Bitcoin / US Dollar
Bitcoin reached a new all-time high level at the start of the day, touching the $29,000 point and returned to $28,500, indicating that there was a minor sell-off when the price reached the new high level. Bitcoin has set the expectations high for investors, which has prompted more investors to enter the market and drive the price to higher levels.
We believe that the "end of the year's momentum" could also play an important role in this process, meaning that many investors are willing to force an investment until the end of the year, creating unusual demand on the exchanges. On the other hand, there are still investors that fear that they might miss out on a future uptrend in the market and they try to enter as soon as possible or increase their position in the coin. Both of the above categories will try to bring more investors on their side, to give more boost in their positions.
We believe that the new year will test Bitcoin in a binary way. First, there might be a strong correction in the market, even at the 40 % level, that might end at higher support points that and secondly, its deflationary nature might lead to a new bullish market that will surpass any previous price level and lead Bitcoin to unbelievable heights.
The trading volumes have been sustained at high levels, indicating that investors are not willing to let the market slip at lower levels yet while the moving averages have been still at bullish formation.
In the short-term diagram, we can observe that the red days in the market are so few that we could that nothing stops Bitcoin at this moment to repeat this process and reach new price levels shortly.
Indicators
MACD index has been continuously in the green area, making Bitcoin a great choice in the current situation for short-term placements. The RSI index continues to lay in the "sell" zone but we believe this will be corrected if there is more stability in the market.
Ethereum / US Dollar
Ethereum proved that it can follow Bitcoin's moves at a lower intensity, reaching even at $750, but corrected back at $730. This was enough for the market to show that it could capitalize on any move in the Bitcoin market and absorb it in its favor. This pattern is useful for the future as we know that a positive move in the Bitcoin market will probably lead to another positive move in the Ethereum market after a few hours or a day.
As we can see in the diagram, the bullish steps are rather small if we compare it with Bitcoin but there is a clear bullish path that has sustained some stops in the meantime. If there is a correction in the market from the new year, we believe that support levels will made decent work and won't let the price slip in steep ways.
The trading volumes have their ups and downs during the last days while the moving averages show no difference in their positioning as they move in parallel with each other.
Indicators
MACD index moved in the green area, making the market look optimistic while the RSI index is flirting with the "dangerous" zone, indicating that an uptrend in the price might give the market a bearish signal.
Ripple / US Dollar
Ripple seems to stay in the same position as yesterday, showing that the lower limit of the stability channel, established in the previous period before the steep surge. We expect a new era for Ripple that will act more as a stablecoin, rather than an active cryptocurrency.
This is meant to be as major crypto exchanges will ban its trading from the new year and will delist it. This might result in major concerns among investors as the coin will lose liquidity and this might lead to harder and stiffer transactions that won't let the coin to increase its value quickly. The $0.20 point seems a reasonable level that the price could be sustained for some time before the market makes the needed changes in the market development.
The trading volumes have made some spikes during the last days, indicating the massive sell-offs while the moving averages indicate that the price won't be able to move at higher levels soon due to the bearish mood in the market.
Indicators
MACD index remained in the red area, showing that the price won't rebound easily from that trend while the RSI index lays exactly at value = 30, meaning that a bullish trend might start now. This is highly unlikely to happen due to the fundamental issues that we refer to above.
Litecoin / US Dollar
Litecoin didn't manage to make another comeback in the market and slipped at $125, making it non-loyal to the market leader's approach. Moving away from this trend might be destructive for Litecoin as the coin has no fundamental elements that could drive the price at higher levels.
The only aspect that could affect the price formation at this point is the market dynamics that have been developed during a given period. The dynamics are changing according to investors' behavior and this could give an early lead in the coin but also a sudden drop out of nowhere. Thus, we should be careful about our moves in this market and develop more short-term strategies for our entrances and exits.
The trading volumes start to drop during the last days, indicating that investors will try to find another market to focus on and leave Litecoin. The moving averages are still way far from each other, indicating that a trend reversal will be delayed.
Indicators
MACD index continues to drop but it remains in the "green" area, sustaining its mood for the future. The RSI index is playing between values 60 and 65, showing that there is a positive mood in the market for a future uptrend.
Bitcoin Cash / US Dollar
Bitcoin Cash corrected at this point, as we have said in yesterday's article. The price landed at $340, starting to make another cycle as the ones depicted in the diagram below. The short-term cycle consists of a local high level of around $350 and a local bottom level of around $270. This cycle could lead short-term investors to gain profits from this pattern.
Bitcoin Cash doesn't seem to follow Bitcoin's moves closely but we can say that it is affected by its dynamics, at least in the major trend. The volatility in the market is much higher than other coins, making it less reliable for the long-term horizon. We believe that the market will probably establish a new way to absorb Bitcoin dynamics and lead itself to new levels according to the market leader.
The trading volumes have started to slow down while the moving averages are moving closer to each other, making investors more nervous than before.
Indicators
MACD index is moving in the positive field, indicating that there is still hope for finding the resistance levels again. The RSI index floats between values 55 and 60, indicating that the price will remain on the same levels but with a positive outlook.
Correlations
Bitcoin / Ethereum = 0.88 (+ 0.01), Bitcoin / Ripple = - 0.74 (- 0.02), Bitcoin / Litecoin = 0.95 (- 0.02), Bitcoin / Bitcoin Cash = 0.85 (- 0.02)
The correlation has sustained its core direction at any level, indicating there is stability in the price formation method that has been modified during the last period. As we have mentioned in the previous articles, Ethereum and Bitcoin Cash have developed a strong relationship but in reality, we can see that only Ethereum is following the Bitcoin market at a 1-day delay, creating a predictable strategy for the short-term future. Litecoin, even though it has established the strongest relationship with Bitcoin, seems to lose it as it can't follow or copy its moves exactly. The negative approach of Ripple in the current market situation is an indicator for the future for how fundamentals are shaping a market condition.
Key Notes For Today
Bitcoin reached another all-time high level at $29,000 and which corrected later to $28,500
Ethereum reached $750 and corrected to $730
Ripple remained stable at $0.21
Litecoin made a small step back at $125
Bitcoin Cash made a small step back at $340
Happy New Year !!!
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.
