Bitcoin / US Dollar
Bitcoin brought another all-time high level in the market, touching the $36,000 for some moments in today's early hours. The price corrects to $34,500 but it has remained at a positive level than before. This move brings more optimism to the crypto market as the market leader continues to thrive in the new year, bringing new capital flows and more investors into the game.
As we can see from the diagram below, the price has experienced intra-day falls during the last days, indicating that some investors have tried to liquidate their positions and claim their profitable positions. The fact that the price has not started to correct or enter a bearish trend shows that the majority of investors find a profit margin in their positioning and believe that the market will continue to grow.
The price discovery phase has been deployed in full mode, showing that there are no limits in the current surge and the potential for more profit holds for some time. Many institutional analysts have predicted that Bitcoin's price might climb up to $50,000 or $400,000, based on scarcity models that exploit the deflation created with the time passing. All of these are possible but at the end of the day, we have to consider the real value behind Bitcoin and its fundamentals. The coin was created to bring financial inclusion and freedom in a bank-ruled financial world and as long as the system finds value in it, the price will rise. When it stops to bring value to them, the price will collapse and something else will rise from the Internet.
The trading volumes have been sustained at high levels, showing that the price will fuel larger volumes at high volumes, needed for further growth. The moving averages have created a wide gap between them, showing no reversal in the bullish move.
In the short-term diagram, we can observe that there are a few "red" days during the last period, indicating that the market has not given any boundary in the trend to provide resistance to the price surge.
Indicators
MACD index has been sustained at high levels, indicating that the price formation has continued to be positive. The RSI index has climbed above value = 80, indicating that there are severe reasons for the market to correct now.
Ethereum / US Dollar
Ethereum is trying to establish new local high levels above $1,100. As we have mentioned in previous articles, the all-time high level for Ethereum lays around $1,400 and this is the next goal for the market. Taking into consideration that the current trend will continue and the coin will make more independent moves like the one that it did a couple of days ago, we believe that we will see another all-time high level during 2021.
The dynamic rise in recent days proves that Ethereum has enough fuel in the tank and has attracted investors that will enable it to grow to a higher level. The negative fact in the current market situation is that the trend has not created enough support or market depth that will be used in the future for sustaining a viable bullish trend.
The trading volumes have skyrocketed since the start of the year, making a bold prediction for the coin's profitability in the short-term future. The moving averages have started to widen in the diagram, showing that the market will retain its bullish attitude for more time.
Indicators
MACD index is moving more aggressively during the last days, making the market to revise its bullish attitude and create more optimistic scenarios for the future. The RSI index moved above value = 85, indicating that the price has been considered "overvalued" and it will correct shortly.
Ripple / US Dollar
Ripple has remained in the same spot as the lack of liquidity on the market didn't let the price move in either direction. The price sustainability around $0.22 shows that the future for Ripple might be described as a stablecoin that will serve a specific sector. From the news, we know that several banking institutions have promoted the Ripple platform for tracking and clearing their transactions.
As we know, Ripple is a centralized and pre-mined cryptocurrency, meaning that the management team can take decisions about the coin's future and get judged for it in the market. If the core management team decides to take a step back and focuses on a specific target or market, the price will take a hit but it will stabilize in the future, serving a core market with clients and not investors. On the other hand, they may choose the aggressive scenario, going against the SEC, and trying to figure out a way for decentralizing their venture, complying with the financial regulation.
Until then, the trading volumes will remain low as many investors could not buy or sell the coin and the moving averages will move towards each until they reach the same spot.
Indicators
MACD index has touched the value = 0, showing that no momentum in the market could fuel the price in any direction while the RSI index is moving at low levels, showing that there is a "buy" opportunity for the coin.
Litecoin / US Dollar
After a volatile day, Litecoin's price came back to the same levels, reaching $160. The volatility in the Litecoin market was never at high levels and the recent surge brought more interest in the market than it was used to.
Surprisingly, there was no shock in the market and investors absorb all this attention and create a positively modest scenario that serves the bullish perspective in the market for the next period. We believe that the coin will continue to serve the established trend in the market and there would be no difference in the price formation. The difference will probably be in the growth pace that will be determined from the capital flow in the market.
The trading volumes are making some spikes in recent days, making investors do cycles in their decisions while the moving averages are creating a stable perspective for their future.
Indicators
MACD index continues to grow for the last 4 days, making any investor want to ride the bulls while the RSI index continues to move in the "overvalued" area, making Litecoin a potential corrector in the next period.
Bitcoin Cash / US Dollar
The same picture is depicted in the Bitcoin Cash market as the volatility was more than expected, creating more potential for another uptrend in the future. The price reached $470 before correcting at $430, indicating that there are investors that believe there is value in the Bitcoin Cash market.
Bitcoin Cash will try to establish high price levels in the next period that will allow it to grow further and will not retract back into the stability zone. Every new positive move should be counted as independent and we believe that the market will give some of them in the future.
The trading volumes are making spikes like the Litecoin market, showing circular decision making while the moving averages have sustained a certain gap in the diagram.
Indicators
MACD index is growing at this moment, making momentum to contribute to the price formation while the RSI index reached the "dangerous" zone, showing that there might be a correction in the market.
Correlations
Bitcoin / Ethereum = 0.91 (+ 0.06), Bitcoin / Ripple = - 0.71 (+ 0.07), Bitcoin / Litecoin = 0.93 (+ 0.02), Bitcoin / Bitcoin Cash = 0.89 (+ 0.06)
The new all-time high levels in the Bitcoin market brought new data in the correlation segment for our analysis. The coins that have developed a strong and positive relationship with Bitcoin seem to strengthen this position as Ethereum, Litecoin, and Bitcoin Cash continues to surge their correlation coefficient and establish a higher value in it, making us believe that the new all-time high level will bring more uptrend in the respective markets. On the other side, Ripple has remained on the same spot, bringing its correlation coefficient to major negative values.
Key Notes For Today
Bitcoin reached a new all-time high level at $35,900
Ethereum grow even more at $1,100
Ripple stayed at $0.22
Litecoin grow to $160
Bitcoin Cash made small progress at $430.
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.
