Bitcoin / US Dollar
Price Analysis
BTC price seems to get more stable in the zone above the parallel channel, creating hopes for investors during this new period in the Bitcoin market. The stability point at $10,700 was not predictable from previous stops and thus it was quite difficult to tell if the price will remain on the same spot for a long time. The stability might last for some more days but it is quite difficult to sustain for a long time, especially in an uncertain environment above $10,000.
The bullish scenario is supported by the stability phase as the power absorption will give the investors and the market time to think about new and existing investments. They could also claim profits from different investments and invest back in the Bitcoin market. The bearish scenario stands by the overall mood in the crypto market, which is still on the downfall for many cryptocurrencies, even if many of them stop dropping during the last month.
Apart from that, a reverse "Golden Cross" appeared in the market, which is a bearish signal that overthrows the previous "Golden Cross" signal. The overthrown signal was a misleading option for many investors that believe in Bitcoin's rise after hitting the local bottom around $10,200. As we have told in previous articles, the moving averages are signals that should be correlated with other factors to be implemented in the investing strategy of any interested party.
In the short-term diagram, we can observe that the short-term trend seems to be bullish at the first sight but we should take into account that the market moved from a bearish pull to a stability phase, having surpassed the major problem for dropping on lower levels. The next step for Bitcoin will be to move out of the stability area and create a new trend in the market, possibly a bullish one.
Indicators
MACD index stayed on the positive side but its trend is diminishing, showing that the price is remaining on a stable path for the next days. On the other hand, the RSI index is struggling to reach value = 50, which will summarize the stability overview for the next days to come. We expect the next trend after price forms new support and resistance levels in the area.
Ethereum / US Dollar
Price Analysis
The price gets more stability near $350, creating new expectations for Ethereum investors in the near future. The coin had a larger volatility expansion over the last months and this fact contributes to reaching new levels at high and low points. The descending trending line started from $400 and reached $360, while the price had reached a local high point of $480 for a day and a low point at $320, which was a minor support level in the bullish trend.
The price will possibly reach the $360 level but the next phase will be determined from the market depth and investors' expectations about Ethereum. As we observed during 2020, Ethereum was considered one of the top cryptocurrencies for investing with extreme returns comparing to other major cryptocurrencies and altcoins.
The moving averages start to move apart from each other, showing us that the bearish trend has not passed yet and we have to be extremely careful about it. The trading volume is lower than in liquidation days, showing that investors who want to drop out of the market had already done it.
Indicators
MACD index rose from the negative area and touched value = 0, indicating that a stability period is in front of the Ethereum market and the next move is quite unpredictable. On the other hand, the RSI index is moving between values 45 and 50, indicating a possible downturn in case of negative fundamental events.
Ripple / US Dollar
Price Analysis
Ripple's price seems to stabilize around $0.24, after hitting a local bottom around $0.22 in the last curve of this bearish trend. As saw before, Ripple's price is moving in curves, which depict stable support from investors after a bottom is hit. For example, the price went from $0.31 to $0.28 and back again at $0.32. The second curve was from $0.32 to $0.26 and back again to $0.30. The third curve went from $0.30 to $024 and back again at $0.25. The fourth and current trend is moving from $0.25 to $0.22 and back again at $0.24.
We expect that the Ripple price will follow a correlating trend with the rest of the crypto market and most likely with Bitcoin but the final setting will be determined from the investors' expectations regarding Ripple's future. The moving averages are moving apart from each other, creating limited hopes for a "Golden Cross" signal to appear in the market and create new data for investors.
The trading volume is much lower than expected but we believe that this could change if the price moves at higher volatility levels with more changes in the intraday and daily trading.
Indicators
Even if the stability period gets over the market, the MACD index is moving progressively in the positive zone, creating expectations for a bullish run over the next days in the Ripple market. In contrast with that, the RSI index is moving between values 45 and 50, which indicates that the price will decrease in the next days.
Litecoin / US Dollar
Price Analysis
Litecoin's price moved towards a more stable level of around $45, which is the upper level for the long-term support zone in the market. This means that there is enough depth in the market that will sustain a possible downtrend in the near future. The next support level lays at $40, which is highly unlikely to happen over the next period. On the other hand, the next resistance level is at $48, which will be crucial for Litecoin if a new bullish trend emerges in the market.
The stability period is getting along with lower trading volumes that will sustain the price in the current levels. The moving averages are still way apart from each, making a cross highly impossible during the next days. These supplementary features are creating more data about Litecoin's market, which can be used in taking better decisions about current and prospective investments.
Indicators
MACD index took into account the price development from $43 to $45 and depict it on the chart. A positive vibe on the market could lead to more sustaining results as the RSI index is still moving at values around 40, indicating a potential downtrend in the near future for Litecoin.
Bitcoin Cash / US Dollar
Price Analysis
Bitcoin Cash made a comeback over the last days, after breaking a long-term support level around $220. The price rebounded at $230 and it corrected back to $225, following the long-term support level, which is the lower line of a previous parallel channel. The price is expected to move according to the market momentum with little effect from the currency's fundamentals.
At this moment, we expect the price to move along the support level at $220, with small divergence from it while the moving averages are moving in parallel with each other, creating a stability prospect for the market. The trading volume is moving at normal levels with no surprises in the way. We believe that Bitcoin Cash will be one of the surprises in the near future as it could turn into an investment multiplier if the market turns on the bullish side again.
Indicators
MACD index is still on the positive side, capitalizing on the recent rise from $205 to $230. The RSI index is moving between the values 45 and 50, indicating a potential correction in the next days.
Correlations
Bitcoin / Ethereum = 0.46 (- 0.10), Bitcoin / Ripple = 0.64 (+ 0.02), Bitcoin / Litecoin = 0.23 (+ 0.06), Bitcoin / Bitcoin Cash = 0.61 (+ 0.06)
The correlations continue to move in different directions with each other while the majority of them are moving in the "medium" correlation zone. The only exception in the market is Litecoin, whose correlation with Bitcoin stands at the "weak" zone and depicts the price stability, comparing to the volatile environment in the crypto market. We should take into consideration that the mixed signs in the correlations' directions determine a change in the crypto market's moves that will impact the next period. As we have told several times in those articles, a stability period is often followed by a turbulent period with major moves in the market that determine the future.**
