Crypto Frontline

BTCUSD Coinbase

As we’ve anticipated a week ago, Bitcoin broke above the range structure and after retesting the higher bound, it looks set to continue higher. The breakout + retest formation confirms the market had switched to the bullish move and we expect the price to continue up, until $8,900 – $9,000, where the next significant resistance area is located. In case the price action accelerates on the upside, $9,700 is the next key area to look for.

However, we expect Bitcoin to continue higher at a steady pace and we don’t exclude a new retest of the broken range. Only if the price will break and stay below $7,800, we could talk about a short-term change in the market momentum. Follow-through selling will be important to confirm that the order flow flipped towards the sellers. Right now, that’s not the case, so we maintain our bullish view.

ETHUSD Kraken

Ether continued to recover from oversold conditions and it’s now trading above the 4h chart 200 moving average. Even though the price action is located around the middle of our channel, finding trading opportunities would be challenging since the price could go either way.

We believe that the $153 resistance area will play a major role in determining whether Ether might continue on its way up towards the upper line of the channel. Watch for impulsive buying around it for further clues.

The downside is that sellers could easily regain control and drive the price towards the December lows. It’s good to see that the 4h chart 200 moving average acted as support, so as long as the price remains above, we keep a bullish outlook in place. A break below it, however, will mean Ether might be headed for a retest of the $120 area.

STRUSDT Poloniex

Here is a token that did not perform how we’ve anticipated in the weekly crypto analysis, after breaking below a big range formation. Stellar had a disappointing performance in December, clearing the key support area we’ve discussed several weeks ago.

After reaching a low around 4.2 cents, the price action started to rebound higher in what looks like a bullish parabolic structure. The next key event to watch is the retest of the broken key area. If strong selling will emerge, then the December lows could be revisited.

On the flip side, low selling activity around the area will mean the price action might break back inside the range and recover during the following months. Although the odds are little against us, we speculate that Stellar could be at the beginning of a larger bullish move and more gains are waiting ahead during the mid to long-term horizon.

Briefings about ICOs

EMJAC is an IEO ending on January 24^th, being part of the renewable energy revolution. The project aims to integrate the blockchain technology to recycle and reduce illegally dumped waste tires globally.

On January 14^th, the Karuschain IEO will start, with the goal of offering a platform for tracing and tracking precious metals. It enables upstream producers to track their precious metal products around the world.