Bitcoin / US Dollar
Price Analysis
Bitcoin’s price remained at $9,200, showing no major move from the internal support/resistance level on that point. The lack of major moves at that moment on the market showed that both bullish and bearish investors have established their expectations at this price. Investors might believe that $9,200 is a fair price for Bitcoin, a signal that any major move will remove investors’ expectations at a new level.
The moving averages’ are on the verge of crossing, with around a $40 gap between them. This means that a small rise in the price will make the signal appear. This might follow an initial bullish trend on the market that will continue until investors bring money from other altcoins. The major reason that Bitcoin doesn’t follow the rest of the crypto market is that investors in Bitcoin try to liquidate their positions and move their capitals to altcoins, looking for larger returns.
This trend could continue for several weeks until the investors claim their profits from altcoins and return to Bitcoin, for investing their profits back in it. We expect certain stability or a small decline in the next days for Bitcoin if there is certain mobility in the altcoin market.
In the short-term diagram, stability is much more evident, showing that the market is expecting a sharp change in the price. The price compression is often followed from a change in the market, in either direction and we believe the investors should wait at this moment and see what happens in the altcoin market. Another interesting characteristic is that the majority of crypto investors select Bitcoin as their first investment. This means that altcoin investors are originally Bitcoin investors that swap their bitcoins for other cryptos.
Indicators
MACD index is positive over the last days, without creating an established trend in the negative zone. The gap between the two lines is expected to remain the same in the next days while the RSI index is moving below value = 50, creating a slower momentum in the market and showing no signal for any future move.
Ethereum / US Dollar
Price Analysis
The “Golden Cross” signal appeared in the Ethereum market, creating a third high during the last month. The triple high signal is often a bearish signal, indicating a possible downturn in the next days if there is no support for further rising from the market. The “Golden Cross” is a bullish signal that will drive the price at higher levels, depending on the correlations with other markets.
The situation seems quite foggy in the Ethereum market as there are two possible scenarios at this moment. The first scenario is the bullish one, proving right the “Golden Cross” signal and following the rest of the alt-season boom. The second scenario is the proof of a triple high signal, where the price will drop, meeting support levels at $230, $220, and $200. Every breaking support level is crucial for a bearish trend establishment that will affect the rest of the crypto market. The volume remains at low levels, with local highs in every sudden move.
Indicators
Both indexes show bullish signals in the market, as the MACD index is moving in the positive zone, having a clear momentum rise in its beginning while the RSI index dropped below value = 60, showing that there potential for more rise in the market. We expect Ethereum to follow the rest altcoin market in the short-term, without claiming independence from it.
Ripple / US Dollar
Price Analysis
The largest surprise of the alt-season boom is Ripple. The altcoin broke the upper boundary of the parallel trend channel, showing clear evidence that it tries to establish a new trend in the market. In this article below, you can find that Ripple is moving independently from the main crypto asset, Bitcoin. This fact means that it can create its fundamentals and move its price according to sole investors’ expectations.
Apart from the sudden rise in the price, the “Golden Cross” signal also appeared in the market, showing that the price might continue to rise in the next period. The signal might indicate a further rise in the price, following the rest of the altcoin market in the general rise. The sharpness of Ripple’s rise is quite severe, showing that a return in the parallel channel is quite possible in the next days.
In Ripple’s case, it would be wiser to wait for the next days until the signals are more clear and the market direction is settled from the investors.
Indicators
MACD index moved the first trend line above zero lines, showing that the momentum in the market is positive and a positive trend is possible to establish. In parallel, the RSI index moved below value = 60, creating a potentially positive move in the next days for Ethereum.
Litecoin / US Dollar
Price Analysis
The “Golden Cross” signal appeared in the Litecoin market, showing that a potential uptrend is quite possible in the next days. Unlike the rest cryptocurrencies, Litecoin didn’t break the established trend from the last months, moving back and forth between $41 and $ 47 during the last two months. The moving averages’ cross happened 6 times during the last three months, proving right the five out of them. This fact enables us to conclude that there is a severe possibility for that signal to become a reality in the market.
This signal might indicate a further rise in the price but Litecoin’s nature doesn’t fit in extreme moves. This means that even if Litecoin’s price rise, it wouldn’t cross the upper boundary of the parallel channel at $47. The crypto market correlations show that Litecoin is less pegged with Bitcoin than previous periods, indicating a mild turn in Litecoin’s moves. We don’t expect any sudden move from Litecoin in the meantime, posing a relatively safe asset for crypto investors. As we observed during the last two months, Litecoin’s price has jumped in periods, showing that investors could win from occasion to occasion, just by following the small trends created in the market.
Indicators
MACD index is on the zero lines, showing that the positive momentum, started in the last days, may last for some days, during the alt-season boom. On the other hand, the RSI index came back around value = 50, showing that the small correction revealed an uptrend potential for Litecoin’s market.
Bitcoin Cash / US Dollar
Price Analysis
Another “Golden Cross” signal appeared in the crypto market, showing that more and more cryptocurrencies are returning in the positive returns, creating a cumulative effect in the market and leading many cryptos in positive trends, without any substantial reason. The price moved in the middle of the parallel channel, between $255 and $225, showing that Bitcoin Cash didn’t a major change in its trend to break the boundaries of the current trend.
The price compression between two levels shows that a sharp move might happen in the next period, followed by another trend establishment. In the case of Bitcoin Cash’s, its correlation with Bitcoin doesn’t let it claim independence on its moves and every move is following the Bitcoin trend. In any possible scenario, we shouldn’t expect any sudden move, independent from the market. The integration between Bitcoin Cash and other cryptocurrencies is much heavier and we believe that this crypto is the standard for the entire crypto market’s moves.
The volume followed a normal trend during the recent spike so we believe that a similar move in the future will be predictable from the previous days’ volume.
Indicators
MACD index tried to move on the positive side, widening the gap between the two lines. The index is still on the negative side, showing that there is a possibility for a minor throwback in the next days. On the other hand, the RSI index moved near value = 50, showing that the uptrend potential moved away, before reaching value = 60 in the previous days.
Correlations
Bitcoin / Ethereum = 0.80 (- 0.01), Bitcoin / Ripple = 0.56 (- 0.14 ), Bitcoin / Litecoin = 0.75 (- 0.04), Bitcoin / Bitcoin Cash = 0.80 (- 0.01)
Correlations between altcoins and Bitcoin seem to drop at a faster rate than ever before, showcasing that an alt-season might be back at any moment. Alt-season means that altcoins overperform Bitcoin’s returns on a daily or weekly basis, allowing investors to claim profits at a much larger pace than usual. The main evidence behind the start of the alt-season is the falling correlations, which indicate that altcoins can drive their prices by their fundamentals. This is much more evident at Ripple’s and Litecoin’s case, where the correlation should be considered “medium” and not “strong” anymore. The other two cryptos, Ethereum and Bitcoin Cash, are on the verge of that statement, showing that we might have serious updates on that, very recently.
