Bitcoin / US Dollar
Price Analysis
While the altseason seems to take a break from its positive trend, Bitcoin price remained stable around $9,200. This price is considered by many analysts as the fair price for Bitcoin. As at this point many bullish traders are not willing to buy more bitcoins while the bearish traders are not willing to sell any more bitcoins. This situation creates stability in the market and we can potentially believe that the market has reached an equilibrium.
Equilibrium markets are a very rare phenomenon in financial markets, especially in the crypto space. In this case, the market has a stable price for a long time period, showing no evidence for moving in another direction. In Bitcoin's case, there is plenty of information in the market that shapes investor's expectations for the next day in it. The case for absorbing new information in Bitcoin's market will be combined with the end of altseason and the capitals' return in the Bitcoin market. Until then, the Bitcoin price will remain stable and we will have to wait until the altseason is over.
At the end of that period, we expect a decisive move that will determine the next phase for Bitcoin. In the previous altseasons, Bitcoin eventually was a winner, outperforming both crypto and traditional assets at the end of the year. So what we expect is Bitcoin's price to drop during this period as investors withdraw their positions in it and bump again after a significant period, when the market decides that altcoins' period is over and we should head for Bitcoin's safe haven.
In the short-term diagram, we can observe an extreme price compression around the internal support/resistance level, formed during the last two months in the Bitcoin market, establishing a retracement point for Bitcoin. This point of reference was used as a metric from the market to see if there is going to be a rise or fall in the short-term horizon. We should be careful about the expected price and we should leave the market to show its preferred direction.
Indicators
MACD index moved on the value = 11, showing continuous stability in the market, with a small potential for rising in the next days. In contrast, the RSI index is moving on the edge, just below value = 50, showing that the market might move with a small decline in the next days, trying to find the next trend to follow.
Ethereum / US Dollar
Price Analysis
Following the general trend in the market, Ethereum remained stable during the day, staying at $240. The $240 point, as we have mentioned in previous articles, is a crucial point for Ethereum as it shows the triple high signal, which may lead to a negative trend. The "Golden Cross" signal has not been proved right yet but we have to wait until there are more data and information digestion for investors and the entire market.
The possibility of a downtrend is not severe at this moment due to the general positive momentum but we should take into consideration that technical signals create a history about winning and losing signals that will affect the future of trading in this market. Noting that, we should take into account that a bearish signal appeared in the market, regardless of the final result that will be determined in a few days.
Indicators
MACD index was lowered in the previous days, showing that the expanding momentum was beaten from price's stability, showing that the positive momentum in the market will be continued. In the same mood, the RSI index moved towards value = 50, showing that the price stability will be continued in the next days if there is no other signal showing a different direction in the market.
Ripple / US Dollar
Price Analysis
The "Golden Cross" signal was a little late in the market as the sudden rise in the price caught many traders in the sleep, letting the chance to slip. Of course, more experienced investors were ready days before the "Golden Cross" signal and have put their positions on the "buy" side for Bitcoin. The investment positions were depicted heavily on the volume, which was much larger than previous periods, showing investors' interest to move Ripple's price to higher levels.
The price remained stable, slipping just a little from $0.20, which is a rebound from the last trend for Ripple. We should take into account that the previous trend in the market was a bearish one, starting from $0.23 until $0.17. The $0.20 is a rebound on the bearish trend that could lead to different results, depending on the overall market momentum and new that will arise in the next days. We expect a similar pattern for Ripple as the entire market, either moving back to the bearish parallel channel or setting up a new positive trend in the market, breaking the previous patterns.
Indicators
MACD index is still on the rise, showing that there is potential for continuing the trend in the market for some days. On the other hand, the RSI index is still dropping below value = 60, showing that the market will try to find a stable point to stand, before there other moves. We have to be really careful about indicators' values and signals during the altseason as they may depict a conservative image or state of the market that will be outdated when we have to take an immediate decision.
Litecoin / US Dollar
Price Analysis
Without moving out of the parallel channel, Litecoin made a significant uptrend during the last days but it couldn't hold it for much. After the initial outbreak from $41 to $45.5, there was a slowdown on the market, leading to a partial decrease in the price. Also, the "Golden Cross" signal wasn't proved right at this moment, showing that the altseason might end unsuccessfully for Litecoin.
The bend created during the last days shows that investors were hyped to buy the asset due to the altseason momentum but they quickly dropped it, realizing that its value wasn't so much as expected. The quick drop for Litecoin might have a cumulative effect on the market as it might halt any progress in the crypto market. The uptrend created since the last days shows investors that altcoins who have an initial investment basis were ready to capitalize on their profits and get out of the market. Litecoin is considered such a case with many holders since its beginning, willing to capitalize on any profits and never buy back any Litecoin again.
Indicators
MACD index is near zero, showing that any momentum in the market has disappeared and the lines are moving more closely. On the other hand, the RSI index dropped below value = 50, showing that the market will try to establish a severe trend during the altseason and attract new investors to put the market into the positive trails.
Bitcoin Cash / US Dollar
Price Analysis
A similar pattern to Litecoin was formed in the case of Bitcoin Cash. The initial uptrend from $220 to $245 was halted from a bending curve, showing that investors capitalize early on their profits and went on to liquidate their positions in the coin. The bending curve was formed as there was no momentum in the market that will carry the coin for the rest of the altseason. We expect that Bitcoin Cash will try to catch up with the rest cryptocurrencies if there was a severe uptrend in the entire market.
We have to take into account that Bitcoin Cash didn't break the previous trend during the last altseason boom, showing that there are more resistances to break if it wants to create more value for its investors and community. We should expect milder moves during the next days, watching carefully how the market will affect the correlations between Bitcoin and the other cryptos.
Indicators
MACD index is on the edge to turn again on the negative side, showing that there is a possibility for a reversal again in the market, this time more crucial and decisive. On the other hand, the RSI index is still dropping down, showing that there is more room for a downtrend in the market than expected from the altseason.
Correlations
Bitcoin / Ethereum = 0.92 (+ 0.01), Bitcoin / Ripple = 0.77 (+ 0.01), Bitcoin / Litecoin = 0.87 (+ 0.03), Bitcoin / Bitcoin Cash = 0.90 (- 0.01)
The correlations between Bitcoin and the other cryptocurrencies continue at a stable rate, without major changes from the weekend. This fact shows that altseason momentum came to a halt after positive returns during the last days. We expect the entire market to move towards the same direction, according to the news or volumes from different exchanges. Any major move might spark a change in the market and lead to consequential events that will shape the future for the entire crypto market.
