Bitcoin / US Dollar
Price Analysis
The price went up to $12,400 but it immediately corrected back to $12,000, following the expected trend line from the previous week. The major trend line in the market is following a bullish mode, starting from $11,200 up to $12,000. This trend line shows that the bullish period for Bitcoin is still alive and produce everyday returns for its investors. Every single move over the last two weeks returns back to the trend line, creating more market depth around those levels and setting the base for a sustainable growth provision.
The price has more than doubled during 2020 and this could be a warning signal for investors as the correction might hit at any time, the investors that enter the market in the start of the uptrend start to liquidate their positions and claim their profits, happy from their investment. Like many previous uptrends, it could sustain itself from new entrances from investors that are attracted by the potential profits. The continuous entrance from investors will sustain the price levels as long as the new entrances are more than the liquidations.
The volume at this point seems to decrease, with regional spikes, showing that days with larger volumes could affect the price, without leading to distraction from the major trend line. The moving averages are moving closer to each other while a potential reverse "Golden Cross" to occur in the next days, creating a bearish signal in the market.
In the short-term diagram, we could observe that the short-term trend line shows that there is a support line at $11,100 that could halt a potential drop in the next period if there is a correction in the market. The small uptrend from $11,000 to $11,600 was a piece of evidence that the trend line continues to exist in the bullish side.
Indicators
MACD index continues to be in the negative zone, despite that the price doesn't show any retrace in previous price levels. This could be an early signal for a reversal in the trend, combining with the RSI index, which dropped below value = 60, indicating that a potential drop in the price will follow the market in the next days.
Ethereum / US Dollar
Price Analysis
After reaching $440, Ethereum's price remained at this level before starting to drop slowly. The price dropped at $420 during the day and it might continue to fall over the next days. The bending curve that was formed during the last week shows us that the jump in the price might be considered as an accident as it wasn't accompanied by the corresponding volume in the market. It is also highly possible for many investors to liquidate their positions as long as they see that this spike was a tremendous opportunity for them to extend their profit margin.
We believe that a further drop is highly possible while the first support level in the market lays around $400 and a little lower, depending on the volumes. The increasing liquidity in the Ethereum market helps the currency to grow and adapt from many more users. At this point, we should refer to a fundamental aspect for the Ethereum's market that affects the price. Many crypto projects use Ethereum's platform to launch their ICO (Initial Coin Offering) to fund their project. This means that the potential investors should buy ethers (the Ethereum's coin) to participate in those investments. The projects collect the ethers and will try to liquidate them or use them directly In any case, the market takes a huge liquidity boost that makes the market more efficient and attractive to external investors. Taking this under consideration, we should be aware of any events that use Ethereum for their project's funding.
The moving averages are still apart but the 200-day average is climbing quickly to reach the 50-day average to form a reverse "Golden Cross".
Indicators
MACD index dropped again in the negative zone, creating mixed signals about the market's next move as the same pattern didn't lead to falling last time it shows up. On the other hand, the RSI index is almost at value = 60, showing that there is potential for a bearish trend to appear in the market.
Ripple / US Dollar
Price Analysis
A different bending was observed in the Ripple market during the last two weeks. The coin has topped initially at $0.31 but it corrected after a week at $0.28. After the correction, the market formed another uptrend, reaching almost $0.32 in just a week but the next day, it corrected back $0.30. This bending curve shows that Ripple's investors were trying to hold their positions in the market, even after the initial correction.
Some analysts reported that the second jump in the price might be characterized as a "dead cat's bounce", which means that the second jump is just a short-term reaction in the correction and a heavier correction will follow in the market. The volumes are much higher than the normal levels, showing that both upward and downward were made from a large bunch of investors, creating more liquidity in the market. The moving averages are really close at each other and it is highly possible to observe a reverse "Golden Cross"
Indicators
MACD remained on the negative side, creating a negative perspective in the market for the next days. In parallel, the RSI index moved below value = 60, showing that the possibilities for a bearish trend are much higher than before a week.
Litecoin / US Dollar
Price Analysis
Litecoin was one of the top performers last week where it gained almost 10 % during the week, from $54 to $68. The rally stops at $68 and the day closed at $66. The move was corrective and it is possible to continue as there is no clear evidence to support a further uptrend. In fact, the next support level in the market lays at $57, a crucial point for the market during the previous period.
The next support levels are at $54 and $48, formed during the previous period when the uptrend was halted in those levels. The volumes were at higher levels, showing that the liquidity was highly correlated with higher prices and major moves in the market. The moving averages touched each other during the previous but the reverse "Golden Cross" signal didn't appear. This also could happen over the next days, starting a bearish period for Litecoin.
Indicators
MACD index remained on the positive side but it moved downwards, showing that the bullish period might be over during the next days. In parallel, the RSI index moved at value = 60, an indicator that shows the bearish trend might begin at any moment and last for several days or weeks.
Bitcoin Cash / US Dollar
Price Analysis
A similar picture to Litecoin could be depicted in the Bitcoin Cash market. The price, after reaching $320, collapsed at $280 within a week. After that, it climbed back to $320 and it corrected yesterday at $305, showing signals for further correction in the next days. The ups and downs for the price seem common to Bitcoin Cash's investors that should look for other coins to observe that affect the coin's price.
The volumes seem higher than normal levels, indicating strong interest from the investors' side in the coin. The reverse "Golden Cross" signal will happen and might be the spark for the coin's fall in the next period. In any case, Bitcoin Cash's market is sensitive at new information entering the market and its correlations with other currencies are evident from its moves.
Indicators
MACD is on the negative side, creating the opposite momentum at this moment, in contrast with Litecoin's MACD, which is positive at this moment. We have to underline that the RSI index moved below value = 55, a negative signal for the market, where we have to expect a possible downturn in the next days.
Correlations
Bitcoin / Ethereum = 0.72 (- 0.06), Bitcoin / Ripple = 0.44 (- 0.14), Bitcoin / Litecoin = 0.66 (+ 0.12), Bitcoin / Bitcoin Cash = 0.69 (+ 0.03)
The correlations have mixed directions during the last days, remaining at much lower than the previous ones. It is worth noticing that Ethereum and Ripple have dropped even more, with Ripple reaching values below 50, showing that it is the first choice for diversification in the crypto market. On the other hand, Litecoin and Bitcoin Cash gained a little bit but they still remained on the medium level of positive correlation. We could observe that the correlations' drop will affect the integration of the market and might play a role in the next market move during the summer.
