Bitcoin / US Dollar
After hitting a 2020 high level at $18,000 yesterday, Bitcoin's price corrected today, reaching $17,800 without pushing the market to new high levels. We know that this is a normal reaction in the crypto market as the constant bullish action in the market needs some stops for refueling and adjustments in the market structure.
After many winning days, with a lot of green signals and an optimistic outlook, the price took a small stop that made the market to lower its engines. This situation could be a stable signal for the Bitcoin market until there is a different approach that will determine the next direction for the market. A bullish approach will be more sentimental and will be driven by the fact that many analysts and investors want to see Bitcoin again at $20,000 and above. This approach will create emotional pressure in the market and might drive the price at higher levels for a short time period.
On the other hand, some investors will believe that this would be the peak for Bitcoin's bullish trend and they try to sell their positions, claiming profitable trades from their side. The most possible scenario for us is somewhere in the middle, as we expect a short-term stability period for Bitcoin, before releasing a new bullish jump that will reach the $20,000 level. From this point and on, there is a different conversation to be held, with different perspectives.
The trading volumes remained at high levels for the last days, indicating more action to be held in the current market situation. The moving averages remained in parallel positions with no changes in it.
In the short-term diagram, we can observe that the positive days continued for the 4th consecutive day, showing that the market momentum has not been stopped even at the last moment. The only "red" days in the market made small tracebacks were separated from consecutive "green" days, which means that the bullish market is making an impact on the price formation.
Indicators
MACD continues to rise for the third consecutive day, indicating that the bullish trend has not been halted or try to correct back to previous levels. On the other hand, the RSI index moved to value = 80, strongly suggesting that the investors should consider selling the asset.
Ethereum / US Dollar
The price didn't manage to hold the 2020 high level at $480 and make a small step back at $475. This means that there are not enough dynamics in the market that would make the price or the momentum strong enough to establish higher price levels. As we mentioned in yesterday's article, passing the $480 level will be a crucial time for Ethereum as it will open the gate for a new bullish era.
This didn't happen today as there was not enough momentum that could drive the price at higher levels. We believe that the bullish trend will continue according to Bitcoin's momentum and trend. If the bullish trend in Bitcoin continues to exist, there is a severe possibility for Ethereum to break the $480 level and add a new bullish story in its period.
On the other hand, failing to prove a steady bullish trend in the recent period, investors might get discouraged from the ongoing process and decide to leave Ethereum, leading it to further downtrend, even at $400. The trading volumes were increased during the last day, showing that many investors decide to liquidate their positions when Ethereum reached the 2020 high level while the moving averages have started to move on a convergent curve.
Indicators
MACD index was decreasing during the last two days but remained on a positive field, showing that there is still some positive momentum in the market. On the same page, the RSI index has moved between values 60 and 65, showing that a future uptrend should be included in the conversation.
Ripple / US Dollar
After reaching the ultimate goal for 2020, Ripple is trying to build on it and establish the price at these levels to gain more attraction and traction. This is a positive signal from the Ripple market as the price didn't correct immediately after reaching $0.30 but it builds on that and tries to maintain these price levels.
If those price levels got sustained for more time, we believe that this would be a positive signal for the market as it could be built more momentum for the future. In parallel, it will enable the market to capitalize on future bullish trends from Bitcoin and start its rise from a higher level. In the opposite and less likely scenario, Ripple will fall around $0.26, which is the upper side of the parallel channel, formed during the last two months. The trading volumes have surged during the last period, indicating that investors have tried to take advantage of the bullish trend. The moving averages are still in the same space, with no further escalation.
Indicators
MACD index rose again today, showing that there is increasing momentum in the market while the RSI index moved again in the "overvalued" zone, indicating that $0.30 is considered a high level for Ripple and the price might correct from day to day.
Litecoin / US Dollar
Litecoin was a nice surprise for today as it breaks another record for 2020 and reaches $79. The new high level for Litecoin made investors more than happy and increase the prospects that they have for it. Litecoin, that many analysts believe is driven purely by market dynamics, made an impressive run during the last week, accumulating profits that reach almost 50 %, in a matter of days.
It would be normal for Litecoin to correct at this point but the market dynamics will also show that there is a possibility for a further uptrend in the next period. This will be determined for market cohesion and how it will shape the future market formation. The trading volumes have skyrocketed during the last days, showing that there is a tremendous amount of interest for Litecoin while the moving averages are diverging even more, following the established bullish trend.
Indicators
MACD index continued to grow for the fourth consecutive day, making the Litecoin market the most profitable for the last period. The RSI index, as expected, moved in the "overvalued" area, creating a consciousness effect on the market and the investors.
Bitcoin Cash / US Dollar
Bitcoin Cash stopped the fall at the support level of around $245, showing that there is still hope for the market. The support level worked several times in the short-term past, showing that there is also a possibility of breaking down in a similar situation in the future. As the correlation with Bitcoin is in a negative field, we are not sure of what to expect in terms of the market dynamics effect.
We believe that Bitcoin Cash's price will test the $245 support level even more times while a bullish scenario will probably lead the price towards $300. This scenario will be a realistic one if more and more investors decide to move into the market and bet on the coin's surge. The trading volumes are moving at normal levels while the moving averages are at a bearish position.
Indicators
MACD index fell for the second straight day, creating an even more negative mood in the market and preparing investors for another bearish period. The negative feelings are also evident in the RSI index as the price lays around value = 45.
Correlations
Bitcoin / Ethereum = 0.91 (- 0.01), Bitcoin / Ripple = 0.94 (+ 0.02), Bitcoin / Litecoin = 0.93 (+ 0.02), Bitcoin / Bitcoin Cash = - 0.20 (- 0.01)
The correlations didn't change a lot since yesterday as there is no major event that made the market to change its previous direction. Ethereum, Ripple, and Litecoin continued to remain in the "strong" correlation zone, showing that any bullish or bearish trend that might appear in the Bitcoin market will be followed. This could be a crucial factor for the entire crypto market as a bearish trend will find investors with no alternative choices but to withdraw their funds from the market. Again, the exception in this trend remains Bitcoin Cash, which didn't manage to follow the bullish trend and waits for the next move in the market, to decide what will be done.
Key Notes For Today
Bitcoin remained $18,000, landing at $17,800
Ethereum minor corrected at $475
Ripple remained on the same levels around $0.30
Litecoin made the difference in the market and surged at $79
Bitcoin Cash bounced at the $245 support level.
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.
