Bitcoin / US Dollar
After losing the $56,000 compression point, Bitcoin’s price moved downwards to $53,000. The market has been moved in a transitional position, where the price has been established among two levels, a resistance and a support one. The resistance level lays on the previous all-time high level at $58,000 while the support levels lay at $50,000 (as a psychological barrier) and at $47,000 (as the starting point of the newest bullish run, which happened after Tesla decided to invest in the Bitcoin market).
The next moves in the Bitcoin market will be determined by the trading volumes and investors’ expectations about Bitcoin’s short-term future. We believe that smaller investors have entered a “clearing” mode at this point, believing that larger institutional investors will throw them out of the market. The reality is that many institutions have entered the Bitcoin and crypto markets to offer new products to their clients and diversify their portfolios.
The clearing situation will enable the market to extract “non-believers” and let the market open to lower prices where larger amounts of capital could be loaded and drive the price at higher levels. We expect that this move won’t last for long as the mobility around investment institutions is increasing day by day. If the price fall to the support level of $47,000, there is a strong possibility that there would be a surge in the price that could lead to new all-time high levels.
The trading volumes went up during the last week, indicating that the liquidations were taking place in the market for this period. The moving averages crossed each and formed a reverse “Golden Cross”, indicating that the market mood has changed and we might experience a drop until the next support level.
In the short-term diagram, we can observe that the market has not entered a bearish path but it is on the way towards it. The $50,000 point will play a crucial role in the next few days and it will determine the next steps in the price formation.
Indicators
MACD index has continued to move in the negative area, showing that the market has a lot of negative momentum to unload before turning back in a bullish path. The RSI index moved below value = 50, showing that the market will move on a stable path, with a negative outlook for the short-term future.
Ethereum / US Dollar
Like Bitcoin, Ethereum’s price has been placed between two levels, a resistance and a support one. The resistance level lays in the $1,800 point, which was the step before reaching the all-time high level of around $2,000. The support level lays at $1,400 point, which is the start of the latest bullish trend.
The price has landed around $1,600, which lays in-between the two major levels, establishing a transitional position for the coin. We expect that the market will be influenced by what will happen in the Bitcoin market and we believe that any move will have an impact on the future price formation for other coins also.
A return in the support level around $1,400 will bring the market on a “sales” period, where many investors will try to increase their positions at a low price. The trading volumes have made a small jump, depicting the liquidations from the current investment positions. The moving averages crossed each other and formed a reverse “Golden Cross”, showing that a negative round could just start for the market.
Indicators
MACD index is moving in the negative zone, making the market deploy more negative momentum in the price development. The RSI index moved to value = 45, indicating that the price will remain stable on those levels but with a negative outlook.
Ripple / US Dollar
The major exception in the crypto market remains Ripple, which made a small correction on Monday, dropping at $0.48. The next two days were exactly the opposite for the market as the price rebounded back to $0.55.
The bullish formation in the Ripple market seems to be independent of the rest of the crypto market’s movements, showing that any chance for predicting the price according to market dynamics will fail at this point. Taking a solely technical analysis perspective, we expect that Ripple’s price will remain on the same levels as it happened 2 – 3 times in the recent past.
After that, the price might collapse at lower levels, where a new cycle will start to produce new results according to the news emerging from the SEC case. The trading volumes show no difference in the last period regarding their levels, showing that the current price levels are not sustained from new entries in the market. The moving averages have sustained a positive positioning at this moment.
Indicators
MACD index continues to move in the positive area, adding momentum to the price formation process. The RSI index climbed at value = 60, indicating that the market has more potential to grow in the next period. Of course, this is something to be discussed as long as Ripple’s price formation remains independent from the rest of the market.
Litecoin / US Dollar
Litecoin is the first from the altcoins that have reached the first major support level, indicating that the market has entered a new phase. The price corrected at $180, which remains the main support level for this trend. This level was tested two more times, in late February and early March, proving that it remains solid. The same point was reached as a resistance level around January 2021, which served as a local high point.
If this support level breaks down, we expect that the bearish trend will lead the price down to $125, which is the next major support zone. We are also expecting a heavier influence from the Bitcoin price, that will overcome any technical features in the market. A strong move in the Bitcoin market will bring a similar move in the Litecoin market, regardless of the technical structure in the diagram.
The trading volumes have remained on the same levels, showing a small effect from this situation. The moving averages are forming a bearish position, showing that the next steps will follow the bearish path.
Indicators
MACD index moved in the negative zone, indicating that the market has integrated the negative momentum in its price formation. The RSI index moved to value = 45, indicating that the price will remain stable but with a negative outlook for now.
Bitcoin Cash / US Dollar
The correction was much more evident in the Bitcoin Cash market, which moved below the psychological barrier at $500, challenging the situation in the market and establishing a bearish mood for it. At this point, there is hope for a return at $600, a bullish signal so the next support level lays around $380, which was the start for the previous bullish run.
The $380 support point seems to be far from the current price level but we believe that it could be found at a progressive rate. The major support level at $350 is also a support zone that could become a reality in a bearish scenario. We believe that an uptrend in the Bitcoin market could reverse this scenario and establish a new price zone, outside of technical scenarios.
The trading volumes jumped a little bit, depicting the liquidations in the market. The moving averages formed a bearish picture, showing that the market will bring more downtrend in the next period.
Indicators
MACD index is moving on the negative side, showing a negative momentum trend in the market. The RSI index moved to value = 45, indicating a stable move with a negative outlook.
Correlations
Bitcoin / Ethereum = 0.73 (- 0.03), Bitcoin / Ripple = - 0.38 (- 0.36), Bitcoin / Litecoin = 0.83 (+ 0.03), Bitcoin / Bitcoin Cash = 0.80 (+ 0.02)
The recent bearish change in the market leads the correlations to different directions along with their price formation. Ethereum sustained a downtrend with Bitcoin correlation, indicating that the market has moved towards a medium correlation zone.
On the other hand, Litecoin and Bitcoin Cash have entered a strong correlation zone, indicating that those coins will be affected more from future moves in the Bitcoin market. The only exception in the crypto market remains on the Ripple market, which is moving deeper in the negative correlation zone, indicating that any move in the crypto market will not affect Ripple’s moves in the short-term future.
Key Notes For Today
- Bitcoin corrected at $53,000
- Ethereum followed the same trend at $1,600
- Ripple remained on the same spot at $0.55
- Litecoin moved correctively at $180
- Bitcoin Cash acts the same way below $500
