Bitcoin / US Dollar
Price Analysis
Bitcoin's price has reached a crucial level during the weekend, where different scenarios could take place in the upcoming week. The $11,000 point was the starting point for the previous bullish run and as it reached this time, there are different scenarios for Bitcoin's next steps. At any crucial point in the market, there is a bullish and a bearish scenario to follow and we should examine both of them.
The bullish scenario indicates that investors have made Bitcoin up until now and more investors are willing to enter the market and create a greater hype in the field, driving the price to higher levels than in the previous bull run. This scenario is boosted from the fact that the major support line was formed above $10,000 while the previous bull run was started from a parallel channel between $8,600 and $10,000.
The bearish scenario indicates that investors will liquidate their positions after hitting the $11,000 point as they enter the market in the support line around $10,200. This scenario is less possible but if there is an initiator in the situation, the bears could take the upper hand and create a downtrend that might last some days. This scenario is supported by the fact that the trading volumes are still low, taking into account that the price is in bullish mode.
The neutral scenario suggests that the price will remain stable for some days, in the $11,000 point until there is more evidence about what is going to happen in the next period. We should also take into account that a "Golden Cross" signal appeared in the chart, creating a bullish mood for Bitcoin as there are severe possibilities for another bullish run that will surpass the previous price levels.
In the short-term diagram, we can observe that the current bullish trend seems to be much smoother than in the previous bull run, showing that the market depth is more sustainable and could create more opportunities for the investors.
Indicators
MACD index has stopped to overcome itself in regarding surpassing new highs in the momentum standard but we believe that this momentum will be decreased but remain in the positive zone. On the other hand, the RSI index lays at value = 50, showing that a bullish trend has a lot of space to move on and the possibilities are on the Bitcoin's side.
Ethereum / US Dollar
Price Analysis
The mid-term support level has established itself in the $370 - $380 zone, showing no evidence that this is going to change in the next days. Even if there are several scenarios for breaking the support line, we believe that Ethereum will hold the line until there is another round of surging, creating from Bitcoin's profits. As we have mentioned several times in previous times, Ethereum is the winner for 2020 as its returns excess every cryptocurrency, at least from the major ones. Creating a new support line at higher levels than before, we should expect that the next trend will surge even more, creating more profits for investors.
A sign that the bullish trend is not far from that point is the upcoming "Golden Cross" signal that might appear in the chart over the next days, creating a bullish mood for prospective and existing investors. We should also be careful because previous "Crosses" were not proved right, showing that the technical signals are not always trustworthy and should be connected with other technical indicators before taking an investment decision. In parallel, the trading volumes remained low during the previous days, showcasing that the stability period will remain on the market for some days.
Indicators
MACD index passed on the positive side, creating a bullish reverse for the next days. If the MACD proved right, we should expect a firm rise over the next days. On the other side, the RSI index moved to value = 50, indicating that the stability period will continue, at least for some more days.
Ripple / US Dollar
Price Analysis
Ripple's price surge is much smoother than in other cryptocurrencies, creating a new standard for the market. The smooth surge has created a new support line that could hold the price in downtrend times. The bearish trend is highly unlikely to start at this moment but we should take into account that a long stability period might lead to both ends in terms of returns.
The "Golden Cross" signal is not far from happening, given that the situation will continue at the same pace, without any major event that will happen in the midway. A signal like than will be the preparation of the next bullish period in the crypto market and will make investors more willing to enter at this point. The trading volumes are still at stability levels while most analysts believe that Ripple will not follow the market at the same pace if a new bullish period starts over.
Indicators
MACD index moved on the positive side, creating a bullish mood among investors who believe that the market momentum has changed and we are in front of a tremendous opportunity for new positions in the Ripple market. On the other hand, the RSI index moves at "pessimistic" values around 45, indicating that there is room for growth if a bullish trend appears in the market.
Litecoin / US Dollar
Price Analysis
Litecoin has not much action to show during the weekend, even if the mid-term support broke for a little. The $48 support level was mid-term support that possibly leads to the next support level, the $46 point, which served as the long-term resistance line in the stability period for 2020. The market stability is also evident from the trading volumes which are much lower than in the previous period.
The moving averages are still way behind from crossing each other and this is giving us time to think about a new investment in the market or expand our current one or liquidate a position that we already have. The waiting is leading to new outcomes for the market in the next period and we will be here to explore them in new articles.
Indicators
MACD index passed on the positive side, showing that the stability period is creating merely positive momentum for the market. This move shows that there are possibilities for passing towards a bull market in the next days and we have to be cautious about it. The RSI index moved to values below 40, indicating that a bearish trend could take the market by surprise and make investors' life much more difficult than before.
Bitcoin Cash / US Dollar
Price Analysis
The long-term support level around $225 has not broken during the last days, indicating that the market has sustained enough depth at this point and the next move will possibly be a bullish one. For this thing to happen, the entire crypto market should move towards a single direction and make Bitcoin Cash a part of it. If this didn't happen, then Bitcoin Cash will move towards a bearish scenario that will be a huge discount for many investors.
The trading volume remained at low levels while the moving averages are getting closer to each other, creating an opportunity for investors that look for the next winning coin in the crypto market. The next trend will confirm or reject our analysis and make us wiser about the crypto's future at all.
Indicators
MACD index has passed on the positive side since Friday but this was not depicted in the price trending. On the other hand, the RSI index moved to values below 40, indicating that a bull market is still on the frame for taking a hit in the next days.
Correlations
Bitcoin / Ethereum = 0.85 (- 0.03), Bitcoin / Ripple = 0.87 (- 0.08), Bitcoin / Litecoin = 0.72 (- 0.18), Bitcoin / Bitcoin Cash = 0.85 (- 0.10)
The correlations start to reduce during the weekend as Bitcoin's surge seems to differentiate the cryptocurrency from the rest of the market, creating hopes for a different positioning during the next days. The heavy effects of correlation unbundling are not visible yet but we believe that profits from Bitcoin trading will be moved to other cryptos, creating another cycle of surging in the market. As we have seen this scenario, several times in the past we expect that the cycle will emerge in the next period, where the technical signals will appear. We believe that Bitcoin will continue to surge for some days and then the surge will stop to give more room for other cryptos to rise also.
