Bitcoin / US Dollar
Bitcoin's price dropped today below $18,000, landing at $17,800 and creating more concerns in the investing community about losing its bullish capabilities and turning into a full bearish market. Even if the price has not reached the first support level in the current market situation, which lays around $17,000, the overall market momentum is positioned at negative rates, indicating that we might see lower levels than the current ones.
This support level, as we mentioned in the previous days' articles, will determine if the price will pass in the bearish trend or it will try to make another try to establish a bullish momentum in the market, trying to reach the $20,000 point again. If the $17,000 level breaks down, we will probably see another major correction in the market, which will probably stop between $15,000 and $16,000, a support zone derived from the price halt in the previous bullish trend.
The trading volumes start to rise again, indicating that more and more investors realize that there is a peak in the current market situation and there would not be another bullish spike for the next period. The moving averages have moved close to each other, indicating that in the next few days, we will see a reverse "Golden Cross" that might be the spark for passing in the bearish trend.
In the short-term diagram, we can observe that the market is still in a "stable position" as no support levels have broken down during the last days, confirming our analysis above. We wait for the price to reach $17,000, hitting the support level, and then we will see what will happen in the next period.
Indicators
MACD index moved deeper into the negative zone, indicating that there is more bearish feeling in the market than ever before, creating more negative momentum in the price formation. The RSI index moved just below value = 50, indicating that there is a possibility in the market for the price to remain at the same levels for the next period.
Ethereum / US Dollar
Ethereum made another small correction today, landing at $545, following Bitcoin's fall at the same pace. If the price will follow the same momentum in the current situation, we will observe that the price will set a downtrend until reaching the next support level.
The next support levels lay at $520 when there was a minor correction in the previous bullish trend, which will be the first support in the current situation. After that point, the support levels concentrate around $480, which was the previous 2020 high level and served as the major resistance point before entering the bullish period.
We expect Ethereum to follow Bitcoin's pace in the current trend, which means that they will probably find the same support levels at $17,000 and $520 respectively. In the next days, we will examine more scenarios about what will happen in the crypto market in the next period.
The trading volumes have sustained at normal levels for the current period while the moving averages are about to cross each in the next few days, forming a reverse "Golden Cross" that might spark another bearish wave in the market.
Indicators
MACD index moved at lower values than ever before, showing that the market will probably be in at worst position than before. On the other hand, the RSI index moved just below value = 50, indicating that there would relative stability in the price for the next period.
Ripple / US Dollar
As we have mentioned several times in the past, Ripple is continuing to move in steady directions and trends during the past times. This trend seems to take place this time also, making the market a little bit more optimistic regarding other cryptocurrencies. The price continues to stand at $0.55, showing stability, which is precious in the current situation when the market is full of negative feelings.
As you can see from the diagram below, there are no major support levels in the market that will hold a bearish trend from reaching the previous price levels. A minor support level has been formed around $0.45, which seems quite weak at this point and it won't have any power to hold any downtrend in the near future.
The trading volumes remain at higher levels than normal for Ripple, showing that investors are still active in the market while the two moving averages cross each other, creating a reverse "Golden Cross" that will spark the market to find another downtrend in the next period. The bearish trend will be established if the rest of the market moves towards that position.
Indicators
MACD index continues to drop at lower levels, showing that the downtrend will probably hit in the next days. The RSI index moved at values between 50 and 55, indicating that there is still hope in the Ripple market as the index predicts stability in the next period.
Litecoin / US Dollar
The price moved at lower levels today, reaching $71, just a step above the first support level, which lays at $70. If the first support level breaks down in the next days, the next crucial point lays at $67 which was the entry point for the previous bullish trend and served as the major resistance point for it.
The price has followed Bitcoin's trend closely, making its moves predictable to follow and prepare investors for them. The trading volumes have been sustained at higher levels than normal for Litecoin, indicating that investors are still involved in the market and are willing to intervene in the price formation to achieve their goals. The moving averages crossed each other, forming a reverse "Golden Cross" which might lead the market to lower levels, as some analysts will think that this is another bearish signal to be taken under consideration.
Indicators
MACD index is moving continuously on the negative side, showing that the market momentum will enforce more pressure in the current price levels. On the same page, the RSI index moved to value = 45, indicating a steady move towards lower positions in the next days.
Bitcoin Cash / US Dollar
The crypto that took the most hits of this reversal in the market situation is Bitcoin Cash. Its price reached $260, which is the crucial point for the market as this was the point when the market starts to rise and join the bull run along with the other cryptos. If the bearish trend continues to affect the market, Bitcoin Cash's price will meet the next support levels at $245, which was the intermediate level in the previous stability period, and $220, which was the long-term support level for the entire 2020 bullish period.
We believe that Bitcoin Cash will continue to drop at the same rates until it finds a strong support level to hold it. The trading volumes have returned at normal levels for Bitcoin Cash, indicating potential stability in the market while the moving averages are still holding a bearish positioning that doesn't seem to change.
Indicators
MACD index is continuously moving in the negative zone, adding more and more pressure in the price formation. The RSI index moved between 40 and 45, indicating that the market has been prepared for another downtrend in the short-term horizon.
Correlations
Bitcoin / Ethereum = 0.92 (+ 0.03), Bitcoin / Ripple = 0.52 (+ 0.10), Bitcoin / Litecoin = 0.86 (+ 0.02), Bitcoin / Bitcoin Cash = 0.55 (+ 0.02)
The correlations seem to return in their previous positions, indicating that the market will try to establish the previous relations in the market. At this moment, Ethereum and Litecoin retain their strong positions in the correlation zone, showing that a further downtrend in the Bitcoin market will drive their prices at lower levels. On the other hand, Ripple and Bitcoin Cash stand firmly in the "medium" correlation zone, showing that their next moves will probably be in the same direction as the rest of the market but with a different pace in the adaptation process.
Key Notes For Today
Bitcoin moved below $18,000, landing at $17,800
Ethereum dropped at $545
Ripple remained at $0.55 for another day
Litecoin corrected at $71
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Bitcoin Cash holds a crucial position at $260
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.
