Price Analysis (26 November): The Market Starts to Correct Before Hitting Previous All-time Highs !! Is the Market Mature Enough to Bounce Back?

This move will lead to a faster fall in the market and the establishment of a bearish trend, where investors will try to save every penny from their portfolios. It is important to highlight that this also could be a corrective step in the market, before unleashing the continuation of the next bullish trend. A continuing bullish scenario is unrealistic as the price has not formed any support levels in the current market situation that could give it some extra boost.

We can tell that the price formation between $15,000 and $16,000 could be considered as a first support level in the current situation while the second level is laying between $13,000 and $14,000. The quick market expansion has given no chances in the market to integrate any strong support levels, meaning that a potential downfall might be also quick.

The trading volumes have been remained at high levels, indicating the massive liquidations happened in the market while the divergence between the moving averages seems to be halted at this moment.

In the short-term diagram, we can observe that today's correction move had the same impact in the market as the bullish move on November 5th, when the price went up from $14,200 to $15,600 in just a day. This means that Bitcoin volatility could work in both ways and we should take that into account in our analysis.

Indicators

MACD index passed on a negative field, making the market to follow the market momentum and its dynamic. On the other hand, the RSI index fell in values below 60, indicating that the price will remain at the current price levels but with a positive outlook.

Ethereum / US Dollar

The second day of correction brought Ethereum around $525, indicating that there was no support in the upper price levels and the next trend will be determined from the underlined support levels. The first support level to be met if the bearish trend continues during the next days will lay around $480, which was the previous peak in the 2020 bullish market. This level was also tested in the current bullish uptrend and it broke after 2 -- 3 tries.

We believe that the strong correlation between Ethereum and Bitcoin will determine the final result in the current market situation. The correlation drop will mean that one of the assets will have a much severe downfall that will impact the entire market at the end of the day.

The trading volumes have remained at high levels, indicating that investors are moving in massive liquidations during the last hours. The moving averages have remained at parallel positions but they take a small stop in their uptrend.

Indicators

MACD index remained on a positive field but it took a major hit, waiting for the negative line to pass by. The RSI index corrected at values below 60, indicating that the price will remain at the same levels but with a positive outlook.

Ripple / US Dollar

Ripple is correcting also at this moment but its impressive performance during the week enables it to retain its profitability above 100 % since the start of the week. The price lands just above $0.50, making investors believe that the quick growth could result in more positive than negative results, at least in the short-term horizon.

The lack of support levels is a weakness in the Ripple's price formation, predicting that a severe bearish trend will lead the price back to levels between $0.20 and $0.30, where the majority of positions have been placed from investors. The "Ripple Miracle" could be described as a short-term bubble as the growth did not depict any market structure advantage or value in the market.

The trading volumes have been still on high levels, showing that investors that enter the market in the previous days are probably exiting, claiming their profits. The moving averages have been in parallel positions but their growth halted for now.

Indicators

MACD index has remained on the positive field and it will delay the pass in the negative field as the index has grown at enormous levels. On the other hand, the RSI index passed on the "safe" zone, indicating that more downtrend could follow in the next period.

Litecoin / US Dollar

The correction mode is also activated in the Litecoin market as the price reaches $75 after peaking at $90. The current price is not far from the closest support point, which stands at $67. The $67 point served as the local high level for the previous 2020 bullish market and it will probably be the first defense line if the bearish trend got established in the crypto market. The next support level lays around $57 where there was a cumulative effort for breaking the resistances before the bullish explosion.

The trading volumes have remained at high levels, showing that investors are taking liquidations seriously while the moving averages have remained at parallel positioning.

Indicators

MACD index falls, even more, today but remained in a positive field, preparing for entering a bearish market in the next period. The RSI index moved near value = 50, indicating that the price might remain stable for the next days at the current levels.

Bitcoin Cash / US Dollar

As we explained in the previous articles, Bitcoin Cash has started its uptrend with some disadvantages compared with the rest of the coins as its negative correlation with Bitcoin didn't enable it to fully exploit the bullish momentum.

This meant that Bitcoin Cash didn't manage to rise in high levels, comparing to the rest of the market and the next steps in the bearish trend will be much more corrective in its case. The first support levels have already broken down and the next one lays at $270, which is not far from the current position. We expect that the strongest support levels at $245 and $220 will hold the price at reasonable levels and it will not withdraw in previous positions.

The trading volumes are at higher levels than the normal levels while the moving averages have retained a gap between them.

Indicators

MACD index dropped down by a little but remained at positive levels, showing that there is still hope at least for maintenance. The RSI index lands at value = 50, indicating that there is a possibility for stability in the current price levels.

Correlations

Bitcoin / Ethereum = 0.85 (- 0.01), Bitcoin / Ripple = 0.76 (- 0.04), Bitcoin / Litecoin = 0.96 (- 0.01), Bitcoin / Bitcoin Cash = 0.64 (- 0.03)

The correlations stayed in the same place for today, as the entire market moved in correction mode. The losses were equal for the majority of cryptocurrencies as the investors afraid of losing another peak in the market. This fear leads to liquidations in the current market situation and the prices fell apart in that way. This phenomenon mostly derives from Bitcoin's inability to break the all-time high level, just below $20,000, plummeting the market with pessimistic vibes and beliefs that the market has reached an end for now. If more investors enter this moment the market, there will be a fierce fight among bullish and bearish investors, leading to extended volatility in the markets.

Key Notes For Today

• Every asset corrected today, following the Bitcoin's correction at $17,300

• Ethereum corrected at $525

• Ripple corrected at $0.50

• Litecoin corrected at $75

• Bitcoin Cash corrected at $280

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.