Bitcoin / US Dollar
Price Analysis
BTC price returned back to the parallel channel, without being able to continue the previous positive momentum trend. The parallel channel is extended from $10,200 to $10,500, indicating that the $10,000 support level is going to hold in a reverse case for the market. Breaking this $10,000 level will be devastating for the market and a new bearish cycle will start, giving away any hopes for a return at higher levels.
The price laid at $10,300, while the volatility indexes have been increased, indicating that the new period from now on will be much more volatile and the price will have severe ups and downs. This fact is supported by the view that a continuous turmoil period ended up with a bullish period and a severe correction with mixed signals between price stability and early bullish indicators.
We expect the price to move in the parallel channel for some days but this stability period will give us the opportunity for investors to gather more data about what will happen in Bitcoin's future. The next period will be determined from investors' willingness to believe in Bitcoin and invest in it before dropping below $10,000. If the momentum is positive, then the parallel channel will break from the upper side and a new bullish trend will be established.
On the other hand, if the parallel channel break in the lower side, the bearish trend will be much heavier and we have to dig back in the past for finding previous support levels according to the respective market depths.
In the short-term diagram, we can observe that the moving averages are close enough to cross again, forming a reverse "Golden Cross" signal. This signal could lead to severe liquidations but during the last times, every moving average signal lead to the counteraction from the expected one. At this time, we should be careful about the next moves in the market.
Indicators
MACD index passed on the negative side, proving that the market is clearly in an unstable situation, where every change in the market conditions will lead to a different result. The RSI index remained over value = 40, showing that the majority of investors still believe that the market has not reached a bottom for entering the market.
Ethereum / US Dollar
Price Analysis
The short-term support level at $330 broke yesterday, making many Ethereum investors pessimistic for the near future of the cryptocurrency. This support level was not considered a severe one but it breaks, cleans the path for the next. The next support level, as shown in the diagram, lays at $320, which served as a resistance point when Ethereum blew up the market and jumped at $400. This point could serve, at this moment, as the temporary halt for a potential downtrend in the next days. If this support point breaks, there is no evident support level to hold the downtrend before the $240, which stands as the long-term support zone for the coin.
This means that any halt in a potential downtrend will be leveraged from the crypto market, making Ethereum weaker and less independent from market trends. The moving averages at this point are moving in parallel positions, when a sudden surge in the price could lead to a "Golden Cross" signal, misleading the investors to different paths. The trading volume is larger at liquidation days, giving signals for a possible downtrend in the next days.
Indicators
MACD index followed a negative day streak for 4 days, showing that the bearish trend has overtaken the market and will continue for some days also. The RSI index is still below value = 40, showing that the bottom for the market is near and the bearish will find resistances in the next days.
Ripple / US Dollar
Price Analysis
Ripple's price took small and slow steps to lower levels, where there is no evidence support level or zone in that area. The price laid at $0.22, with minor trading volume in the market. The lower trading volume shows that a small portion of investors are still liquidating positions in the Ripple market The next support zone lays at $0.20, where there is enough market depth to absorb any potential downtrend.
Ripple shows much more resistance in the correction from other coins, offering a major advantage in the holding investors, that doesn't lose a major portion from their value in their portfolios. Apart from that, when the new bullish cycle begins, Ripple will be in a more favorable position than other cryptocurrencies. The new cycle might lead to stronger fundamentals that will support sustainable growth, independently from the rest of the crypto market.
The moving averages very close to each other and a small uptrend in the next days will deliver a "Golden Cross" signal in the market, which will lead to misconceptions in the technical analysis. The next days will determine, like other coins, will determine the route for the next period.
Indicators
MACD index is on the negative side, showing that the positive period passed and it will create more instability in the market. The RSI index moved to value = 35, showing that the local bottom is near for the market and many investors look for this to enter the market.
Litecoin / US Dollar
Price Analysis
As the rest of the market moves at volatility levels, Litecoin returned back to the previous stability zone, where there are major resistance and support levels with large market depth in it. The stability zone lays between $40 and $46, as the price laid at $43. During the previous days, the price has not moved in not familiar levels but investors are worried that the price could move at lower levels, indicating a bearish trend.
Moving in a parallel channel is not always a bad thing, especially for crypto-assets like Litecoin, which has not always be among the winning cryptocurrencies in the market. The absorption of power in the parallel channel could lead to a new trendsetting, according to the current market conditions and prospects from investors.
The moving averages are still apart from crossing, giving out the possibility of crossing, being much lower than in other markets. The trading volume was larger at liquidation days, showing that the bearish trend keeps ongoing.
Indicators
MACD index continues on the negative side, showing that the bearish trend never stopped during the last month. This could lead to severe downtrends in the future, especially comparing to the RSI index, which rebounded at value = 36, which indicates that the bottom might be close for the Litecoin market.
Bitcoin Cash / US Dollar
Price Analysis
Bitcoin Cash is on a great discount rate if someone believes that the cryptocurrency has a more intrinsic value that the depicted one. The long-term support level at $220 broke a couple of days before, making the path for more droppings in the near future. The $210 point was not visible since April 2020, showing that the asset has been devalued at levels, previously seen 2 bullish periods before.
The 2020 bottom for Bitcoin Cash lays around $150, which is not far from the current point, given that the volatility levels have increased since the last stability period. The tracing back to previous levels shows that the market will try to complete an economic cycle and establish a new one. Even if analysts propose that the new cycle should start from a higher point than the previous one, short-term traders are often delighted with large cycles that enable them to track more profits from them.
The moving averages are on a tipping point, with the possibility for a "Golden Cross" to be more realistic than in previous cases, creating mixed signals in the market.
Indicators
MACD index passed again on the negative side, showing that the bearish trend continued with small stops in between. The RSI index is near the bottom, at value = 36, giving out probabilities that the reverse might follow in the next trending period.
Correlations
Bitcoin / Ethereum = 0.69 (+ 0.14), Bitcoin / Ripple = 0.67 (+ 0.06), Bitcoin / Litecoin = 0.25 (+ 0.21), Bitcoin / Bitcoin Cash = 0.58 (+ 0.05)
The correlations bounced up as the prices seem to get more stability in the crypto market. Ripple, Ethereum, and Bitcoin Cash have moved in the "medium" correlation category, showing that there is a growing trend in the market regarding moving back towards an integrated market. The prices might be stable for the moment but the total outlook for the market moves to the opposite side as the correlations predict a fuzzier future for every crypto. Given that the market is entering a turbulence period, we will have to diversify our portfolio with more assets and give ourselves more time to think about new and old investments and how they perform during the last months.
