Bitcoin / US Dollar
Price Analysis
Bitcoin's price was corrected back to $11,400 - $11,380 after trying to hit another bullish trend at the start of the week. The price was brought back in the parallel channel, showing us that the bullish trend might continue at a second phase. The correction is steep, while we have to consider that many investors liquidate their positions due to two significant factors. The first factor is the market instability in the short-term period. The instability is derived from mixed signals in the market about its future and its ability to perform normally under pressing conditions. This situation made many investors skeptical about liquidating their positions and withdrawing their funds from the market, causing a significant correction.
The second factor is the lack of support from different price levels, where investors had placed their funds and wait for the price to increase. The market had reached an "overbought" situation where many investors were unwilling to buy more Bitcoin, so they wait for other investors to drive the price to higher levels. This means that the market is running out of fuel, leading to major corrections in the short-term period.
In this scenario, the price might move downwards to $11,000 - $10,800, where there are major support levels that will not let the price to slip further. The trading volume looks to support the decisive move in the downtrend while the moving averages had formed a reverse "Golden Cross" to wait for confirmation (or not) in the coming days.
In the short-term diagram, we can observe that the price found a severe resistance below $12,000, showing that many investors were afraid of letting more capital to flow in the market as massive liquidations will emerge from that. The resistance level below $12,000 might be considered a psychological frontier also for many bearish investors.
Indicators
MACD index never passed on the positive side, even though an attempt was made, but nothing happened. On the other hand, the RSI index fell to values below 50, showing that the market momentum is downtrend and a bearish trend is possible to follow over the next month.
Ethereum / US Dollar
Price Analysis
Ethereum's price was corrected the next day that it surged. After reaching a 2020 high level at $475, it immediately corrected the next day at $435, vanishing any profits into thin air. From a day trader's perspective, this was something to expect as the price has made a huge leap over a day. That kind of leap often corrects in a very short period, as it happened today. From a technical perspective, there is no evident trend line to follow at this moment, but in the long-term, the general trend might be considered as bullish.
The fact that the surprising leap led the moving averages to form a "Golden Cross" signal is much more concerning as another technical signal will be thrown in the garbage and produce wrong results for the market. The crucial point for the Ethereum market at this point will be the $400 level, which might hold or break according to the market dynamics at this point. The trading volume was much higher than in previous days, supporting the major moves in the market.
Indicators
MACD index remained on the negative side, holding some hope for the price support at the current levels. The RSI index proved wrong at the moment, as the "sell" signal worked out immediately this time, leading to major liquidations and price drops.
Ripple / US Dollar
Price Analysis
Like any other cryptocurrency at this moment, Ripple corrected after reaching $0.295. The correction was dropped even at $0.265 during the day, but it closed around $0.275. If the price dropped a little bit more, the bearish trend will continue, and we will have another round of ups and downs for the market. Ripple's price tends to move in curves and this might happen this time also, considering the pattern from the previous times. The support levels are not very clear in the market, but we can observe them around $0.29 and $0.26. Those support levels might hold any downtrend in the future, but it will be harder to hold if the entire crypto market is in a bearish mood.
The trading volume has remained on the same levels during the last period, making trading patterns based on the volume complicated to deliver consistent results. On the other hand, the moving averages had produced a bearish signal around a week ago, which is proved right for the moment.
Indicators
MACD index remained on the negative side, creating a bearish momentum for the price which didn't change during the last bull jump. On the other hand, the RSI index moved to a disputed area, where the price might fall or remain stable in the next few days, creating opportunities for day traders to exit the market and claim profits.
Litecoin / US Dollar
Price Analysis
The roller coaster called Litecoin made us think again about how to place our money on the table. The price after hitting $63 yesterday, corrected back to $58, creating a pattern of ups and downs during the previous month, which helps day traders to move their capitals accordingly and claim profits at any given time. We expect the price to continue its ups and downs without establishing a major trend in the near future, as the currency is totally affected by other coins’ momentum and investment perspectives.
The ups and downs have created confusion amongst the Litecoin traders with long-term portfolio. This is because they could not decide if they should liquidate their positions or increase them with the potential for more profits. Those facts will not let Litecoin grow in terms of price as the fundamental base is not existent at this point. The best strategy to follow at this point is to observe other markets and see how they react to different events that could affect the Litecoin price also.
The trading volume is considered higher than in previous days while the moving averages are still apart from each other, creating space for the bearish trend to come and establish itself.
Indicators
MACD index continues to stay negative even when there was an attempt to switch to the positive zone a couple of days ago. The RSI index fell below value = 50, indicating a potential stagnation in the market, but we believe that the price might fall in the next days according to the crypto market momentum. Both indexes showcase that the market has passed in a bearish mood, which is evident in the entire crypto market.
Bitcoin Cash / US Dollar
Price Analysis
One of the heaviest corrections in the market is considered to be from Bitcoin Cash. After hitting a bottom of $260 last week, Bitcoin Cash made a small rally up to $290, before it corrected back to $260 in just one day. The heavy correction is considered to be a result of the lack of depth in the market, which is an important factor when the trend is reversing.
During the day, the price fell even at $245, taking heavy losses. Compared with other coins, Bitcoin Cash has a clear bearish trend established on its charts, giving no hope for current investors to rebound back soon. The trading volume raised during the last few days while the moving averages are still way apart, proves that the bearish trend is here to stay.
Indicators
MACD index moved even deeper in the negative area, creating negative momentum in the market and little hope for a rise in the near future. The same trend is depicted in the RSI index, which moved to values between 40 and 45, indicating a further slip during the next few days.
Correlations
Bitcoin / Ethereum = 0.60 (- 0.09), Bitcoin / Ripple = 0.94 ( 0 ), Bitcoin / Litecoin = 0.85 ( 0 ), Bitcoin / Bitcoin Cash = 0.92 (+ 0.01)
As we stated in the previous price analysis, the majority of altcoins remained “faithful” to Bitcoin and continue to grow and correct along with it. As we can see, the correlation coefficients for Ripple, Litecoin, and Bitcoin Cash remained high with a positive relationship, giving out the image of an integrated and predictable market. On the other hand, Ethereum holds a different perspective in the market, holding medium correlations over the last 3 weeks, establishing a different trend in the crypto market. The difference between Ethereum and the other cryptocurrencies could depict a worthy opportunity for diversification, especially after Ethereum’s rally over the last few days. In the long-term perspective, we can observe that Ethereum had much larger returns than any other cryptocurrency, rewarding its early investors for their faith in it.
