Price Analysis : After a Heated Weekend, the Crypto Market Returns on the Previous Levels !!!

Bitcoin's price tried to hit another peak during the weekend and it partially was successful as the price climbed up to $13,800. Today, the correction came stiffly, and the price landed at $13,300, making investors worry if another hit could be done through the trend continuity. This correction means that investors are not willing to take an extra risk through the price expansion which could lead the price to higher levels.

The correction was not steep enough to make the market shake in negative paths but there is a danger for this to be the initial spark for a new bearish round that will continue for a long time. This kind of market trend often follows a local or all-time high level and depicts the market perspective about Bitcoin's intrinsic value. The depiction of Bitcoin's intrinsic value in the market could change from time to time and investors think about it differently in different periods

The bearish trend could evolve in different ways. A steep correction is highly unlikely to happen as the market has accumulated enough depth to hold any bearish move in two levels. The first level lays around $12,000 which was the previous bullish level and many investors have entered the market at this level and don't want to lose their money or get devalued. The second and strongest level lays around $10,000, which a long-term support goal for Bitcoin, and it will break with many difficulties as there has been a lot of invested money in this level which will not be taken with ease.

The trading volumes have been considerably lower than in previous days, showing that the fall in the price is not correlated with massive liquidations or other side effects. On the other hand, the moving averages are still apart from each other, showing that a reverse in the price formation is a distant scenario.

In the short-term diagram, we can observe that the price got some volatile moves in the $13,000 level and above, which shows that the investors are willing to take extra risks and let the price to fluctuate at higher levels while risking certain stability in the price formation.

Indicators

MACD index is getting more and more hits, leading its path towards the negative field. At this moment, it is on the positive side, making a slight impact on the price formation as there is no major correction in the market. The RSI index moved below value = 65, which indicates that a bearish move could in the door.

Ethereum / US Dollar

Price Analysis

Following Bitcoin, Ethereum tried to reach the short-term goal of $400 during the weekend but it didn't manage to hold it for long. After hitting a price just below $400, the price dropped to $380, leading many analysts to believe that another bearish trend is coming over.

Ethereum's weakness in the current trend to establish a trend by itself could be harmful and it could make investors uncertain. This uncertainty could lead the market to more liquidations and the price to lower levels. These are the core elements for starting a bearish trend and its evolution will be determined from the formatted support levels during the previous period.

The first support level lays between $370 and $380, which was the step for the current bullish surge while the second support level is between $340 and $350, which is the long-term support line from the start of the second bullish trend for 2020. We believe that those two levels will be crucial for not letting the price slip further and if so, the drop will be much more predictable.

The trading volumes are still at a low level, showing that investors are disengaged from the market and look for alternatives in the crypto space. On the other hand, the moving averages will probably meet in the next days, confirming the bearish situation in the market and looking to create new standards in it.

Indicators

MACD index is getting more and more on the negative side, indicating that the price move will continue to remain negative for the next days. On the other hand, the RSI index moved around value = 50, meaning that the price will probably remain stable during the next days.

Ripple / US Dollar

Price Analysis

Ripple couldn't hold the $0.24 for long and it broke today, making the market to enter its bearish phase this time. The positive weekend for the crypto market was depicted as a stable movement in the Ripple market, making investors even more skeptical about its future.

If the price will not return to the $0.24 level, the bearish trend will be confirmed and the next major support level will be met around $0.20, which was the upper level for the previous stability phase. Ripple's independence from the rest of the crypto market is taken as a disadvantage at this point, showing that it is not able to capitalize on market trends during the current situation. The recovery will be much more difficult if the market is not willing to move according to market standards.

The trading volumes continue to plummet, showing that investors' interest continues to decline as the price is not developing. On the other hand, the moving averages, having formed a reverse "Golden Cross", start to move in the opposite direction.

Indicators

MACD index continues to drop every day, showing that market momentum is definitely on the negative side while the RSI index dropped below value = 40, making investors believe there is might be potential during the next period.

Litecoin / US Dollar

Price Analysis

Litecoin's price followed Bitcoin's dynamics, showing that there is a winning combination in any case. The price got stable at $53, making the $50 support level a long-term projection for the next period. The correlation between Bitcoin and Litecoin is crucial for the second's development and the price formation in the current period.

The support levels at $50 and $47 will be probably tested if the market turns in the bears while the trading volumes have been sustained at normal levels for the previous period. The moving averages start to bend for each other, showing that there is a potential reversal in the market trend.

Indicators

MACD index passed on the negative side, showing that the bearish trend has taken over the market and it might be the spark for starting one. The RSI index lays near value = 50, indicating that the market would be stable for the next days.

Bitcoin Cash / US Dollar

Price Analysis

Bitcoin Cash remained stable for the past days, fluctuating around $260 and $270. This stability period is depicting that investors still have mixed feelings about the crypto and wait for further signals to be activated. The $260 level has been seen before in the previous bullish market where it was the last support level.

The trading volumes are still trying to hold at normal levels while the moving averages will probably meet in the next days, forming a bearish reverse "Golden Cross'.

Indicators

MACD index is clearly on the negative side, indicating that there is a bearish mood in the market, without any outlook for change. On the other hand, the RSI index moved to value = 50, indicating short-term stability in the market.

Correlations

Bitcoin / Ethereum = 0.64 (- 0.09), Bitcoin / Ripple = 0.08 (- 0.01), Bitcoin / Litecoin = 0.87 (- 0.01), Bitcoin / Bitcoin Cash = 0.69 (- 0.07)

The correlations have a mixed direction during the last days, making the market to send different signals about the next moves. While Ripple and Litecoin remained stable towards their outlook regarding Bitcoin (Ripple at really low correlation and Litecoin at strong correlation), Ethereum and Bitcoin Cash dropped even more in the "medium" correlation zone, which a sign of further weakness shortly. Even if Bitcoin has not dropped in previous levels, the rest of the crypto market is trying to hold a decent position, without severe losses or tracebacks in previous bearish levels. If Bitcoin's support breaks out in the next days, the most possible scenario for the market is to massively collapse in the early 2020 levels, completing a full cycle for its price.

Key Notes For Today

• Bitcoin returned to previous levels after a bullish weekend

• Litecoin followed the same pattern

• Ethereum and Bitcoin Cash remained stable with negative outlooks

• Ripple broke the long-term support level and heads to a bearish trend