The compression in the market continues on Tuesday, showing that there is more to happen in the next few days. As we have told in previous articles, the long compression creates suppressed power in the market, waiting to be released in both directions, according to the current market momentum. The analysis for the currencies will reveal hidden details about every coin, that must be noted in the trading process.
Bitcoin / US Dollar
Price Analysis
Bitcoin took the first chance to move upwards, breaking the small parallel channel formed between $10,200 and $10,500. The price stood up at $10,650, taking a boost from the power suppressed during the previous days and releasing today. This small move could be the start for a new period of bulls, returning to the Bitcoin market. The spark should continue to exist if the bullish chances continue to remain high.
At this moment, any potential price uptrend is fragile, creating an uncertain environment for investors. There is a need for more depth and larger transactions for the price to establish a bullish trend that will determine the next phase for Bitcoin. The recovery in the previous levels might be slow due to investors' unwillingness to enter the market at this moment, while bearish investors may expect that the price would fall even more. If the price continues to rise without sharp moves, then there is a possibility to return to the parallel channel as day-traders will liquidate their positions to claim their profits.
Our expectation for Bitcoin is that is going to return on the parallel channel, sooner or later as there is no evident momentum in the market, at this moment. If the momentum rises, then we could expect a friendlier positioning for the price shortly.
In the short-term diagram, we can observe that the small surge during the last days remains fragile as this pattern was repeated in the future, leading to corrections after that. If the pattern sets the same results this time, we should expect another correction which will return the price to the parallel channel.
Indicators
MACD index is moving uptrend and the two lines can meet, passing in the positive zone for the first time in the fall period. A change in the momentum might spark the continuation of the bullish market and we are ready to take advantage of it. On the other hand, the RSI index moved to values between 45 and 50, indicating relative stability for the next days.
Ethereum / US Dollar
Price Analysis
The mid-term support -- resistance level between $370 and $380, seems to hold strong during the current period, making investors hope that another bullish round will take place soon. If we observe the long-term value for Ethereum, we can see the price is overvalued in this case. But the current trend and fundamentals show that Ethereum was the winner for the last bull run and it could also the winner for the next one. If the mid-term support level continues to exist and won't break in the next days, we believe that the bullish trend might be activated again.
The new trend-setting will become possible if the entire market moves in a certain direction, pointing out winners and losers. In any case, Ethereum has proved that fundamental analysis makes it much stronger as more and more coins are based on Ethereum, creating multiplying effects on the crypto and its price. The moving averages are still close, compared with other digital currencies while the trading volume has not reached yet the proper volumes to establish a better cash flow in the market. If the trading volume jumps, the price movement will make the market much more efficient.
Indicators
MACD index is increasing day by day, creating prospects in the investors' community that the trend will change shortly during the next period, affecting the rest of the market in the same direction. On the other hand, the RSI index moved to values between 45 and 50, indicating relative stability for the next days.
Ripple / US Dollar
Price Analysis
The stability movement continues in the Ripple market, creating a new support level for the currency to be used in the future. The price level around $0.24 has been elevated to an important one, showing that the market has been much more mature than previous occasions. The bearish trend seems to halt during the last days as the entire crypto market has moved to a stability mode.
As we told in previous articles, the crucial level for Ripple in the uptrend is $0.28 and $0.30. If those levels are reached in the future, other moves can come after it. The moving averages are still apart from each other and the possibility for another bullish change to start appearing in the market. The trading volume is moving at low levels, indicating that the stability to continue its position in the market.
Indicators
MACD index moves in a different position from the market as the difference between the two lines is getting smaller and smaller, indicating a potential breakthrough in the next days. This is highly unlikely to happen as the RSI index shows that there is a possibility for stability with a negative outlook, showing that the price will remain at the same levels.
Litecoin / US Dollar
Price Analysis
The price tried to rise at $51 but it immediately corrected back to $48, the support level found at this level. As we can see in the diagram, $48 was a previous resistance level that didn't last for long. Another support level that could help in this case is $46, where long-term support levels can be activated. In case of a potential uptrend, a possible resistance lands at $54 while the next stronger resistance stands at $57.
The trading volume is ranging at stability period's levels, indicating that the price won't move at different levels if there was a major trend at other currencies. On the same page, the moving averages show that there is still more room for crossing each other. The "Golden Cross" will activate a bullish signal in the market that will set the new trend for Litecoin and other cryptos.
Indicators
MACD index, even if it stands deep in the negative zone, might make the cross and activate a bullish trend change in the market. This was evident in every coin in the market. This might be an early signal that a major bullish trend is coming and we should consider taking advantage of it. The RSI index lands at value = 40, indicating that the bearish momentum is still evident in the market and might cause a mini-crisis in the Litecoin market.
Bitcoin Cash / US Dollar
Price Analysis
The long-term support level for Bitcoin Cash at $225 remains strong, indicating that the market continues to hold in these times, despite the pressures. The digital currency has shown in the past that ups and downs are possible in the market and this could happen this time. The overall momentum in the crypto market is fully correlated with Bitcoin while Bitcoin Cash has developed a stronger correlation from previous periods.
The correlation between the two cryptocurrencies indicates that Bitcoin Cash will be affected by a bullish trend's start but it might also collapse from investors' indifference for that. The moving averages are still way apart, with little possibility for crossing each other and establishing a bullish trend while the trading volume has not risen since the major correction.
Indicators
MACD index lays at value = -1,1, making a cross in the market quite possible. The cross will bring a change in the market but it seems uncorrelated with the current momentum in the market. On the other hand, the RSI index remains below value = 40, meaning that the bears are still active in the market and wait for the next move.
Correlations
Bitcoin / Ethereum = 0.84 (+ 0.01), Bitcoin / Ripple = 0.98 ( 0 ), Bitcoin / Litecoin = 0.97 (- 0.01), Bitcoin / Bitcoin Cash = 0.98 (- 0.01)
The correlations remained steady for Tuesday as no major move happened in the market. Litecoin, Bitcoin Cash, and Ripple have topped their correlation with Bitcoin, with no evidence of tracing back while Ethereum has continued its positive standoff against Bitcoin, showing that the market will be shortly integrated into the maximum level. This kind of integration will enable analysts to predict easier the next wave for the crypto market Even if there a stability trend in the market, the next move is not far from happening as the compression in the market will create the proper boost for it.
