BTC's $40,000 Level Holds Strong !!!

News • 2021/08/02 • by

Bitcoin / US Dollar

After trying to establish another uptrend above the $40,000 level, Bitcoin's price returned in the $40,000 line, reversing the functionality of this line. The fact that an old resistance level has been transformed into a support one shows that the market has evolved, and we expect a new cycle to come up and deliver new results for the investors.

From this point and on, the bullish expectations are pressing the market to make another run towards the $47,000 point, which stands as the entry point for the core part of the previous bullish market.

The expectations for another bull run will bring more investors on the buying side, and it will also get rid of the "Tesla's curse." The $47,000 point was when Tesla announced that it would buy $1.5 billion at Bitcoin to hold on its balance sheet.

This move is relevant until today as Tesla announced Q2 earnings and balances, and Bitcoin remains one of the final sheets' assets. Tesla had not sold or bought any more Bitcoins, except a small amount when the price peaked at around $60,000. Being a holder in this market shows that any move will be activated above the $47,000 level. We expect that the market will push the price for another bull run in the short-term future.

On the other hand, a delay of a bullish trend in the short-term period might bring more compression, even at previous levels, around $36,000 or lower than that. We don't expect a quick adoption of this scenario, but we should be prepared for everything.

On bullish formation, the trading volumes returned to normal levels while the moving averages have gone far from each other.

In the short-term diagram, we can observe that the bullish uptrend started 11 days ago, which can create enough boost for the next period. The expectations for the next period could bring more momentum for the uptrend.

Indicators

MACD index has remained on the "green" side but with small declines over the last few days, while the RSI index has been sustained overvalue = 60, indicating that the uptrend has not ended yet.

Ethereum / US Dollar

The uptrend has not ended for Ethereum's market as the positive gains have not stopped for a day. Unlike the other markets, Ethereum's boost has continued every single day in the past two weeks. The price broke the $2,500 level, which was the previous average point for the compression trend while, at the same moment, it remained the main resistance level for the bearish period before this period.

The price surged at $2,600, establishing the first step for the next bullish period. The next goal for the Ethereum market remains the $2,800 point as it was the resistance point for the compression period around late May-early June. As the price levels above $2,800 have remained unexplored in terms of price action, there is little to know above future price actions for that point and on.

On the opposite scenario, a return below the $2,500 level will mark another round of stability in the market and more news to wait for new actions. The trading volumes have made more progress than in the previous period, indicating that more investors are looking to increase their positions in the market. The moving averages have held a bullish position and will move towards that.

Indicators

MACD index continues to thrive day by day, bringing more positive momentum in the price formation. In contrast, the RSI index jumped above value = 70, indicating that the market has potentially reached a dead-end, and a correction might be possible in the next few days.

Ripple / US Dollar

Even if Ripple is mostly affected by Bitcoin's dynamics, Bitcoin's small correction didn't affect Ripple's market or price action. Ripple's price remained around $0.75, which is in the middle of the zone between $0.60 and $1.00. As we have told several times during the last month, this zone has seen little price action during the previous periods.

This gives us fewer tools to explain the price moves and predict how the market will move from this point and on. As we can see from previous price actions, Ripple is dominated by a large period of stability and smaller periods of extended volatility, with large declines from the previous trends.

We believe that the current period will be dominated by more stability, showing us little progress over the price development. This development will shape the path for another price action (bullish or bearish), bringing the next trend. The next compression zone can be shaped under the abovementioned conditions.

The trading volumes showed some progress, but there is still more to explore the full bullish mode. The moving averages have moved in the bullish formation, creating the base for another uptrend.

Indicators

MACD index has been sustained on the "green" side, bringing more momentum in the price formation. The RSI index has remained between values 60 and 65, indicating that the market has not reached its local peak for now.

Litecoin / US Dollar

The stability is also evident in markets like Litecoin, showing that the dynamics from the Bitcoin market cannot be absorbed at the same pace from every altcoin market. Litecoin's price remained at $145, indicating that the market will remain in the compression zone, getting narrower and narrower.

Even if the market has established two typical resistance points at $175 (as the average point in the compression zone) and the $200 (as the upper level of the compression zone), but the reality is that those levels will be hardly reached in this period and there is a need for further increase in the price action.

The trading volumes have seen no difference between this and the previous period. The moving averages have passed on the bullish area without any significant change in the market mood.

Indicators

MACD index has remained in the positive area, predicting more green paths in the short-term future. The RSI index landed around value = 60, indicating that the bullish period is not over, and we can expect more on that side.

Bitcoin Cash / US Dollar

Small progress has been made in the Bitcoin Cash market as the price moved above the $550 point signed during the previous periods. The price landed at $560, delivering small steps towards the next bullish points in the chart.

The next bullish point that will mark the full recovery for this period lays around $700, which was the average point of the compression triangle back in late May-early June. This move might delay for now as there is not enough momentum in the market to make the price climb faster or deliver quicker results.

The trading volumes have spiked since the last period in the price chart, while the moving averages have moved in the bullish area, predicting another uptrend in the next period.

Indicators

MACD index has remained on the "green" side, predicting more momentum to enter the market for now. The RSI index has moved between values 60 and 65, indicating that the market will probably rise even more in the short-term future.

Correlations

Bitcoin / Ethereum = 0.95 (-0.02), Bitcoin / Ripple = 0.94 (+ 0.01), Bitcoin / Litecoin = 0.95 (+ 0.05), Bitcoin / Bitcoin Cash = 0.95 (+ 0.01)
The correlations field doesn't seem to change much through the weekend as Bitcoin's price has remained in the same zone. Ripple, Litecoin, and Bitcoin Cash have sustained their strong position against Bitcoin's dynamics, showing that any move will probably be absorbed from this point and on. We will get evidence of respective moves in those markets.

From today's moves, we can distinguish Ethereum as its positive trend wasn't affected by Bitcoin's minor ups and downs during the weekend. This fact shows us that Ethereum's market could shape an independent trend and affect other coins. A second influencing stream in the market could make things more interesting in the crypto space.