Price Analysis (8 March): The next move in the price is under work !!!

News • 2021/03/07 • by

Bitcoin / US Dollar

The price has remained around $50,000, establishing a powerful position around this price level. As we have described in previous articles, the price compression around the $50,000 level has brought more attention to the market. The compression around a certain price level has been followed by a trend on both sides. We should examine the two possible scenarios, bringing examples and points for both of them.

The positive scenario indicates that the market will push the price for a new all-time high level, above the $58,000 point. The main resistance will be found around those price levels and there would be a need for a strong and sharp move that will bring the price to the next all-time high levels.

The negative scenario will bring the price to the $47,000 level, which has remained the major support level in those price levels, which is the entry point for Tesla’s buy move at $1.5 billion. If the price broke down from the $50,000 compression point, it will find support at $47,000 while there is more market depth to absorb any bearish thoughts in the market.

The next days will probably absorb more power for the next trend, bringing more momentum in the Bitcoin market and establishing a better approach for the short-term future. The trading volumes have been sustained at normal levels, showing that the market will continue a stable trend for now.

The moving averages are getting closer to each other, indicating that there might be a position with another cross, on the bullish side this time.

In the short-term diagram, we can observe that the price compression around the $50,000 point has been established in the short-term market outlook and the break down from this compression will bring stronger outcomes in the price formation.

Indicators

MACD index has increased its position during the last week but the index remains on the negative side, indicating that there is a need for more uptrend to turn the momentum on the positive side. The RSI index moved between values 55 and 60, indicating that the price will remain stable but with a positive outlook.

Ethereum / US Dollar

Ethereum’s price made a positive and significant move during the weekend, jumping from $1,500 to $1,750. This positive trend has been an answer to Bitcoin’s positive momentum in the current situation. The market made a small correction to $1,400 while it is heading to the next barrier for the market.

The next frontier for the Ethereum market is the $1,800 point, which is the step before the all-time high level. Of course, the all-time high level at $2,000 has remained the ultimate goal for the market, targeting the next bullish trend for now.

We expect that the price will continue to grow in the meantime until there is a major outcome in the Bitcoin market that will shape the next trend in the crypto market. Also, we believe that a new all-time high level in the Bitcoin market will be accompanied by a new all-time high level in the Ethereum market. The strong correlation between the two assets has brought positive results multiple times in the past and we hope that this pattern will continue in the future.

The trading volumes have been slightly higher than normal for the Ethereum market, indicating that investors are looking positively in the market. The moving averages are moving again towards each other and they will possibly meet in the next days if the positive trend continues to exist in the market.

Indicators

MACD index passed on the positive side today, indicating that the market momentum has changed its direction and we will observe more changes in the market. The RSI index moved between values 55 and 60, predicting a stable movement in the next period, with a positive mood in it.

Ripple / US Dollar

Ripple is making small, positive moves during the last week, bringing a better positioning in the market. The price is climbing up to $0.47, which tries to sustain the high levels and top the $0.50 for the next period.
We believe that the market will try to reach the previous high levels with a better and more solid approach.

The problem with high levels (which is more evident in the Ripple market) is that the investors will try to liquidate their positions at higher levels. This means that the high levels won’t be able to sustain a bullish trend for a long time.

The market depth is helping this situation to be sustained at high levels. In Ripple’s case, the market will try to sustain the price levels above $0.50, bringing more investors above those price levels and building a new bullish trend from this point and on.

The trading volumes have remained at low levels, regarding the previous periods, indicating that the market won’t establish a bullish move until there are more investors in the market. The moving averages are moving at closer positions, indicating that the market might experience another positive cross in the market, bringing new air in it.

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Indicators

MACD index has moved at a positive pace, landing just below the line = 0, indicating that the market is moving at a slower pace with zero momentum. The RSI index moves around value = 50, predicting that the price will remain stable in the next period.

Litecoin / US Dollar

Litecoin has moved positively during the last week, without being able to make a strong move that will make it more independent from other crypto forces. The market topped at Sunday around $190 while today it corrects at $185.

The turning points around $175 were significant for the last trend for establishing a bullish trend in the next point. The next point in the Litecoin market is the $210, which was the next step before the all-time high level at $240. We expect that a major move in the Bitcoin market will make the Litecoin market shake-up and deliver the new bullish market in the charts.

The trading volumes have been sustained at normal levels while the moving averages are getting closer to each other, predicting a turn in the market formation.

Indicators

MACD index is moving closer to a momentum change but it has remained on the negative side, bringing less momentum in the price formation. The RSI index moved around value = 50, indicating that the price will move with stability in the next phase.

Bitcoin Cash / US Dollar

The market is moving with stability, forming a compression line around the $500 price level. The $500 price level is bringing the market to a new standard when the next point will be the $600 point, which will be the turning point for the bullish standards.
If Bitcoin Cash manages to climb until the $600, the market will enter the bullish phase and it will establish a position for reaching the $720 point, which is the local high level. The market has lost its momentum from the previous market trend, a fact that didn’t happen at other cryptocurrencies. If the market shows positive signals, we could believe that there could be a change in the momentum.
The trading volumes have plummeted during the last period while the moving averages have been far from each other at this point.

Indicators

MACD index remains on the negative side, predicting that the market momentum will remain low while the RSI index has remained at value = 45, which remains a negative signal for the market build-up.

Correlations

Bitcoin / Ethereum = 0.92 (+ 0.09), Bitcoin / Ripple = 0.88 (+ 0.24), Bitcoin / Litecoin = 0.87 (+ 0.07), Bitcoin / Bitcoin Cash = 0.86 (+ 0.20)

Every correlation coefficient has moved in positive condition, showing that the market is trying to pursue a stable movement from now on, creating opportunities for investors that want to consolidate their positions or expand them in different allocations every time.
Ethereum and Litecoin have experienced the least effective turn in this situation as they already had established strong positions against Bitcoin. On the other hand, Ripple and Bitcoin Cash used to move in the medium correlation zone. The change became effective during the weekend, giving a positive boost in the price formation and establishing a position for the future trend.