Price Analysis: Did the bulls stop running or they wait for the next round?

The price stopped around $11,500 during the day, creating a stability momentum in the entire crypto market. This stop could evolve into a resistance level that might the bullish uptrend during the current period. After 6 straight days of profits, the market is possibly run out of fuel and we should wait for another major move with the corresponding volume to support.

The price has exceeded the volatility projections during the last days, indicating that there is a possibility for a slowdown during the next days. As shown during the previous bullish period, those price levels are significantly more turbulent than lower levels, predicting larger moves and volumes during this period. In the next days, we will possibly observe severe moves to take place in the market to sustain the bullish momentum. The opposite scenario will be the collapse of the price if many investors try to liquidate their positions.

This scenario is nearly impossible to happen overnight as there are still low volumes in the market, not able to hurt the momentum at any given time. This slow and steady growth might be healthier to take place in the market as it gives time to more investors to consider their positions and take better decisions.

We expect the price to move according to the trading volume, following the bullish momentum, which is continued with no evidence of tracing back in the previous levels, according to the moving averages' movements.

In the short-term diagram, we can observe that an investor that enter the market during the previous stability period in the lowest point, around $10,200, would be able to get an immediate return of 12 % in just two weeks. This means that Bitcoin by itself overthrew traditional markets (whose returns fluctuate from 8 to 12 % yearly) in just a matter of weeks. The compression during this period is also evident from the multiple crosses between the moving averages.

Indicators

MACD index is constantly moving in the greens, creating increasing momentum in the market while it moved above the zero line, This fact shows that the momentum strategy if followed, could lead to mid-term profitability and consistent strategic option. On the other hand, the RSI index dropped below value = 65, showing that the stop in the price rise makes the index to not move in the "overbought" area and spark a "sell" signal in the market.

Ethereum / US Dollar

Price Analysis

The Ethereum market braces up and starts to rise at a higher pace, before hitting a resistance level around $385. This level is somehow important for Ethereum as it lays between the descending line between $360 and $400. If the price manages to reach $400 shortly, it would be much easier for investors to turn on Ethereum and claim it as the winner for 2020, as its profits surpassed more of the major cryptocurrencies.

The volatility measurements have been reached for the current levels and this means that an uptrending move in the price will deliver more action in the market, as the previous bullish levels (> $400) showcase more volatility and price jumps. If the bullish market continues and Ethereum's price reaches $400, it will highly possible to see Ethereum price to act at its own pace, delivering surprising results just like the previous time.

The trading volume is much lower than expected during a bullish trend and this could be a weak spot for a sustainable price development over the next days. The moving averages continue to stay at close distance, showing that a reverse move might reverse the momentum also in the market.

Indicators

MACD index continues to rise with no brake at all, with values around 5, indicating that the daily rise could be as much as $5 per day. This pace is sustainable for the moment but a breakthrough will need larger volumes on the market. The RSI index lands at value = 60, showing that there is room for more uptrend during the next days.

Ripple / US Dollar

Price Analysis

Comparing to the other major cryptocurrencies, Ripple shows the slowest growth, hardly driving from $0.24 to $0.26. This slow move shows that Ripple is not able to capitalize on the general momentum in the market and absorb only a small portion of the available capitals in the market. This fact means that investors are not taking an aggressive position towards Ripple, with no major effect on price formation.

The fact that the price has not exceeded the volatility measurements from the upper side is considered to be a negative signal from the market. Most of the major cryptocurrencies exceed those volatility levels formed during the stability period while Ripple didn't manage to break them, leading analysts to report a minor bullish trend for Ripple.

This lack of growth in parallel with the rest of the crypto market could be a step for Ripple that will shine in the second time, proving analysts wrong. What we mean is that, when the rest of the market will reach its highs, Ripple might be at a lower price, making investors find a discount opportunity on it.

This opinion is also supported by the low trading volumes and the moving averages, which are moving way apart from the price action.

Indicators

The lack of bullish growth is also depicted from the MACD index, which has remained stable over the last days. On the other hand, the RSI index has grown to value = 60, a remarkable result as the price has not much action at this moment, leaving room for more uptrend potential.

Litecoin / US Dollar

Price Analysis

Like the majority of the cryptocurrencies in the market, Litecoin price stops rising around $50, showing its heavy correlation with the crypto market. The price passed the $47 level, which served as a resistance/support level during the previous times while the next goal for the market is the $57, which will indicate the return on the previous bullish levels.

The price action was never too extreme for Litecoin but we can observe that higher levels indicate higher volatility, because bullish and bearish investors are continuously fighting for dominance. This something that might occur above the $57 level, with continuous buyings and liquidations. The trading volume is evolving from the stability period but remains at low levels while the moving averages are still close to each other, creating a slower momentum in the market.

Indicators

MACD index shows to slow down during today, indicating that a stop in the price uptrend is immediately depicted in the technical indicators. The RSI index dropped just below value = 60, which means that technical indicators quickly fit in the price formation.

Bitcoin Cash / US Dollar

Price Analysis

A very positive reaction was held from Bitcoin Cash, which reached the upper side of the long-term support level at $250. This level ends up the trend-setting which was formed in the stability levels from the Spring 2020 levels. The price increased around 10 % during the last week, being on the edge for considering a bullish market.

The 1-day delay in the market is also possible for the price not to drop or stop today as the same story happened during the bullish spark, a week ago. The trading volumes are still low but we expect to grow if the price continues to rise in the foreseeable future. The moving averages also tend to stay apart, creating positive momentum in the market.

Indicators

MACD index is longstanding in the green area, making the momentum strategy as an effective way for trading Bitcoin Cash successfully and profitably. The RSI index moved to value = 63, which means that price would soon be stopped from investors' liquidations.

Correlations

Bitcoin / Ethereum = 0.94 (+ 0.03), Bitcoin / Ripple = 0.81 (- 0.03), Bitcoin / Litecoin = 0.94 (+ 0.09), Bitcoin / Bitcoin Cash = 0.89 (- 0.01)

The correlations remained at a high level, indicating that the market is moving towards the same direction over the day, with no major surprises. The only exception in the current situation is Ripple, whose correlation seems to drop slightly but with no significant impact on the general momentum. The correlation could tell if the trend will continue towards higher levels or there is an alt-season potential during the next period to occur. The next days will reveal several scenarios on how the market will move in terms of integration and cohesion between the cryptocurrencies.