Bitcoin / US Dollar
The price managed to rebound to the previous compression point around $57,500, indicating that the support level above $50,000 worked great. Once the support level was strong enough to absorb any bearish move, the new bullish jump was ready to smash another turn to reach the previous levels. As was expected, the price returns to the compression point but the current situation has two scenarios in front of it.
The bullish scenario indicates that the market will continue to thrive, onboarding more customers and creating larger pools of capital that will enable the price to climb further and potentially establish a new all-time high level. This will become possible if there is a massive inflow in the market that will derive from a new statement from a larger organization that will place a significant amount of reserves in Bitcoin or a new movement in the capital markets.
The bearish scenario will sustain more stability in the current situation and will probably bring the market to a level when the fatigue will be much stronger. Any fatigue will make the momentum blow away from the price formation and will make the price correct at lower levels. The only way to cope with any fatigue issues is for the price to be on constant move and deliver new results.
The trading volumes have remained at low levels, indicating that there would be a need for more traction to drive the price at higher levels. This means that any bullish move in the current period won’t be sustainable enough if there is an accompanying volume with it. The moving averages are at bearish positioning but this could change in the next days' span.
In the short-term diagram, we can observe that the market has entered the space above $50,000, which means that the market has moved even higher its projected depth, establishing a higher level of acquiring users and investors in those levels. We expect that the new price levels will become a standard for the market structure.
Indicators
MACD index remained on the negative but it continued to rise, giving more hope in the investing community that the price boost will be fueled by the momentum factor also. The RSI index moved between values 55 and 60, showing that the market has remained in a stable mood but with a positive perspective.
Ethereum / US Dollar
A positive reaction was prescribed in the Ethereum market, as its price climbed just below $1,800, which was the crucial point for the market to return in the bullish path. The bullish path will be examined from the price’s stance around these levels.
If the $1,800 point stands firmly, there would be another compression trend around this level until there is a major move in the market that would determine the next price formation phase.
We expect that if Bitcoin tries to break its all-time high level, then Ethereum will copy this move and try to make the same price move.
On the other hand, if the compression trend around $1,800 lasts for too long, we believe that we will observe another bearish round according to the existing support levels. The bearish scenario will be accompanied by sudden moves in the volume area, with large sell-offs and a period of silence, which will indicate that investors will try to abandon the market as soon as possible.
The trading volumes have continued to drop, despite the current favorable situation, showing that the market cannot create a sufficient amount of trading volume to sustain a better outlook for the price formation. The moving averages are at bearish positioning but the two lines are close enough for this to be reversed.
Indicators
MACD index is growing but it remained in the negative area, indicating that the market momentum is unable to add more value in the price formation process. The RSI index moved between values 50 and 55, which a signal for short-term stability.
Ripple / US Dollar
Without any significant fluctuations in the price formation, Ripple has sustained its outlook for the market development, landing at $0.56. Those price levels look familiar to Ripple investors as they have been observed twice in the previous periods. The situation was repeated twice in the past, bringing the price to lower levels.
At this moment, the market has become an independent trend in the crypto market, indicating that the market will set a different pace in the market formation, making any prediction more difficult than ever before. The price formation process will be affected most by the intrinsic news that will come up in the future and also from the SEC case’s resolution.
The trading volumes have lowered even more at this point, highlighting the same issue with other cryptocurrencies. The moving averages are positioned at bullish formation, indicating that the bulls are trying to establish a better position in the market.
Indicators
MACD index has remained in the positive area, bringing more positive momentum in the market formation. The RSI index has moved around value = 60, indicating that the market has more positive energy to bring on and drive the price at higher levels.
Litecoin / US Dollar
The recovery actions were also evident in the Litecoin market, as the price climbed back to $195. Even if this was a positive move for the Litecoin market, there is a need to climb at higher levels, at least around $200 - $210 to establish a better bullish position in the market formation.
The $200 - $210 level was crucial for the Litecoin market development, in a similar scenario with the Ethereum market, as it stands below the all-time high level and it will become the step before achieving another one. For this reason, reaching this level and sustaining it will become a critical point about whether the market will continue to grow in the bullish road.
The trading volumes have continued to move at low levels while the moving averages have remained in the bearish formation, trying to find a new way to reverse this move and establish a bullish path in it.
Indicators
MACD index has remained in the negative area, while it is growing to pass on the other side. The RSI index moved between values 50 and 55, showing that the market has moved in a stable mood with some positive outlook for the market.
Bitcoin Cash / US Dollar
Bitcoin Cash is trying to find its way back in the bullish path, reaching the first goal of around $520. This means that the market is not ready yet to establish a higher position at $600 probably but there positive steps towards this side.
We believe that any move in the Bitcoin or Ethereum market will add positively to the market formation and it will bring a milder approach in the price movements.
The expectations about Bitcoin Cash’s short-term future are correlated with the momentum in the above-mentioned markets, indicating that the technical features will have less power in case of a strong move.
The trading volumes have remained on the lower end and the moving averages have developed a bearish position, indicating that the current move won’t be sustainable for long enough.
Indicators
MACD index moved to value = 0, showing that the market won’t move easily from this point while the same was confirmed from the RSI index, which lays around value = 50.
Correlations
Bitcoin / Ethereum = 0.94 (+ 0.21), Bitcoin / Ripple = - 0.35 (+ 0.03), Bitcoin / Litecoin = 0.86 (+ 0.03), Bitcoin / Bitcoin Cash = 0.89 (+ 0.09)
The rebound in the Bitcoin market brought different reactions from the rest of the market, shaping a different environment from what was like in the previous week. The most important change in the crypto market is Ethereum’s comeback in the strong correlation zone, meaning that the coin will try to copy any bullish move in this period and deliver better results for its holders.
Litecoin and Bitcoin Cash strengthen their positions, managing to capitalize on the recent bullish rebound, bringing more power in the correlation zone. On the other hand, Ripple has remained on the same price levels, indicating that the action in the rest of the crypto market is not affecting it at all.
Key Notes For Today
- Bitcoin climbed back at $57,500
- Ethereum tries to reach $1,800, landing at $1,750
- Ripple remained at $0.56
- Litecoin moved at $195
- Bitcoin Cash made a rebound at $520
