Bitcoin / US Dollar
Bitcoin's price made another huge move towards $20,000, reaching and surpassing $18,000 during today's session. The constant uptrend is fueled mostly by continuous hype, which exists in the market which makes investors believe that there is more potential in the market than ever before.
As we have mentioned several times in the past, the goal for the current bullish trend is for the price to surpass the previous all-time high level, which is around $20,000. Getting closer to this level, there might be a liquidation wave in the market as some investors will be happy with their portfolios' returns and will claim their profits. There is a need for the price to stay enough time near this level to establish more market depth. This depth will allow the market to absorb any sudden drop-offs and enable the investors to push the price to higher limits.
We believe that the price will find strong resistance in the $20,000 zone, which will be the crucial point for the crypto market's next period. If the price surges above $20,000, we will be facing a whole new situation that no one before has witnessed. If the price reaches $20,000 and corrects back, the market will enter a new market cycle, in a bearish mood. The bearish mode will be determined from different factors like the transaction volume and the entire macro outlook at that moment in the market.
The trading volumes indicate that there is a lot of interest in the current period for Bitcoin while the moving averages have never been so far from each other, showing no convergence in the market dynamics.
In the short-term diagram, we can observe that there is a high possibility for the next day to be negative or stable, as the price moves on a higher level for 2 -- 3 days in a row and then tries to stabilize itself, before launching a new round for surging up.
Indicators
MACD index rose again for the third consecutive day, making the market look lucrative enough for more investors to enter and ride the positive curve while the RSI index is still trying to convince investors that the market is overvalued and there is a possibility of correcting again in the next days.
Ethereum / US Dollar
Ethereum stuck in the previous 2020 high level around $480, showing that the crucial moment is now for it. As we mentioned in yesterday's article, the $480 is an important resistance level and the price will find troubles in its overcoming. As we have stated, Ethereum will try to break this level with fierceness but there is a need for further support from the market side. Given that, the correlation with Bitcoin is high and Bitcoin's bullish trend is continued, we expect that Ethereum will break this level but with a delay. This means that the price might hold at this level for some days before making a decisive move towards this position.
In any case, a bearish move will possibly be absorbed from the market depth as there are plenty of support levels that can make it happen. The trading volumes have made some progress during the last two days while the moving averages are still in a parallel position with enough room between them.
Indicators
MACD index still lays on positive ground, showing that the bullish trend has not disappeared from the market while the RSI index is moving between values 60 and 65, indicating that there is more room in the market for further growth.
Ripple / US Dollar
After reaching the 2020 high level, Ripple corrected again back to $0.29. This was a predictable move from the Ripple market as the high levels for 2020 was possible to face resistance when trying to break. This happened this time also, making investors a little bit concerned about its future.
As we mentioned in Ethereum's section, for breaking the previous 2020 high level and establishing a new high level, there is a need for market support. Thus, if Bitcoin continues to surge and the correlation between it and Ripple remains at a high level, we expect that the price will be established at higher levels than $0.30 but with severe delay.
After reaching the $0.30 goal, Ripple should manage not to drop at lower levels again, indicating weaknesses to move at bullish levels, along with the rest of the market. We believe that a strong position around $0.25 has been established and will not let the price drop at lower levels. As we can see in the diagram, the trading volumes are surging during the last two days, making the market more interesting while the moving averages are still apart from each other.
Indicators
MACD index stops to grow at a high pace during the last day but remains on the positive field, making new investors hope for more while the RSI index turned back in the "safe" zone, making the uptrend possible in the next days.
Litecoin / US Dollar
Like Ripple, Litecoin had a great day yesterday and corrected today. As we wrote yesterday, Litecoin broke the 2020 high level, reaching $76 by the end of the day while it corrected today at $72.
This means that the uptrend was considered quite fragile and there is no support on this site to hold it for a longer period. The market depth is important for this trend as it will enable investors to feel safe and sure about their investment. If there is a traceback in the current situation, we will see Litecoin go back to the previous 2020 high level around $67 and try to rise again from this point and on.
The trading volumes have surpassed any previous record in the mid-term period, indicating that there is a lot of speculation in the market and investors are willing to play in this game. The moving averages are still way apart from each other, showing the bullish progress in the market situation.
Indicators
MACD index slows down for a little and remained on the positive side while the RSI index moved back in the "safe" zone, showing that there are hopes in the market for another uptrend in the next period.
Bitcoin Cash / US Dollar
Bitcoin Cash made another negative jump in the market, reaching the mid-term support level at $245, indicating that the market might head towards a bearish position setting. The mid-term support level will function as the main support level for the current period as the next support level lays at $220.
If the support level breaks down in the next days, we will be sure of the market direction that will be followed in the next period. We can observe that Bitcoin Cash is moving in different ways from the rest of the market as Ripple did a month ago. We believe that the market trend will help it to harmonize with the rest of the market.
The trading volumes are fluctuating at low levels while the moving averages start to diverge from each, without achieving a "Golden Cross" in the market.
Indicators
MACD index continued to drop today, creating more negative momentum in the market while the RSI index moved to value = 45, indicating a stable outlook in the market with a negative perspective.
Correlations
Bitcoin / Ethereum = 0.92 (- 0.02), Bitcoin / Ripple = 0.92 (+ 0.05), Bitcoin / Litecoin = 0.91 (+ 0.01), Bitcoin / Bitcoin Cash = - 0.19 (+ 0.07)
The correlations went on the same pace as yesterday, showing that there is no important progress in the relationships between Bitcoin and the rest of the crypto market. Ethereum, Ripple, and Litecoin remained on the "strong" correlation zone, all above value = 0.90. This means that the market is trying to move towards a single direction, creating profits for as many assets as it can. Any investor could place his bets on any asset, creating a winning portfolio and enabling himself to re-invest his profits on a larger scale. The exception is the current situation remains the Bitcoin Cash, which is still unable to capitalize on the bullish trend and remains on stable levels, with normal ups and downs and any established trend at that moment.
Key Notes For Today
Bitcoin surpassed $18,000, reaching a new 2020 high level
Ethereum and Ripple reached 2020 high levels and got stuck in them
Litecoin broke the 2020 high level and corrected heavily below that
Bitcoin Cash hit support level at $245, moving against the market trend
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Remitano.
Every investment and trading move involves risk, you should conduct your own research when making a decision.
