Bitcoin / US Dollar
Price Analysis
Price Analysis: Even If The Bulls Stop For A Little, BCH Continues to Grow!
The price seems to take a minor hit, tracing back to $11,400, without losing much momentum in the current state but rather entering a waiting mode. This mode is quite useful at this moment for the crypto market as there is a need for more attention in attention for more investors to come and enter their positions in it. The waiting stand allows new investors to feel that they don't miss the train for the bullish trend and they are willing to enter at this particular moment.
If we see it in the long-term run, Bitcoin has been in a constant bullish mode since March 2020 and since then the price has been almost tripled. The previous drawback (from $12,000 down to $10,200) was just a step for Bitcoin's price for breaking the previous high level and establish new highs during 2020. This is a moment for building market depth to stabilize the trend.
The trading volume is not as much as we expected, according to previous data from the bullish trend, but this also means that investors are not willing to liquidate at these levels and wait for the price to climb higher. The next move that will establish the bullish market at higher levels than before, it will be accompanied by a large trading volume for sure. The moving averages are still way apart, with no indicators for turning upside down during the next days.
In the short-term diagram, we can observe that $11,000, a crucial point for the Bitcoin market as it enters the previous bullish phase, was unexpected from the volatility measures. This means that the market forced the price to enter a new phase for the new period and we wait to see what will be the reaction to that.
Indicators
MACD index is slowing down as the market momentum is decreasing but it remains on the positive side. The RSI index is dropping in lower levels but still above value = 60, indicating that a small stability period will enable investors not to consider the cryptocurrency as an "overvalued" asset for their portfolios.
Ethereum / US Dollar
Price Analysis
The same pattern with Bitcoin was followed by Ethereum also. The price remained on previous levels, around $380 but with stability prospects for today. This could be observed in the diagram below as the price broke through the volatility barriers when it reaches $385 and makes Ethereum on the path to a bullish market.
As we mentioned in previous articles, the key point for Ethereum is the $400 point, where it could be considered for more uptrends through "spike" days like September 1st, when it jumped at $480, creating huge margins of profit for Ethereum investors. Ethereum seems to follow closely Bitcoin and its next move will be probably initiated from Bitcoin price's actions. This means that we should focus more on the correlations' panel and not so much on the technical indicators, that provide us with supplementary information.
The moving averages are still close to each and a long-standing stability period will emerge another kind of problem in the market as the 50-day and the 200-day moving averages will be crossed, creating "buy" and "sell" signals, with no evident or clear impact on the real price. The crucial thing, in this case, is the trading volume, which is at low levels, comparing to previous price movements at the same price levels.
Indicators
MACD index starts to drop today as the price momentum seems to lower during the day, creating a stable outlook for the next day. On the other hand, the RSI index dropped below value = 60, showing that there is more room in the market for potential growth and also there is time for investors to enter the market and grab nice returns.
Ripple / US Dollar
Price Analysis
Ripple's price was correcting today, dropping from $0.26 to almost $0.25. The Ripple market has not been affected so much by the overall positive momentum and its rise is considered quite conservative and slow-paced. The correction hits the 50-day moving average, showing that the $0.25 is the mid-term "fair" price for Ripple. This fact enables us to speak about further price development over the next period, as the price didn't absorb any capital that it could make the difference.
The difference in the price action will take place if we move in an alt-season scenario, where the capital created from Bitcoin's profits will be used to leverage altcoin positions and make their prices to rise during a short-term period. The moving averages seem to bend towards each other, a fact that we should take into consideration and watch it over the next days for its development. The trading volume continues to remain at insignificant levels, without any special move that could the game in the Ripple market.
Indicators
MACD index continues in the same stable space, showing no evidence of development during the next days. The RSI index is in a worse position as it moved towards value = 55, which is much lower than expected, especially during a bullish trend. This lack of momentum may cost Ripple some investors as it is not reacting in an anticipated way towards a massive move from the rest of the crypto market.
Litecoin / US Dollar
Price Analysis
Litecoin's price stabilized around $50, showing that the market dynamics have a strong effect on its price formation. This level needs to be sustained in the next days, as the price might follow the market leader and grow along with it. If the price drop during the meantime, investors will possibly need more time to recover from this and might postpone new entrances as they will wait for the price to drop.
Market dynamics at this moment indicate a small stop in the bullish trend until there is a severe change in the trading volume that will enable the entire market to rise at higher levels than before. The moving averages are still way apart and there is no danger at this moment for a major turn in the market.
Indicators
MACD index continues to lay on the positive side with minor evidence of slowing down as the market momentum is getting less effective in the price formation mechanism. The RSI index continued to remain near value = 60, indicating that there is more room to rise during the next days.
Bitcoin Cash / US Dollar
Price Analysis
The surprise of the day came from Bitcoin Cash, which seems to follow the rest of the crypto market with a 1-day delay. The price rose above $250, reaching $255, taking one more step towards the $270, which will mark a first recovery point from the previous period.
The price exceeds the expected volatility measurements, entering Bitcoin Cash in the bullish trend and allowing it to include itself in the correlation measurements. Another important thing for Bitcoin Cash is that it broke the second long-term support level at $250, creating new standards for the market. This move could be life-saving for Bitcoin Cash, which should be more related in the crypto space to achieve better performing results.
Indicators
MACD index continues to rise, with full market momentum to depict a positive price action in the diagram. The positive price action is also depicted in the RSI index, which is close to value = 70. This means that quick price action will lead investors to investigate options for selling the asset shortly.
Correlations
Bitcoin / Ethereum = 0.95 (+ 0.01), Bitcoin / Ripple = 0.84 (+ 0.03), Bitcoin / Litecoin = 0.96 (+ 0.02), Bitcoin / Bitcoin Cash = 0.90 (+ 0.01)
The correlations seem to stabilize as the entire market starts to stabilize in the new levels, after yesterday's stop in the bullish run. The entire crypto market seems to move in an integrated way, with no distractions or weird patterns that distinguish one currency from the rest of the others. The only significant difference in the moves regarding the currencies is the Bitcoin Cash uptrend move, which stands out as the rest of the market has been stabilized in the new levels, formed from the Bitcoin market's dynamics.
Key Notes For Today
Bitcoin Cash (BCH) is the winner of the day, continuing to grow through the stability mode
Bitcoin and Ethereum moved in the same pattern, waiting for larger trading volumes to occur
Litecoin and Ripple took minor hits as their momentums seem to be correlated with Bitcoin's dynamics.
The market is in waiting mode, possibly as a step for achieving new highs in the next period
Comments (8)
Guest
godgrace1
6 years ago
Just as the market is on waiting mode so am i, but a key point to note is that bitcoin will hit its support level again before beating the new resistance zone,
while for bitcoin cash being bullish in its stability mode will cross its resistance level before the bears pulls it down , for market correction
ugospecial
6 years ago
BITCOIN PRICE ANALYSIS: Bitcoin price took a trace back to $11,400 losing no current momentum but entered a waiting mode wich is needed to create more attention in the crypto market so that more investors could enter their positions in it. Though the trading volume is not as expected going by the previous data from the bullish trend, this means investors are not given up any time soon but will wait till the price surges.
ETHEREUM PRICE ANALYSIS: Ethereum price remains on it's previous level around $380 but had a stability prospect following same patter with Bitcoin. $400 point is the key point where ETH could be considered to experience an uptrend through spike. The next move of ETH could be initiated from BTC price action, so investors should focus more on correlation panel and not on technical indicators wich provide us with supplementary information.
RIPPLE PRICE ANALYSIS: Ripple price was corrected dropping from $0.26 to almost $0.25. It's price is conservative and slow-paced and has not been affected by the overall positive momentum, $0.25 is the mid-term fair price for Ripple wich is an indication of the 50-day moving average.
LITECOIN PRICE ANALYSIS: The stability of Litecoin around $50 shows that the market dynamics is having a strong effect on it's price formation. Market dynamics at this moment indicate a small stop in the bullish trend until there is a severe change in the trading volume that will enable the entire market to rise at higher levels than before. If this level could be sustained price might follow the market leader and grow with it.
BITCOIN COIN CASH: Bitcoin cash surprised the market following the rest of the crypto market with a one day delay. It's price rose above $250 to $255, thus taking one more step towards $270 will mark a first recovery point from the previous period. BCH created a new standard for the crypto space to be able to achieve a better performance result by braking the second long-term support level at $250.
freshprinx
6 years ago
The report also highlights how Bitcoin’s market capitalization could soar, even if it manages to attract a small portion of the alternative investment market which is currently valued at $13.4 trillion or the bond market which is worth over $50.3 trillion.
As of today, about 13 public companies have allocated nearly $6.8 billion in Bitcoin investments this year, according to data from Coin98 Analytics. Although the total amount invested by the companies is only about 3.2% of the current market capitalization of Bitcoin, the encouraging sign is that the investments have been rising consistently.
If this trend continues and more institutional-sized investors enter the crypto space, Bitcoin price could rise quickly.
Let’s analyze the top-10 cryptocurrencies to find out what the dominant trend is in the markets.
BTC/USD
Bitcoin (BTC) broke above the $11,500 resistance and rallied to $11,719 on Oct. 12 but the bulls could not sustain the breakout. This shows that the higher levels are attracting selling by the short-term traders.
The BTC/USD pair is correcting for the past two days but the positive thing is that the bulls have managed to keep the pair above $11,178.
The upsloping 20-day exponential moving average ($10,999) and the relative strength index above 60 suggests that bulls have the upper hand.
If buyers can push and sustain the price above 11,560, the pair could pick up momentum and resume its uptrend. The first target on the upside is $12,048 and if this level is scaled, the up-move may reach $12,460.
This bullish view will be invalidated if the pair weakens further from the current levels and breaks below the 20-day EMA. Such a move will suggest that the momentum has weakened.
ETH/USD
The bears are defending the $395 resistance to keep Ether (ETH) range-bound between $395–$308. However, the gradually rising 20-day EMA ($363) and the RSI in the positive territory suggests a minor advantage to the bulls.
If the bulls buy the dips to the moving averages, the ETH/USD pair may make one more attempt to rise above $395. If they succeed, the pair could start a rally that may reach the recent highs at $488.134.
Contrary to this assumption, if the bears sink the price below the moving averages, the pair could drop to the uptrend line. If the pair rebounds off this support, the bulls will make one more attempt to drive the price above $395.
In contrast, if the price slips below the uptrend line, it could keep the pair range-bound for a few more days.
XRP/USD
The bulls could not thrust XRP above $0.26, hence, the inverse head and shoulders pattern did not complete. The moving averages have flattened out and the RSI has dropped to the midpoint, which suggests a balance between supply and demand.
If the bears sink and sustain the price below the moving averages, the altcoin could consolidate for a few more days.
Conversely, if the XRP/USD pair rebounds off the 20-day EMA ($0.248), the bulls will make one more attempt to push the price above the overhead resistance.
If they manage to close (UTC time) the pair above $0.26, the inverse head and shoulders pattern will complete. This could start a rally that could climb up to $0.303746.
BCH/USD
The failure of the bears to sink Bitcoin Cash (BCH) back below the 20-day EMA ($234) on Oct. 12 showed a lack of selling pressure at lower levels. Traders viewed this as a buying opportunity and propelled the price above the overhead resistance at $242 on Oct. 13.
The moving averages are about to complete a bullish crossover and the RSI has risen above 68, which suggests that the bulls are in control. They will now try to push the BCH/USD pair to $280 and above it to $300.
However, the bears are unlikely to give up easily. They will make one more attempt to drag the price back below $242 and the 20-day EMA. If they can pull it off, it will indicate that the current breakout was a bull trap.
LTC/USD
The bulls are aggressively defending the $51–$52.36 resistance zone but they have not been able to sink Litecoin (LTC) below the immediate support at the 20-day EMA ($47.98).
This suggests that the bulls are not closing their positions in a hurry. The moving averages on the verge of a bullish crossover and the RSI in the positive territory also indicate an advantage to the bulls.
A tight consolidation near a resistance is usually resolved to the upside. In this case, if the bulls can thrust the price above the resistance zone, a new uptrend could begin that may reach $64.
This positive view will be invalidated if the bears sink the LTC/USD pair below the 20-day EMA.
whenayon
6 years ago
The price seems to be tracing back to $11,400, without losing much momentum . This is the time for more investors to come into the market.
In the monthly chat Bitcoin has been in a constant bullish trend since March 2020. The last time there was a bearish trend it was (from $12,000 down to $10,200) This is a moment for building market depth to stabilize the trend.
Bitcoin has been trading in a small volume is not as much as we expected. After the tracing back to $11,400 we should be expecting the market to break the $12,000 resistaence.
exodusab
6 years ago
However, for the time being Bitcoin continues to trade around the $11,430 level of support, if it can bounce from here back to the $11,900 region it would indicate that buyers are keen on supporting the price, which would pave the way for a longer period of consolidation.
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