Bitcoin / US Dollar
The new all-time high level was another record-breaker for the Bitcoin market, as the price surged over $40,000 today. This means that Bitcoin has doubled its old all-time high price of $20,000 in less than a month! This rally became a reality in just 3 weeks, making Bitcoin the most profitable asset in the financial world. This rally is fueled by the institutional part of the investing community, which is giving a huge boost from positioning a small portion of their portfolios, replacing two different types of securities in them.
The first type of security that will be replaced is the cash and cash equivalents assets, which are used by the companies to satisfy their liquidity needs, with a small need for return and a high need for liquidity urgency. Bitcoin can replace this kind of assets as they can exchange in major crypto exchanges and cover the company's needs for reserves.
The second type of security that will be replaced is the riskiest part of any portfolio, assets that depict a high return -- high-risk profile and they hold a small portion of the investor's portfolio. This scenario is much common among investment companies that have billions under management and their primary goal is to optimize their returns for their clients.
As we have been writing in previous articles, the market has passed in the "price discovery" phase, meaning that there are no limits to the rise in price . The definite fact for this trend is that it will end in the future and we will pass on the opposite side. Until then, the holders will enjoy the ride and see Bitcoin surge at higher levels.
The trading volumes have been sustained at high levels, making the market to keep interested for many investors while the moving averages are positioned at bullish formation.
In the short-term diagram, we can see that the price has been above $22,000 for the last 3 weeks, obtaining more market depth while the "red" days have been vanished from the diagram, making Bitcoin the perfect asset for intraday trading and quick profits.
Indicators
MACD index moved to higher values, showing that the market momentum has delivered more value in the price formation than ever before. The RSI index reaches value = 90, showing that the market should be at lower price levels and it will correct in the next period.
Ethereum / US Dollar
Ethereum followed Bitcoin in the price formation as the price reached almost $1,300 today before trading around $1,220. This means that Ethereum has accumulated a 300 % return in the last three months, making investors more than happy and continues to gain profits for them. The recent decisive surge was evident during the last week and broke many barriers in market development, indicating that the price will continue to rise in the current bullish trend.
We can see that the market has been fall at extended volatility during the last days, showing that there is a fight between bulls and bears that will bring a final winner at the end of the day. At this moment, the bulls seem to win this race as the market momentum is mostly positive.
The trading volumes have skyrocketed during the last days, making Ethereum a hot trend in the market while the moving averages are spreading the gap even more between them.
Indicators
MACD index has been sustained in the green area for a large period while the RSI index moved at value = 90, indicating that the market has moved at "overvalued" levels and it will correct in the next period.
Ripple / US Dollar
Another surprise in the crypto market was the Ripple's surge during the last days, which was evident after the Bitcoin's recent surge. As we know, Ripple has been facing some fundamental issues that make the price collapse in the previous period. In the last days, the price surge from $0.22 to $0.32, creating a 50 % profit margin in just a day. This move makes many investors believe that the Ripple will join the crypto bullish trend again.
This mention should be coped with concerns as there are no major elements that will make the price to sustain a viable bullish strategy for the long-term future. The current price level was a resistance frontier for the Ripple market and rising above it, will create another bullish trend in the market.
The trading volumes made spikes during the last days, showing that investors are opting in and out of the market, trying to make the most out of it. The moving averages tried to move near each other and a cross will mean a trend reversal for Ripple.
Indicators
MACD index passed on the positive area after many months of negativity while the RSI index moved near value = 45, indicating the price has not passed yet in the bullish trend that will enable it to achieve better results in the future.
Litecoin / US Dollar
Litecoin is making a decent effort to create an uptrend in its market but the lack of fundamental elements is not letting it produce faster results in the market that could end up at larger profit margins. The market is making some "stops" in the price formation process, creating more support and resistance levels that will be useful in future analysis.
Those levels have been created in the $160 and $130 zones, indicating that Litecoin will probably stop in those levels if something goes wrong in the future when the correction phase starts over. The market has created an "unofficial' momentum as it is pegged with Bitcoin price formation, following its moves by delay.
The trading volumes have sustained a high profile for the last days but their inconsistency is a fact that could create instability in the market. The moving averages are in a steady position, without showing any difference.
Indicators
MACD index is making curves, showing that the market momentum is not stable in the market and this might create problems in the price sustainability. The RSI index moved at value = 75, indicating that the market has passed in the "overvalued" area and the correction is not far from now.
Bitcoin Cash / US Dollar
Bitcoin Cash made a corrective move from $450 to $430, making an opposite move from the current trend that was derived from the Bitcoin surge. The price climbed yesterday above $480 while today corrected near $400. This extended volatility created an opportunity for day-traders that exploited Bitcoin Cash's weakness to create enough market depth.
The market was moving in the same direction as Litecoin but it seems that this is changing over the last days, making the market to be less attractive for long-term investors and more suitable for short-term traders. This effect will shape the market in a different way than the rest of the crypto market, which will be evident shortly.
The trading volumes are making spikes over the last period, indicating that investors are coming in and out of the market. The moving averages are still at bullish positioning without any severe changes for now in the trend formation.
Indicators
MACD index has been continuously in the "green" area, indicating a positive market momentum in the market while the RSI index moved back in the "safe" zone, predicting a stable move from now on.
Correlations
Bitcoin / Ethereum = 0.95 (+ 0.04), Bitcoin / Ripple = - 0.41 (+ 0.40), Bitcoin / Litecoin = 0.95 (+ 0.02), Bitcoin / Bitcoin Cash = 0.92 (+ 0.03)
The entire market is moving on positive rails after the new all-time high level from the Bitcoin market. The fascinating fact was the Ripple, the contrarian asset that has moved in a stable mode since its adventures with the SEC authorities. Even under the new situation, Ripple was boosted from the recent surge and took a major run, making its correlation with Bitcoin to rise and establish a brighter perspective for its future. The rest of the altcoins (Ethereum, Litecoin, and Bitcoin Cash) have remained in the strong correlation zone, showing that they will follow Bitcoin in its steps.
Key Notes For Today
Bitcoin reached another all-time high level above $40,000
Ethereum is trying to break its all-time high level, reaching $1,220
Ripple made a jump at $0.32 against the odds
Litecoin moved positively at $170
Bitcoin Cash made a corrective move in the bullish trend at $440
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.
