Bitcoin / US Dollar
Price Analysis
Bitcoin's price return to slightly positive returns over the day, showing that it didn't collapse to further support levels below the internal trend line. As we have mentioned in previous articles, inside the parallel channels there is internal level support around $ 9,400, which was tested several times and served as a modest solution for many traders as for the first stop-loss.
During the last days, another parallel channel was formed inside it, between $ 9,400 and $ 9,600. The new, smaller channel can absorb power from the rest market and release it during the next days, moving in any direction. The volume remains at low levels, showing that a bearish trend could be established if there are not enough investors to support the bullish trend.
What we expect is a potential downtrend if there was not enough fuel for breaking the $ 10,000 for the fourth time during the last month. Every time, the price is trying to break the resistance and get rejected, it is more possible to lead to a bearish trend. If this downtrend becomes a reality, there are several support levels, with the most prominent to be around $ 8,600.
In the short-term diagram, we can observe that the small positive returns in the last two days were fueled from increasing volume, while the triangle formed during the last week, is considered as a bearish signal for the market. This signal, in the short-term period, may take us to short Bitcoin for the next 2 to 3 days, without establishing a major bearish trend.
Indicators
Both indexes show that there is a severe lack of momentum in the market, depicted in the MACD index, which remained on the negative side, at -- 55. The RSI index moved at value = 50, in the middle between overbought and oversold signals. The combination of the two indexes shows that the market got stagnated, waiting for a decisive move to be done.
Ethereum / US Dollar
Price Analysis
A similar pattern was formed in the Ethereum market. After the drop at $ 230, a new parallel channel was formed between $ 230 and $ 240. The price movement is absorbing power for the future, showing that the correlation between Bitcoin and Ethereum is reaching again high levels. Most of the time, compression patterns tend to be a bearish signal, but in the case of Ethereum, we believe that the correlation between the two cryptocurrencies will deliver the final result for Ethereum's price.
In a possible for Ethereum to turn in a downtrend, reaching support levels at $ 220 and $ 220. Both of those support levels have strong depths in the market.
Indicators
RSI index steadily moves towards 50, in the middle between bearish and bullish signals while the MACD index remained on the negative side, showing a slowdown on the market, which will possibly turn into a bearish trend.
