Bitcoin / US Dollar
We are accustomed to stable and weak weekends, where no one cares about the price traction and how the market is going. The first weekend of 2021 was extremely interesting as Bitcoin made another crazy bullish jump, surging from $29,000 to $34,300 in just 2 days. This move shows that a lot of capital flowed in the market and create better chances for another surge and more opportunities for establishing another bullish trend.
The price has made an impressive rally over the last 10 months, creating the icon of a best-performing asset in the financial world and making more and more institutional investors choose Bitcoin as an alternative asset for replacing cash and cash equivalents in their reserves. As the global monetary policy is making a turn and chooses more inflationary policies that could the global economy the boost for restarting after the lockdown era.
Those policies will create more inflation in the global markets and cash will lose its value progressively. This lost value should be replaced with another asset that could be more profitable at the end of the day and will retain its value for the long-term horizon. This means that investors are constantly looking for new alternatives and it seems that they have found a solid prospect in the crypto space. We expect the new year to bring more value to the crypto market and deliver more sustainable solutions in the investing community.
The trading volumes have been continuously at high levels, showing that investors are making constant efforts for bringing more and more capital into the crypto market. The moving averages have been established in a stable position, with no interest in turning against the current trend.
In the short-term diagram, we can see that the market depth has been established at levels higher than the $20,000 point, indicating that a potential downtrend would likely stop before those levels.
Indicators
MACD index continues to surge at the current moment, creating more market momentum and delivering added value in the price formation. The RSI index has climbed at higher levels, around value = 90, which means that the current price formation will probably correct sometime shortly.
Ethereum / US Dollar
Even if the price stuck around $750 near New Year's Eve, the overall bullish mood in the crypto market brought Ethereum to new high levels. The price climbed to $830, giving the best start for 2021 and the needed boost for a new trial.
This try is nothing else than the ultimate goal for Ethereum which is the all-time high level around $1,000. This point seems to be much more logical at this point, as the price continues to surge at the same pace as Bitcoin, which gives it an extra boost since there are more fundamental elements to be considered in the analysis.
The fundamentals have shown that they are not enough to bring an independent bullish trend in the market. The trading volumes have been sustained at high levels, showing that more capital is flowing in the market, splitting in the different coins according to investing profiles. The moving averages have been separated, even more, creating a wider gap between them.
Indicators
MACD index surged in the entire weekend, creating more momentum in the market and delivering more "building" in the price formation. The RSI index passed in the "overvalued" zone, making some investors believe that the bullish trend might stop shortly and the correction might begin.
Ripple / US Dollar
The only exclusion in the current bullish trend in the crypto market is Ripple. After the SEC charges, the asset has been moved at low price levels and it has raised concerns among the investing community about its future. Ripple will be delisted from Bitstamp and Coinbase shortly, taken a hit in their liquidity process.
A delist could be a major hit for a coin as its liquidity is decreased, making it impossible to follow the market trend. This is possible to happen shortly as the available capital for investing in Ripple coins will be reduced. The market seems to stall at this moment, allowing investors to make some corrective moves to stabilize their portfolio structure. The price has been stabilized around $0.22, showing that the price will not go at lower levels as there is more market depth to absorb any upcoming bearish moves.
The trading volumes moved at lower levels, indicating that there is more stagnation in the market and the liquidity will be decreased even more. The moving averages have been positioned at bearish formation, delivering less value in the price formation.
Indicators
MACD index has been moved deeply in the negative zone, indicating that the market will not recover soon from this trend while the RSI index is barely above value = 30, indicating that, under normal conditions, there is an investment opportunity in the market for the specific coin.
Litecoin / US Dollar
Litecoin reacted positively to the Bitcoin surge, absorbing the majority of the positive momentum and establishing another bullish trend in the diagram. The price has been stabilized around $125 during the last week and it made a jump during the last days at $150. This jump enabled the coin to join the bullish market again and creates prospects for a more decent uptrend in the future.
As we can see from the diagram below, Litecoin has created more support levels in the price formation, making the coin to create more opportunities to establish a stronger trend towards this point. The trading volumes have surged during the last days, showing that the fight between the bulls and the bears has a winner for now. The moving averages have been sustained in the same distance between them, showing a stable outlook on the bullish side.
Indicators
MACD index is moving on the positive side, showing that Litecoin was always a Bitcoin supporter and follows loyally every move in the market. The RSI index moved above value = 70, indicating that the market is considered "overvalued" and its price might correct shortly.
Bitcoin Cash / US Dollar
Bitcoin Cash made another jump, making a clear move outside from the "channel" that was formed during the last month in the market. As we can see in the diagram, the market was moving between $350 and $370, without being able to break those levels. This happened during the weekend as the price surged at $390, creating a bold start for 2021.
If the trend continues on this path, the trend will be sustained like in every other crypto market. On the other hand, if there is a price correction, the bearish trend will probably make a stop around the previous resistance levels and then the market will decide on the next trend.
The trading volumes have been sustained at medium levels, indicating that there is a need for more traction for future goals to be achieved while the moving averages have sustained a certain difference between them.
Indicators
MACD index is making small steps in the positive area, showing that the market momentum is contributing to the price formation. The RSI index moved at value = 65, indicating that there is a possibility for a further uptrend, under favorable conditions.
Correlations
Bitcoin / Ethereum = 0.93 (+ 0.05), Bitcoin / Ripple = - 0.75 (- 0.01), Bitcoin / Litecoin = 0.91 (- 0.04), Bitcoin / Bitcoin Cash = 0.83 (- 0.02)
The surge in the Bitcoin market didn't bring any severe changes in the crypto market as the majority of altcoins followed this trend. Ethereum made a small jump as it reaches the new 2020 high levels and shows that it could bring more value to its investors while it absorbed the majority of positive energy brought from the Bitcoin trend. On the other hand, Litecoin and Bitcoin Cash lose some correlation points as they didn't follow the surge as quick as Ethereum did. The only excluding asset in the crypto market has been Ripple, whose bearish trend and stability around lower price levels, exclude from the bullish market trend and weaken it in terms of market momentum.
Key Notes For Today
Bitcoin achieved a new all-time high level, reaching $34,300 during the weekend
Ethereum made a bold start for 2021, reaching $830
Ripple remained at $0.22
Litecoin followed the market trend and surged at $150
Bitcoin Cash made another jump at $390
Have a prosperous and profitable 2021 !!!
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.
