Crypto Frontline

Weekly Analysis January 15th-21st 2018

Weekly Analysis January 15th-21st 2018

January 23
14:45 2018

Bitcoin

The Bitcoin price had been under pressure for the last week, as regulatory pressures from China and South Korea had made buyers reluctant to buy the cryptocurrency. China is looking to expand the scope of its cryptocurrency exchange ban that was set in September 2017.

bitcoin

Source: dailyfx.com

All altcoins had been under pressure and we can see significant drops. In the case of Bitcoin, the price action dipped below the 10,468 low that had been established in December 2017. The downside had been capped by 9,500 area and since then the buyers had resumed, erasing a part of the weekly losses. Since the price action broke below the December low that communicates the sellers are the ones in control and we could see the downside extending in the next few months. Since January 17th the price managed to recover, but sellers seem to rejoin the trend around the 13,000 area. The next resistance area above that one is around 14,000 and sellers are expected to sell on rallies. On the downside, the previous monthly low and support located around 10,468 are expected to attract buyers’ attention. Below it, 9,500, where the current monthly low is located, should follow. There is interest to buy after each strong dip, which shows there is still demand for Bitcoin.

 

Ripple

Ripple had been hurt pretty badly in the last week, dipping from 1.80 area towards a 0.89 area, as the cryptocurrency selling across the whole world resumed impulsively. The enthusiasm that ruled the market last year seems to have faded and the bubble that a lot of analysts suspected is now bursting. From the peak made at the beginning of the year, located around 3.35, Ripple is around 60% lower at the time of writing. The extreme volatility that characterizes cryptocurrency is showing its teeth and all crypto enthusiast are now underwater if they bought coins in the second half of last year.

ripple

Source: dailyfx.com

The regulatory pressures are weighing on Ripple as well and we could see downside pressure driving the price towards 1.26 or 0.88, where two strong support levels are located. On the upside, resistance had already emerged around 1.60 key area we can see the price is currently dipping. Only if the bulls will manage to break impulsively above it we could see some further gains towards 2.15 resistance level. However, since the selling had been impulsive this week, we expect the market to test at least once the lows that had already been made. Only if the buyers will manage to prevent any further slippage we can see some stronger rebound and solid gains.