Bitcoin / US Dollar
The market made a small correction today, landing at $23,200. This level is sufficient for the market not to enter the bearish trend but create hope among investors for another strong finish before 2020 passes away. As long as the price remains above $22,000 doesn't break the $20,000 limit, there will be hope in the market for another uptrend.
As we have seen in this year 2020, as long as a certain price level remains in the market spotlight and doesn't fall to previous levels, there is a strong possibility for the coin to achieve new high levels. This trend derives from the fact that the market is "clearing" itself out of investors that want to liquidate their positions at those levels and after that, it is ready for new growth trends.
If the price remains at high levels for the entire 2020, we might see another uptrend from Bitcoin that will lead to another cycle for the crypto market. The new cycle will start from a new base than the previous cycles, creating more opportunities for any investor to acquire added value from it. We should wait until the end of the year to see if there would be another uptrend for new all-time high levels or the investors will decide that this cycle should end right away.
The trading volumes have been sustained at a higher level than expected, meaning that the market is under a war between bulls and bears for the final result determination. The moving averages are still apart from each other, meaning that the bearish trend is far from the establishment in the market.
In the short-term diagram, we can observe that there is a compression of around $23,000, which will be our indicator for the next period. This means that according to the market dynamics over the next days, there would be determined the established trend, bullish or bearish, and the price formation.
Indicators
MACD index is moving slower on a downtrend move but remains on a positive field. The RSI index remained on the "safe" zone, indicating that an uptrend move will bring the price at overvalued levels.
Ethereum / US Dollar
Ethereum experienced a major correction today, dropping below $600. This means that a psychological barrier broke down and showed that this scenario could turn on the bearish side very easily. At this moment, Ethereum has two minor support points in the bullish levels that could change any trend that emerges during this period.
The first support point lays around $550, which will be tested first in a bearish trend while the second support point lays around $520. Those two levels will be the key point for the current bullish move as its support will give a boost in the market for another uptrend. We can say that the current bullish trend started from $475, which is the initial position for the current trend.
In the next period, we will see how Ethereum will react in a similar situation and bring more knowledge about its behavior. The trading volumes are making some spikes, especially on the red days, indicating that a sell-off took place on those days. The moving averages have stayed at parallel positions showing small movements in the price section.
Indicators
MACD index dropped for the second day in a row, showing that the market momentum is now negative for the market while the RSI index moved at value = 50, indicating that no major moves will come in the market during the next days.
Ripple / US Dollar
As we stated in the title, Ripple seems to wake up from the bullish dream and face a reality check from the market. The price dropped from $0.45 to $0.27 in just a day, facing a 45 % correction and making investors abandon the market for now. The steep correction came as a result of overvaluation during the previous month. As we can see in the diagram, Ripple's price skyrocketed during the last month and tried to establish itself at higher levels.
This was critical for Ripple's success as its profitability and sustainability will be determined from this situation. The trend failed to establish any support level in-between the price levels and this results in the current crash. The next point for the market was $0.30, which broke also during today's crash and it will the main focus point for another uptrend that might follow.
We have also to underline that yesterday, SEC sued Ripple's founders for investor fraud and misleading, a fact that possibly affect negatively the price development.
The trading volumes have surged during the last days, indicating that more and more investors were abandoning the market and liquidate their positions while they are still in a profitable position. The moving averages are still at parallel positions in a bearish trend, showing that the trend will continue to set the tone in the market.
Indicators
MACD index continues to drop every single day, making the market momentum to work on the positive side. The RSI index reached the "undervalued" zone, indicating that these price levels might be the starting point for another bullish trend.
Litecoin / US Dollar
Litecoin remains the only coin in the crypto market, which remains faithful and loyal to the market leader, Bitcoin. Moving along with Bitcoin and its movements, Litecoin established its bullish trend during the previous period and enable its holders to accumulate more wealth in their portfolios. The strong correlation between Litecoin and Bitcoin enabled the market to remain near its 2020 high levels and take advantage of the current dynamics to sustain those levels.
The market dynamics seem to favor Litecoin and enable it to create more opportunities in the future. We expect the price to follow Bitcoin's moves and establish its next level according to that. At this point, we should highlight that the previous support zone lays between $70 and $90, which is the next follow back for the coin.
The trading volumes have skyrocketed during the last days, indicating that bulls and bears are fighting in the market for the eventual winner. The moving averages are way far from each other, a fact that gives us confidence about its next moves.
Indicators
MACD index continues to drop today but remained at a positive field while the RSI index moved around value = 60, indicating that the price might have a chance to surge during the next period.
Bitcoin Cash / US Dollar
Another steep correction took place in the market as Bitcoin Cash's price fell from $320 to $290 in just a day. This correction didn't break the frontiers of the current trend to bring new standards to the market. As we can see from the diagram below, the major support point lays at $265, which was tested twice during the last month.
We believe that the strong correlation between Bitcoin and Bitcoin Cash didn't allow the market to roll down at lower levels but there is still danger in the market to move in the bearish trend.
The trading volumes have surged at high levels during the last days, showing that the market is under a fight between bulls and bears for dominance. The moving averages are still apart from each other, showing resistance in the bearish outlook.
Indicators
MACD index moved in the negative field, creating more negative momentum in the market while the RSI index moved at value = 50, indicating that a stable trend will rise from now on.
Correlations
Bitcoin / Ethereum = 0.80 (- 0.10), Bitcoin / Ripple = - 0.40 (- 0.07), Bitcoin / Litecoin = 0.98 (- 0.01), Bitcoin / Bitcoin Cash = 0.80 (- 0.09)
After pre-Christmas correction, the correlations seem to drop, making the market to unbundle for now. On the one hand, Ethereum and Bitcoin Cash might remain in the "strong" correlation zone but they drop today, showing that the market might take a different turn if the bearish scenario takes over the market in the next period. Litecoin remained as the single "strong" correlated asset with Bitcoin, indicating that it could move along with it in any case. The opposite side is depicted in Ripple's case, which has fully transformed into a bearish coin, that couldn't hold the bullish levels at any point.
Key Notes For Today
Bitcoin experienced a small correction at $23,200
Ethereum faced another correction at $585
Ripple has a steep correction below $0.30, at $0.27, returning to the previous stability levels
Litecoin sustained its power and lands at $107
Bitcoin Cash had another correction at $290
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.
