Crypto Frontline

Weekly Analysis January 22nd-28th 2018

Weekly Analysis January 22nd-28th 2018

January 28
09:18 2018

Bitcoin

For the last seven days, the Bitcoin price had traded in a narrow range, between 11,800 and 10,000. Since the beginning of the year the digital currency is under heavy pressure and the performance we can see for the last week, points towards the fact that buyers are still weak and a new round of selling could prevail. The move looks like a consolidation and sellers might be taking it as a new opportunity to get short. If that will be the case, 10,500 could follow as support and if a break below it takes place, further slides could be seen towards 9,400, where this year low is located. Judging by the current price action structure, we expect the yearly low to be revisited again in the short-term.

Source: dailyfx.com

On the upside, resistance is expected around 11,800 and if the buyers will find enough power to break it, 12,800 will be next.

Ripple

Very similar to bitcoin, Ripple price had a poor performance last week and traded in a narrower range. The cryptocurrency market had been hit by news regarding the biggest hack of a cryptocurrency exchange from Japan –CoinCheck. The damages are estimated to around $530 million and all cryptocurrencies had been under pressure following the news.

In terms of technical analysis, so far the Ripple price found a short-term support around 1,14 area and we can see two rejections off that level. However, the reaction had been weaker lately, which means the buyers are not willing to step in aggressively at the support. If a breakout lower will take place, we expect the price action to head towards 0.90 area, where this year low is currently located.

Source: dailyfx.com

On the other hand, if buyers manage to rebound higher, resistance is expected around 1,47 or 1,71. Both areas generated selling pressure in the past and that scenario could be the same in case the buyers drive the price there.

 

Litecoin

The Litecoin price is still subdued as the reactions from the bulls are weaker and weaker. For the last four days, the buyers could barely 14 dollars higher, which is very small, considering how the coin performed last week. We believe there is room for a new round of impulsive selling and the price action could head again towards 167 support area, where we can see some bullish interest emerging. If the selling power will manage to overwhelm the bullish momentum, then a continuation towards 140 area, where the current year low is located, could be seen.

Source: dailyfx.com

Cryptocurrencies are under heavy pressure lately and the bearish trend does not seem to end at this point in time. There are raising concerns about regulation and lately, even safety when in comes to hot storage, which diminishes the buyers’ appetite.