages are still way apart from each other, showing that the positive momentum could continue for now.

Indicators

MACD index remains on the positive side, feeding more momentum in the price formation while the RSI index has moved just below value = 70, which shows that the market might have reached a dead-end for the price development.

Ripple / US Dollar

The strong correlation between Ripple and Bitcoin was depicted in the market formation, allowing the first one to be sustained at higher levels and create a new perspective for its market. Ripple’s price corrected from $1.60 to $1.60, a 20 % drop in just a few days. A closer look at the market will allow us to see that this drop is considered insignificant if we put it in the large market framework and the respective volatility.

The market rebounded today at $1.40, standing at an informal standing point in the last period. The $1.40 point stands in the middle of this compression trend and it will become the turning point for the next dominant trend. The boundaries of $1.00 and $1.80 are always there to determine the next trend in the market.

The trading volumes are trying to sustain at an increasing level but they seem to have normalized during the last period. The moving averages will meet each other in the next few days and create a reverse “Golden Cross”, a signal that might affect negatively the price development from this point and on.

Indicators

MACD index remained on the negative side, bringing more negative vibes in the market structure while the RSI index moved around value = 50, meaning that the market will remain on the same price levels for this period.

Litecoin / US Dollar

Litecoin is famous for its easily influenced nature and this was proved in this situation also. After topping around $390, the market started to correct until $310. The $310 point is familiar in the Litecoin market as it served as a resistance point back in mid-April, that broke two weeks ago.

It is a common scenario for technical points to turn from resistance to support levels and this is something we can observe in this situation. Although Litecoin has not enough market depth to sustain more technical points, we believe that the previous all-time high level at $310 and its support was not a lucky situation.

From this point of view, we expect that another bearish turn will make the market drop below this point and possibly reach previous high levels around $240, which acted as local resistance and support levels.

The trading volumes have skyrocketed during the last period, indicating that investors are entering the market, trying to diversify their portfolios and add more altcoins to them. The moving averages have made a turn and will try to cross each other at a bearish change of mood.

Indicators

MACD index passed on the negative side, showing that the market will try to resist the negative vibes coming from the general correction. The RSI index moved at value = 55, which indicates a steady route for the price with a positive outlook.

Bitcoin Cash / US Dollar

The same scenario was repeated with Bitcoin Cash, which topped around $1,550 and it faced an immediate correction towards $1,250. Today, the price rebounded at $1,300, showing that the market was copying Bitcoin in the recent trend.

At this moment, the first support level in this state is the zone around $1,000, which was not evident in the market back in early 2018. This increase in the price and coin’s value could make the coin start again from the beginning and try to persuade investors that it could deliver value to them.

We expect that the market will continue to flow and copy moves from larger coins, trying to find their way into the crypto market.

Indicators

MACD index just passed on the negative side, showing that the market will stop from continuing to hope for a rebound through momentum. The RSI index moved around value = 55, which indicates a stable outlook with positive vibes.

Correlations

Bitcoin / Ethereum = 0.13 (- 0.68), Bitcoin / Ripple = 0.84 (- 0.12), Bitcoin / Litecoin = 0.37 (- 0.39), Bitcoin / Bitcoin Cash = 0.31 (- 0.45)

The instant correction in the market brought different reactions among different coins according to their relationship with Bitcoin. The coins that had an established relationship with Bitcoin, dropped at a lower rate respectively, making its correlation work in favor of them.

The cases for Litecoin and Bitcoin Cash were negative as they dropped even deeper in the medium correlation zone while Ethereum’s correlation dropped a lot more, in the weak correlation zone. This happened due to strong support in Ethereum’s price development, without losing much ground in the correction period. On the other end, Ripple remains close to Bitcoin’s price development, sustaining a strong correlation bond with it.

Key Notes for Today

• Bitcoin rebounded at $50,500 after hitting the $50,000 support zone
• Ethereum remained around $4,000
• Ripple made another rebound at $1.40
• Litecoin corrected at $320
• Bitcoin Cash made small progress at $1,300