Price Analysis: The Support Levels Seems to Work, The Next Week Is Coming For More!

Another typical weekend for the crypto market and Bitcoin, as the price didn't make any breakthrough move or change direction. The price moved from $11,400 to $11,450, without much action in the market. This move has formed a parallel channel between $11,400 and $11,600, which might lead the market in the next breakout move.

As we have entered a bullish market since early September, the trend will not phase out in the next days as there is a need for more trading volume and sharp actions to take over the market. It is common for Bitcoin to surpass its previous high levels and create bullish trends that last for longer than expected. Taking into account that the previous high level for 2020 was around $12,400, we believe that the current trend will lead to a higher price than this.

A severe difference between the previous bullish trend and the current one is the intensity that the price has been through to reach a certain level. The previous trend had to overcome the mighty $10,000 resistance level, which broke with large trading volumes and extended volatility measurements. The current trend has significantly smaller trading volumes and lowers volatility, two facts that made the price to climb at a slower pace. This pace is giving room to the market to establish better structuring in the trading positions and let investors think about their next move.

The moving averages are still way apart from each other while an outbreak in the next week could make the price to reach $11,800.

In the short-term diagram, we can observe that the current situation in the Bitcoin market shows lower volatility days have been a consistent phenomenon during a waiting period. Increased volatility is always a signal of changing direction or price level and or it could mean that there is an upcoming trend change in the market.

Indicators

MACD index seems to bend over as the market momentum tends to lower during the last days, creating a stable outlook for the market. On the other hand, the RSI index reached value = 62, showing that the market has still a little more room to give in the next days for performing in the uptrend way.

Ethereum / US Dollar

Price Analysis

After trying to hit $400 and failing, Ethereum's price has started to fall apart, reaching almost $360. The weekend was promising enough this time and the price climbed to $375, making investors smile and breaking the correction mode in the market air.

This move was expected more or less from the analysts as the volatility measurements hold the price levels between $380 and $340, with a positive outlook for the next period. If the next period is strongly affected by Bitcoin, we will observe a severe rise in their correlation. This fact will lead the market to an integrated position with the Bitcoin market, following it to a potential bullish trend.

If the market continues to have pessimistic moods about the price development, then it will be possible to observe prices around $340, a negative scenario that might appear in a negative case where the market will collapse, without being able to recover. The moving averages have been progressively moving towards each other and a downtrend move will lead to a potential cross. This signal might be out of order regarding the general momentum of the market and mislead investors to take opposite positions.

The trading volumes are decreasing slowly, indicating a lack of interest from investors for the specific asset.

Indicators

MACD index is slowly decreasing and it is possible to see a reverse in the market momentum during the next days if everything is leading in that direction. The RSI index moved to value = 55, indicating a potential uptrend after a stability period, as it happens now.

Ripple / US Dollar

Price Analysis

The price lands at $0.24 and didn't break the support level as we told in previous days' articles. The $0.24 support level was formed during the last month and didn't break except for a moment in the last days of September. This means that this particular price level has a lot of trading volume in it and a severe market depth has been developed, leading the market to sustain this level for a long period.

On the other hand, this price level has gathered a lot of compressions which is crucial for developing the price at higher levels with sustainability. The compressed power will be released in the next period, according to the market dynamics. The previous mini bull run was not very successful as it couldn't break previous resistance points in the market. In parallel with that, the Ripple -- Bitcoin has dropped severely, leading many analysts to believe that a future Bitcoin uptrend will not affect Ripple and leave it outside from the positive trend.

The moving averages are on crossing route and they will probably form a reverse "Golden Cross" signal if the market continues towards the current trend.

Indicators

MACD index passed on the negative side, showing that the market momentum has changed and we could see a change in the price formation that will distract investors from this particular market. The RSI index dropped down at value = 45, indicating potential stability in the next days.

Litecoin / US Dollar

Price Analysis

The mid-term support level at $47 worked out and the price fall stopped at this point. We hope after this move, the price won't move to lower price levels as there are indicated in the diagram. A move like that could be translated to a turn in bearish paths, where it could set Litecoin apart from the rest of the market which has sustained certain price levels and is getting ready for the next bullish trend.

The moving averages are moving in parallel, showing that there is a stable mood in the market while the trading volumes have spikes on certain days, showing the back and forth from different investors in the market.

Indicators

MACD index moved towards value = 0, indicating a stable outlook during the next days until the market finds its way in the new direction. On the same page, the RSI index moved below value = 50, which indicates stability in the market for some days also.

Bitcoin Cash / US Dollar

Price Analysis

The correction stopped around $250, indicating that the market needs more support in the current levels to continue to stand and develop the price at higher levels. The support level at $225 was holding strong in the current situation and the price will continue to be at the current levels. This means that a future uptrend in the Bitcoin market will allow Bitcoin Cash to be the winner in a future bullish trend as it was Ethereum in the previous bullish trend.

The trading volumes were higher than in the stability period, showing that the price will move in a changing way during the next days. The moving averages are moving in a parallel way, showing that the market is moving in the same direction as before the correction.

Indicators

MACD index is moving in the positive area but with decreasing momentum as it is depicted in the price formation while the RSI index dropped even more, below value = 60, indicating a potential drown in the next days unless there is a change in the overall market momentum that will start from Bitcoin.

Correlations

Bitcoin / Ethereum = 0.94 (- 0.01), Bitcoin / Ripple = 0.49 (- 0.17), Bitcoin / Litecoin = 0.86 (- 0.06), Bitcoin / Bitcoin Cash = 0.91 (+ 0.01)

The correlations went on the mix during the weekend as Ethereum and Bitcoin Cash continued to remain on the same levels as before. On the other hand, Litecoin and even more Ripple's correlations dropped heavily, as the two cryptocurrencies are moving towards milder reactions in the correction period. As the entire crypto market moves towards a stability period, some altcoins are correcting at a larger scale, leading investors to extended liquidations. These moves are pushing the cryptocurrencies to lower support levels where there are opportunities for new entries in the market.

Key Notes For Today

• Bitcoin remained steady through the weekend, adding more compression to the market

• Ethereum and Bitcoin Cash stopped correction modes and enter stability trends during the weekend

• Litecoin looks for a new direction as the market momentum is near zero

• Ripple seems to be in a bad situation, loons for new entries to revive