Bitcoin / US Dollar
The price remained around $15,300, showing no evidence of tracing back to previous levels or making another bullish move in the next few days. The market is trying to build new standards and new support levels to prepare investors for another bullish round. As we said in previous articles, many analysts are prepared for another bullish change in the market that will bring the price to an all-time high levels above $20,000, and will probably break them and establish new high levels.
These hopes are fueled from the market's perspective of continued growth in the entire 2020, a pattern similar to 2017, when the price started to grow immediately from lower levels and hit the all-time high level, just below $20,000. This time, the same pattern could happen but at a much slower pace as there are more investors in the market, and most importantly, there are more institutional investors. This means that these kind of investors have processed decisions that enable them to take calculated risks and avoid liquidating their positions in short or temporary falls.
This characteristic adds depth to the market structure and allows Bitcoin to grow organically, without much drama from individual investors and extended volatility, which is implemented in the market from contrarian views. We expect that there would be more market transactions in the next period, that will determine if the bullish trend will continue or if there will be a corrective move in the market that will delay this process.
The next days will be crucial for future price formation while there is a need for more analysis in the fundamental side of Bitcoin (like the number of transactions, hash rate difficulty, and other factors) to determine if there would be an uptrend or downtrend in the next period.
The trading volumes are directly correlated with the daily volatility, indicating that there is interest in the market from bullish and bearish investors while the moving averages are set at parallel positions, with no evidence of converging to each other.
In the short-term diagram, we can observe that the bullish trend has been halted for a bit during the last days but this declares a standing point for the market before getting another bullish shot in the next period.
Indicators
MACD index remained on the positive side, with small declines during today's session while the RSI index has remained above the "safe" zone, showing that investors might consider again to sell before the price drops.
Ethereum / US Dollar
Ethereum's price remained on the same levels, making another pass on the $450 point and trying to build towards $480, which is the locally high level for 2020. In the previous bullish trend, when Ethereum was considered to be the winner in the crypto market, the $450 was reached two times and after that, the price collapsed to lower levels.
If this happens this time, it will be the third time that Ethereum tried and failed, creating more pressure in the market for the next time. On the other hand, if the market manages to get by this barrier, the price will be established at higher levels. There is always the goal of breaking the previous local high level at $480 but it will remain a goal until it is reached.
At this moment, Ethereum seems to be the closest asset to Bitcoin, according to its moves, showing that there is a possibility to follow the next bullish trend closely and reach new highs. In the opposite bearish scenario, the $400 will remain as the long-term support level for prices above but there is also enough market depth to absorb any bearish thoughts.
The trading volumes continue to be at low levels, showing that investors will look for an established major direction to opt-in while the moving averages continue to diverge from each other.
Indicators
MACD index continued at the same positive levels, indicating that the bullish mood is still on in the market. The RSI index moved at lower levels, showing that there might be a possibility for another bullish round shortly.
Ripple / US Dollar
The price remained around $0.25 with no big surprises in the meantime. There is a parallel channel formed during the last two months, between $0.24 and $0.26, which is compressing the price, without any bullish or bearish direction.
This kind of stability will force the market into a breaking move where there are certain circumstances. These circumstances are usually another bullish trend in the crypto market or a major announcement of Ripple's adoption by a huge corporation. This means that a single headline can make a difference in a stable market. Usually, the boundaries will revise if the market is moving towards bearish or bullish positions.
Breaking the $0.26 point will mean that there is a bullish trend underway while breaking the $0.24 point will mean that there is a bearish trend on the way. The trading volumes are still low and the moving averages will probably cross tomorrow or in a couple of days, creating a bullish signal in the market.
Indicators
MACD index is on the zero points, showing that there is a small probability for the bullish trend in the next days while the RSI index is giving a positive outlook for the current stability mode.
Litecoin / US Dollar
Litecoin price corrected a little bit today, making the support level at $57 to look even closer. Touching this support level will indicate if the price will continue to grow in the bullish trend or it will correct at lower levels.
The bullish points for the Litecoin market lays at $62 and $67 respectively. These are 2020 high levels, where there are local peaks in the trading days. If the price tries to climb beyond those levels, then it will face fierce resistance and there might be a battle for gaining more ground.
The trading volumes have been high for several days, indicating that investors are still on the market while the moving averages have started to converge.
Indicators
MACD index is nearly positive at this moment, showing that there is one last chance for Litecoin to establish a bullish trend. The positivity is also evident in the RSI index, which shows that the current stability might have a positive outcome.
Bitcoin Cash / US Dollar
Bitcoin Cash remained near $260, creating more doubts in the market about its viability. If this level breaks down, there is another support level around $245, where there is much more traction than that. We believe that the contrarian moves make Bitcoin Cash more unpredictable and we can't say what is the next move for sure.
This means that there a lot of opportunities for trading in the current space as more volatility will come in place and make the market dance. The ultimate goal for Bitcoin Cash is to reach $300 levels where there is more analysis to be held. The trading volumes have made some spikes due to recent liquidations while the moving averages are close to each other.
Indicators
MACD index decreased today, showing that the bears are still strong in the market while the RSI index moved to value = 50, indicating more stability in the next days.
Correlations
Bitcoin / Ethereum = 0.75 (+ 0.01), Bitcoin / Ripple = 0.17 (+ 0.12), Bitcoin / Litecoin = 0.64 (- 0.03), Bitcoin / Bitcoin Cash = - 0.41 (- 0.06)
The correlation stood at the same point as before, creating another step for shaping the future relationship between Bitcoin and the rest of the market. Ethereum stayed at the same level as yesterday while Ripple gained a little bit more but remained in the "weak" correlation zone. On the other hand, Litecoin had a small drop during today, remaining on the "medium" correlation zone. The case that seems to split from the entire market is Bitcoin Cash, which continues to fall in terms of correlation with Bitcoin, shaping itself towards a fully "contrarian" asset. This means that there is an asset in the market that might not need to correct immediately if there is a bearish move in the market.
Key Notes For Today
Bitcoin continued in the same bullish levels
Ethereum and Ripple remained in a calm mood
Litecoin and Bitcoin Cash corrected with small tracebacks
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.
