Bitcoin / US Dollar
After breaking the previous all-time high level at $19,750, Bitcoin's price corrected immediately today, showing that many investors have set their personal or portfolio goal to liquidate a part of their portfolio once the price hit a new all-time high-level. Reaching this level was the ultimate goal for the current trend as the price was constantly evolving to draw more attention from investors to reach new high levels.
The first goal has been achieved and many investors are happy about it but usually, the market needs more. The next step for the current bullish trend will be the establishment of Bitcoin's price above the $20,000 and the dominance over fiat currencies that are in decline. The price's surge in levels above $20,000 will bring a new audience to the market as more and more people, investors, and institutions will be interested to know more about it and experiment with it.
The new levels will bring a new era into cryptocurrencies, shaping the future of the financial ecosystem. Until the new era become a reality, the price might face another major correction as a part of the investing community will probably decide to liquidate their positions and claim their profits, fearing that the $20,000 point is the highest that Bitcoin can reach this moment.
The trading volumes spiked again yesterday and today, showing that more investors are willing to participate in the market at this moment while the moving averages are moving closer to each other, predicting a future reversal in the current bullish trend.
In the short-term diagram, we can observe that the explosive nature of Bitcoin's price development was halted when the price reached $18,000 and above. This is considered a normal reaction as the bullish trend produced enough profits for every investor that the liquidation process was under consideration for many of them.
Indicators
MACD index dropped again, following the correction in the price formation and raising concerns among investors about the bullish trend viability. On the same page, the RSI index moved below value = 60, indicating that the price will remain stable for the next days, with a positive outlook.
Ethereum / US Dollar
Yesterday, the price reached another high level for 2020, peaking around $615 but it corrected immediately below $600, landing at $570. This correction is fully correlated with Bitcoin's correction as their correlation has been at high levels. This peg could benefit Ethereum in the long-term horizon as Bitcoin has the opportunity to continue growing after hitting the $20,000 level.
We believe that Ethereum will follow Bitcoin in its next moves, meaning that a break in the $20,000 point will bring Ethereum's price above $600 and possibly closer to the all-time high level around $1,000. On the other hand, if Bitcoin starts to correct at lower levels, Ethereum will follow it and we will probably observe another correction even at the $400 support level. The next period will justify one of the two scenarios and make investors evaluate the situation and take decisions about their positioning in the market.
The trading volumes made a small spike again, heating up the market while the moving averages have just started to bend towards each other to potentially meet in the future.
Indicators
MACD index remained on the positive field today, showing that the correction didn't make the market momentum to disappear at all from the market. The RSI index has moved just below value = 60, indicating certain stability in the price development with a positive outlook for the next days.
Ripple / US Dollar
Ripple continued to fly at high levels, creating a cumulative return of around 120 %, during the past week. The price tried to exceed the $0.65 level yesterday but the market dynamics didn't help it and today it corrected to $0.60.
One of the core advantages for Ripple in the current situation is that it manages to hold itself at high levels, increasing its trust among investors. The establishment at higher levels shows to investors that the asset has enough market depth to support future sustainable growth. We believe that the current bullish trend will define a new era for Ripple if the rest of the market continues to attract new investors.
In the opposite scenario, a major correction in the market will bring the price at the previous levels around $0.25, where there is a lot of market depth and the majority of short-term investments have started from this point and on. We expect the price to move according to market dynamics, giving the chance to have another bullish scenario under the bed for a future case.
The trading volumes are moving at higher levels than Ripple's usual transaction volumes but there are still low for sustaining a bullish trend. The moving averages are still away from each other, indicating that a reversal in the trend will be delayed for now.
Indicators
MACD index is decreasing day by day but it still remains at a positive level, making investors not to lose faith in it. The RSI index moved around value = 65, showing that a potential correction could continue in the next days.
Litecoin / US Dollar
Litecoin's price moved yesterday around $90, creating hopes in the market for another uptrend, even above $100. This never happened as today, the price corrects back to $82, following the rest of the market.
The Litecoin market depicts larger volatility at higher levels, showing that bulls and bears are in a constant fight between each other for dominance in the market. The volatility in the price development, as seen in the diagram, was much lower at lower price levels, showing that clashes were much lighter.
The high correlation between Bitcoin and Litecoin can lead to different price formations during the next period, indicating that Litecoin's integration in the market might lead to positive results.
The trading volumes have remained steadily at high levels, showing that investors' engagement in the market is significant and could lead to another decisive move in the market. The moving averages are getting closer to each other and this might be an early sign for what will follow in the future.
Indicators
MACD index has started to increase during the last days but it remains in a negative field, indicating that there is a need for more uptrend to reverse the market momentum. The RSI index moved below value = 60, indicating that the price will remain at the same levels for now but with a positive outlook.
Bitcoin Cash / US Dollar
One of the most severe corrections in the current market became evident in Bitcoin Cash's case. The price grew yesterday at $320, creating hopes for another peak for 2020. However, the price corrected today to $280, disappearing last days' profits from the market.
Bitcoin Cash has a different market approach from the rest of the market, indicating that higher price levels implement more and more volatility and create more opportunities for short-term investors. We believe that the volatility will continue to exist at higher levels until the price corrects at lower levels when the price has developed a larger market depth.
The trading volumes have spiked again during the last two days while the moving averages are holding at parallel positions.
Indicators
MACD index passed again in the positive field but it will probably correct after a little. The RSI index moved around value = 50, indicating stability in the price for the next days.
Correlations
Bitcoin / Ethereum = 0.85 (+ 0.02), Bitcoin / Ripple = 0.70 (+ 0.01), Bitcoin / Litecoin = 0.94 (+ 0.01), Bitcoin / Bitcoin Cash = 0.74 (+ 0.04)
The correlations went on the same space as yesterday, creating a certain cohesion in the market as there are no significant changes in the market structure that could implement a reversal in the overall market momentum. Ethereum and Litecoin had created a steady and bold relationship with Bitcoin, moving heavily in the "strong" correlation zone, and creating prospects about their future. Ripple and Bitcoin Cash are now moving at the same pace in the "medium" correlation zone, showing that Bitcoin's effects on them could be milder and more adaptive than in the rest of the market.
Key Notes For Today
After hitting an all-time high level, Bitcoin corrected back to $18,500
Ethereum corrected back at $570
Ripple corrected back at $0.60
Litecoin corrected back at $82
Bitcoin Cash corrected back at $280
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.
