Bitcoin
source: tradingview.com
The volatility returned in the cryptocurrency market and Bitcoin had been impacted by it in a negative way. Since January 10th, the price action weakened impulsively, breaking below the 4h chart 200 MA and did not manage to rebound ever since.
The break below an important moving average is communicating that sellers have regained control over the order flow and more weakness could lie ahead. Following 5 red impulsive candles, there’s little to no reaction from the buy side, which makes us believe the Bitcoin price will head lower, towards the 3,300 key support area.
On the other hand, only a breakout above the 4h chart 200 moving average could revive some bullish hopes, but at the present time, the likelihood of that happening is very small. Most likely, the sellers will manage to retest the 2018 lows, in the short to medium term.
Ether
Source: tradingview.com
In line with the Bitcoin performance, Ether had weakened for the past week, breaking below a short-term ascending trend line and reaching the 4h chart 200 moving average recently. We are three days away from the Ethereum fork and the same pattern we saw with Bitcoin Cash happens again: buyers step in prior to the fork and then dump the coins due to uncertainty about the update.
Technically speaking, the area between 125 and 116.3 with the 200 MA in the middle will be of great importance and it will act as a key role reversal level. If the bulls will manage to defend it, more gains could follow towards the 159 resistance area.
On the other hand, a breakout below the support zone will suggest further weakness lies ahead, and Ether could be on track to retest the 2018 lows again.
XRP
Source: tradingview.com
Although XRP weakened for the past week, we’ve decided to include it in our current weekly crypto analysis, since the price action reached a key support area. Between 31.3 and 31.8 cents, we have a nice demand zone, where buyers had already reacted recently.
We see a spike off that area, but weak follow up afterward, communicating that the bulls are still undecided. It is possible that we may see another retest of the support area and if the bulls won’t be able to keep the price above it, further weakness could prevail towards 28.5 cents, where the next significant support is located.
On the other hand, if the buyers will manage to defend the area, we could witness a new accumulation and eventually at least a retest of the 4h chart 200 moving average.
If we look at the price action structure back to mid-December, we can see a choppy activity, which continues to keep the uncertainty around XRP at a relatively high level.
Briefings about ICOs
An ICO project currently active is HYGH, a blockchain-based project which claims to be a game-changing peer-to-peer advertising network and content management system. The token sale will last until February 15th.
A project which will start its pre-ICO on January 14th is PLEASE. It is another application using smart contracts and allows service providers to publish their services on the blockchain, in a very scalable, flexible, and decentralized way.
There are no comments at the moment, do you want to add one?
Write a comment