Bitcoin / US Dollar
The price corrected, even more today, reaching $34,600. The correction doesn't mean that the market has entered a bearish market and we should be careful in the next few days about its moves and the price development. As we mentioned in Monday's article, the symmetric triangle, which was formed at the start of the year, has made the market compress the price around the $36,000 point with a $2,000 variance.
Compression in the price means that the market will make a decisive move in the next period that will determine the dominant direction of the market. One of the first signals that make the market sense the next direction is the break of the two lines. At this moment, the price is touching the lower line of the triangle, indicating that the price is closer to the bearish trend.
In the next days, if the price rebounds above $35,000, the compression trend will continue to shape the overall trend in the market while if the price breaks the lower line of the triangle, we could say that there are early signals for an upcoming bearish trend that will bring new standards in the market.
The trading volumes have been stabilized at normal levels, showing that the investors have sustained a stable outlook in their interests. The moving averages have been close to each other and a reverse "Golden Cross" will mark the entrance of a bearish market that will pass in the same moment with the lower triangle line's break.
In the short-term diagram, the last 3 weeks have been steadily above the $30,000, creating momentum for the highest price levels. We must remember that the 2017 bullish market lasted for 2 weeks, at the highest price levels and a similar scenario could be followed this time also, with a similar time-frame in the price development.
Indicators
MACD index continues to drop in the diagram, showing that the market has a severe lack of momentum that will make the market spark up. The RSI index has been brought around value = 55, indicating that the price will remain on the current price levels, with a small positive outlook.
Ethereum / US Dollar
Ethereum broke its all-time high level yesterday but it immediately corrected. The price climbed just above $1,400 while the correction landed the price around $1,300. This means that the correction trend has a different approach in the current trend from Bitcoin. While Bitcoin has been compressing its price around a certain level (around $36,000), Ethereum surpassed this year's highest level and continues to surge in the current trend.
We believe that the Ethereum market will try to get its independence from the market leader, Bitcoin, and establish another trend that will bring more investors that are not happy with Bitcoin's returns. This move will establish a separate trend and it will lead to a contrarian asset formation. A contrarian asset will be useful at this moment in the market as it will absorb the capital from the bearish market. If Ethereum manages to play this role, we believe that we would observe a new all-time high level in the next period. In the opposite scenario, Ethereum will follow Bitcoin in the price formation.
The trading volumes have been sustained at higher levels than the normal Ethereum levels, showing that investors are still trying to bring new capital to the market. The moving averages are still in the same position, creating more waiting for the next moves.
Indicators
MACD index passed again on the positive side, showing that the market will try to make an independent move, separated from the leading trend in the crypto market. The RSI index returned in the "safe" zone, indicating that the market might probably return at the all-time high levels and establish the contrarian trend.
Ripple / US Dollar
As we have referred to in previous articles, Ripple has been delisted from major crypto exchanges like Coinbase. This was a major hit for the coin as there is less liquidity in the market to enable it to rise at higher levels. After the delisting from Coinbase, we will be using the data from BitStamp to deliver you the Price Analysis for Ripple.
The price has remained in the same place since the start of the year, around $0.28, indicating that the majority of investors have abandoned the market and are not willing to place their capitals in a market that might face liquidity problems in the future. The fear of losing the entire amount of money or the need to exchange the coins at a non-wanted price is making investors think that it is better to avoid this situation.
As stated in previous articles, we believe that Ripple will be interesting again from a technical point of view when the fundamental issues are resolved. The trading volumes have been sustained on the lower end while the moving averages will meet again, this time on a bearish formation.
Indicators
MACD index continues to stay in the positive line, misleading analysts that there is a positive momentum in the market that will create a surge in the price. The RSI index has been stabilized around value = 45, depicting a steady route in the future with a negative outlook for it.
Litecoin / US Dollar
Litecoin has been compressing the price for more time, landing around $145. This makes the investing community stand in a waiting mode and look forward to the next move that will bring Litecoin in the next period. As we mentioned in previous articles, Litecoin has practically no fundamental elements to look for so it is completely moved from the market forces, and more specifically, from Bitcoin forces.
This means that Litecoin will probably follow Bitcoin in the next bearish trend or it will continue to compress its price as it is doing now. If this is possible, we expect another trend like that in the market.
The trading volumes have been lowered during the last days, showing that the market is facing a reduced interest from the investors while the moving averages have been moved even more in the bearish formation.
Indicators
MACD index is making more steps on the negative side, highlighting the lack of momentum in the market while the RSI index lays around value = 50, indicating that the price will remain in the same place for now.
Bitcoin Cash / US Dollar
The same scenario with Litecoin is depicted in the Bitcoin Cash market as the price is compressed around the $500 point, with small divergences in the price, especially on the downside. The price compression is making the market look for the next moves as a new price trend will be established soon.
Like Litecoin, Bitcoin Cash is waiting for the market leader to establish a stable trend before launching the new trend. We believe that the market will follow the same positioning, pointing out the dependence on Bitcoin.
The trading volumes have been lowered since the last days while the moving averages will meet each other in the next days, creating a bearish formation.
Indicators
MACD index is dropping for four consecutive days, creating negative momentum in the market while the RSI index has been sustained around value = 55, creating a stable outlook in the market with positivity around it.
Correlations
Bitcoin / Ethereum = 0.76 (- 0.15), Bitcoin / Ripple = 0.83 (- 0.05), Bitcoin / Litecoin = 0.68 (- 0.08), Bitcoin / Bitcoin Cash = 0.71 (- 0.13)
The correlations have been put on the downhill side, as the market continues to unbundle, creating the standards for the new ear in the crypto market. Ethereum, Litecoin, and Bitcoin Cash continued to drop in the correlation zone, entering the medium correlation zone. This means that the coins will continue to absorb moves or direction from the market leader but in a much lighter way. The exception in the current situation is Ripple, whose correlation remained on the strong side, misleading investors and analysts about its short-term potential movements.
Key Notes For Today
Bitcoin dropped around $34,600, making a symmetric triangle for price compression
Ethereum is trying to separate from the current trend, landing around $1,300
Ripple remained on the same spot, around $0.28
Litecoin compressing around $145
Bitcoin Cash compressing around $485
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.
