As we have mentioned in previous articles, weekends are boring periods for crypto trading, as usual, nothing happens. This weekend was something different. All cryptos rose at extreme rates, creating new trends and establishing new features in the market that we should be aware of in our analysis from now on. Let's begin !!
Bitcoin / US Dollar
Price Analysis
A major breakout happened during the weekend for Bitcoin as the price broke the $10,000 resistance level, laying around $10,200. The $10,000 resistance level was a crucial point for Bitcoin as it tried to break it 2 or 3 times during the last two months but unsuccessfully. Last week was overall positive for Bitcoin and the continuous positive days capitalized in the major breakout for the new trend shaping.
The "Golden Cross" signal was proved correct, giving signal around $9,400 and laying around 8 % profit margin for the last 5 days. A significant fact that we should point out is that the trading volume is rather low in terms of uptrend or downtrend, comparing to similar moves made in the past. This means that the market lack of investors that are willing to stand up against the price rising. The lack of bearish investors means that the market is entirely positive and there is a high potential for more rise in the next days.
The new trend formation will be determined in the next days. $10,000 is a crucial point for the market as many investors are willing to liquidate their positions in Bitcoin and rise their positions for a potential uptrend in the future. This means that the price will correct between the parallel channel and the price will return to normality. On the other hand, if more and more investors enter the market, the price will rise even more and new trends will be formed in the market.
In the short-term diagram, we can observe that the price compression was followed by a major move (this time was positive) that was fueled from the altseason's profits. The price was moving very slowly during the last 3 weeks but the last week was uptrending, indicating a change in the trend formation. We should wait and see if the price will correct in the next days or it will boost for more.
Indicators
MACD index is solely positive, showing that the momentum tracker was up the zero lines and give a clear positive trend during the last days. On the other hand, the RSI index gave an "overbought" signal in the market, showing that there is a possibility for extreme liquidations in the market after investors claim their profits.
Ethereum / US Dollar
Price Analysis
Ethereum is definitely the winner asset during the last weeks. The price rose both in the altseason and now in the positive market trend. The price topped around $320, recording profit margins up to 30 % from the last local high, a week ago at $240. The "Golden Cross" signal was proved right this time, recording profits around 30 %.
The volume is considered pretty high according to previous circumstances, showing that the market is betting heavily on Ethereum. The heavy rise might indicate that many investors are willing to claim their profits and withdraw their positions, leading the price to immediate correction. We should also note that the rise occurred after the "quadruple high" signal, which does not often appear in crypto markets. We should wait for a heavy or small correction in the next days unless there is the entrance of new investors in the market that will drive the price on new levels.
Indicators
MACD index is moving in new highs for 2020, showing that the momentum effect is working on and the price was driven by that. On the other hand, the RSI index is showing a really heavy "overbought" signal, showing that a price correction is highly possible in the next days. The signal is getting stronger and stronger over the last days and we should be aware of it in terms of entering the market.
Ripple / US Dollar
Price Analysis
Another winner in this situation is Ripple. The crypto moved at $0.22, establishing a second positive line after the first one during the mini -- altseason. The first positive trend-line broke the bearish parallel channel while the second positive trend-line broke the second parallel channel and formed a two-step positive trend. The two parallel channels created enough compression in the market to give a major move in the next days and this happened over the last week.
The "Golden Cross" signal was proved right this time, recording profits around 10 % since then. The volume is on the same as the sharp moves indicate, showing that Ripple investors are moving more efficiently, compared with other cryptos. It is important to highlight that Ripple was the least correlated asset with Bitcoin, showing signs of diversification during the previous periods. This changed during the second uptrend as Bitcoin positive returns turn the market on and every cryptocurrency starts to give positive returns to investors. We expect the Ripple to follow Bitcoin's price in the upcoming days, creating a new trend in the market.
Indicators
MACD index was overall positive for Ripple during the entire July, creating positive momentum in the market while the RSI index is moving closer to an "overbought" signal that might affect the price in terms of correction. The previous "overbought" signal was proved correct during the last bearish period, indicating the start for a new bearish market. Most signals in the crypto market are moving towards this direction and we should aware of it for the next period.
Litecoin / US Dollar
Price Analysis
Litecoin broke the parallel channel in its case with a strong bullish move from $44 to $48 in just one day. The new high was matched with the previous higher point during 2020 around early-May at $48. This means that $48 is a crucial point for Litecoin that will follow the rest crypto market and wait to see if there is more fuel in the market for an uptrend. We should point out that there is a possibility for correction in the market as a local high needs more fuel to overcome than other signals.
The "Golden Cross" signal appears in the market, canceling the previous reverse "Golden Cross" signal, which in its turn had to cancel the previous "Golden Cross" signal. This sequence of signals showed that the market is confused and looks for a clear direction in the future. We should highlight that the volume was peaking during the rise, showing a mass entrance of investors during this period.
Indicators
MACD index is clearly positive, showing that Litecoin is moved from a clear momentum uptrend that might hold for a little more. The RSI index touched the "overbought" signal but backed off, showing that the price might move downwards for a little. We should note that the RSI index hits its peak for 2020, indicating a strong momentum in the market right now.
Bitcoin Cash / US Dollar
Price Analysis
Bitcoin Cash might rose during the weekend but it didn't break its parallel channel. This point was crucial for Bitcoin Cash as it couldn't form a new trend in its market and lost possible momentum from the entire crypto market. Bitcoin Cash's weakness to broke out the parallel channel might show that is possible to break it during a second try when other cryptos corrected or it would collapse in the parallel channel.
A "Golden Cross" signal appeared in the marker also, indicating that there is a possibility for more uptrend in the market if there is more fuel for the investors. We should point out that volume was not extremely high regarding the uptrend and this should be worrying for crypto investors who want liquidity in the market.
Indicators
MACD index moved on the positive side entirely while both lines are now positive, indicating a clear momentum in the market. The RSI index is moving towards the "overbought" area but there is still a way for it. This means that things are pretty unclear in the market and we should wait for more.
Correlations
Bitcoin / Ethereum = 0.97 (+ 0.03), Bitcoin / Ripple = 0.94 (+ 0.30), Bitcoin / Litecoin = 0.88 (+ 0.10), Bitcoin / Bitcoin Cash = 0.86 (+ 0.15)
The correlations between Bitcoin and the other cryptocurrencies rose extremely during the weekend, showing that the market is moving in the same direction while the integration has topped, showing no evidence for any coin to diverge from each other. The divergence of the market means that we are entering a common bullish trend that will shape the next period for the crypto market. In the next days, we will find out if Bitcoin and other cryptos will continue their positive trend or they will break down in previous support levels.
