Small Corrections for Every Cryptocurrency

News • 2021/07/02 • by

Bitcoin / US Dollar

After reaching the average compression point at $36,000, the price started to drop and today reaches $33,100 point, in the middle between the average compression point and the lowest point of the compression zone, around $31,500. This move shows that the market has not yet found its main direction and fluctuates between the points in the compression zone.

At this point, we can observe that the expectations from investors have not made clear what they should follow. The bullish path indicates that the market needs to overcome three points before entering a bullish market again. The first point is the average compression point at $36,000, which will show that the market has entered a positive phase, with increased possibilities for another bullish term. The second point lays at $40,000, a move that will break the current compression zone and establish a clear path for the next bullish trend. The third and most important point in the Bitcoin market is the $47,000, which was the entering point for Tesla’s investment. A positive break above the $47,000 point will mean that the market has matured even more and has overcome Elon’s influence over it.

On the other hand, the bearish path will be more obvious if the price drops below the $30,000 point, which was reached at the start of 2021. If the price moved below this line, the bears might take quick steps towards lower points like $25,000 or less. We expect that the compression trend will continue until another event sparks reactions in the price formation.
The trading volumes were sustained simultaneously, while the moving averages show no progress about crossing each other.

The short-term diagram shows that the compression zone has split into two parts: a positive one above the $36,000 and a negative one below the $36,000 point. At this moment, the price is placed on the negative part, indicating that there is more way to cover before entering a bullish phase again.

Indicators

MACD index continued to float on the positive side, without any significant change in the outlook. In contrast, the RSI index moved between values 40 and 45, indicating stability in the price change, with a negative outlook.

Ethereum / US Dollar

The local top in this period was reached at $2,250, followed by a drop in the price at $2,050. The crucial point at $2,000 has not reached yet, but there is a close possibility for this to happen in the next few days, according to the market mood. If the bearish mood continues to exist, the probability of moving below the $2,000 line is increased, depicting a clear turn towards the bearish side.

The reality showed us that the support level at $2,000 might moved lower as the previous support case was formed around $1,850. In this scenario, we have more chances to find another support level with the same dynamic that will reverse the bearish mood in the market.

On the other hand, the most critical point for establishing a bullish mode will be to reach $2,500 again. By reaching this point, the market will enter the price exploration mode again, with increased probabilities for another bullish round in the next period. The trading volumes have sustained the same amount of transactions during the last few days. The moving averages have remained close to each other, waiting for a positive even before crossing each other.

Indicators

MACD index has remained in the positive field, establishing a positive outlook for the price and the RSI index moved between values 40 and 45, indicating more stability in the price formation.

Ripple / US Dollar

Fewer changes were evident in the Ripple market as the price moved slightly lower than the local top at $0.67, down to $0.64. This small drop in the price shows that the market is trying to avoid establishing a clear bearish path, as is evident in the price chart.
As we can observe in the diagram below, there is a clear bearish path from $1.00 down to $0.60, indicating that the coin has not made a compression-like the rest of the market. This could lead to an extended breakdown at lower levels, even at $0.25 - $0.30, before starting to rise again. IF the correction continues to thrive in the Ripple market, we expect that the recovery would become more difficult in the short-term future.

The trading volumes dropped, even more, indicating that many investors are losing their interest in the coin while the moving averages are getting closer to each other and possibly will form a “Golden Cross,” predicting a change in the price formation momentum.

Indicators
MACD index has remained on the positive side, gaining momentum for the current period. The RSI index moved below value = 40, indicating that the bearish trend will continue to exist in the market.

Litecoin / US Dollar

The compression zone in the Litecoin market was held firmly in the current period as the price made a rebound from the lower point of the compression zone at $125 up to $140. This local top broke down today, and the price reaches $130 in two days.
The Litecoin market doesn’t seem to have the dynamic to overcome the current barriers, indicating that only a strong move from the major coins like Bitcoin and Ethereum will push it to climb higher and achieve better results in the short-term future.

Like the other coins, the first target in the price development remains the average compression line around $175, while the second target is placed at the upper compression barrier at $200. Those points will indicate the pass in the bullish phase in the future.
The support level around $125 will also indicate if the market will enter a deep bearish phase, leading to prices below $100.

The trading volumes have lowered at levels, showing little interest from the investing community. The moving averages have approached each other, showing that the market will probably move to a change in the market momentum.

Indicators

MACD index has continued on the positive side, showing more positive momentum to flow in the market. The RSI index moved below value = 40, showing that the negativity could move the price lower in the short-term future.

Bitcoin Cash / US Dollar

Bitcoin Cash has formed another bearish channel from $800 to $500, showing that the market has followed Liteccoin’s case. Those two coins seem to have similar reactions in the market events, proving that their weak dynamics can be influenced easily by larger players.

The current area of interest for Bitcoin, between $450 and $550, implicates many bear traps when the coin cannot jump at higher levels, but it remains on the same spot, always under the fear that something negative could happen. The return above the $550 level would make many investors find value in the coin and re-enter the market.
The trading volumes are making some spikes during the last few days, showing some mobility in the market. The moving averages will probably meet each other if the price remains on the same levels, forming a bullish signal.

Indicators

MACD index remained in the positive area, predicting a potential change in the market momentum. The RSI index moved to value = 40, which means that the price might drop more in the future.

Correlations

Bitcoin / Ethereum = 0.96 ( 0 ), Bitcoin / Ripple = 0.95 (+ 0.02), Bitcoin / Litecoin = 0.97 (+ 0.02), Bitcoin / Bitcoin Cash = 0.97 (+ 0.02)
The integrated move in the market showed that every single altcoin had strengthened its position against Bitcoin. All correlations rose even more, establishing stronger correlation points between them and Bitcoin. As we have mentioned in previous articles, the market status implicates a coordinated move in any direction if the market tries to establish a solid trend in the next period. The compression period doesn’t seem to be over for now, so the waiting will continue to exist and delay any opportunities for bullish or bearish positions. If the expectations for the next period turn out towards a bullish trend, the entire market will probably move in the same direction, showing a positive integration.