Bitcoin / US Dollar
Bitcoin returned back to $18,000, creating more hype in the market as this is the fifth consecutive day that it closed in a positive field. This means that the market continues to move with more fuel in the tank, waiting for new signals to continue or halt in a future time.
As we have described multiple times in these articles, the technical indicators (especially in the short-term horizon) indicate that Bitcoin and the entire crypto market are overvalued and a major correction (even at 30 -- 40 % level) is highly possible to occur. Apart from the technical side, the emotional parameters in the current situation are very strong, indicating that Bitcoin will reach $20,000 point, which was the previous all-time high level, achieved in December 2017.
Until it reaches this point, Bitcoin will probably rise at a fast pace and will try to break this point and establish new high levels and new records for the new era. If Bitcoin fails to reach this point, we expect that the fall will lead to a major correction that might reach $10,000 - $11,000. This means that a lot of investors who might have entered the Bitcoin market below that point are still in profitable positions. This is going to spark more positive reactions in the market as Bitcoin could be characterized as the asset "where no one is losing". This statement is far from the reality of course but we can expect this kind of exaggeration from different analysts or influencers.
The trading volumes show that there is a huge amount of money traded every day without the same impact on price formation. In the recent past, a similar amount in the trading volume will lead to huge jumps in the price. This effect shows that the market has been pushed to absorption levels where there is a need for more effort for the price to rise in an uncertain environment. The moving averages are moving in parallel positions with no evidence for converging to each other.
In the short-term diagram, we can observe that the price rose from $13,000 to $18,000 in just 3 weeks, creating a tremendous return on the market holders and beating similar assets' returns by far, especially in the short-term period. This boost in the market has been repeated in the 2017 bullish run when the price rose this high after a very short-term bullish run.
Indicators
MACD index continues to grow today, showing that the bullish market is continuing without any break while the RSI index has moved to extreme levels, "shouting" that investors should liquidate any position and withdraw their capitals.
Ethereum / US Dollar
Ethereum made the jump as predicted in yesterday's article and break the $500 barrier. As we mentioned yesterday, the previous high level at $480 was established as a resistance level for the previous days and the previous bullish run, making the market conscious about its future move. This trend followed the Bitcoin trend and enabled the market to make the big step and break the resistance level and the $500 barrier.
Breaking the 2020 high level was enough for the market to settle a new trend that might repeat the 2017 bullish trend, which made Ethereum's price to reach around $1,000. If the market continues to be on that side and tries to reach previous price levels, the $1,000 point will be the next goal for the market. This goal won't be accessible for the market unless Ethereum got more independent and establish its own route in the crypto market.
The trading volumes have been risen to higher levels during the last days, following the bullish trend while the moving averages are still way apart from each other.
Indicators
MACD index rose again, showing that the market momentum could make the work again while the RSI index is getting closer to value = 70, which is the frontier for the "overvalued" assets.
Ripple / US Dollar
As the entire market moved to higher positions, Ripple reached the 2020 high level and established itself at $0.31. As we mentioned in previous articles, reaching the 2020 high level or the all-time high level is the crucial point for any crypto asset as it needs to overcome itself and create new standards for the current market position.
If the price continues to surge during the next period, Ripple will enter a new phase when there would be another goal for it, which is the all-time high level, around $1.71. Reaching this level seems impossible at this point but the goal of $1 is always under consideration from every Ripple investor. The next days will be crucial for Ripple and its connection with the rest of the crypto market as it will determine the next bullish or bearish direction of the market.
The trading volumes surged during the last days, making investors more optimistic about its future while the moving averages are still in parallel positions.
Indicators
MACD index continues to surge as it does for the last 2 weeks, creating a bullish mood in the market while the RSI index moved to the "overvalued" section, creating concerns about the trend's viability and for how long Ripple will stand above $0.30.
Litecoin / US Dollar
Litecoin had great days during the last week, reaching from $60 to $80 in a matter of days, creating new standards for the market. As we mentioned in the current article, breaking a 2020 high level, gives the opportunity to exist investors to think about their strategy and for how long they should stay in the market. This situation is similar in the Litecoin case as there is a whole new situation to be phased right now.
The next goal for Litecoin is definitely the $100 point, looking for the all-time high level around $220. This means that Litecoin has a lot to do in the next period to establish its presence at higher levels and try to find more ways to climb under uncertain situations. The price formation will be determined from the correlation with Bitcoin and the market dynamics while fundamentals are going to play little role in that.
The trading volumes are at high levels, indicating that investors find potential in the current market situation. The moving averages are at a parallel position, with no indicators for reverse in the market.
Indicators
MACD index moved in positive rates for the 4th day in a row, creating solely positive momentum in the current position while the RSI index moved to the "overvalued" position, making investors conscious about its current position.
Bitcoin Cash / US Dollar
Bitcoin Cash is the only exception in the market, which is not following the current bullish trend in the market. The price bounced in the $245 support level and rose above $250, landing at $255. These small changes are making the market more fragile and unable to follow the general market trend.
The market will need to overcome the current resistance levels around $280 to establish a new bullish trend and re-establish its trust in the investing community. We believe that the market will show how long the market will continue in this uncertain way. The trading volumes are at normal levels while the moving averages are still in a position to cross, creating a bullish signal.
Indicators
MACD index is still in a negative field, showing that the market needs more boost while the RSI index moved at value = 50, indicating more stability in the market.
Correlations
Bitcoin / Ethereum = 0.91 ( 0 ), Bitcoin / Ripple = 0.95 (+ 0.01), Bitcoin / Litecoin = 0.93 ( 0 ), Bitcoin / Bitcoin Cash = - 0.15 (+ 0.05)
The correlations didn't change today as the entire market making constant progress towards the same position. The entire market went up at the same pace and in the same dynamics, showing that there is coordination in the moves and there is compatibility with the correlation dynamics. As we have mentioned in previous articles during the last days, Etherum, Ripple, and Litecoin have followed Bitcoin due to the "strong" correlation formed in the second bullish market that appeared in 2020. The Bitcoin Cash's exception is making the market less integrated and shows us that we should blindly pick our options in the crypto market, hoping for a generally bullish market to emerge.
Key Notes For Today
Bitcoin jumped again above $18,000
Ethereum jumped in new 2020 high levels above $500
Litecoin exploded, reaching $80
Ripple establishes above $0.30
Bitcoin Cash made small moves above $250
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.
