The moves around the support – resistance level of around $47,000 made the price break out and touched the $50,000 for some hours or a day.
This milestone was important for the investing community as an old goal was proven right again.
Many investors and analysts started to talk about new all-time high levels and new potential moves that could skyrocket the price.
The price dropped again around the $47,000 point, creating more compression around this level.
As we can see from the diagram below, there is a trial for creating more power around the resistance – support level around $47,000, as it remains one of the most crucial points from a technical perspective.
We should remember that Bitcoin’s price was around $47,000 when Elon Musk announced that Tesla would buy $1.5 billion worth of Bitcoin, creating another bullish trend that led the Bitcoin’s price to the all-time high level of $64,000.
From this point and on, the Bitcoin market stands before another dilemma.
For breaking the $50,000 barrier and evolve towards the all-time high levels around $64,000, there is a need for another big storyline like Elon Musk’s move to push Bitcoin in the crowds.
If there is no story, the growth could be much slower and rely only on the market dynamics served by the global economic system.
On the other side, if Bitcoin shows weakness to break the $50,000 barrier for a long time, the investors might get tired and withdraw their money from the market, letting it slip into lower levels.
We should note here that there was a profit-taking action that could make the trend slow down.
This will become clear in the next few days as the market will fit into the new reality.
The trading volumes didn’t have any significant change over the $50,000 pass, showing no massive response in this move.
The moving averages are in a bullish position, but they move closer to each other.
In the short-term diagram, we can observe that positive, “green” days make the difference in the current market situation, as they have longer and higher returns in the intraday span.
This means that single days have more dynamics to offer in the market than the rest of the days combined.
MACD index still lays on the negative side, as the market doesn’t have enough power to push the price at higher levels and establish a clear bullish trend.
The RSI index moved below value = 60, indicating that the market will sustain its positive outlook, probably remaining stable.
The stability in the price was also found in the Ethereum market as its price tried to break the $3,300 point twice, but it failed.
This failure has led the price to remain around $3,100, waiting for the next major move to happen.
Ethereum was considered one of the major drivers in the previous bullish market, making independent moves and finding its path in the crypto market.
As we can see now, this is more difficult to happen as there is no similar hype to what happened a year ago.
This is costing Ethereum the power to conquer new all-time high levels.
At this moment, Ethereum looks to be in a locked situation as it doesn’t have the power to climb at higher levels neither the lack of market depth that could make it drown at lower levels.
The new $3,000 support level could bring a new dimension to the chart, as it would be more difficult for the price to fell below this level and always look for upside potential.
The trading volumes have not to make a significant change, and the moving averages are about to cross each other, creating a reverse “Golden Cross.”
MACD index has fallen on the negative side and doesn’t seem to recover as there is little momentum in the market.
The RSI index has moved around value = 55, showing that the price will remain stable with a positive outlook for the short-term future.
Ripple couldn’t take off the previous period, and it slightly declines from the bullish perspective in the market formation.
The price has remained above the $1.10 level, creating some hopes that there won’t be another downtrend for the current period.
Ripple has been transformed into one of the most volatile cryptocurrencies in the market, comparing to itself a year ago.
As we have marked in previous articles, the $1.00 point remains the critical level determining if Ripple’s price will remain competitive or fall into a loophole with more ups and downs than ever before.
If the market depth above $1.00 starts to expand, we expect the price to follow the market dynamics and find ways to climb higher levels.
The expectations will be accompanied by higher trading volumes at a low point, while the moving averages are on bullish formation.
MACD index passed on the negative side, showing that there is not enough power to make the market grow higher while the RSI index hit value = 55, providing short-term stability for the price, with a positive outlook.
Litecoin has made more compression around the $170 - $180 level, showing that no power or momentum in the market could help the price to evolve into higher levels.
As depicted in the graph below, the price moves between $125 and $200, creating a framework for the next price movements.
The expectations are unclear for the Litecoin market as several factors could make the price move in different directions.
The trading volumes have not changed significantly during the last period, while the moving averages will cross each in the next few days, creating a reverse “Golden Cross.”
MACD index passed on the negative side, showing that the market has not recovered fully from the bears.
The RSI index has landed just above value = 50, indicating that more stability is expected in the market.
Bitcoin Cash failed to enter the ambitious zone between $700 and $800, and the price broke down to $615.
The price seems inactive at this period, as there is no major change in the dynamics.
A modest bullish approach has been followed, but this is not something special that can assure the coin’s viability in the long-term provision.
The current situation in the Bitcoin Cash market depicts slow changes in the price, according to the moves happening in a larger market like Bitcoin and Ethereum.
This dependence could make Bitcoin Cash grow as long as other coins have a stable, bullish outlook.
If this stops happening, Bitcoin Cash will probably fail to head upwards by itself.
The trading volumes have remained on the lowest end, while the moving averages will cross each other in the next few days.
MACD index passed on the negative side, indicating no positive momentum to make the price turn positive. The RSI index fell to value = 50, indicating that the price movement will be stable for now.
Bitcoin / Ethereum = 0.83 (- 0.15), Bitcoin / Ripple = 0.64 (- 0.15), Bitcoin / Litecoin = 0.81 (- 0.13), Bitcoin / Bitcoin Cash = 0.65 (- 0.21)
The correlations look more unbundled than ever in this period, showing that the stability in Bitcoin’s price has scared the rest of the market, which waits for another major trend to get established.
The lack of a clear trend in the Bitcoin market makes investors believe that the altcoins could not absorb any dynamics and won’t perform well enough to put their money in.
This case could lead the market to a sudden investment drought as investors won’t find any interest in placing capital, given that they don’t get rewarded for their risk.
Ripple and Bitcoin Cash dropped in the medium correlation zone, indicating that slower changes will follow the current situation.
On the other side, Ethereum and Litecoin have sustained a stronger relationship with Bitcoin, proving that the market will follow it in the next trend.
