Price Analysis : BTC made another bullish move, will the rest of the market follow?

News • 2020/10/27 • by

Bitcoin / US Dollar

Price Analysis

Bitcoin's price made another jump today, reaching $13,400. This high was not evident in the Bitcoin market for almost 3 years, making it possible to see another bullish market that could reach the all-time high level for Bitcoin, around $19,400. Of course, there is a lot to be done until now and most importantly, Bitcoin and crypto markets have changed a lot during the last 3 years.

More and more traders and investors are active in the market, making the price mechanism much more slow-moving and adaptive in the traditional markets. This means that a steady bullish market in the US market can directly affect the crypto market and have correlation effects on it. In this case, the global financial market and stock exchanges seem to ignore the COVID-19 crisis and continue to grow, despite the weaknesses of the real economy.

This has a severe impact on the crypto economy as capital flows continue to enter the crypto market and deliver new results every time. The bullish trend continues from March 2020, when many countries imposed a lockdown and many people lost their jobs and got attracted from different ways of earning money like crypto trading. If the bullish market continues in the Bitcoin market, we will consider the scenario for a new all-time high level, even before 2021 become a reality. Until now, there is also the possibility of a correction move during the next days, that will indicate that some investors are happy with the return they achieved and liquidate their positions.

We can observe that the trading volumes are at normal levels, regarding the previous days, indicating that investors have a common sense towards the price development while the moving averages show no signal of turning back in a bearish trend or correction trend.

In the short-term diagram, we can observe that the first support level in a correction move will be held at $11,500, which was the first step in the current bullish trend and the major point for overcoming the stability mode around $10,500. This support level will be the first frontier that can hold a bearish trend from making Bitcoin's price to drop further and fuel another bullish wave in the future.

Indicators

MACD index continues to be around value = 150, indicating that Bitcoin is growing at tremendous rates every day, creating positive market momentum and giving the market the starting boost for everything needed for sustaining the bullish market. On the other hand, the RSI index remains around value = 60, indicating that the price will move towards a corrective move and make investors think the bears are hidden in the overvalued area.

Ethereum / US Dollar

Price Analysis

The $400 support/resistance level was held firmly during the last 2 days, creating long-term support for this point, which is probably to play a major role in the next periods for the Ethereum market. We believe that Ethereum, as it is strongly correlated with Bitcoin, might follow Bitcoin's bullish jump and continue to grow.

On the other hand, many analysts believe that Ethereum's previous success and the $480 top-level in early September create a lot of unnecessary value in the market, which is the reason for Ethereum's weakness to grow independently like it did in the previous bullish trend. We expect the price to reach $420 in the next days to keep up with the Bitcoin momentum and create new standards for the next period.

The trading volumes are held at lower levels, indicating that something might occur and make the price to turn up again while the moving averages are moving in parallel, creating no fear for the current situation.

Indicators

MACD index moved on the positive side with decreased power from the previous days, making some investors for its ability to grow further, without external help from Bitcoin. The RSI index lands at value = 60, showing that there is a possibility for more uptrend in the next days, with room to grow in the space.

Ripple / US Dollar

Price Analysis

If someone looks at Ripple, he will find out that the price seems not to be affected by anything that happens in the market. The price has been stagnated in the $0.25 point, creating a stable outlook for the next days. This is also a negative signal for the market as it cannot capitalize on the bullish momentum in the crypto market and grow at similar levels.

The $0.24 has been tested several times but there is also the $0.26 resistance level, which seems to be very competitive for Ripple investors. As we have highlighted several times in the previous days, the $0.26 point will be the start of the bullish trend in the Ripple market.

The trading volumes have plummeted during the last days while the moving averages, after crossing each other and forming a "Golden Cross", seem to be pretty close to each other, creating fears for another cross, this time a bearish one that will lead investors to misleading thoughts.

Indicators

MACD index moved again towards value = 0, indicating that the market has no evident direction and looks for the next move to happen that will shape the momentum. The same picture can be found on the RSI index as it moved near value = 50, showing no clear evidence about the price's next moves.

Litecoin / US Dollar

Price Analysis

As one of the winners in the current situation, Litecoin continues to surprise everyone and make winning moves. The last of these moves was that it stood up the $57 resistance level and turn it into a support level. Making a previous resistance level, a support level means that the market is driving the price to higher levels. This could happen in Litecoin's case as the next goal is $67, which is the 2020 high level.

If this point is reached in the next days, we will observe a situation with Bitcoin in the leading position and Litecoin in the second position, making it lucrative enough for more investors to enter and make this market, a winner in the crypto space. The trading volumes have been increasing every single day, creating more hype in the market while the moving averages are way apart from each other.

Indicators

MACD index is still growing every day, creating more positive momentum in the market and driving the price at higher levels. The RSI index came back to the "safe" zone as there is more stability in the market, comparing to previous days.

Bitcoin Cash / US Dollar

Price Analysis

Bitcoin Cash is making several moves in different directions, confusing investors that cannot predict its moves with certainty. The price lands at $270, making the previous support level in the past bullish period to match with this. We believe that reaching $280, it will be the point for Bitcoin Cash to be on the bullish trend again.

This scenario could be supported this time from the trading volumes that have some spikes from time to time and make investors a little more optimistic about the next period. The moving averages are continuously moving in parallel positions, indicating certain stability in the future price formation.

Indicators

MACD index continues to move on the positive side, making investors think optimistic about the price development while the RSI index is giving bullish signals, landing at value = 60, which gives room for uptrend during the next days.

Correlations

Bitcoin / Ethereum = 0.90 (- 0.03), Bitcoin / Ripple = 0.31 (- 0.08), Bitcoin / Litecoin = 0.91 (+ 0.01), Bitcoin / Bitcoin Cash = 0.82 (- 0.04)

The correlations have started to move in mixed directions during today's session as Ethereum and Litecoin have made their way on the strong side for correlation, creating a background for following Bitcoin (even at delay) during the next days. Bitcoin Cash is still in confusion about what will lead its next day but it remains in the "strong" zone about correlation effect. On the other hand, Ripple seems to change its mind every mind, dropping even more during today's session. If the rest of the market will follow Bitcoin in the late jump, that could be determined from the formed correlations, making Ethereum and Litecoin, the most possible followers after a couple of days.

Key Notes For Today

Bitcoin take another jump in the price, continuing the bullish trend
Litecoin was the only coin that followed this jump
Ethereum and Bitcoin Cash made positive moves with a small impact on the price formation
Ripple stand-alone and stable, without getting affected by the overall trend

Comments (8)

Guest

exodusab

6 years ago

While bitcoin prices touched all-time 2020 highs on Tuesday, a few analysts say they are expecting only a few more hurdles to surpass the 2017 all-time high (ATH). For instance, the market analyst from Etoro, David Derhy, says to look to $20,000 instead of back at $12,000. A few traders and popular cryptocurrency analysts think that bitcoin (BTC) simply needs to cross the $14k region and its lift-off from there. Tuesday’s 2020 ATH of $13,684 is just shy of last year’s ATH at $13,796 per bitcoin which was accomplished on June 26, 2019. Macro strategist Raoul Pal said on Tuesday that there are only two major BTC price resistances left. “There are literally only two resistances left on the bitcoin chart – $14,000 and then the old all-time high at $20,000,” Raoul Pal tweeted on Tuesday. “I fully expect new all-time highs by early next year at the latest.”While bitcoin prices touched all-time 2020 highs on Tuesday, a few analysts say they are expecting only a few more hurdles to surpass the 2017 all-time high (ATH). For instance, the market analyst from Etoro, David Derhy, says to look to $20,000 instead of back at $12,000. A few traders and popular cryptocurrency analysts think that bitcoin (BTC) simply needs to cross the $14k region and its lift-off from there. Tuesday’s 2020 ATH of $13,684 is just shy of last year’s ATH at $13,796 per bitcoin which was accomplished on June 26, 2019. Macro strategist Raoul Pal said on Tuesday that there are only two major BTC price resistances left. “There are literally only two resistances left on the bitcoin chart – $14,000 and then the old all-time high at $20,000,” Raoul Pal tweeted on Tuesday. “I fully expect new all-time highs by early next year at the latest.”

exodusab

6 years ago

Some traders suggest that profits from Ether and DeFi tokens are being cycled into Bitcoin. Others have hinted that MicroStrategy’s bulk purchase of BTC led the spot prices of the dominant cryptocurrency to increase. MicroStrategy purchased an additional $175 million worth of BTC, which would add $7 billion to BTC’s market capitalization, as on-chain analyst Willy Woo noted. In the spot market, an order that exceeds $100 million could trigger a slippage of over 3%. Denis Vinokourov, head of research for digital asset exchange and brokerage firm Bequant, told Cointelegraph: “Any immediate concerns over the sustainability of certain DeFi-based offerings are likely to provide a degree of support for Bitcoin. Thus, ETH and BTC may remain on a downward trend. However, that market appears to be overly fixated on DeFi and is ignoring positive developments that have come out of Ethereum over the last few days, which indicate the transition to 2.0 is very much on-track.” Nonetheless, after the breakout of Bitcoin above $10,500, a level that has acted as a strong resistance, the sentiment of traders is mixed. Some traders believe that BTC will face rejection at the $11,000 level. Others foresee a continuous rally past the $11,000 mark, due to optimistic on-chain indicators. The bullish case for Bitcoin The bullish case for Bitcoin in the short term is a retest of the $11,000 resistance level without a steep rejection. Traders generally expect BTC to enter the $11,000–$11,300 resistance range. But given its historical relevance, technical analysts anticipate a strong pullback after achieving that price point. If the price of Bitcoin remains relatively stable after rising above $11,000, that would amplify the bullish case for Bitcoin. In the medium term, there are two key levels for BTC: $13,000 and $16,000. The $13,000 level is a resistance area that Ark Invest CEO Cathie Wood previously discussed. The $16,000 level is one of the two currently open CME gaps, with the other being at $9,650. During a podcast hosted by Ark Invest back in August, Wood said that getting through $13,000 would mean “very little” resistance to a new high. As there is low resistance between $13,000 and $20,000, the probability of a strong extended rally increases. But on the way to $13,000 stands two crucial resistance levels at $11,000 and $12,000. According to Ki Young Ju, CEO of CryptoQuant, long-term on-chain indicators look healthy for Bitcoin. Citing the data, he said “It’s time, gents,” suggesting that a prolonged uptrend could spark. The on-chain indicators show that various fundamental data points hint at “buy” or “strong buy.

dean01oreoluwa

6 years ago

I think this is the time we have to be vigilant with all our coins. Where to keep your coins, where to invest them should be considered if you want to be at profit level

lorettachinasa

6 years ago

All the market join Bitcoin in the bullish run except for Ripple which remains stable. Let's watch to see if Ripple will soon follow this trend

godgrace1

6 years ago

BITCOIN has made another bullish move and this time around am sure that the rest of the market will not follow suite, because the cause of the bitcoin bull run is not directly, totally associated with other altcoins, bitcoin started the bull run when paypal announced the implementation of bitcoin in their gateway, also the tension in the US upcoming election is another reason why the bull run some how remained steady. for the other altcoins am certain the bear will definetely pull them all down, before they will start regaining momentum, depending on how the market goes.

freshprinx

6 years ago

Bitcoin price is moving toward $14K but traders expect the $13,875 resistance to be a critical level for the short term. The price of Bitcoin (BTC) has surpassed $13,745 and is now en-route to the next major resistance level. Traders have suggested that $13,875 is the nex key short-term area for BTC for two major reasons. First, Bitcoin peaked at $13,970 on Jun. 26, 2019. Technically, the previous peak achieved more than a year ago still serves as an important area for sellers. Second, technical analysts say that the weekly candle chart of Bitcoin shows $13,875 as the next “logical resistance.” The major factor will be how Bitcoin price responds to tapping the highly anticipated resistance level and it is likely to pave its short-term performance until the end of 2020. Should investors expect a major pullback near the $14K level? In the past several days, calls for a major Bitcoin pullback have increased as the market sentiment turned euphoric. Historically, even amidst strong bull cycles, Bitcoin saw healthy corrections that further strengthened its uptrend. Edward Morra, a popular cryptocurrency trader, said he expects a reaction from the market at $13,875. The last time BTC tested that level 16 months ago, it saw a massive price drop in a short period. This time, traders do not anticipate a deep rejection but a strong reaction is expected from BTC and the wider market. Morra said: “On high time frame chart this weekly level ~$13,875 is next logical resistance. It rejected 2019 rally pretty hard, second test will be less violent but I believe there will be a reaction. Taking out that '19 high into weekly supply is one to watch for.” In the past week, Bitcoin has tested many key resistance levels in a short span of time. Yet, it has breached the levels with ease, consolidating above each one, and demonstrating a stable rally. For buyers, the ideal scenario for Bitcoin would be to rise above $13,875 and remain stable above it. Such a pattern would indicate a healthy reclaiming of a multi-year resistance level, which is very optimistic. Additional factors behind Bitcoin's momentum There are two fundamental and macro factors that could catalyze Bitcoin’s momentum in the near term: decoupling and the dormant supply. As Bitcoin investor James O’Beirne pointed out, BTC convincingly decoupled from the U.S. stock market in October. Due to the lack of stimulus, the uncertainty surrounding the 2020 election, and the sharp rise in COVID-19 cases, the U.S. stock market has dropped steadily. At the same time, BTC has rallied strongly and the sentiment surrounding the digital asset has improved significantly. According to CoinMetrics, the dormant supply of Bitcoin held for at least 1 year has hit an all-time high. The researchers said: “The % of BTC supply held for at least 1 year has never been higher. This is bullish for BTC, especially considering this metric historically peaked during periods where price was at local lows.” The confluence of positive fundamentals, macro, and technical factors, along with an optimistic high time frame technical structure, raise the probability of BTC testing $13,875 without a massive corrective movement.

visiblemoney

6 years ago

Bitcoin achieving $13,400 is a promising sign that the last all high-price of $19,400 can be deposed as indicators reflect that investors now have common sense towards the price development while the moving averages show signal of no bearish trend or correction trend. Ethereum is still consolidating at resistance support level $400 but the bull in bitcoin is anticipated to take Ethereum to $420 in the next couple of days. Ripple on the other hand still maintains its price at $0.25 and it is possible that if it experience bull it can uphold $0.26 resistance level. The litecoin also follow suite in the price stability. It is still maintaining price at $57 resistance and if it reaches $67 its new 2020 high level record would be achieved. BCH has not been correlating with others. Its prices have been swinging back and forth from $270 to $280 hopefully, it will go uptrend beyond both.

ugospecial

6 years ago

BITCOIN PRICE ANALYSIS: BTC's price made another jump today, reaching $13,400. This high was not evident in the Bitcoin market for almost 3 years, making it possible to see another bullish market that could reach the all-time high level for Bitcoin, around $19,400. The global financial market and stock exchanges seem to ignore the COVID-19 crisis and continue to grow, despite the weaknesses of the real economy. This has a severe impact on the crypto economy as capital flows continue to enter the crypto market and deliver new results every time. The bullish trend continues from March 2020, when many countries imposed a lockdown and many people experience major losses. ETHEREUM PRICE ANALYSIS: ETH $400 support/resistance level was held firmly during the last 2 days, creating long-term support for this point, which is probably to play a major role in the next periods for the Ethereum market. Many analysts believe that Ethereum's previous success and the $480 top-level in early September create a lot of unnecessary value in the market, which is the reason for Ethereum's weakness to grow independently like it did in the previous bullish trend. We expect the price to reach $420 in the next days to keep up with the Bitcoin momentum and create new standards for the next period. RIPPLE PRICE ANALYSIS: Ripples market price has been stagnated in the $0.25 point, creating a stable outlook for the next days. This is also a negative signal for the market as it cannot capitalize on the bullish momentum in the crypto market and grow at similar levels. The $0.24 has been tested several times but there is also the $0.26 resistance level, which seems to be very competitive for Ripple investors. LITECOIN PRICE ANALYSIS: Litecoin continues to surprise everyone and make winning moves. The last of these moves was that it stood up the $57 resistance level and turn it into a support level. Making a previous resistance level, a support level means that the market is driving the price to higher levels. If this point is reached in the next days, we will observe a situation with Bitcoin in the leading position and Litecoin in the second position, making it lucrative enough for more investors to enter and make this market, a winner in the crypto space. BITCOIN COIN CASH: BCH is making several moves in different directions, confusing investors that cannot predict its moves with certainty, the price lands at $270, making the previous support level in the past bullish period to match with this. This scenario could be supported this time from the trading volumes that have some spikes from time to time and make investors a little more optimistic about the next period.