Bitcoin / US Dollar
Price Analysis
The altseason seems to end in a very short time, without any major or continuous returns for altcoins against Bitcoin. Most altcoins didn't manage to break their fundamentals or established trends, thus they couldn't make an impact move in the market that might lead to a trend reversal. The overall pessimistic trend in the market at this moment is possible to lead in many liquidations until the previous support levels.
At this moment, the entire market is moving on the red, showing that Bitcoin and altcoins are losing investors, looking for other opportunities other than cryptos. If the drop continues to lower support levels, there is a high possibility for discount sales in the crypto market.
In Bitcoin's case, the price faced a small drop, below the internal support/resistance level at $9,200. The $9,100 point formed a small bending curve in the market, showing that the market might turn in a bearish trend that will shape the future trend of Bitcoin. If the bearish trend will be confirmed, then the first support level will be at $8,600. Breaking the first support level is a major event in the Bitcoin trading history as it will give a signal for further drop until March 2020 levels, even below $5,000. We have to highlight at this point that the moving averages are moving closer to form a reverse "Golden Cross", a bearish signal formed when the 200-day moving average crosses the 50-day moving average. A case like that shows that the "Golden Cross" signal was not right and we move to another trend in the next days.
In the short-term diagram, we can observe that the price compression is heavy and we should expect a major move in the next days. The direction will be determined by the rest cryptocurrencies and their investors. If altcoin investors have made profits from the short-term altseason, they will invest their profits back in the Bitcoin market. A scenario like that will boost Bitcoin's price and give more depth in the market. On the other hand, if richer investors decide that they had enough profits from cryptocurrencies, they will withdraw their funds from the market and wait for another opportunity to enter. In this scenario, the price will drop severely until the market decides that the price is low enough to create profit margins.
Indicators
MACD index moved back to negative values, showing that the previous momentum disappeared and a bearish trend is possible to establish in the market. On the other hand, the RSI index dropped below value = 50, around value = 45 showing that there is room for further fall in the market. The extension of the fall will be determined from the market's fundamentals and overall market direction.
Ethereum / US Dollar
Price Analysis
Ethereum's price dropped around $230, a 5 % drop during the last 2 days. This drop formed a bending curve in the market, a bearish signal indicating a further drop in the market. The moving averages are moving closer, indicating that a reverse "Golden Cross" is going to happen, showing a steeper drop in the next period.
In the case of a price drop, the first support level is at $225, when it was established during the last period. The second support level was formed at $220, as the upper boundary of the parallel channel while the third support level is at $200. Those support levels indicate that the market has the depth that will absorb any corrections in the long-term period. This means that the "Golden Cross" signal was not proved right while the "triple high" signal was proved right. The end of altseason finds Ethereum at higher levels than other cryptos but vulnerable to market integrity.
Indicators
MACD index returned to negative values, showing that the market momentum disappeared into thin air, without establishing a winning trend for many days. The new price levels didn't produce returns in this period. On the other hand, the RSI index moved below value = 50, showing that the trend is mostly bearish with more room for the drop.
Ripple / US Dollar
Price Analysis
Ripple's price dropped further until the upper boundary of the parallel channel. The parallel channel indicates the major trend for the last 2 months, a slightly bearish trend that breaks during the altseason. The moving averages are moving on creating a reverse "Golden Cross" that will withdraw the previous "Golden Cross" signal. This means that the market is moving in opposite results according to the technical signals, proving that the market is not efficient in terms of technical analysis.
The continuation of the bearish trend will be determined from the rest cryptocurrencies and their trend establishment. A descending triangle shows that the price will return in the parallel channel, continuing the previous trend. Ripple is known for the lower volatility levels and lower volatility indicators. This means that the volatility will determine the price trend at the next level. Ripple's drop below $0.19 will lead to more stability in the market and further development for it. We expect the price to return in the previous trend, even for a small amount of time.
Indicators
MACD remained on the positive values, showing that the price drop didn't affect entirely the market while the RSI index shows that the market will move to a more stable condition in the upcoming days. Furthermore, we expect a reduction in Ripple's price in smother conditions than the other altcoins.
Litecoin / US Dollar
Price Analysis
Litecoin's price dropped during the last 2 days, touching the $42 point. The trend didn't break any boundaries regarding the major trend in the market but it also formed a bending curve which is a bearish signal for the coin. The majority of investors believe that Litecoin along with other cryptos are subjected to smother trends as they don't follow a specific fundamental trend that makes them move out of control.
The worst-case scenario is that they won't follow the rest of the market in terms of uptrend or downtrend, given the opportunities created from them. Litecoin's volatility still remains low in comparison with other coins while it is believed that the coin should be trusted due to its age and years in the market. We should also highlight that the moving averages are moving towards each other to form a reverse "Golden Cross", another bearish signal in the market that might to further drop in the price. We expect a small drop in the price for Litecoin between the boundaries of the established trend.
Indicators
MACD index returned to negative values, showing that the positive momentum period was shortly over, exterminating any profits from the market. In parallel, the RSI index moved in values below 45, showing that the downtrend will continue for Litecoin and similar cryptocurrencies.
Bitcoin Cash / US Dollar
Price Analysis
Bitcoin Cash dropped also during the last 2 days, moving to previous levels like a week ago. The price drop was halted in the lower boundary of the parallel channel, serving as a long-term support level at $230. The recent drop formed a bending curve, a bearish signal for the market that is willing to support Bitcoin Cash during the established trend.
The moving averages are also moving closer to each other and it is possible to form a reverse "Golden Cross" signal that will spark a bearish trend in the market. We can observe that previous rises in the Bitcoin Cash market was rather slow and didn't last over a week. This means that a potential drop in the price might be followed from a similar rise.
Indicators
MACD index returned in negative values, following the rest market and creating negative momentum foundations. The interesting part is on the RSI index which moved closer to value = 40, a value indicating a possible "oversold" signal that might spark bullish returns in the mid-term future.
Correlations
Bitcoin / Ethereum = 0.89 (- 0.03), Bitcoin / Ripple = 0.67 (- 0.10), Bitcoin / Litecoin = 0.87 ( 0 ), Bitcoin / Bitcoin Cash = 0.90 ( 0 )
The correlation coefficients were mixed during the last days, giving a mixed signal about the overall state of the market. Some cryptos like Litecoin and Bitcoin Cash weren't moved regarding their correlations with Bitcoin, showing that the market continues at the same pace. On the other hand, the Ethereum correlation dropped a little while the Ripple correlation was dropped severely by 10 units. This means that the major currencies in the market try to get independent from the dominance of Bitcoin. The integration in the market seems to drop leading to diversified opportunities in the market.
