Bitcoin / US Dollar
Bitcoin's price returned to familiar levels during the weekend, showing that the stability in the market could create a waiting mode that will shape the next decisive move. On Friday, the price surged to $38,000, creating hopes in the market that there is a decisive move the could lead to another break in the all-time high level. This move was not supported by the market and it quickly turned to the previous price range.
As we said in the previous article, the two compression points around $30,000 and $36,000 will be the major points that will shape the next market trend. The price might float around and between those two points, creating more compression in the market. As long as the market continues this trend, we should expect a delay in the market development.
We should wait and see if there is a break in the compression lines, to deliver a new standard in the market. If the lower line broke down, we should expect a bearish trend to take over and the market will lead to more negative actions. We have highlighted in previous articles that many institutional investors have entered the market in the $30,000 point so they won't liquidate their positions shortly in time, creating a deeper market depth at this point.
The next period will start with the new trend, waiting to be established in the market. The trading volumes have remained on the same levels, except for the spike during Friday. The moving averages are close to each other but there is a need for a decisive move that will lead the lines in a bullish cross.
In the short-term diagram, we can observe that the short-term outlook for Bitcoin is bearish, indicating that the bearish trend has not been disappeared from the market perspective, with some tries to reverse the trend during the last few days. As we mentioned above, there is a need for a decisive trend that will make the current bearish feeling get out of the market.
Indicators
MACD index has not passed in the green zone, confirming our thesis that there is a need for more decisive moves that will capitalize the positive momentum in the price formation. The RSI index is moving around value = 50, indicating that the price will remain stable at the current levels.
Ethereum / US Dollar
Ethereum has a much milder approach in the current market situation, starting with a small correction from $1,380 to $1,330. This small correction is not considered as important in the current situation as investors have shown willingness to support Ethereum at higher price levels, making a new bullish trend more possible than ever.
We can see in the diagram below that the price compression has been formed in the higher end of the diagram, creating two major scenarios over the next few days. The first scenario is to see a new all-time high level, above the $1,400 point, which will bring more investors in the market, boosting the current position in the market.
The second scenario is the wild reaction in the bearish trend that will enable decisive moves in the lower end of the diagram and a pass on the bearish side. We expect the price to react in the next period according to the flown capital but also according to the future fundamental elements that will shape the market.
The trading volumes have been sustained at high levels while the moving averages have remained on the same gap for a lot of time, predicting a bullish time throughout the previous period.
Indicators
MACD index remains on the negative side, indicating that there is more negative momentum in the market that will delay potential bullish moves. The RSI index moved around value = 55, indicating that there is a potential positive outlook in the current stable trend.
Ripple / US Dollar
The most surprising asset in the market is Ripple for sure, having a crazy weekend. The price grew from $0.25 to $0.45 and this point, up to $0.75 in just two days. The overall return in the diagram can be calculated up to 200 % in the top level while the current situation depicts a 100 % return in just a weekend.
The surprise in this situation is that Ripple has no fundamental reason to move in such a way as its founders are under investigation from the SEC authorities. The charges from SEC discourage investors to bring more money into the Ripple market and this leads to a steady price level and limited liquidity. The liquidity was also affected by the fact that some crypto exchanges banned Ripple trading on their platforms.
The current price spike will probably be considered a "pump and dump" scheme that will last shortly and the price will return to the previous price levels. Until then, there are ways for quick profits at exchanges that continue to allow Ripple trading. We believe that the normality will return after SEC's decision about Ripple and if it wants to press charges against it.
The trading volumes spiked during the last days while the moving averages made a "Golden Cross" formation, indicating that the bullish trend has taken over from now on. We believe that the sustainability of the trend will give us the time to evaluate Ripple's situation and how the investors should move.
Indicators
MACD index has grown massively during the last three days, indicating that a lot of positive momentum entered the market while the RSI index moved around value = 80, indicating that the market is overvalued and a price fall is highly possible in the next few days.
Litecoin / US Dollar
Litecoin seems to have the same momentum as Bitcoin, as it could not establish a trend (bullish or bearish) in the current situation. The price balances around $130, above the $130 support level which will be crucial for sustaining the positive outlook in the market.
As long as the $130 support level continues to hold, the market will continue to stay on the same levels. We expect that a reaction in the Bitcoin market will be the catalyst for the Litecoin market to move in the next stage, either bullish or bearish.
The trading volumes remained on the same levels while the moving averages have remained on the same difference, giving a stable outlook for the market.
Indicators
MACD index is moving closer in the value = 0, pointing out that the market is moving to more stable levels rather than a change in the trend. The RSI index lays between values 45 and 50, indicating a negative outlook for the next period with more stability shortly.
Bitcoin Cash / US Dollar
Bitcoin Cash is making more moves in the market as the price climbed from $380 to $420 during the last week. This means that Bitcoin Cash is trying to make small moves that will make it a reliable asset in the crypto market.
The market seems to be in the bearish path but some jumps make investors think differently and place more capital in it. We believe that Bitcoin Cash along with Litecoin will remain on the impact sphere of Bitcoin, creating similar patterns and returns for investors.
The trading volumes have remained at higher than normal levels while the moving averages indicate that we are still at bearish positioning.
Indicators
MACD index has started to climb but it is in the "red" area while the RSI index is moving around value = 50, creating more stability in the short-term period.
Correlations
Bitcoin / Ethereum = - 0.16 (- 0.16), Bitcoin / Ripple = 0.05 (- 0.78), Bitcoin / Litecoin = 0.83 (+ 0.03), Bitcoin / Bitcoin Cash = 0.86 (+ 0.06)
The correlations have split even more during the weekend, creating a divided scenery in the crypto market. Litecoin and Bitcoin Cash has followed Bitcoin in the current trend, continuing to grow their stable moves in the price formation. On the other hand, Ethereum and Ripple made different price actions during the last days, creating a choice for investors that want to hunt better returns in the short-term future. As we saw in the article above, Ripple's uptrend against the major trend might be the catalyst for a new era in the crypto market.
Key Notes For Today
Bitcoin is making small moves around $33,700
Ethereum has been sustained around $1,330
Ripple made the surprise and landed at $0.55, achieving a 100 % return over the weekend
Litecoin stayed stable around the $130 support level
Bitcoin Cash made a rebound at $420
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.
