Bitcoin / US Dollar
Price Analysis
Bitcoin reached an even $12,000 during the weekend, showing that the momentum was on the green even after a week of a continuous uptrend. The correction was immediate during Sunday and the price closed around $11,100. The volume was sustained at higher than normal levels, showing that both bullish and bearish investors were willing to drop money in the market. Many bullish investors try to boost the market and lead the price to the next level (possibly around $14,000). On the other side, bearish investors liquidate their positions in these levels and push for more liquidations below the $12,000 level.
At this moment, we hope that a possible positive outcome for Bitcoin will be the establishment of a price of around $11,000, which will form a new standard level for further support in the future. This could be supported by the fact that the volume is increased in those levels, showing that many positions were built around it and investors believe that the price will go even higher in the future.
The new level at $11,000 will be the future for our analysis and we expect a slow stabilization around this level for as long as there is more news of technical signals that will review our analysis. Apart from that, the moving averages are at a new high for their between the gap, showing that the cycle of ups and downs in the mid-term position has not entered the downtrend yet. In a bad-case scenario, we expect that the price will drive back to the $10,000 point, which will form a new support level, which is a positive case for Bitcoin as a former resistance level will transform in a support level, indicating a new cycle for Bitcoin.
In the short-term diagram, we can observe that intraday volatility is much more extended than the previous period. This led to more action in the market and more opportunities for day-traders to profit from their activities. The increased volatility shows us also that the price levels are still unstable and there is a high possibility for moving to different levels quickly.
Indicators
MACD index starts to bend, showing that the previous uptrend was interrupted by the correction on Sunday. The positivity remains in the market but we should be careful about the next period that follows. On the other hand, the RSI index moved in the safe zone, below value -= 70, showing that the index has corrected its values according to the size of the observations in the market. Both indexes show that there is a possibility for stability in the market for the next days.
Ethereum / US Dollar
Price Analysis
The asset that continues to surprise the market for every single day during the last two weeks is Ethereum. During the weekend, Ethereum's price jumped over $400, only for some hours but it remained above $380 for the entire weekend. The new levels were shown only in the late-2017 market uptrend when Ethereum reached an all-time high at $1,000. The volume was 2020 high, showing that many investors try to liquidate their positions and claim their profits from the surge while an equal amount of other investors increase their positions or enter the market and retain the price at high levels.
The moving averages have still a huge gap between them, showing that there is a possibility for more uptrend in the market. What worries many analysts in the Ethereum market is that the sudden rise hasn't formed any support levels that might help in a market reversal. We believe that a potential downtrend will stop around $320, where there was a small resistance in the market. We should also note that the most severe support level at this moment is the $240 level, where there were many attempts to broke when it was a resistance level.
Indicators
MACD index remains on the positive side, with signals of slowing down regarding the compounding rise. On the other hand, the RSI index suggests a strong "sell" for Ethereum as the index remains at values above 80. This means that the sudden rise of the price has affected heavily the short-term indicators (below 2 weeks). At this moment, the RSI index is the only index that shows there is a severe bearish turn in the next days for Ethereum.
Ripple / US Dollar
Price Analysis
Ripple was also moving in the greens regarding its profits daily. The price climbed even during the weekend, stopping at $0.29. The uptrend in the Ripple's market has started much earlier than every other cryptocurrency, rewarding early investors and creating a new momentum in the market. The volume is considerably higher than the previous period, showing that new investors came in the market and place new money on the line.
The increase in the volume will lead to more market depth, which might lead to smoother corrections as more and more investors have placed their hopes in Ripple. Besides, the moving averages have moved even more apart, showing that the reverse "Golden Cross" will be delayed for more. Apart from that, we can observe that the market status is bullish, giving us hopes for more uptrend.
Indicators
MACD index moved to higher levels, indicating that the momentum in the Ripple market has driven the price in new 2020 high levels. On the other hand, the RSI index moved to extremely high levels above value = 85. This fact shows us that the technical signals indicate a downtrend in the next weeks that will correct the market and lead the price back to the previous levels.
Litecoin / US Dollar
Price Analysis
During the weekend, Litecoin exceeded every investor's expectations and reached $65 for some hours. Before the close, Litecoin's price corrected at $57, creating a new price level for the market. The intraday volatility was significantly higher, comparing to the previous period, giving more opportunities for altcoin traders to claim profits from day-trading.
The moving averages are still way apart, showing that the entire crypto circle is still on the rise and we have more space for an uptrend. This can be depicted from the weekend's volume, which was considerably higher than the previous period's one. This might create more support levels during the rise, where investors will be less willing to withdraw their positions and liquidate them for minimizing their losses.
Indicators
MACD index shows that the momentum curve is bending, showcasing that this trend can slow down and create smaller returns in the upcoming days, even if the market is still in a bullish mode. The RSI index returned in the area below value = 70, showing that the Sunday's correction was enough to bring the index back in the safe area.
Bitcoin Cash / US Dollar
Price Analysis
Bitcoin Cash had an uptrend weekend that led to a correction, similar to the majority of the cryptocurrencies in the market. We can observe that Bitcoin Cash had the steeper correction from every crypto, creating an extremely volatile Sunday, with the price range to begin at $250 up to $340 in just one day. The market closed at $285, the average price for that day. The high volatility indicates that many investors liquidate their positions on multiple occasions while others try to find out the direction towards the market will follow.
The moving averages' cross is not going to happen yet while the volume remained at higher levels regarding the previous period. We expect larger volatility in the market as the investors seem willing to continue their support in the currency and it's following in the market.
Indicators
MACD index corrected steeply due to the Sunday's correction, reducing the gap between the two lines and showing that the momentum in the market might be lost in the upcoming period. The RSI index moved back to the no signal area after the "overbought" signal that appeared in every crypto.
Correlations
Bitcoin / Ethereum = 0.94 (+ 0.01), Bitcoin / Ripple = 0.89 (- 0.08), Bitcoin / Litecoin = 0.99 (+ 0.01), Bitcoin / Bitcoin Cash = 0.98 ( 0 )
The correlations remained high during the weekend, showing that there was no change in the market status or the overall direction of the market. Ethereum and Ripple retain their high correlations with Bitcoin around 0.90 while Litecoin and Bitcoin Cash had almost maxed out the correlation coefficient with Bitcoin. This fact shows that those two cryptocurrencies have established a heavy relationship with Bitcoin, that will be disturbed when the market status change. In this case, we can predict the turn in the market when we will see the correlations between Litecoin, Bitcoin Cash, and Bitcoin to drop and lay in new levels.
