Bitcoin / US Dollar
Bitcoin hit a new all-time high level, breaking $41,000 and landing just a step below the $43,000 point. The price has been formed in this way as a strong bullish trend has broken the previous all-time high level, which is often used as a resistance level.
The new establishment shows that Bitcoin has maintained its bullish profile which has started in March 2020, closing almost a year in this mode. The reality is that the market is much more mature than in the previous bullish run and investors are willing to place larger amounts of capital in the market. Those factors, in coordination with the institutional approach from different investing firms, made the price rise from $3,000 to $42,000 in just a year.
It is common to see a breakout or a corrective move after the price hits a new all-time high level, as a portion of investors is willing to liquidate their positions and claim a part of their profits in cash. This means that the part of investors that believe the trend has reached an end will be out of the market and new entries that find value in the coin will come and bring more investors with them.
We expect that this won't be the last all-time high level in the current situation as Ethereum is also making positive progress at establishing new all-time high levels. This pair formation will bring new standards in the crypto market, making it more lucrative for new investors to come and trust cryptos.
The trading volumes have remained at low levels, taking into consideration that similar bullish moves had made more action happen in the market. The moving averages have been established at bullish positions, confirming the market's bullish status.
In the short-term diagram, we can observe that the price compression between the $36,000 compression point and the $30,000 compression point, was released, creating a new all-time high level. As we have written in previous articles, the release after a price compression is a common phenomenon and we should expect such moves at any given time.
Indicators
MACD index continues to grow during the last days, indicating that the market is under a momentum hype, which will boost the price at higher levels. The RSI index has climbed at a value = 70, indicating that the price has risen enough and a trend reversal is probable.
Ethereum / US Dollar
Ethereum hit another all-time high level, landing at $1,700 on Saturday while it had sustained this dynamic since today. The coin has a winning week as it broke the previous all-time high level around $1,400 and establishes new price levels, never seen before.
The new high levels indicate that more and more investors are willing to enter the market and establish a steady presence on the market, that will be more permanent than before. We know that the institutional interest for Ethereum is much lower than Bitcoin's but there have been made several steps towards this direction. We believe that the first price discovery phase for Ethereum will last as long as there is a trend reversal in the crypto market, fueled by Bitcoin.
Some analysts claim that Ethereum will fuel the next bullish run in the crypto market but this is something that has not enough support in the crypto investing community to be highlighted. The trading volumes have remained at higher levels than the normal ones, indicating that investors have taken Ethereum more seriously than ever. The moving averages are continuously at bullish positioning, creating the respective prospects for the coin.
Indicators
MACD index has passed on the positive side since the last week, bringing more positive momentum in the market while the RSI index has been landed around value = 65, indicating that there is more uptrend to be expected in the next period.
Ripple / US Dollar
Ripple seems to have overcome the price volatility shock and start to create a steady perspective for its holders. After laying in the $0.25 - $0.30 space for a month, the price spiked at $0.75 during the "GameStop craziness". This was only for some hours as investors entered the market and start to sell Ripple, making it trace back at $0.45 and today landing at $0.43.
As we have told in previous articles, there is no fundamental or technical explanation for the current situation in the Ripple market, indicating that there is no clue that the price will return in the stable levels around $0.30 or there would another spike for the price at higher levels.
We expect that Ripple will try to join normality in the next period but this will be accompanied by the SEC case solution, at the positive or negative outcome. The trading volumes remained at low levels while the moving averages have been steadily at bullish formation.
Indicators
MACD index is consistently in the positive area, making Ripple investors look optimistic while the RSI index remained around value = 60, indicating that the prospects are positive for now.
Litecoin / US Dollar
Litecoin has brought some more positive steps in the current market situation as the price continues to grow, reaching $160. The coin has sustained the bullish trend, hanging from Bitcoin's momentum and showing that it could create a profitable profile by sticking on the right side of the road.
We don't expect any sharp moves in the current period as Bitcoin has formed a decent bullish approach in the market formation and Litecoin is loyal enough not to decline from this path. The expectations for Litecoin is to adopt the main market trend and try to build small profit margins for its holders during each period.
The trading volumes have been sustained at normal levels for the Litecoin market while the moving averages have been clearly on the bullish side.
Indicators
MACD index has been on the bullish side for the last week, confirming its approach in the main Bitcoin trend while the RSI index is steadily growing, just below value = 60, showing that there are positive expectations for the coin.
Bitcoin Cash / US Dollar
As we can see from the diagram below, Bitcoin Cash and Litecoin have the same approach in the price formation. Both of them are trying to re-enter the bullish trend but they haven't broken the previous local high level, indicating that there is a weak trend, more time-consuming that will be more difficult to establish.
The difficulties at the establishment will be evident if there is a change in the trend-setting coins that will affect the rest of the market immediately, make them even more weak and unable to bring any kind of resistance to the new trend.
Bitcoin Cash's price at $460 will try to rise and reach the local high level at $600 and then it will bring new standards in this market. The trading volumes seem to increase during the last days, indicating that the investors have decided to join the current bullish ride, useful insight for our future analysis. The moving averages meet each other today, creating a "Golden Cross", a bullish signal which gives hope to anyone in the market for better days to come in the future.
Indicators
MACD index passed in the positive zone during the weekend, establishing a positive outlook for the Bitcoin Cash market while the RSI index remains around value = 55, looking for stability with a positive outlook in the market.
Correlations
Bitcoin / Ethereum = 0.92 (+ 0.20), Bitcoin / Ripple = 0.69 (+ 0.19), Bitcoin / Litecoin = 0.90 (+ 0.04), Bitcoin / Bitcoin Cash = 0.61 (+ 0.07)
The correlations table changed once more during the current period, creating another image in the market to be used for further analysis. Ethereum and Litecoin have climbed in the higher rank of correlation, indicating that Bitcoin and Ethereum have established a strong position in the market, which are followed from Litecoin. On the other hand, Ripple and Bitcoin Cash have approached the new trend milder and their price formation has followed a modest approach in the current period.
Key Notes For Today
Bitcoin reaches a new all-time high level at $43,000
Ethereum reaches a new all-time high level at $1,700
Ripple remained around $0.43
Litecoin made small steps at $160
Bitcoin Cash continued the same trend, climbing at $460
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.
