Bitcoin / US Dollar
The price managed to remain above $19,000, establishing a bullish position between $19,200 - $19,300. This position is just below the all-time high level for Bitcoin, meaning we are now at the most crucial point in Bitcoin's recent history. The next days will show if Bitcoin is strong and mature enough to break the previous all-time high level and establish new high levels, shining out a new era for it. In the opposite scenario, Bitcoin could collapse to lower levels as quickly as the price increased during the last period.
The vast majority of analysts and investors expect the price to move higher than $20,000 and establish new high level but this is something yet to be defined in the upcoming days. As we have pointed out in previous articles, there are no technical signals that indicate that the bullish trend will continue for a long time. The only previous evidence that the price can surpass the $20,000 point is the previous bullish trend, back in 2017, where the resistance level could break at any time, as they are not strong enough.
Waiting in the current moment might be a positive signal for the market as it could establish a support level to move it to higher levels than before. Another important fact that we should highlight at this moment is that any investor in the current market situation is a winner as the price has almost reached its all-time peak. This means that every investor is happy with his choices but it depends on the accumulated return. In this case, every investor is different and "satisfaction" is determined by different numbers.
The trading volumes have made several spikes during the last days and it will probably need another one to surpass the $20,000 barrier. The moving averages are moving at parallel positions, with no indication of converging.
In the short-term diagram, we can observe that the "red" days have almost disappeared from the last period in the Bitcoin market. This means that even a "bad" day for Bitcoin was actually a positive one, as it continued to climb even by a little every day.
Indicators
MACD index stayed on a positive field but with small drops as the price didn't have the same explosion as before. The RSI index moved again above value = 80, indicating a change in the market trend and the pass to a bearish trend.
Ethereum / US Dollar
Ethereum followed Bitcoin in the trend-setting and though it didnt overcome the $600 barrier. At this point, we should highlight that Ethereum is merely on 60 % of its all-time higher value (around $1,000), showing that it didn't participate in the bullish trend from the beginning, losing a potential uptrend in the previous period. In any case, Ethereum seems to be in strong correlation with Bitcoin and a possible uptrend or downtrend from it will have a domino effect on the crypto market.
During the previous period, Ethereum's profits were much more significant than Bitcoin's profits but this changed during the current period as Bitcoin outperforms almost any other crypto asset in the market (at least from the major assets). If Bitcoin continues to rise, Ethereum will try to catch the previous all-time high level at $1,000, depending on the market dynamics and the bullish trend longevity.
The trading volumes are still on the rise while the moving averages seem to diverge even more at this moment.
Indicators
MACD index stops growing, for now, creating a waiting mode for the current positioning in the market while the RSI index starts to drop around value =75, indicating that a potential correction might be on the road.
Ripple / US Dollar
Ripple closed yesterday's session with another jump to $0.70, accumulating more profits for the holding positions. Ripple has experienced the most intense bullish period during the last months, showing that its fragile structure made it vulnerable to "attacks" of both sides (bullish and bearish). The current attack was bullish, showing that the market was ready to absorb those capitals and make the price to explode in the current price levels.
As the surge was fragile, we believe that the end of the bullish trend will find the price at the same levels of vulnerability, predicting a steep correction in the next period for it. In any case, we should see with critical thought any potential move in the Ripple, which was "sleepy" for a long period before waking up and decide to participate in the bullish market.
The trading volumes have peaked during the last days of 2020, creating more hype in the market while the moving averages have started to diverge even more in the current situation.
Indicators
MACD index continues to grow today, showing that the investing community has moved to the Ripple market in masses. The RSI index lands at value = 90, indicating that the asset is "overvalued" and the upcoming correction will be harder than ever.
Litecoin / US Dollar
Like the other crypto coins in the market, Litecoin didn't pass to a new high level but remained in the same position, just below $90. During the previous period, Litecoin was the closest cryptocurrency to Bitcoin, in terms of correlation and market movement, which made it to pass the bullish market much easier than the other coins. We expect Litecoin to continue to rise in coordination with the rest of the market, leading to positive results for everyone in the current situation.
Litecoin has no fundamentals to rely on for its surge and fall so the market dynamics will remain as the only source for its price formation. We believe that the market trend will remain positive, at least until Bitcoin reaches $20,000. After this point, it would be very difficult to predict any move in the market as there would be no previous record for that.
The trading volumes have made impressive progress during the last days, creating more and more hype in the market while the moving averages have created a large gap between them.
Indicators
MACD index starts to decrease during the last two days, showing that market momentum will slow down for this period while the RSI index is still on the "overvalued" side, raising concerns among investors about its trend viability and for how long it will last.
Bitcoin Cash / US Dollar
Bitcoin Cash is making hard moves to establish its bullish trend in the market but the negative correlation with Bitcoin at the start of the period made it less attractive to investors that want to ride the bulls. This means that Bitcoin Cash investors had to wait for more time to see profits in their portfolios than in other coins. The price tried to reach $350 yesterday but today it dropped around $340, showing that the price couldn't stand for long at these levels.
The support level around $320 might be a useful point for the Bitcoin Cash market to continue growing but there are more opinions in the market that indicate a more conservative position towards Bitcoin Cash and less exposure to it.
The trading volumes have made an impressive spike during the last 3 -- 4 days but we wait for more as the bullish trend continues. The moving averages have moved even far from each other.
Indicators
MACD index continues to grow 5th day in a row while the RSI index is nearly moving in the "safe" zone, just above value = 70.
Correlations
Bitcoin / Ethereum = 0.86 (+ 0.01), Bitcoin / Ripple = 0.80 (+ 0.01), Bitcoin / Litecoin = 0.97 (+ 0.01), Bitcoin / Bitcoin Cash = 0.67 (+ 0.05)
The correlations went on stable positions today as the prices have not moved towards decisive actions that could change the integration of the crypto market. At this moment, the market is quite cohesive (the only exception to be considered as Bitcoin Cash) and this could analysts and investors to predict the next moves in the market and create a winning portfolio according to his risk profile. Risk profiling is an important factor for selecting crypto assets in any investor's portfolio, indicating the amount of risk is willing to take up in coordination with the accumulated return.
Key Notes For Today
The entire market remained on yesterday's level with some stability to foresee in the current situation
The only exception is considered to be Ripple as it continued to move yesterday and landed at $0.70
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.
