Bitcoin / US Dollar
Bitcoin is trying to break the all-time high level around $19,800, pushing also for surpassing the $20,000, which will bring Bitcoin into a new era. As we have mentioned in several articles in the recent past, we have underlined that there would be a stability period around the $19,000 before surpassing the $20,000 point. This was happening as many investors were thinking that the $20,000 will be the peak for the current trend and then the price will correct at lower levels.
This fact made a lot of investors to liquidate some positions around $19,000, believing that they had gained the max out of bulls. This led to an extended volatility period around this level, causing two corrections in the meantime. The corrections were not facilitated from a trend reversal as there were no technical points to approve that scenario. This became a reality as the price surged again at higher levels.
It would be a pleasure to see Bitcoin above $20,000 as the uptrend will meet no limits in the upper price levels, as they have not been tested in the past. We could say that the scarcity that derived from institutional investors' purchases have also contributed to the current price formation. We can also say that the price is also driven by new market buy orders as the majority of investors that want to liquidate their positions have been eliminated in the current situation.
The trading volumes have been sustained at normal levels for a bullish market while the moving averages are still at parallel positions.
In the short-term diagram, we can observe that the last 5 days determined the final bullish wave for a potential break above the $20,000 point. This trend is highly possible to break at some point but we need to overcome this level first.
Indicators
MACD index remains at a negative level, even if the price is increasing during the last days. The RSI index moved to values above 60, indicating that there is room in the market for more uptrend.
Ethereum / US Dollar
Ethereum is making small steps during the last days, trying to reach the $600 level. We have said in previous articles that surpassing the $600 level will be essential for the market to join a full bullish trend that will allow it to reach new 2020 high levels.
As we can see in the diagram below, the 2020 high level is laid at $620, which is far from the all-time high at $1,000. This means that Ethereum could develop at higher levels if there is more growth in the crypto market but also if investors decide that Ethereum has a lot more intrinsic value.
A fundamental element that is important in the Ethereum price development is the number of ICOs. As we know the majority of ICOs are held at Ethereum tokens, which need to be purchased for participating in them.
The trading volumes have sustained at normal levels for Ethereum while the moving averages have remained in the same position for some days, indicating that the next move will determine the price's next trend.
Indicators
MACD index moved in an uptrend but remained at a negative field, indicating that there is more uptrend to be done for passing on positive momentum. The RSI index has moved above value = 55, indicating that the price will remain at stable levels but with a positive perspective for the future.
Ripple / US Dollar
The true contrarian asset for the current period is Ripple for sure. Its price continues to fall today, landing at $0.45, having lost almost 40 % of its top value from the 2020 high level. Once the price topped around $0.70, no chance will sustain these price levels for a long time.
The price passed from a stability period around $0.60, which was the middle step for an established trend to occur. Many investors believed that Ripple would follow the rest of the market but they proved wrong. This possibly happened because the majority of the market believes that Ripple remains overvalued and they could find it at lower values.
The last scene took place in the real world, creating a bearish trend in the market. This bearish trend could lead the price at the previous support level around $0.30, which was the long-term resistance level for the stability trend.
The trading volumes have remained at higher levels than normal, indicating that investors are liquidating at this point, making the price to move at lower levels. The moving averages have positioned at bearish formation, indicating that the bearish feeling has taken over the market.
Indicators
MACD index has moved at lower levels, showing that the market momentum has become negative for a long time. The RSI index moved below value = 45, indicating that the bearish trend would continue with smaller steps this time.
Litecoin / US Dollar
Litecoin, like Ethereum, is making small steps towards more bullish positioning, showing that the overall market trend has a moderate impact on price formation. The price lands at $82, showing small progress since yesterday. This means that the asset couldn't capitalize on the bullish feeling from the Bitcoin market.
As we can see from the diagram below, the price has positioned itself in the middle of the current upper price levels, taking advantage of the volatility in the market. This volatility spread could work on both sides for Litecoin as it could move to higher or lower positions, according to correlations with other cryptocurrencies. At this moment, Litecoin has a strong, positive correlation with Bitcoin, showing potential for reaching new 2020 high levels.
The trading volumes have moved at higher levels than normal for Litecoin while the moving averages are trying to move at bullish formation, forming a "Golden Cross" in the next period.
Indicators
MACD index moved at an uptrend position but remained at the negative field. The RSI index moved at value = 55, indicating that the market is stable with a positive outlook.
Bitcoin Cash / US Dollar
Bitcoin Cash remained at $290, showing that it will move in the bullish channel for the next period. As we can see in the diagram, there is more to be done if Bitcoin Cash wants to achieve better results in the current market situation. We don't know for how long this will continue to happen but we expect not to move in the opposite direction from the rest of the market.
If the price reaches $300, it would be a hopeful signal for the market that will determine the next period for the market. Apart from that, we can see that the correlation between it and Bitcoin will determine also the next period for it.
The trading volumes made some spikes during the last days, while the moving averages are trying to push back at bullish levels.
Indicators
MACD index will probably pass tomorrow at the positive field, showing that there is a possibility for another uptrend in the next period for the coin. The RSI index moved at value = 55, indicating that the market would be stable but with a positive outlook.
Correlations
Bitcoin / Ethereum = 0.93 (- 0.03), Bitcoin / Ripple = - 0.14 (- 0.26), Bitcoin / Litecoin = 0.86 (- 0.04), Bitcoin / Bitcoin Cash = 0.71 (+ 0.03)
The correlations adjusted today as Bitcoin's price is ready to establish a new all-time high level and even pass the $20,000 for the first time in its history. In this situation, we can see two major reactions in the crypto market. On the one hand, we can see that cryptocurrencies like Ethereum and Litecoin, whose correlation was strong enough with Bitcoin, to lower today after the new price surge, indicating that their prices are reacting mildly and they don't have the same bullish pace. On the other hand, Bitcoin Cash is trying to join the bullish trend and is making small steps towards that. On the opposite side, Ripple continues to flow against the mainstream and its correlation with Bitcoin passed on the negative field, showing that there is a reverse trend in the market that will distract investors from the main trend.
Key Notes For Today
Bitcoin is trying to achieve a new all-time high level above $19,800
Ethereum moved at $595
Ripple continued to drop at $0.45
Litecoin is making small bullish steps at $82
Bitcoin Cash remained at $290
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.
