The market has made a strong rebound of over 15 % during the last few days, showing that the situation in Ukraine and the instability environment could benefit Bitcoin and the crypto financial system.
As many analysts had proclaimed in the past, Bitcoin is an “anti-fragile” asset, whose value derives from the instabilities in the current financial system. Investors and users are looking for a trustworthy and decentralized system that can be proved as a robust solution when harsh times are entering the market. “Anti-fragile” was introduced by Professor Nicholas Nassim Taleb, which means that there are things in life that during turbulent times, they tend to get stronger than before.
Bitcoin has started to recover during the last days (since Monday midday actually), jumping above the resistance line at $44,000 and getting grabbed in the first recovery level at $44,000. This was the first expected point to be reached in a recovery trend. The next step in the recovery process is the pass to $47,000 – $48,000, which served also as a standing point for the market during December 2021.
Also, it was the major entry point for many institutional investors who started to explore the market for diversification reasons. We expect that the market will try to sustain the current position for some more time until there is more news or fundamental issues that will allow it to follow a stronger bullish trend.
The moving averages are about to meet each other, creating another bullish signal in the market. The trading volumes made another spike during Monday and Tuesday, which means that more new investors entered the market, hoping for the best-case scenario.
In the day-trading window, we can observe that the moving averages created 3 signals in the last 6 days. Two of them (the bullish) were proven right while the bearish signal proved to be wrong. This could give us a less successful strategy in terms of pure volatility but this is also a strong indication that we are moving deeper into a bullish trend.
A jump over 10 % happened in just 10 hours, showing that the market had already decided about the direction and the rest would be history.
Ripple doesn’t seem to bother from the uptrend position in the crypto market and remained on the same spot for now. Many times in the past, Ripple has shown that it could move independently from the market momentum and establish its path, without taking into consideration what happens around it.
This could be one of those times. In case it will follow the market later, the ultimate goal, for now, remains at $1.00. This goal would remain as the efficient frontier for the market as it would mark its return in the bullish zone and how it evolves through this process to higher levels.
The moving averages are close to each other but the bearish signal that appeared a couple of days ago has not been confirmed yet from the price moves. The trading volumes are moving up and down, without any outstanding move during the last days.
The consolidation that has happened over the last days in the Ripple market is remarkable as the price is moving between $0.70 and $0.85 for the last month. Looking closer at the diagrams above, we can observe that there have been larger volatility windows in the past months and the current price action can be considered boring.
We know from previous periods that any consolidating move could eventually lead to a breakout in any direction but at this point, the bullish trend in the overall crypto market could influence Ripple to take the bullish turn anytime in the short-term future.
In the day-trading window, we should examine if our lovely strategy about moving averages can be confirmed also in the Ripple market. From the 5 signals that came up in the last 12 days, three of them were proved right. This means that the money, a day-trader could make would be enough to cover any potential losses.
This pattern also shows us that there is a definite need to develop stop-loss orders if we are into day-trading schemes and we want to create a solid strategy for trading cryptos effectively. The reality is that the more volatility enters a market, the greater are the chances for a successful day-trading pattern to come up.
MACD index (Moving Average Convergence Divergence) has almost gone to value = 0, showing that the market is ready to pass on the other side, meaning that there is a high possibility for a bullish change in the market at this moment. The momentum will play a role in the next phases of development.
The RSI index (Relative Strength Index) was moving above value = 50, showing that the market had passed the phase for now and the expectations were settled at lower levels. At this moment, the index lies at value = 50, meaning that the price will remain on the same spot.
Bitcoin has capitalized its growth in the uncertainty produced from the Ukraine crisis, making the entire crypto market dance along with it. We would watch closely to find out what will happen next in the crypto space. The $44,000 price level was just the beginning.
Ripple has not been affected until now by the crisis and has sustained its projection around $0.70 to $0.80. If there is a growth potential due to the overall bullish environment, now it’s the time to act.
Read our previous Bitcoin Price Analysises here!
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