Bitcoin / US Dollar
After a calm weekend where the price moved from $36,800 to $36,500, Bitcoin rebounded today, landing at $36,800, creating a price compression in the market.. This symmetrical triangle that has been formed since the all-time high-level pass, shows that there is a compression in the market regarding the price formation.
The price compression often leads to a decisive move on either side, creating new standards in the market. At this moment, Bitcoin has reached an all-time high level and looks for the next trend to establish in the market. The price is compressing as the opposing sides (bulls and bears) are trying to fight each other for dominance. At the end of the fight, one side will win and the trend will establish a clear path towards the new goals.
The two scenarios are not clear yet as the bullish scenario will lead to another "price discovery" mode in the market while the bearish scenario will confirm the "all-time high level" scenario, which means that the market has reached a high level and it will correct to a certain point, up to 40 % before turning back on bullish mode again. As long as the price compression exists in the diagram, we will gather more information about the next moves, taking into consideration the fundamental elements or big news that will happen in the future.
The trading volumes have returned to previous stable levels while the moving averages have come close to each other, creating more concerns about a bearish turn in the next sessions.
In the short-term diagram, we can observe that the price compression and the symmetrical triangle has started from the first minor support level which lays around $33,000 and it was the first point where the market has begun to grow with slower rates, indicating that a potential turn could be close.
Indicators
MACD index has continued to drop during the last week, creating negative momentum in the market and raising concerns about Bitcoin's next steps. The RSI index lays around value = 60, showing that there are possibilities for another bull run shortly if there is another turn on the market.
Ethereum / US Dollar
Ethereum is trying to push the market at higher levels, despite its dependence on the market leader in the price formation. Ethereum is trying to hit a new 2021 high level, to show investors that it could function properly without needing Bitcoin as the fuel behind it.
The price lands at $1,250, having a small difference of $150 before reaching the all-time high level of around $1,400, which will mark the new era for the Ethereum market. Ethereum needs to continue its independent move, far from Bitcoin, to establish a separate trend in the current situation that will create bullish prospects for it.
We believe that Ethereum will create more spikes shortly as it will try to accumulate more investors around it and stabilize at higher levels than the rest of the crypto assets. The trading volumes are decreasing during the last week, creating a more stable outlook in the market while the moving averages have been on the rails for meeting each other during the next period.
Indicators
MACD index has slightly passed in the negative area, indicating that the market has not enough power to fuel another bullish spike shortly. The RSI index moved between values 65 and 70, showing that the market will possibly grow again for the previous 2021 high level.
Ripple / US Dollar
Ripple is continuously making small moves in the market, all of them around $0.28, indicating that there are little possibilities for the market to stand with another trend, bullish or bearish. The lack of liquidity has reached tremendous levels, making the market to move with slow moves, without being able to develop a steady trend.
As we have said in previous articles, the case between SEC and Ripple's founders will last for a long, having an important effect on Ripple's price and the consequent responses from crypto exchanges. We believe that once the case is resolved, we will experience another trend-setting period that will bring new data to the block.
The trading volumes have returned to previous levels, creating more stability in the market while the moving averages are still at bullish positioning, being a matter of time before meeting again and creating a stable outlook in the market.
Indicators
MACD index remained at positive levels, indicating that the price is moving at steady levels without losing or gaining momentum at this moment. The RSI index has remained around value = 45, creating a negative mood in the market for the next period.
Litecoin / US Dollar
Litecoin's price seems to compress also, following the Bitcoin market but there is a major difference between them. While Bitcoin is compressing progressively without a single price value to focus on, Litecoin has compressed around $150, making a decisive move to happen much more possible than in other markets.
The compression around $150 will lead the market to another trend that will be determined from Bitcoin's perspective at this moment in the future. We don't expect any independent movement in the current situation as it will bring more instability in the market and it will be a negative signal for the investing community. The trading volumes are moving progressively at lower points, confirming the stability trend at this moment. On the other hand, the moving averages have crossed each other, creating a reverse "Golden Cross" formation. This cross triggered many investors who believe that this might be the spark for entering a bearish market.
Indicators
MACD index remained on the negative side, creating more negative momentum in the market and showing that a potential bullish trend might be able to hold at this moment. The RSI index lands at a value = 55, indicating that the price will remain on the current levels but with a positive outlook.
Bitcoin Cash / US Dollar
The compression phenomenon is also evident in the Bitcoin Cash market, which seems to push the price formation around the $500 point. This point was a psychological barrier for the market as its break could lead to more capital flowing in the market and it truly did by a spike in the previous weeks.
The scenarios, in this case, are the same as in Litecoin's case. The price will continue to compress and stay at the same levels until there is a change in the Bitcoin market's momentum or Bitcoin decides to take a steady direction. The trading volumes have been sustained at higher than normal levels for Bitcoin Cash while the moving averages are moving closer to each other.
Indicators
MACD index passed on the negative side, creating more concerns in the market about entering a new bearish phase and a potential price collapse shortly. The RSI index moved to values between 55 and 60, indicating a steady outlook for the market with positive potential for the next period.
Correlations
Bitcoin / Ethereum = 0.91 (- 0.05), Bitcoin / Ripple = 0.88 (+ 0.14), Bitcoin / Litecoin = 0.76 (- 0.07), Bitcoin / Bitcoin Cash = 0.84 (- 0.03)
The shuffle in the crypto cards seems to start at this point, as the assets that used to have stronger correlation coefficients, tend to decrease and land at lower levels. Litecoin has the largest drop, paying the price for the inconsistent compression in the price formation while Bitcoin has made smaller and milder changes in it. Ethereum has sustained a strong profile in the correlation spectrum while the surprise has been made from Ripple, which has climbed at the higher possible correlation level, making its stability trend to correlate with the current price compression in the Bitcoin market. This relationship might look as misleading as Ripple has entered a weird phase for its price formation.
Key Notes For Today
Bitcoin is trying to make a decisive move in the market, landing at $36,800
Ethereum is trying to reach new 2021 high levels, reaching $1,250
Ripple remained in a stable zone of $0.28
Litecoin made another price compression around $150
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Bitcoin Cash followed the same scenario of price compression around $500
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.
