Bitcoin’s price made a small surge today, reaching levels above $23,000. The price landed at $23,100, creating more hope in the market that the price won’t fall in the current situation to lower levels.
We know that sustaining high levels in the current situation is risky for any investor as no fuel in the market could make another decisive move on the bullish side.
The bullish trend has been sustained for over 8 months, indicating that there might be an end to this.
This could start even from this period, where an all-time high level has appeared in the market and the investing community might think that the crypto assets have been overvalued at this point.
This is much harder to claim as more and more institutional investors have entered the game and are trying to take advantage of the deflationary nature of Bitcoin and other cryptocurrencies.
We believe that Bitcoin will reach, at some point in the future, a “too big to fail” status but it has a long way until then.
The fact that institutional players are buying large portions of Bitcoin will mean that a single move from them might affect the price in both ways. The positive scenario will be that the lack of available Bitcoin will turn into scarcity, making it rarer and more valuable in the future.
On the other hand, if an institutional investor tries to sell its position on Bitcoin will create a wave of over-supply that could lead to the price’s fall.
In any case, we believe that Bitcoin will pass on a stability phase before entering the next bullish or bearish market, a fact that will be determined from the fundamental’s structure. The trading volumes returned to normal levels for Bitcoin while the moving averages are still way apart from each other.
In the short-term diagram, we can see that the price has been sustained over $20,000 for a week. If this trend continues to exist for 2 more weeks, we believe that Bitcoin will pass the test that is needed for sustaining the bullish trend and aiming for higher levels in the next period.
MACD index dropped for another day, as there is no major momentum in the market to drive the price at higher levels. On the other hand, the RSI index lands on value = 70, indicating that an uptrend move will send “selling” signals in the market.
The price remained on the same levels as yesterday, landing at $610. The $610 point has appeared in the Ethereum market in the recent past, as a resistance point. During the previous bullish period, Ethereum’s price tried to break these levels, establishing a strong position over the $600 zone.
When this didn’t become possible, the market draws back and sustained at lower levels. Given the recent Bitcoin’s surge and establishment above $20,000, Ethereum made a similar move and establish above $600. In the correction trend, the previous resistance level transformed into a support level, which will be useful for the future.
If this support level breaks down, there would be a reverse in the mood for the current situation while a stand-in will give another boost in the market. The trading volumes have sustained on the previous levels while the moving averages are still at bullish positioning.
MACD index passed on the negative field, creating more negative momentum in the market while the RSI index has moved near value = 55, indicating that the market would be stable but with a positive outlook for the future.
Ripple made another contrarian move in the market, dropping below the $0.50 point, reaching $0.48. This means that the market has almost reached $0.47, which is the local bottom point for the current time.
If Ripple’s unbundling from the rest of the market and its dynamics continues to exist, it would be reasonable to see Ripple return back to the $0.30 levels.
This might be a stronger scenario if Bitcoin and the rest of the market continue to sustain a stable level for their prices. Another downtrend for the market will make Ripple react negatively and create many investors to liquidate their positions, fearing that they might be on the loser’s side. The next period seems unpredictable for Ripple.
The trading volumes have been sustained at high levels, indicating the investors are still willing to interact in the market while the moving averages are still at a bearish position, indicating a negative turn for the market.
MACD index moved at lower values, indicating that the momentum is not on Ripple’s side and it could not help in the trend reversal. The RSI index moved around value = 45, showing that there is a negative mood in the market, although the value depicts a certain level of stability.
The price followed Bitcoin’s dynamics and achieved a small rebound in today’s session, reaching $108. This means that Litecoin is continuously following Bitcoin’s market formation and this is expected to continue for some time in the future.
As long as it remains on the same dynamics channel, Litecoin will continue on the same perspective, following the price formation from other stronger coins.
If there is a downtrend in the market, we expect the price to meet the $90 zone while if there is an uptrend, we believe that the next target for the price will be the all-time high levels.
The trading volumes have remained at high levels, indicating that investors are shaping the market reactions in that case while the moving averages have positioned at bullish trends, making the market move at higher price levels.
MACD index dropped, even more, today, showing that the market momentum has been formed in the positive field. The RSI index moved between values 60 and 65, showing that the market has more room for an uptrend in the current situation.
Like any other coin in the market, Bitcoin Cash remained at the same level, near $315. The current levels have been familiar during the previous period as the price has been compressed at certain price levels with two spikes at $350.
We believe that Bitcoin Cash’s tries to peg itself with the major Bitcoin trend will deliver more value in the market and create new trends out of it.
Bitcoin Cash has raised a bad reputation during the last period as it couldn’t capitalize on previous bullish trends and create more profits for its investors.
A downtrend this time might lead to lower levels, where there are stronger support levels that might enable the market to move on to other bullish levels.
The trading volumes skyrocketed during the last days, indicating that investors were willing to find an alternative solution to the recent downtrend from the rest of the market. The moving averages have sustained a wide gap between them, creating hopes for another uptrend in the recent future.
MACD index remained in the positive field though it did not create enough momentum for obtaining new trends. The RSI index moved near value = 55, indicating stability in the market with a positive outlook for the near future.
Bitcoin / Ethereum = 0.88 (- 0.02), Bitcoin / Ripple = - 0.10 (- 0.11), Bitcoin / Litecoin = 0.98 (+ 0.01), Bitcoin / Bitcoin Cash = 0.93 (+ 0.01).
The correlations for the majority of the altcoins moved on the same positions, making the market to be considered as a whole initiative, with small exceptions in it.
Ethereum, Litecoin, and Bitcoin Cash remained in the “strong” correlation zone, showing that the market will move in the same direction if there is a trend that will be established during the next period in the market.
The only exception is the market continues to be Ripple, which moved in the negative correlation zone as it couldn’t follow today’s price rebound in the market. The negative correlation will have a severe impact on the price formation that will be evident in the future.
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.
