Bitcoin / US Dollar
After yesterday's extended volatility and new all-time high-level acquisition, the price remained at the same high levels, reaching $27,200 during today's session. As we can see the market is continuously pushing for higher levels and we believe this trend will probably last for sure until the end of the year.
The new year will find Bitcoin and thus the entire crypto market in a new situation with new dominance rules and a more established position in the financial world. The new situation will find Bitcoin with more serious backers than ever before, which have included it in their long-term strategy, finding value in its offerings and creating new perspectives on how the financial world should work.
In the price analysis, we can say for sure that Bitcoin will need more time to establish a stable position in new price levels that will bring more efficiency in the price development and how buyers and sellers interact between them. At this moment, the buying side seems to be much stronger and drive the price at higher levels while many holders choose not to give selling orders and create demand for new liquidations.
The amount of believers in the Bitcoin trend tends to rise also at this moment, making some analysts claim that Bitcoin's price might reach $50,000, $100,000, or even $400,000 during 2021. All these claims might sound extreme in the current situation but there is no reason that we should reject them as non-realistic. The projections might be endless but we should define what is our horizon for the investment plan.
The trading volumes are making spikes again, showing that the investors' interest is still strong in the market and they are not ready to settle down at a certain price level. The moving averages have developed a bullish outlook that doesn't change in the current situation.
In the short-term diagram, we can observe that the price has been developed at a certain pace, compressing for some days and then releasing back with new higher levels. This pattern is useful to see for how long it will continue and produce results in the market.
Indicators
MACD index is continuously growing at higher levels since the previous bullish period, making the market momentum to establish a heavier position in the price formation. The RSI index has remained at high values above value = 75, indicating that the bullish trend will shortly be halted soon.
Ethereum / US Dollar
Ethereum finally made a strong bullish move that could work positively in the future as it creates new perspectives for its development. The price surged over $700, landing at $720, a new 2020 high level. The new bullish jump makes Ethereum to be considered as a viable alternative in any crypto portfolio for the current situation.
The surge could be explained in two ways. The first and most likely scenario is that the market has been affected in a delayed way from the recent Bitcoin's surge. This means that the strong correlation between the two of them is producing results with just a day difference, creating plenty of opportunities for investors in the next period. The second and less likely scenario is that Ethereum has developed its sole dynamics and will create more of that in the upcoming period. This would mean that Ethereum's move will possibly reflect mostly the fundamental elements from Ethereum, meaning that we have to focus on different things.
The trading volumes have been sustained at high levels while the moving averages have still been contained in the same distance for the last days, showing the steady prospects from the market.
Indicators
MACD index passed again on the positive side, reversing the market momentum while the RSI index has not reached value = 70, indicating that there is room for more uptrend in the future.
Ripple / US Dollar
Ripple continues to stay below the $0.30 line, showing that the previous stability levels have been established for the current moment and they will not break easily. The correction during the previous month was expected from many analysts as the previous surge has been created without any fundamental reason.
This means that the "fair price" scenario is highly likely to appear in the current situation, making investors believe that they will hardly see another sustainable uptrend shortly. As long as the price is sustaining at levels below $0.30, we expect to see lower volatility levels and more price compression in the next period.
This trend will be accompanied by more unbundling from the rest of the crypto market and an independent route from it. The trading volumes have returned at normal levels for Ripple after surging in the previous days' sell-off. The moving averages have sustained a bearish formation since the last 3 weeks.
Indicators
MACD index has remained deep in the negative zone, indicating that the price will not bound at higher levels soon. The RSI index has remained around value =35 and it will probably surge until value = 50 if the price continues to move in the same price levels.
Litecoin / US Dollar
Litecoin is reaching new 2020 high levels every day, making us believe that it will bring more value to its holders as long as the bullish trend is established in the current market situation. As we can see from the diagram below, the price is following the same patterns as the Bitcoin market, ending up in better returns than other coins which have a moderate reaction to the market dynamics.
The most interesting fact about the Litecoin market at this point is the fact that the price is making small moves but the trading volumes are recording new higher levels each day. This means that there is an ongoing war between bulls and bears in the market that shapes the final result. For now, it seems that the bulls are winning but we should take a look in the next days to find out if this trend will remain sustainable and for how long it will last.
The moving averages are still at bullish positioning, creating more positive momentum in the market.
Indicators
MACD index is continuously moving in the positive field, creating more momentum that will fuel a potential uptrend. The RSI index has almost reached value = 70, indicating that the bullish might have come to an end.
Bitcoin Cash / US Dollar
Bitcoin Cash made another positive surprise today, as it broke the $350 resistance level and establish a new 2020 high level at $360. This trend might be the catalyst for the market to join the clean bullish movement and create more value for its investors.
We believe that Bitcoin Cash should create a more sustainable market momentum that will allow its growth in the future. As we can see from the diagram below, the current market pattern has been establishing following volatility "waves" that can be used for short-term trading and create profitable opportunities for anyone.
The trading volumes surged during last week, showing that investors have entered the market in more dynamic ways than before. The moving averages have sustained a bullish difference between them that is giving a bullish growth in the perspective.
Indicators
MACD index grew for a third consecutive day, making growth perspectives more serious than before. The RSI index moved between values 60 and 65, indicating there is more room in the market for further uptrend.
Correlations
Bitcoin / Ethereum = 0.86 (+ 0.05), Bitcoin / Ripple = - 0.66 (- 0.02), Bitcoin / Litecoin = 0.99 (+ 0.01), Bitcoin / Bitcoin Cash = 0.87 (+ 0.04)
The correlations have remained on the same page as the Christmas trend with more intensity in the current trend. More specifically, Ethereum and Bitcoin Cash remained on the same positive correlation zone, boosted by the delayed surge in the Bitcoin market. Litecoin has topped the correlation between itself and Bitcoin, indicating that a potential uptrend or downtrend will immediately affect its price formation. On the other side, Ripple continues to move in the negative correlation zone, looking weak to establish an efficient relationship with the market leader that would be beneficial for it.
Key Notes For Today
Bitcoin made small progress today, landing at $27,200
Ethereum reaches new 2020 high levels at $720
Ripple got more stable around $0.29
Litecoin continues to grow at $130
Bitcoin Cash trying to push for higher price levels at $360
