Bitcoin / US Dollar
During the weekend, Bitcoin price reached $45,000, pressing the major support level around $45,000 to $47,000 for collapsing and settling a bearish trend in the market. Today, the price jumped back to the $48,000 price level, putting another stone in the support level of $47,000, which is gaining more market depth.
We should note that the $47,000 support level was created after Tesla announced buying $1.5 billion in Bitcoin. From this point and on, the positive scenario will be the price to climb at $50,000 and try to establish new bullish levels.
The next breakout in the price formation will come after an announcement from another big move in the market that will bring more hype in the market. If there is no such announcement, we expect a slower growth in the price formation, which will be driven by the fundamental elements of the market.
Apart from this scenario, we would also like to see how strong the $47,000 support will be proved. In case of a break on this level, the bearish trend will become stronger and the next major support level lays around $36,000, which is a 40 % correction from the all-time high level.
The trading volumes have returned at normal levels while the moving averages cross each other, forming a reverse “Golden Cross”, a bearish signal that indicates a change in the trend. This feature will be the next to be examined in the next articles from our side.
In the short-term diagram, we can observe that the price consolidation has moved above the $44,000 price level, indicating that the short-term view for Bitcoin remains at high levels and we hope that this will continue to be the case for the future.
Indicators
MACD index remained on the negative side but tried to step up. This means that the market is trying to make a turn in the momentum structure while the RSI index moved to values above 50, indicating that there are slight positive changes for the next price formation period.
Ethereum / US Dollar
The support level at $1,400 proved to be strong enough to sustain the price’s fall. Of course, Bitcoin’s dynamics played an important role in this movie but we have to take into consideration that the high levels in the Ethereum market were fragile enough to explore more volatile paths. Today, the price hit $1,530, trying to get back in the bullish path.
The first step for this turn is the return on $1,800, which will bring more investors and enable the market to scale faster towards $2,000.
We should note that all-time high levels for Ethereum might need more market depth to get established in the investors’ plan. We expect that institutional money will bring more thick investment positions in the market and establish better support levels for future development.
The trading volumes have made some spikes during the last days, indicating the activity in the market while the moving averages are positioned at bearish formation, creating concerns among investors for the current trend.
Indicators
MACD index has the same reaction with Bitcoin’s indicators, showing that the two markets have common elements in their development, providing opportunities to investors for better portfolio options. The RSI index moved to value = 45, sustaining a bearish outlook in the price development.
Ripple / US Dollar
Ripple seems to be in a stable position, for now, sustaining the $0.43 price level. This level was not evident in the market as a support or a resistance point, showing that the market is exploring new points for developing its trend.
This means that the market is positioned at a mid-step between an established trend, either bullish or bearish. The bullish scenario will bring the price at higher levels around $0.55, which will mean that there is also fundamental support in this move. In the bearish scenario, the price will return at the familiar, stable levels around $0.25 - $0.30, where there is a lot of market depth to sustain this kind of move.
The next period will make more clear to us what to expect from the Ripple market as there is a high possibility for the SEC to give a clear view on how it will treat the case for its founders. This fundamental boost or drop will make the market a much clearer way and will bring or discourage investors to place more money in it.
The trading volumes have returned on the normality side while the moving averages have sustained a bearish outlook, for now, bringing extra thoughts to investors about its sustainability and potential for an uptrend in the future.
Indicators
MACD index has made a small try to climb back on the positive side but this seems to be delayed for now. The RSI index moved around value = 45, indicating that the market will remain stable in this position but with a negative outlook.
Litecoin / US Dollar
Litecoin is trying to get back in the support levels between $170 and $180, after breaking them for a while during the previous days. Sustaining those levels are crucial for the Litecoin market, which will be able to capitalize on future capabilities and uptrends.
The first step for rejoining the bullish trend will be the pass above the $200 line, which will bring it at high levels and will strengthen its correlation with the market leader, Bitcoin. On the other side, if Litecoin continues to drop at lower levels, it would probably find better support around $130, which almost a 50 % correction from the current high levels.
The next moves in the Litecoin market will bring more transparency as it will decide how far the price trend will go from now on. The trading volumes have been sustained at higher levels than expected, indicating that the market is trying to grow and attract more investors than before. The moving averages crossed each other on Saturday, forming a reverse “Golden Cross”, which brings more bearish vibes to the market.
Indicators
MACD index has followed the same movement with the rest of the market, trying to recover from the negative momentum that has plummeted in the market. The RSI index moved at value = 45, predicting a stable movement in the market with a negative impact on it.
Bitcoin Cash / US Dollar
Bitcoin Cash’s price continued to drop during the weekend, landing at $460. Today, the new month brought new powers to the market and the price climbed to $490. This move showed that the market has tried to become more independent and it seems that it overreacted on the recent shock from Bitcoin’s trend.
The fragility in the market will bring more instability in it. The positive scenario now predicts a return in the $600 level while a negative scenario has no practical target as the next major support level lays around $360, which is way below the current price levels.
The trading volumes have been sustained at normal levels for the Bitcoin Cash while the moving averages have formed a bearish formation between them, making a trend recovery to be more difficult in this situation than any other coin in the crypto market.
Indicators
MACD index followed the same trend in the crypto market, trying to recover from the negative momentum and makes a small turn in it. The RSI index moved between values 40 and 45, predicting another bearish move in the market.
Correlations
Bitcoin / Ethereum = 0.68 (+ 0.07), Bitcoin / Ripple = 0.35 (- 0.06), Bitcoin / Litecoin = 0.73 (- 0.05), Bitcoin / Bitcoin Cash = 0.65 (- 0.04)
The correlations went in different directions today, making the market look confused at this point. The only coin that starts to strengthen its position along with Bitcoin is Ethereum, which is trying to build a better
position in the medium correlation zone and pushed back in the strong zone.
On the other hand, Bitcoin Cash and Litecoin had a lighter approach in the price formation process, which is depicted in the medium correlation zone. Last on the list is Ripple, which is probably passing in the lower end of the medium correlation zone and adopting a more stable movement from Bitcoin’s effect.
Key Notes For Today
- Bitcoin made a small uptrend at $48,000, bringing hopes among investors
- Ethereum followed the same position at $1,530
- Ripple remained on the same spot around $0.43
- Litecoin returned at $170
- Bitcoin Cash made a small positive step at $490
