Will Bitcoin Try $47,000 again?

News • 2021/09/27 • by

Bitcoin / US Dollar

Bitcoin managed to touch the $44,000 support line during the previous days, but the trend became negative again, drowning the price to $42,000.

The reaction was immediate for the market as the price climbed back again at $43,600.

The results show that the market has remained in conflict as it tries to hold the $44,000 point and build upon it.

This situation could be quite difficult as there is no serious effort from the institutional side to grow to $47,000 and above.

Single actions like Microstrategy’s multiple purchases have been a light in the shadows.

Still, other news like China’s ban on crypto transactions is shaping a shady environment for the overall Bitcoin market.

The most important indicator at this point will be the support above the $40,000 level.

If Bitcoin manages to stay above that level, a new cycle will probably start and deliver new positive results for the market soon.

The trading volumes made some jumps during the last week, showing that many investors took a chance to claim profits while the moving averages have been placed at a bearish position for now.

The short-term diagram shows that short-term compression is evident in the Bitcoin market, especially around the support levels.

The first compression is evident around the $47,000 level, while the second can be observed around the $44,000 price level.

Indicators

MACD index remained on the negative side, showing a lack of momentum in the market that could enable a better future for it.

The RSI index remained around value = 45, showing that the price will not make large fluctuations for the next days.

Ethereum / US Dollar

After breaking the critical level at $3,000, scaring off many investors about its future, Ethereum returned above the $3,000 level, forming another bullish triangle in the position.

The triangle formation is unfamiliar with the Ethereum market as the previous bullish explosion became possible through this move.

The main goal for the Ethereum market will be to return above $3,500, which will enable it to target the all-time high level again at $4,400 and establish a viable path towards it.

The trading volumes made some spikes during the last days, unfortunately at red days, showing that most trades were liquidations.

The moving averages are positioned in bearish formation, bringing the market in an unfavorable position.

Indicators

MACD index has made more dives in the negative area while the RSI index moved to value = 45, indicating that the market will remain on the same price levels but more possibilities to enter the bearish phase again.

Ripple / US Dollar

Ripple is always trying to prove that it can be acclaimed as one of the top performers in the crypto industry in terms of business development and price development.

Despite the SEC charges for illicit finance and fraud, the overall performance during the last months surprised many analysts as it climbed above $1.00 and touched almost $2.00, creating extreme profits for its holders.

Now, Ripple is making another effort to establish its price above the $1.00 level.

The price was settled at $0.96, creating a firm perspective that the market will start to climb again in the short-term future.

We expect that a small boost from stronger coins will severely impact the Ripple market and help it step up at higher levels.

The trading volumes remained in the same place while the moving averages descended in bearish formation.

Indicators

MACD index has grown during the last few days but remained on the negative side, showing a need for more momentum in the market.

The RSI index moved between values 40 and 45, indicating a possibility for another downtrend.

Litecoin / US Dollar

Litecoin continues the negative reaction in the current market situation as the price moved down to $150, stuck between the zone levels of $200 and $125.

Those price levels have made a close outlook for the Litecoin price as it tries to get more and more development without attracting further investment.

As we know from the past, the Litecoin network runs by itself without any support from the Litecoin foundation, so it remains a purely speculative tool that has been used to make money online.

From the technical perspective, the “Head and Shoulders” pattern seems to appear in the market, indicating a competitive move will be on the way.

The most common explanation for a “Head and Shoulders” pattern shows that a trend reversal is upcoming, and the most common scenario will be a turn from bullish to bearish.

In Litecoin’s situation, this could bring the opposite results.

The trading volumes are continuously improving while the moving averages are placed at bearish formation.

Indicators

MACD index is steadily on the negative side while the RSI index moved to value = 40, indicating that the situation will probably worsen in the next period.

Bitcoin Cash / US Dollar

Bitcoin Cash moved to $500, continuing the downtrend for more. The price moved to this point after hitting a local high level around $700 - $800.

Failing to do so create an instant downtrend that made the coin lose around 30 % of its value during some weeks.

Bitcoin Cash can’t make it to exit the downtrend and deliver more value to its holders.

Apart from that, its situation is not lucrative enough to attract potential investors.

The situation will not get better for now, and most investors don’t look amused from an investment perspective for this coin.

The trading volumes are getting better while the moving averages are positioned at bearish formation, having established a clear position for now.

Indicators

MACD index is trying to get back in the positive area while the RSI index moved to value = 35, indicating that more correction is on the line for the Bitcoin Cash market.

Dogecoin / US Dollar

Dogecoin has remained on the same spot for the last week, around $0.20, indicating that it is trying to connect with its investors and deliver more value to them.

Dogecoin is purely moving from investors’ speculative feelings, so another uptrend in the market will probably affect it in a good way.

The expectations are always low for its trend adaptation, but we must be favorable towards it.

The trading volumes are low, and the moving averages are heading side-by-side on negative formation.

Indicators

MACD index has gone on the zero lines, predicting another uptrend on the next period while the RSI index moved to value = 35, showing that the downtrend might continue for more.

Cardano / US Dollar

Cardano made the pump again, jumping to $2.21, after hitting a local bottom around $2.00.

The positive move showed that the Cardano market could move quite independently for the rest of the market and deliver optimal results for its investors.

Cardano could become a diversifiable approach in the crypto portfolio to hedge different options in it.

By its fundamental nature, Cardano is a direct Ethereum competitor, and potentially their prices will move to different ways as they are developed in the future.

Since last month, the trading volumes have increased, while the moving averages are still positioned at bearish formation.

Indicators

MACD index will try to pass on the positive side in the next few days while the RSI index moves to value = 45, indicating that the market will turn on the positive side.

Correlations

Bitcoin / Ethereum = 0.95 (+ 0.02), Bitcoin / Ripple = 0.89 (- 0.02), Bitcoin / Litecoin = 0.91 (+ 0.03), Bitcoin / Bitcoin Cash = 0.85 (- 0.02), Bitcoin / Dogecoin = 0.83 (- 0.05), Bitcoin / Cardano = 0.67 (- 0.09)
The correlation field has shown that every altcoin has moved along with Bitcoin during the last week, showing that the integration in the market is moving forward. Bitcoin’s effect in the market has been more obvious at Ethereum and Litecoin, while Ripple, Bitcoin Cash, and Dogecoin are also following. The only contrarian asset in this situation is Cardano, whose uptrend during the last days showed that it could move more independently for the rest of the market and establish a clear path for another trend on the higher end.