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Bitcoin's price climbed another $200 today, landing at $19,300 and enabling the market to boost its position in the bullish channel. The price has tried to establish in the upper price levels, creating a bullish perspective for the future. Establishing a price level above $19,000 would be essential for Bitcoin to create more market depth and spark a new move that will break the $20,000.
As we have mentioned several times in the Price Analysis articles, the $20,000 frontier is crucial for the market development as it will bring Bitcoin into a new era. This new era will define Bitcoin for the next years and nothing will be the same for it. If the price remains at the current levels for several days, there would be enough market depth to bring the price to higher levels.
We expect that there would strong resistance in the $19,700, the current all-time high level for Bitcoin, which will bring us too many rejections in breaking it. We believe that this point must break with a strong move that will not stand at the current point for a long time. Such a move will bring the price to new levels without having to "fight" with bears in the all-time high levels.
The trading volumes are moving at normal levels for Bitcoin, but there would be a need for higher transaction volumes if there would a new bullish trend. The moving averages continue to move at the same parallel positions, creating fears for another bearish turn in the situation.
In the short-term diagram, we can see that there is extensive volatility in the current price levels, indicating that many investors are trying to buy and sell the asset as there are contrarian beliefs about how the coin will be developed in the next period.
Indicators
MACD index continues to surge in the diagram but remains in the negative field. The RSI index moves at value = 60, indicating that a potential bullish move is underway to form another trend towards this direction.
Ethereum remained at high price levels, as the price remained at $585. The price is trying to reach $600, which will be the turning point for the coin to establish a new bullish trend that will bring Ethereum to new standards.
As we can remember from the past, Ethereum topped around $1,000 back in 2017, which will be the ultimate goal for the price. We don't know if this level will be reached in the current situation but we believe that surpassing the $600 will shape the way towards this.
We also know that Bitcoin and Ethereum correlation is remaining strong at this point, showing that a surge in the Bitcoin price will affect a relevant Ethereum trend. If this relationship continues to exist in the future and Bitcoin surpasses the $20,000 level, we will probably see a surge in the Ethereum market also.
The trading volumes have remained at normal levels for Ethereum, sustaining relevant stability in this aspect. The moving averages, after crossing each other and forming a reverse "Golden Cross", have remained on the same level for the next days after it.
Indicators
MACD index continues to surge in the diagram but remains in the negative field. The RSI index has remained at value = 55, indicating that there would be relevant stability in the market, with a positive outlook for the next days.
Ripple has remained as the contrarian asset for the crypto market as the price continues to drop during the last days, landing at $0.47. The price, after making many regressions near the $0.60 point, starts to fall a week ago, passing to $0.55 and then to $0.50. This downtrend is mostly corrective to the previously established trend.
Getting over 100 % return during the last month is considered quite uncommon even for the crypto market. This means that the trend should be corrected, even if there is a positive trend in the general overview of the market. As we have written several times in these articles, there are no support levels from the current point until $0.30, where there is enough market depth to hold any bearish trends.
It is quite difficult to assume that the trend will reach the next support level at $0.30 or it will stop before that, as the correlation between Ripple and Bitcoin is low and cannot guarantee a stop due to the overall bullish trend. The trading volumes have remained at higher levels than the stability period's one. The moving averages are still at bearish positions, indicating that the bearish trend will continue for the next days.
Indicators
MACD index is making everyday steps in the negative field, indicating that there is a need for a huge uptrend to reverse the current bearish mood. The RSI index moved at value =45, indicating that the price will experience mild moves in the next period, with a negative outlook for them.
Litecoin is trying to establish itself around the $80 level, staying at a power position for establishing new high levels for 2020 and creating more attraction for other investors. As we can see in the diagram below, the price has landed in the middle of the current high price levels.
The current volatility extends from $68 and $90, leading to a serious hold for the coin. If the price remained at the current levels, we believe that it will hit the new 2020 high levels in coordination with its Bitcoin strong correlation. Litecoin has shown an important positive correlation with Bitcoin which helps it in the last period to create profits for their investors and holders.
The trading volumes have remained at higher levels than normal for Litecoin, indicating that investors continue to look at it as a strong alternative in the crypto market. The moving averages are positioned at bearish formation, which should not be taken under consideration as the correlation with Bitcoin is considered much more important in the current situation.
Indicators
MACD index follows the same pattern as Bitcoin's index, remaining on the negative field even if surging in the last days. The RSI index remained at value = 55, indicating that there is a stable perspective in the market with a positive outlook in it.
Bitcoin Cash joined the new bullish trend, surging at $290. The goal for Bitcoin Cash is to break the $300 and establish itself at higher levels. This would become possible if the price continues to surge and establish larger transaction volumes at higher levels. Bitcoin Cash has remained under expectations for many analysts, as it couldn't capitalize on established trends in the crypto market.
This weakness could be a black point for the future as it could score fewer points in the fundamental analysis. On the opposite side, we can see that the support level at $265 took a decisive hit in the market, making the price to surge at higher levels. These points should be taken into consideration when we do our analysis and see what will happen in the future.
The trading volumes have remained at normal levels while the moving averages are moving again towards each other, this time for forming a "Golden Cross". Until now, the moving averages are at bearish positions.
Indicators
MACD index has remained in a negative field until now but with a positive outlook as the index is surging. The RSI index surged at value = 55, indicating that there would stability in the market with a positive outlook for it.
Correlations
Bitcoin / Ethereum = 0.96 ( 0 ), Bitcoin / Ripple = 0.12 (- 0.16), Bitcoin / Litecoin = 0.90 ( 0 ), Bitcoin / Bitcoin Cash = 0.68 (+ 0.10)
The recent jump in Bitcoin brings new standards in the crypto market, shaping the next period for them. The assets with "strong" correlations like Ethereum and Litecoin remained on the same level of correlation, retaining their perspectives for the future period. On the other side, Bitcoin Cash retained its boost in the "medium" correlation zone, heading towards the "strong" correlation zone, which means that the coin will move to more integrated positions. On the opposite side, Ripple moved deep in the "low" correlation zone, creating a negative perspective for the coin and its price formation.
Bitcoin started to surge again at $19,300
Ethereum remained at $585
Ripple dropped again at $0.47
Litecoin remained at $80
Bitcoin Cash started to surge again at $290
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Remitano.
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