Price Analysis (26 February): The market makes the first bearish moves, bringing new data on the table for the future !!!

News • 2021/02/25 • by

Bitcoin / US Dollar

The price remained on the negative trend, which stopped at a crucial point for the Bitcoin market. After failing to capture the $50,000 point and establish a trend above it, the price slides to $47,000, which is the second support level in the current bullish trend and the major level in the later stage of it.

We should mention that this support level was formed after Tesla’s announcement that it will convert $1.5 billion of cash into Bitcoin. This means that the market depth formed in the $47,000 point is at least $1.5 billion, which seems to be a barrier for the downtrend that could erupt shortly. If the price breaks these levels, we believe that we might have entered the first phase of a bearish trend and every move will be considered as the next step for recovering or deepening in the bearish zone.

We expect that the current support level will be sustained for some days before a new trend emerges in the market and shape the overall market momentum. According to Bitcoin’s next steps, we will observe the momentum’s pass in the rest of the altcoins. The trading volumes are sustained at slightly higher levels, indicating that the market is on fire between bulls and bears. The moving averages are moving close to each other, meaning that a bearish move could on the gates.

In the short-term diagram, we can observe that there was another consolidation in the price levels around $47,000 before there was a positive move in the market that broke the $50,000 point. We expect this time to face a similar situation, as the price consolidation will lead to another trendsetting.

Indicators

MACD index moved on the negative side for a third consecutive day, showing that the market momentum could not help the price to establish higher levels. The RSI index moved at value = 50, confirming that the price will probably remain on the same spot for some period.

Ethereum / US Dollar

The price correction continues to exist in the market, bringing the price just below the $1,500 point. The next support level in the market stands around $1,400, which is the previous resistance level in the bullish market before the price explodes and reaches new all-time high levels.

We have to highlight also that the $1,400 was the previous all-time high level for Ethereum, which breaks after a small consolidation period.

If the bearish feeling continues to exist in the market, we expect that the price will probably land at $1,400 in the next period. This position will be crucial for the market as this was the entry point for the majority of institutional investors. This means that the market depth is enough to absorb any bearish moves but it could also be a game-changer if it collapses.

Such a move will bring more negativity in the market and the momentum will become more than an issue among investors. We expect Ethereum to sustain its price levels above $1,400 to maintain a competitive position in the crypto market.

The trading volumes made a jump during the last days, indicating that the fight is going on between buyers and sellers. The moving averages meet each other today, forming a reverse “Golden Cross”, meaning that the market will probably move towards a bearish status.

Indicators

MACD index moved deeper in the negative zone, indicating that the negative momentum is making the price formation much weaker than before. The same scenario is confirmed from the RSI index, which laid around value = 40, which means that the market will be stabilized but with negative perspectives.

Ripple / US Dollar

Ripple seems to follow the major trend in the crypto market but with different dynamic adoption. The price lands at $0.43, establishing another step in the bearish trend, derived from the Bitcoin market. Those levels are familiar for the Ripple market as they are considered high levels in terms of market development.

When the price moved at those levels, many analysts claimed that Ripple has been on the bulls. If this contrarian scenario comes into life, Ripple will gain points in the investors’ hearts, providing a short-term solution for putting money in the market and achieve at least, capital preservation.

Otherwise, the bearish trend will lead the market to stable levels around $0.30 to $0.25, which have been established for several periods with more market depth and stability. The trading volumes made some small spikes especially during the sell-off but they return at normal levels. The moving averages crossed each other, forming a reverse “Golden Cross”, confirming the bearish mood in the market.

Indicators

MACD index continues to move in the negative zone, indicating that there is no momentum to take up the market and establish a different trend at this moment. The RSI index moved at value = 45, indicating that the stability in the market might be followed by a negative trend.

Litecoin / US Dollar

Even if the market moved in a bearish mood, Litecoin’s price seems to stabilize in the current levels around $170 - $180. The price levels around $170 - $180 depict a previous high level, which appeared in early January. These levels will become a minor support level in the current situation until there is a clearance in the market trend.

If the bearish trend continues to thrive in the market, the next major support level lays around $130, which will be the crucial point for the market. The market depth has been consolidated in this area and will bring more force from the resisting side. We expect that Litecoin will follow Bitcoin’s dynamic and integrate its position to that.

The trading volumes have increased during the last few days, confirming the fact that more and more investors have entered the market and were willing to put money in Litecoin positions. The moving averages will probably meet each other in the next few days, taking the market at a bearish position.

Indicators

MACD index moved in the red for the fourth consecutive day, indicating that the market momentum will bring less impact on the price formation. The RSI index moved around value = 45, indicating that the price will remain stable but with negative prospects.

Bitcoin Cash / US Dollar

Bitcoin Cash broke a critical level for the price development, landing below $500. The price moved at $490, entering a price zone between $500 and $380. This specific zone could be an upside-down for Bitcoin Cash as it formed a similar situation in late January. This means that the price could move to $380 but the recovery could come along with the rest of the market.

We expect firm support at $380 but the future could be more uncertain when the market recovers or deepens the trend. The market formation will become more complex and we will follow it through its development. The trading volumes have made some spikes while the moving averages will probably meet in the next days, confirming the bearish trend.

Indicators

MACD index moved in the red for the fourth consecutive day, presenting a fully bearish case in the market. The RSI index moved to value = 40, showing negative-sided stability for the short-term future.

Correlations

Bitcoin / Ethereum = 0.61 (- 0.08), Bitcoin / Ripple = 0.41 (- 0.12), Bitcoin / Litecoin = 0.78 (- 0.06), Bitcoin / Bitcoin Cash = 0.69 (- 0.07)

The correlations continue to tremble down in the market, creating more unbundling in the crypto space. The bearish market is often leading to this kind of unbundling, creating unique routes for every coin.

This means that every coin is being affected differently from Bitcoin’s moves and its dominant trend. At this moment, Ethereum and Bitcoin Cash have moved in the medium correlation zone while Litecoin remains on the strong side, but at a marginal position. On the other hand, Ripple has moved deeper in the medium correlation zone, showing that it will the first coin to be affected by a heavy bearish trend.