Bitcoin / US Dollar
Price Analysis
BTC price rose during the last 3 days, reaching $10,400 but it corrected back to $10,300 on Sunday. The parallel channel formed during the previous week shows that the investors wait for the next trend to begin before making a decisive entry or exit. The massive entry or exit will give the needed boost for the currency to set a new bearish or bullish cycle. As we have mentioned several times in previous articles, a parallel channel is often followed by a breakthrough move upwards or downwards, depending on other technical and fundamental indicators.
Given that the market has developed enough depth at $10,000 and below, we believe that there is a severe possibility for the price to rise, especially in the short-term future. The $10,000 support level is highly unlikely to break in the next few days but the long-term expectations are still vague. Α break in the long-term support level will make the price much weaker, leading to a stronger bearish trend which might reach $8,600, the second support level formed during the stability period. The market depth will determine the steepness of a potential bearish trend.
In the opposite scenario, a bullish trend will reach the previous levels between $11,500 and $12,500 while there is a severe possibility if those levels are reached, the price might surpass these levels and find new highs for 2020, a winning year for cryptos.
In the short-term diagram, we can observe that we are in the middle of establishing a stable trend for the short-term period. When the stability period gets established, there's an increased probability that a major move will happen and start the new cycle for the market. The probability of this happening after 3 weeks is much higher as the price will suppress and create a boost in any direction.
Indicators
MACD index has moved to value = -50, showing that the two lines are moving closer to each other, creating possibilities for a crossover during the next week. If a crossover happens, then we can expect a spark that will activate the new trend, possibly bullish this time. The RSI index lies at value = 40, indicating that the price might stabilize in the next week without many indicators for the long-term future.
Ethereum / US Dollar
Price Analysis
As expected from our previous analysis, Ethereum's price climbed back in the short-term support/resistance level around $370. The zone below $400 is crucial for Ethereum as the price was trying to break that level in the bullish period but manage to make it the second time. After peaking for the first time, the price returned to the $380 level while it spiked again at $480 before the current correction takes place now. All of the above analysis shows that short-term arithmetic mean has been established in the $390 - $380 zone, creating opportunities for traders who choose to follow trading strategies like "return on the mean".
The valuation for Ethereum is already high regarding the 2020 bullish period, showing that another bullish period will possibly lead to Ethereum in new high levels. On the other hand, if the price moved towards a bearish trend, the long-term support level lays around $230, showing that the market has not developed a sufficient depth to hold a major bearish "crisis". For experienced traders, there are no "crisis" periods, only opportunity times where they can find more options to trade and make a profit. We expect the price to continue its ups and downs around the $380 - $390 zone, delivering volatile results compared to the rest of cryptocurrencies.
Indicators
MACD index is getting closer to each other and will possibly create a positive cross during the next days. We should be careful because a positive signal might be fake, as it will be caused by a stability period that makes technical indicators less trustworthy. On the other hand, the RSI index moved below value = 50, showing that there is a severe possibility for a downtrend in the next few days.
Ripple / US Dollar
Price Analysis
The stability period found Ripple in a support level that was never met during the last period, around $0.24. The support and resistance levels are vague in Ripple's case but we should expect certain points in both scenarios. The crucial point for Ripple is the $0.20 support level. This level remained the last standing for Ripple's investors, creating hopes for better days and more profits in the future.
On the other hand, the price could reach $0.30 to $0.32 easily after a bull run but it might continue upwards, depending on the market liquidity. Ripple's price seems to subject more to market dynamics and less on currency's fundamental elements. This fact allows technical analysis to make certain assumptions regarding the diagram analytics. The lack of matching support and resistance levels make us believe that different levels in the price range could be pointed out as important depending on the current market situation.
Making that assumption, we could not support our analysis with support and resistance levels as they would not be followed in future situations. The moving averages, on the other hand, have still not crossed to activate any primary action in the market.
Indicators
MACD index is moving towards a positive area, creating a potential change in the mood for the market. The RSI index just surpassed value = 40, showing that the immediate danger for a surprising downtrend has been eliminated for now.
Litecoin / US Dollar
Price Analysis
Litecoin tried to move up, reaching $50 but it immediately corrected back to $48. The crucial support level for Litecoin is at $46. As Litecoin is solely driven by market dynamics, the next high level might surpass $70, giving Litecoin an incredible move for future investors. The upper and lower levels for Litecoin would be useful if they are combined with dynamic indexes from other coins that will showcase the entire market effect.
The moving averages are still apart but the $48 level could be a starting point for a new trend that will be driven by the crypto leader, Bitcoin, or from another alt-season.
Indicators
MACD index is moving towards a potential cross during the next week, meaning that there would be a change in the market momentum that could be depicted in the price. This is unlikely to happen as the two lines might cross each other but the price remains on the same spot. The RSI index remained at value = 40, showing that there are possibilities for a downtrend at any moment.
Bitcoin Cash / US Dollar
Price Analysis
Bitcoin Cash has remained on the long-term support line, creating a fragile situation for it and making investors worried. Bitcoin Cash did not witness a massive surge like other cryptos during the last bullish trend but it also quickly corrected back to previous levels.
This creates a fragile status for Bitcoin Cash. In case there is a bearish trend in the market, the price will dive even further with small support from lower levels. A potential surge could save Bitcoin Cash from this but it should wait for the market to decide the right time.
Indicators
MACD index is still deep in the negative zone but there is a possibility that it would turn over and create a positive signal in the next days. The RSI index remained below value = 40, showing that the bottom is still underway but the bullish period might just be starting.
Correlations
Bitcoin / Ethereum = 0.83 (+ 0.03), Bitcoin / Ripple = 0.98 (0), Bitcoin / Litecoin = 0.98 (0), Bitcoin / Bitcoin Cash = 0.99 (0)
The correlations remained steady throughout the weekend showing that no major events disturbed the relationship between Bitcoin and the rest of the examined digital assets. The only exception was Ethereum, but it quickly jumped on the stronger correlation side, after the market moved in a "frozen" position for the last week. This situation might lead to a massive move from the entire market, leading all the coins in the same direction. In such a scenario, every coin will jump or crash at the same speed, creating a new status quo for the cryptos. In the opposite scenario, Bitcoin will lead the new cycle for the market while the altcoins will follow it with delay or they would move in the opposite direction. The scenario for an alt-season seems quite impossible in the new cycle as there is less capital available in the market to be distributed in the markets outside Bitcoin.
