Bitcoin / US Dollar
Bitcoin tried to reach $39,000 during the last two days but when it reached this point, it corrected the next day, landing at $37,500. This means that Bitcoin touched a local bottom point around $34,000 during the weekend and then it tried to rebound and bring another form of a bullish trend in the market.
This trend was evident as a "return to normality", meaning that the bullish trend will continue for the next period. We believe that the correction mode will not be absorbed so easily and there is a possibility for another bearish trend in the short-term horizon. The correction trend will last until the end-point where the majority of investors are not willing to liquidate their positions.
As we have pointed out in previous articles, many institutional investors have entered the market above $30,000, so there are low probabilities for the current situation for a steep correction that will bring the market at the lower support levels. The lower support levels lay around $24,000, which is the 40 % trace-back, a normal reaction in a bullish trend when it reaches an all-time high level. If this happened in the next period, we believe that the market will absorb more power to reach new high levels, attracting more and more investors in this journey.
The trading volumes have been limited in the last days, making any return to be weak while the moving averages have been stabilized in a steady gap between them.
In the short-term diagram, the price has been accumulated at levels above $25,000, indicating that there is more compression in the market above those levels, showing that there are possibilities for increasing market depth at those levels. At this moment, the short-term diagram will show us how the market will rebound or trace back outside of the current support and resistance levels. Taking a closer look at these diagrams will enable us to see if the turn will bring a bearish or bullish trend in the next period.
Indicators
MACD index continues to lay in the negative area, creating more negative momentum in the market while the RSI index laid around value = 65, indicating that there is a possibility for a rebound in the market in the short-term period.
Ethereum / US Dollar
Ethereum seems to follow the same positioning with Bitcoin, as the price corrected until the $1,050 and headed again for $1,250. Today, the price remained at the same levels, landing at $1,220, making Ethereum the second viable option for crypto investing for larger portfolios that depict an institutional profile.
As we have described in previous articles, Ethereum hasn't developed a market depth from the $750 until the current price levels, raising concerns among investors about its sustainability and ability to grow sustainably and independently if there is a downtrend in the crypto market. The independence issue has been addressed several times in the past, showing that Ethereum will probably follow Bitcoin in its price formation and won't be able to reach higher levels, without the Bitcoin trend's support.
The trading volumes have returned at normal levels for Ethereum while the moving averages have started to move towards each other, showing some early signals about a potential downtrend.
Indicators
MACD index has remained in the green area, indicating that there is still hope in the market for another uptrend shortly. The RSI index has remained below value = 70, showing that the market has reached almost its top levels and it will find it hard to grow above the current levels.
Ripple / US Dollar
Ripple has been following a steady line in the current situation, unable to capitalize on any move from the rest of the crypto market. The price has remained around $0.28, given a small spread in the volatility. This small difference in the volatility shows that the market has not performed the proper liquidity to move on and there is a need for more to be done before returning to normality.
As we have stated in previous articles, the normality will return in the Ripple market when the fundamental elements that affect the price will come back to normality. The SEC case and the charges for "illegal trading" and "investor fraud" have an impact on the price formation and lead to liquidity problems in the market as major exchanges start to limit Ripple transaction in their platforms.
The price movements will continue on the same attitude as long as there is the same approach from the coin's management and how they decide to cope with the current situation. The trading volumes have returned at low levels, highlighting the liquidity shortages while the moving averages have been positioned at bullish formation, influenced by the recent uptrend.
Indicators
MACD index has remained in a positive field, rewarding the coin's stability and its efforts to move at higher levels. The RSI index moved to value = 45, indicating that there are still negative vibes in the market that might trigger the current stability levels.
Litecoin / US Dollar
After touching a local bottom point around $135, the price rebounded at higher levels, reaching $150 while today it stabilizes towards this point. Like every other crypto in the current situation, Litecoin didn't reach its first major support levels, making investors believe that the bullish trend will continue to exist in the crypto market.
Litecoin will try to move according to the market standards but this will be harder to achieve as there are certain amounts of capital, ready to flow in the crypto market. This is evident from the modest price formation that is followed by Litecoin and Bitcoin Cash, which doesn't seem to follow Bitcoin in the same positioning. This is something to be considered as negative in a full bullish market but it can work the other way around if there is a bearish market underway.
The trading volumes have been kept at higher than normal levels while the moving averages are moving towards each other, creating a potential reverse "Golden Cross" that will bring a more bearish mood in the market.
Indicators
MACD index has been dropped at lower levels, indicating that there is no momentum in the market to make an uptrend possible. The RSI index has dropped to value = 55, indicating that the price is possible to stay in the same place but with a positive outlook for now.
Bitcoin Cash / US Dollar
After hitting a bottom point of around $450, Bitcoin Cash managed to reach $520, making a positive rebound in the current situation. Today, the price made a small correction in the market without losing the mighty $500, which is crucial from a psychological standpoint.
Bitcoin Cash has reacted mildly in the current market formation, indicating that it will not make any sudden moves in the upper side soon. We believe that any move in the Bitcoin market will have an impact on the Bitcoin Cash market but the panic of the investors or not will determine how quickly the market and the price formation will react to that move.
The trading volumes have returned at normal levels while the moving averages have sustained a steady gap between them, creating hopes for another uptrend.
Indicators
MACD index has remained in the "green" area, making possible a return in the uptrend zone while the RSI index lays around value = 60, which means that an uptrend is possible at this moment.
Correlations
Bitcoin / Ethereum = 0.96 ( 0 ), Bitcoin / Ripple = 0.74 (+ 0.30), Bitcoin / Litecoin = 0.83 (- 0.04), Bitcoin / Bitcoin Cash = 0.84 ( 0 )
The correlations have been placed at three correlation zones as Ethereum has been the leader in the correlation zone as its price has followed Bitcoin's moves to its finest point, creating a steady momentum in the market formation. The other two coins, Litecoin and Bitcoin Cash, seem to have a moderate approach in the price formation, creating the middle correlation zone, which indicates a milder approach in the price formation as it reacts with Bitcoin. The contrarian asset, Ripple, seems to have risen back in the normality as the correlation has risen back to the strong correlation zone. This fact might be misleading for the investors as Ripple has created more stability in the current market than other coins.
Key Notes For Today
Bitcoin remained on the bullish path, laying around $37,500
Ethereum stabilizes around $1,200
Ripple remained at $0.28
Litecoin took the $150 during the last few days
Bitcoin Cash remained in the $500 point
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Remitano. Every investment and trading move involves risk, you should conduct your own research when making a decision.
