Bitcoin / US Dollar
The market pushed the price again towards new high levels for 2020, reaching $15,600. As we can see from the diagram below, the price has reached the highest point for 2020. In fact, that level has not appeared in the market since 2017, when there was another massive bullish run, which was much more quick, aggressive, and volatile. Up until this point, the market has reached bullish levels, with certain price building and volatility holding.
This is one of the core differences between the previous and the current market trend. This means that the current situation is crucial for price formation as the market dynamics will enable the price to develop at higher levels or it will correct again at lower levels. The trend-setting will be determined for many factors. To name a few, we should make a brief list that will include the most important of them.
Market Momentum: The investors believe that the market is still underpriced and they are willing to put more money in the market and increase their positions in the asset.
Trading Volume: Prior experience in the crypto market has shown us that larger volumes are helping the price to rise at higher levels with lower effort than in different situations.
Investors Expectations: Larger corporations have placed huge amounts of capital in the Bitcoin market, attracting more and more investors to join them. This creates hype in the market and makes investors more optimistic about Bitcoin's future.
All the factors above determine how much the price will continue to rise or it will collapse. The news should be followed closely as a new announcement may bring new standards in the market and the price formation. In any case, the next days will show if the price will stick to a bullish channel or it will follow the bearish path.
The trading volumes are making continuous spikes day by day, showing that investors are still active in the market. The positive signs from the moving averages show also that there is hope for more uptrend.
In the short-term diagram, we can observe that the next objective for Bitcoin is to break the $16,000 point with force in order to establish a higher position in the market and deliver more profitable results for long and short-term holders.
Indicators
MACD index remained on the positive side, with values around 80, showing that continuous growth is evident in the market while the RSI index stayed above value = 70, making investors think more about selling.
Ethereum / US Dollar
Ethereum tries to ride the bulls that are released and jumped just above $460. As we described in yesterday's article, the ultimate goal for Ethereum will be to reach $480 point, the 2020 high level, and try to break it, establishing a new standard for the market. We believe that the current situation is favorable towards Ethereum and there is a possibility for achieving this target during the next period.
As we can observe, the Ethereum market has not established enough support points above $450 point so the price uptrend will be possible if the factors from the Bitcoin section are also delivered in the Ethereum market. In many altcoins, including Ethereum, there is another important factor for price formation. The factor is the correlation with the market leader, Bitcoin.
If the correlation is high and Bitcoin makes a bullish move, there is a high possibility for transferring this move in Ethereum also, creating a general optimism in the market. At this moment, the trading volumes have not been at bullish levels. This is something that should change if the Ethereum market is expected to reach new high levels. The moving averages seem to diverge, continuing the bullish trend.
Indicators
MACD index continues to rise today, creating more hopes while the RSI index has almost reached the "sell" signal, hitting the value = 70 in the diagram below. This means that the price has still little room to grow over the next days.
Ripple / US Dollar
Even if today was a positive day for Ripple, there was no major move that will determine the coin's future for the next period. The price remained between $0.24 - $0.26 showing little signals of positivity. Those small signals could be the spark for an upcoming bullish trend but we still should be conscious about it. Until the price reaches $0.26, it is locked in stability mode, without creating a major direction.
Ripple was considered as a not worthy asset for many analysts but this could be its moment to shine again, following the bullish trend. The trading volumes are not something that we are excited about but this gives space for a major move after a positive event. On the same page, the moving averages cross each other, forming a "Golden Cross" signal, making some investors smile as it gives a positive outlook for the next period.
Indicators
MACD index moves at a higher pace on the positive side, showing that this could the moment for Ripple to get off the stability line. On the same page, the RSI index moved above value = 55, indicating positive moves in the next period.
Litecoin / US Dollar
Litecoin remained on the same levels as yesterday, with small positive changes in the market. The price rose to $59, avoiding to test the $57 support level and establish a new path to higher bullish levels. The first step for re-entering the bullish market will be to reach again the $62 point and try to develop more, towards $67.
The $62 level was tested several times during the last bullish period, which was much more volatile than the current one. Litecoin's attempt to create another bullish market will need more volatility to reach higher levels than before.
The trading volumes have started to lower during the last days, indicating that the market might face slower adaptation in the price formation while the moving averages continue to remain in the same distance for the last 10 days.
Indicators
MACD index reached value = 0, indicating a more stable move in the next days while the RSI index is giving a positive outlook in the current situation.
Bitcoin Cash / US Dollar
Bitcoin Cash hit the mark just below $260, making the market look weak and with no established direction. The price has been trapped between the $260 level and the $245 support level. Any break between the above levels will make the situation more clear and will enable the market to force the price in a certain direction.
A bullish trend will be established only if Bitcoin Cash's price surpasses $280 in the next period while a bearish trend will be formed between $245 and $220, depending on the ongoing situation. The trading volumes have been lowered since the last days' liquidations while the moving averages have been close enough. If the price rises in the next days, we might also observe a "Golden Cross" signal, a bullish signal for the prospective investors.
Indicators
MACD index moved to lower values, indicating that market momentum has been at low levels while the RSI index moved to value = 50, showcasing stability for the next days in the market.
Correlations
Bitcoin / Ethereum = 0.82 (+ 0.07), Bitcoin / Ripple = 0.32 (+ 0.15), Bitcoin / Litecoin = 0.62 (- 0.02), Bitcoin / Bitcoin Cash = - 0.40 (+ 0.01)
As described in previous articles, the correlations have been mixed during the last period, creating a different trend in the different segments of the crypto market. The only crypto asset that continues to have a strong correlation with Bitcoin is Ethereum, which is close to 2020 high levels and it is quite possible to break them and establish new high levels. On the other hand, Ripple and Litecoin are on the "medium" correlation zone, but with different forces behind them. Ripple tries to climb and re-enter the bullish market while Litecoin is moving towards more stable levels. Last but not least, Bitcoin Cash is still standing in the negative correlation zone, indicating that there would more unpredictability in this particular market for the next days.
Key Notes For Today
Bitcoin reaches again the 2020 high level, making investors wait for the next move
Ethereum tried to follow the price development
Ripple made slow progress in the price formation
Litecoin avoided the support testing at $57
Bitcoin Cash stayed at the same levels, with no market momentum.
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.
