Price Analysis : Bitcoin Made the Bulls Run, Briefly Hitting the $15,000 Mark!

Another huge jump was evident today for Bitcoin, as it crossed the $15,000 price for a bit, before landing at $14,900. These price levels were not visible in the Bitcoin market since late 2017 when the market was at an all-time high levels and more and more media were talking about "Bitcoin Fever". The price surge made Bitcoin and cryptocurrencies more popular in the wide public and many people took their first cryptos during that period.

After 3 years in lower levels, Bitcoin came back dynamically, preparing the market for new all-time high levels, fulfilling Bitcoin maximalists with optimism about its next move. The uncertainty derived from the American elections, filled with fear made many investors in the financial market to liquidate traditional assets and place the capital in Bitcoin positions. We believe that the continued uncertainty in the traditional markets will bring traction and "fuel" to the Bitcoin market and it is possible to see another record high level in the next days.

From the technical perspective, a bullish market is always a temporary action in the market and we should always wait for a corrective move. This could be done if investors believe that the market has given out the maximum profit and are willing to take the profits out of the market. 2020 has been a tremendous year for Bitcoin as it started from a low level of around $3,500 and briefly passed the $15,000 mark, making a 500 % return in less than a year. Those numbers might be extreme for regular financial assets but it is normal for crypto assets.

The trading volume have started to rise again, showing that investors' interest remains at high levels. This kind of trading volume usually produces more volatility in the market and thus more opportunities for day-traders. The moving averages are still way apart, marking the market as fully bullish.

In the short-term diagram, we can observe that the bullish market has been established in the market, without any stop in between. This means that a sharp move in the opposite direction will not be stopped easily as there is no market depth to absorb any corrective move.

Indicators

MACD index made the kick-back and start to rise again, showing that the market momentum has affected the price formation in the market. On the other hand, the RSI index sends a "sell" signal again as the value = 80 shows that the asset has been overbought.

Ethereum / US Dollar

Price Analysis

The price reached $400 today, making the first step to enter the bullish market again and create new high levels for the Ethereum market. As we have mentioned in previous articles, the $400 point was the goal for Ethereum to avoid continuous instability and make a decisive move again on the positive side.

From this point and on, we believe that there is an open field for Ethereum to explore previous bullish paths. As we can see in the diagram, the previous bullish trend was formed from $400 to $480 in just a week. A similar scenario might be repeated in this case when Ethereum builds on the current bullish trend and continues to surge towards the previous high levels and higher than that. So, the next stop - target for Ethereum is $480 and try to break to establish itself as a trustworthy investing asset.

The trading volume made a small jump, showing that investors try to come back as they see Bitcoin's surge. The moving averages crossed each other, making a reverse "Golden Cross", a bearish signal that might mislead investors that follow strictly the technical indicators.

Indicators

MACD index is trying to pass on the positive side but it needs a little more boost to return in the positive trend-setting. On the other hand, the RSI index moved between values 55 and 60, which shows that the market will move stable with a positive outlook.

Ripple / US Dollar

Price Analysis

Ripple had another stable day as the price remained on the $0.24 level, creating another brick in the stable channel. The price compression has continued for several days, showing that the price has been abandoned from market forces and it is driven by small actions in the field. Those small actions could not harm the current situation but make the market much weaker than before. This means that if a major player to buy or sell a large portion of XR, he will change the market standards and establish a new reality.

We should exam the fundamentals of Ripple as it is a pre-mined coin with a standing amount of coins that could function as an opposite in the deflationary nature of other cryptos. The coin circulation allows an investor to acquire as many coins as it can, making it less lucrative for the majority of investors. This might be a reason for Ripple's stability and inability to follow the rest market in the bullish trend.

The trading volumes have been at low levels, indicating that investors are still waiting to enter the market. The moving averages are moving way apart in a negative trend, showing that a further downtrend is also possible.

Indicators

MACD index continues to remain on the negative side, creating pessimistic momentum in the market. The RSI index made it to value = 40, indicating that the price will move in a stable mood with a negative outlook.

Litecoin / US Dollar

Price Analysis

A positive step for Litecoin was made today as the price rose to $56, a step below the bullish point at $57. As we have mentioned in previous articles, the entry point for a new bullish trend lays at $57, and at this moment, the price is in its door. Above that level, the price could move in an open field, as the previous high level for 2020 was at $67.

Litecoin will try to reach the previous high level but this could be a matter of market dynamics and correlation with the market leader. In the next days, we will observe if a new spark will bring Litecoin on the bullish side or it will have a more conservative approach in price development.

The trading volumes have been standing at normal levels for Litecoin during the last period when many investors got interested in it due to its high correlation with Bitcoin. The moving averages have been close to each other but we can see that a bullish turn will bring them to more distant places.

Indicators

MACD index moves towards the positive side but there is a need for a more bullish trend in the current situation. On the other hand, the RSI index moved to value = 60, showing that there is room in the market for more uptrend in the next days.

Bitcoin Cash / US Dollar

Price Analysis

The bullish trend in the crypto market made Bitcoin Cash's negative trend to stop for a little and hold at the same level. This means that its way to $220 might be halted for now but it will continue if there is an individual attempt from Bitcoin Cash.

We can see that there is a difficulty in the price development for Bitcoin Cash as it is not the first choice for investors and it might hold it back from current trends. The trading volumes have increased due to the liquidation phase while the moving averages have crossed each other, creating a reverse "Golden Cross", a bearish signal that indicates a potential downtrend.

Indicators

MACD index dropped, even more, making the market look more bearish than before while the RSI index moved between values 40 and 45, which indicates stability in the market with a negative outlook.

Correlations

Bitcoin / Ethereum = 0.53 ( 0 ), Bitcoin / Ripple = - 0.24 (- 0.19), Bitcoin / Litecoin = 0.74 (- 0.05), Bitcoin / Bitcoin Cash = 0.14 (- 0.23)

The excitement in the Bitcoin market was not translated into a generally positive trend in the crypto market. Ethereum remained on the same page regarding its "medium" correlation with Bitcoin while Litecoin dropped also in the same zone, making things more pessimistic for it. Bitcoin Cash, on the other hand, made a huge fall, establishing itself in the "weak" correlation zone, showing that the market is not ready to absorb the positive vibes from the leading coin. Last but not least, Ripple is moving towards larger negative correlations, showing that it is completely independent of the rest of the market, choosing a way closer to stablecoin's features and not as an active trading coin.

Key Notes For Today

• Bitcoin leads the market, jumping almost at $15,000

• Ethereum and Litecoin tried to follow on with minor success

• Ripple remained at the same price again

• Bitcoin Cash stops to drop for a little

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.