The entire market is on the green right now, showcasing a severe uptrend that shapes a new trend formation in the market. The new trend formation will determine the next period for the crypto market and set the tone for what is going to happen in the crypto's prices.
Bitcoin / US Dollar
Price Analysis
Bitcoin's price broke the almighty resistance level at $10,000 and lay at $11,000, creating instant profits around 10%, even for investors that took positions at the last moment and claim profits overnight. As we can observe from the overall picture, the parallel channel between $8,600 and $10,000 compressed the price for almost three months. This compression was broken in a positive direction. It is possible the rise to come from the altseason's profits.
The volume that drove the price was one of the daily highest during the last months while we had to point out that yesterday many investors both liquidate and buy Bitcoin but the price remained stable around $11,000. The most amazing part is that holders are tracking profits of nearly 90 %, since the bottom at early-March 2020. Believing in crypto and setting long-term financial goals is essential for success in crypto trading and it is proved right today.
It is possible, at this moment, the price to collapse at any moment if multiple investors try to liquidate their positions and claim their profits from the uptrend. The first support level will be the $10,000 point, which was a long-term resistance level. If the price collapse around $10,000 but doesn't break it, then there is a positive signal that the price will continue in a positive trend, without dropping further.
In the short-term diagram, we could observe that the price went smooth until the $10,000 point, where the resistance level was and when it reaches it, then there was the boom that led to the new price levels we saw those days. The initial hesitative moves towards $10,000 were small steps that could reveal that a major positive move could become a reality.
Indicators
MACD index shows with a value above 200, that the price could rise during the previous days with major moves rather than a built-up during the previous period. On the other hand, the RSI index moved above value = 80, indicating a strong "overbought" signal that will indicate a potential bearish mode if the market decides that $11,000 is the peak for this Bitcoin trend.
Ethereum / US Dollar
Price Analysis
Ethereum's price hit the 2020 highest point at $325, showing that the high volumes during the previous days boosted its performance and create more hype in the market. Ethereum's price rise was made in steps forming two parallel channels during the stable period for the crypto market.
The first parallel channel was formed between $200 and $220 and broke by the end of May, forming the second parallel channel between $230 and $250. The second parallel channel lasted for almost two months and broke last week with a major uptrend. We should point out that the "Golden Cross" signal was proved right and we expect the trend to follow the Bitcoin's one.
In case of major liquidations from investors that want to claim their profits, the first support level that will be met will be around $250, as the previous local highs indicate. A potential downtrend will be accompanied by the fall of the entire market unless there is an event that affects only Ethereum.
Indicators
MACD index is moving at local highs, showcasing that Ethereum is running through its best period for the last months. On the other hand, the RSI index remained at the strongly "overbought" area, indicating that a possible downtrend move will occur in the next days, disrupting the current market situation. In any case, we should follow the entire market trend and decide if there is potential for more uptrend or this is the peak of this trend.
Ripple / US Dollar
Price Analysis
Another crypto that reaches its 2020 high is Ripple. The soaring volumes led to an extensive bullish day-streak where the price reached $0.24. This level is 2020 high and it seems far more reach than Ripple could bring during the alt-season.
As we can observe, Ripple's price rise happened at two different levels. The first level happened from early-July to mid-July when the price rose from $0.175 to $0.205. The second level happened from mid-July until now when the price rose from $0.195 to $0.24. This means that Ripple began its uptrend much earlier than the rest cryptocurrencies, awarding its supporters and investors with larger returns in a smaller period.
The support levels in case of a downtrend and liquidations in the market will lay around $0.205, a level that supports Ripple at least three times during 2020. The support levels in the case of Ripple are a little bit vague because the parallel channels have formed different levels in the market.
Indicators
MACD index is moving on the positive side while the index is clearly showing us that the positive momentum started since the early-July. As we told above, Ripple starts its uptrend much earlier than the rest cryptos, giving more profits to its investors. The RSI index moved on higher levels, indicating an "overbought" signal that might spark a downtrend in the next days but always in coordination with the rest market.
Litecoin / US Dollar
Price Analysis
Litecoin, even if it's considered as a boring coin without major moves, is moving in new highs, creating profit margins over 25 % during the last week. The price lays at $56, a point never reached during 2020. We should point out that the market correlations might lead to an eventual downtrend and Litecoin needs more support levels.
The first support level lays around $49, a point that stopped two times Litecoin's rise during 2020, the first found early-May and the second three days ago. The second support level is not so evident and it lays on the upper boundary of the parallel channel, which starts at $46. Those two points play a major role in the case of a downtrend. In the opposite scenario, there is no limit on how far the price can go.
Indicators
MACD index is solely positive during the last days, indicating a strong momentum in the market that could lead to a further uptrend in the future. On the other hand, the RSI index moved in the "overbought" area, as every crypto in the market, that might led to a surprising fall if the rest market starts to collapse. We should note that every uptrend is often followed by a downtrend. The sharpness of the moves is correlated and shows that every action in one direction reacts in the other direction afterward.
Bitcoin Cash / US Dollar
Price Analysis
Bitcoin Cash eventually broke out the parallel channel, taking part in the trend of the entire crypto market. The price was compressed at lower levels and it got narrower between $225 and $250. The price compression broke out positively, following the market direction. The price moved at $290, a 2020 high.
As we told in the previous coins' analysis, the support levels lay in the parallel channel's boundaries where there are willing investors that could sustain their positions in those levels. We should highlight that the volume was equal with major moves that happened previously in the market.
We expect Bitcoin Cash to follow the entire market but with a small-time deduction that will determine the following trend established in the market.
Indicators
MACD index is moving on the positive side, showing heavy green signals that led to sustainable growth during the last days. On the other hand, the RSI index moved on the "overbought" area, a bearish signal appeared in the entire crypto market, showcasing that the market is at a crucial point that might lead to a downtrend.
Correlations
Bitcoin / Ethereum = 0.91 (- 0.06), Bitcoin / Ripple = 0.96 (+ 0.02), Bitcoin / Litecoin = 0.97 (+ 0.09), Bitcoin / Bitcoin Cash = 0.96 (+ 0.10)
Every correlation coefficient moved in values higher than .90, showing that Bitcoin has integrated every major altcoin around its trend. Bitcoin is proved to be the market leader once more and surrounds every altcoin with its dominance. The market is moving in the same direction at this moment, with Bitcoin to lead the market and give the signal for a full bullish mode that affects every major altcoin in the market.
As you could observe from the above analysis, every major cryptocurrency broke the standards of its previous trend and try to establish new standards and new trends in the market. The new period will try to find out its mode (bullish or bearish) and move according to it.
