Ethereum and Altcoins are Breaking New Grounds!!

The recent volatile movement of BCH/USD is expected to increase and continue for a short while as the Stock market is still trying to stabilize the value Coinbase (COIN). The same should happen across various altcoin markets, and traders who keep an eye on the market movement of COIN will be at an advantage to ride the short-term fluctuations.

BCH/USD already broke out from its $61,000 resistance levels on 13th April, prior to the Coinbase public listing. The breakout was a positive step to complete the upside-down Head and Shoulders trend that was already in motion and heading for a projected target of $70,000. The target is still very much alive, but we are yet to see how the event of coinbase going public is going to either accelerate or delay this.

BTC/USDT daily chart. Source: TradingView

With the pair’s 20 day average (EMA) still following an uptrend at $59,219 and a relative strategy index (RSI) of 56, the bulls certainly have an upper hand but having this (RSI) number drop from 65 is an indication that traders have reduced the rate of buying, but at the same time the asset is not at all undervalued. Perhaps traders backing out from buying are also on the look-out for the effects of Coinbase’s public listing on the market.

Usually, reaching a new ATH is met with heavy resistance and corrections. Bitcoin already beat that trend once this year, and will probably do so again but there are so many events affecting the current price movement to say when. We are already witnessing the resistance as BCH/USD has currently dropped by 4.42% today alone, but if the bulls convert this current resistance to support, then the guarantee of $69 - $70,000 will become more feasible.

On the flipside, if the bears win this hand and cause the price to dip below its 20 days Exponential Moving Average (EMA) then we might see a great deal of selling and a longer correction that could see the price fall below its 50 days average (SMA) of $55,305.

Indicators

MACD has gone from 11.57 to 419.03 and back down to 235.85 within 5 days but the positive trend keeps hope very much alive for traders that the bulls are still in charge. Will the tides change? The RSI readings are at 55.84 which means healthy buying but a fall from former highs of 67.67 within the same time-frame means that there has been a slight drop in buyers.

Ethereum/ US Dollar

On Tuesday, April 13 2021, the ETH/USD pair continued its upward trend after experiencing some resistance at the $2,100 range for 3 days. It went all the way up to $2,537 today, surpassing its former ATH but was quickly corrected below $2,400 a few hours later.

It’s 24 hour decline is currently at -3.0% closely following BTC/USD at -3.1%. With its 20 and 50 day EMA at $2,130 and $1,910 respectively, the trend path that will put on the least resistance is North. This implies that we are very likely to see a bullish trend soon, but given the positive correlation of ETH with BTC, they will most likely move in the same direction.

ETH/USDT daily chart. Source: TradingView

Heading towards the same direction, ETH/USD pair is likely to see new highs at $2,600+. Notwithstanding the trend of the BTC/USD pair if ETH’s value drops down to its 20-day average and keeps going lower then it means that buyers are closing their positions but a quick spring back to the uptrend will suggest that the bulls are holding on and buying the dip instead of panic selling which will look a lot better on the charts.

With a market cap now surpassing $288 billion (more than Toyota, Intel and Netflix put together), Ethereum has just completed its hard fork upgrade tagged “Berlin” earlier today and this should fuel its bullish trend a bit.

Although not this week’s biggest earner (which is Dogecoin), Ethereum has at least earned bragging rights of surpassing its former ATH. The next upgrade of such magnitude will take place between June 21st and September 22nd (Summer season) this year, tagged “London”. The shift of consensus protocol on the network from “Proof of Work” to “Proof of Stake” will take place afterwards within the calendar year.

Indicators

The MACD and the RSI are both in good spots at the moment. With RSI at 68.02 and MACD at 37.59 the trend is looking very positive and will most likely favour the buyers. Having dropped from a level above 70, the trend will most likely continue, but it still depends on the BTC/USD movement.

Ripple/ US Dollar

The movement of the XRP/USD pair has been moving upward for the past two weeks after breaking through a resistance level around $1.40 on April 12th and reached a year’s high of $1.95 on the 14th of April almost kissing the $2 mark before getting corrected and stalling between $1.85 and $1.50. This resistance is not surprising as the last time it got to such heights above $2 was back in January 2018.

XRP/USDT daily chart. Source: TradingView
Within the last 24 hours it has dropped by 6.8% and is currently trading at $1.65 according to Coingecko. Any further drop may be a good chance for buyers to open their positions and wait for a rebound. If the dip continues below its 20 day average of $1.18 then this downward movement will most likely continue for a while. If it bounces off the level then it remains a good look. For now the bulls are still trying to push the value above $1.95 and if they are resilient enough they can see heights above $2.50.

Indicators

MACD is looking very good in the positive section and hasn’t been too deep in the reds. The buy signal has been triggered for a while especially since the SEC case that stunted its upward trend has been taking a positive twist in favour of Ripple. RSI is also looking good, but maybe too good. Coming from a height of over 85, it is currently at 74.09 and dropping. A sharp drop seems unlikely but might just be perfect for buyers looking to buy the dip on a valuable but undervalued asset.

Litecoin/ US Dollar

Currently trading at $313.02 on Coingecko at the time of writing, the LTC/USD pair has been experiencing a good week with a 35% roi over 7 days. After turning resistance at $246 to support, the trend has continued its upward movement after getting stalled for over 24 hours. Although yet to reach its ATH of two years ago, the LTC/USD pair is very much on its way there, barely $50 shy of the mark.

LTC/USDT daily chart. Source: TradingView

Although it is currently enjoying a lot of green, falling below its 20 day average (EMA) of $241.22 would spell doom for buyers who only just entered their position. So far the bulls are still driving and a new ATH is looking very likely. The impending crypto volatility will likely have an effect as well since it has the second highest correlation among the bunch.

Looking at the wick on the candlestick trend, it’s clear that there is still a bit of indecision on who takes charge between the bears and the bulls. Given surrounding events it is likely the bulls will come out on top. If this is the case then a new ATH is closer than we think. If the reverse is the case, then a drop below $260 will attract a longer dip towards previous support levels and possibly below 20 day EMA.

Indicators

The MACD indicator is still positive, the way it has been since the beginning of the month, and this indicates a buy signal although from the looks of it more than enough buyers are heading in this direction already since the RSI is spiked at 6.66 over 70 (76.66).

Bitcoin Cash/ US Dollar

The BCH/USD pair has been experiencing an uptrend just as good as LTC/USD and even better with an roi of 67% within the past 7days and 26% in 24 hours. Currently trading at $1,080, the pair broke through a few days’ resistance between $600 and $750 and turned it to a good support level. There was a $130 correction at $936 before the trend continued upward shortly after.

BCH/USD daily chart. Source: TradingView

Still a long way from its 2017 ATH of $3,785 the BCH/USD pair still looks full of potential and its RSI and MACD readings indicate that buyers believe so too. Traders expect a continued bullish trend but still keep an eye open for BTC price actions as they will have a great effect on BCH’s value.

Indicators

MACD has been positive since the last two days of March, and rose to its current year high of over 40 today. This shows that the bulls have been in charge for a while now. RSI entered the overbought section since the 13th of April and has been going North since. This RSI reading may be a good thing but a deep drop will surely take prices with it.

Correlations

• Bitcoin / Ethereum = 0.82 (0)
• Bitcoin / Ripple = 0.57 (+0.14)
• Bitcoin / Litecoin = 0.76 (+0.15)
• Bitcoin / Bitcoin Cash = 0.68 (+0.13)

Bracketed is a 7-days difference.

The market is experiencing a lot of volatility as usual, but indicators remain all positive meaning that the bulls are still in the driver’s seat. The correlations of ETH and XRP to BTC have both gone down a few digits over a few days but looking positive on the 7-day chart. BCH holders are having the best week on the list and are most expectant of a continued rally towards the asset’s ATH. LTC and BCH are having some of the best weeks for now, but how long will it all last?

Key Notes For Today

• Bitcoin hit resistance aat $200 shy of $65,000
• Ethereum has reached an enticing new ATH of $1,500+
• Ripple almost kissed the $2 mark but dropped 6.8% to $1.65
• Litecoin is still enjoying a good week with a 35% roi
• Bitcoin Cash seized the day with a 26% roi over 24hours.