Bitcoin / US Dollar
Price Analysis
As the previous weekends, there was a stable moment for Bitcoin's price. The downfall stops in the internal support level around $ 9,400, which has been formed during the parallel channel creation. Weekends are a mostly calm period when there is not much action to observe. We want to highlight that according to technical analysis, any move that indicates power absorption will release a much stronger reaction to the future.
The creation of the parallel channel indicates that a future sudden move above $ 10,000 or below $ 8,600 is highly possible, even at an overnight moment. At this moment, we enter a potential bearish period, when the bearish investors hold their positions until the price reached the lower parallel channel at $ 8,600. From this point and afterward, the fundamentals will indicate if there is a decisive move to break the $ 10,000 once and for all or the price will collapse to previous support levels.
We expect the price to continue its fall during the week until it reached the lower support level at $ 8,600 and according to other indexes, we will revise our strategies accordingly.
In the short-term diagram, we can observe a forming parabola, when the price starts from $ 8,600 around 3 weeks ago and will reach $ 8,600 or a nearby price, closing a month cycle. This move can be transformed into a tremendous opportunity for the day - traders that look to capitalize on their profits quickly and safely.
Indicators
MACD index continues its move on the negative values, without any signal of reversing the momentum. Negative values show that the momentum in the market is rather low, with no fuel for surging. On the other hand, the RSI index moved below 50, showing that the bearish investors have more field to drop the price even more until the index reaches value = 40.
Ethereum / US Dollar
Price Analysis
Ethereum's price followed Bitcoin's trend and drop around $ 230 during the weekend. A downtrend seems to be formed for the next period. The downtrend will find support levels at different prices. The first support level is formed around $ 220 while the second support level around $ 200. The third support level is formed around $ 185, which seems like the last frontier for Ethereum's price.
The breaking of continuous support levels can show a weak fundamental base for the asset, which lack trust for any investor. The correlation between Bitcoin and Ethereum is highly significant, a fact that plays an important role in the markets.
Indicators
Both indexes show lower values during the weekend. MACD index continued its negative turn, showing that the recent uptrend in Ethereum's market could not stand in the long term. In parallel, the RSI index moved below 50, showing there is more room for bearish investors until the index reaches value = 40.
