Bitcoin / US Dollar
Bitcoin made another correction, landing at $18,200, falling in the first minor step level that was evident in the market in late November. This step was crucial for the previous period for Bitcoin as it was the point where the market had the first try to break the all-time high level. The try was unsuccessful as the price immediately corrected at $17,000.
The $17,000 point is the first major support level that the price will find if the bears start to move in the market. At this point, we should mention that there is no clear view that the market will turn bearish immediately and we need to see more negative actions in the market to establish this trend.
As we mentioned in yesterday's article, there is a belief in the market that the price needs some "rest" before breaking the mighty $20,000 frontier that will lead the market to new price levels. This correction might be the chance for Bitcoin to revise its position and deliver an uptake in the market that will bring investors to higher expectations.
In the opposite scenario, we could say that the bears will lead the market in a massive correction trend, which will last for a long time and the price might fall up to 40 % (around $12,000). This steep correction is a normal reaction from the market, that had become a reality in previous cases.
The trading volumes went on higher levels than in previous days, indicating that there were more liquidations in the market. The moving averages are moving closer to each other, showing that further stability in the market will bring a bearish signal in the market.
In the short-term diagram, we can see the increasing trend that we describe in the previous articles. The last 3 weeks were especially high for Bitcoin as the price is moving above $17,000, creating a solid market depth. This would be crucial for passing on the bearish trend. The fact that the price will break the $17,000 and head to lower positions.
Indicators
MACD index dropped, even more, bringing more negative market momentum in the current situation. The RSI index dropped near value = 50, indicating that there would certain stability in the current situation.
Ethereum / US Dollar
Even if Ethereum corrected yesterday near $560, today was a different day and despite the overall mood in the market, it sparked at $565, creating a small positive window in the current negative situation of the crypto market. We hope that this small contrarian move (against Bitcoin's dominant momentum) will continue to thrive and make Ethereum independent and strong in the crypto area. This independence will give Ethereum the opportunity to grow organically and achieve higher price levels, against the general mood in the market.
If the correlation between Bitcoin and Ethereum remains strong, Ethereum will finally move on to more bearish positions. If this becomes a reality, the first support level to be met, lays around $520, which was a minor correction in the previous bullish period. The next support level lays at $480, which was the previous 2020 high level, which establishes the start of the bullish period at mid-November.
The trading volumes are moving at normal levels, showing no panic from investors to liquidate or buy at this point. The moving averages are getting closer to each other, creating a bearish perspective in the market for the next period.
Indicators
MACD index dropped even more at this point, making the support levels even weaker in terms of market momentum. The RSI index moved at values between 50 and 55, indicating that the price will remain stable with a positive outlook.
Ripple / US Dollar
Another corrective move for Ripple, as its price moved from the standing point around $0.60 towards a lower point at $0.55. This might not be an important move for passing on the correction mode, but the divergence from a steady point might indicate that the market is ready to take the next step and establish the next trend in the market.
Ripple, which followed Bitcoin for some time, seems to diverge again and react milder in the negative mood that Bitcoin created during the last days. We expect that Ripple will stand firmly in the next correction trend and the losses will be reduced through the momentum built during the previous period. This means that investors will probably have enough time to withdraw their capital and claim their profits before the price returned to levels below $0.30.
The trading volumes appeared at higher levels, indicating that some investors claim their profits, fearing a potential correction in the next days. The moving averages have almost met each other, indicating that a bearish trend is possible to appear in the next period.
Indicators
MACD index dropped at lower levels, indicating that the previous market momentum has completely disappeared and we can only hope on sustaining the current positions. The RSI index moved between values 50 and 55, indicating a certain stability level for now, with a positive outlook.
Litecoin / US Dollar
Litecoin broke the $80 level and head towards $75. This was a minor correction for the market as there are no support levels in this area that could hold the price fall. The next support level appears just above $70, a step closer to the current position. The major support level, that derived from the previous bullish trend and hold the correction in the current bullish period, lays at $67.
If this level breaks down, Litecoin will be at a bearish position and it is possible to head at even lower levels. Litecoin and Bitcoin have established a strong unilateral relationship between them as Litecoin is absorbing a majority of Bitcoin's mood. The trading volumes are moving at normal levels, showing that the market has not moved at strange positions yet, a fact that will fuel a change in the market formation. The moving averages are about to cross each other, a reverse "Golden Cross" that might appear in the next days if the market continues to move in a bearish mood.
Indicators
MACD index dropped, even more, showing that the market momentum will probably drive the price at lower levels than the current ones. The RSI index moved just below value = 50, showing that the market might move towards a bearish position in the upcoming period.
Bitcoin Cash / US Dollar
Bitcoin Cash might be the first cryptocurrency that passes in the bearish trend. The price corrected, even more, landing at $265. This level is familiar to Bitcoin Cash investors as it served as a resistance and support point for the previous bullish period. This level will determine if Bitcoin Cash will pass on the bearish side or it will rebound and start to surge again.
Given that the market dynamics are in a negative mood, we expect that there is a strong possibility for a break in the support level, leading to bearish outcomes in the future. The trading volumes remained at normal levels for Bitcoin Cash, showing no difference in the decisiveness from the investor's side. The moving averages meet each other today, forming a reverse "Golden Cross" signal, that indicates a bearish turn in the market that will bring more negative actions in the future.
Indicators
MACD index dropped, even more, showing that market momentum is moving at a higher pace, creating less hype about the coin. The RSI index moved at value = 45, indicating that a negative outlook has been inserted in the market.
Correlations
Bitcoin / Ethereum = 0.79 (+ 0.02), Bitcoin / Ripple = 0.29 (- 0.09), Bitcoin / Litecoin = 0.85 (+ 0.03), Bitcoin / Bitcoin Cash = 0.49 (- 0.02)
The correlations went in mixed directions today as the majority of altcoins followed Bitcoin's correction at a higher or lower pace. Thus, Litecoin remained in the "strong" correlation zone while Ethereum, the second altcoin in the "strong" correlation zone, went in the opposite direction, against the market momentum. On the other hand, Bitcoin Cash has remained in the middle of correlation bundling while Ripple is moving faster and faster in the "weak" correlation zone, which will turn the asset towards a contrarian position in the current market situation. The market unbundling may start from this point and on.
Key Notes For Today
Bitcoin corrected even more at $18,200
Ethereum was the exception in today's session with retention at $565
Ripple left the stable point and lands at $0.55
Litecoin corrected at $75
Bitcoin Cash possibly enters the bear market, landing at $265
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.
