Crypto Frontline

Weekly Crypto Analysis January 20-26, 2020

Weekly Crypto Analysis January 20-26, 2020
January 19
11:05 2020

BTCUSD Coinbase

BTCUSD technical analysis
Source: tradingview.com

The Bitcoin price continues to march higher, recently overcoming the $9,000 mark. Looking at the price action context, we’re dealing with a bullish parabolic structure that should provide consistent upside momentum, until a strong resistance will be reached. Based on the current conditions, we suspect Bitcoin will continue on its way up towards the $10,000 area, a key psychological level and a swing high from October 28th, 2019.

Above that point, $10,500, where the October 2019 spike toped, should be the next resistance to watch. On the downside, $8,900 and a bullish trend line should provide short-term support in case sellers will resume. The area around $8,600 – $8,500 is also a significant one and buyers should treat it as a new opportunity to get long after a pullback.

ETHUSD Kraken

ETHUSD technical analysis
Source: tradingview.com

Ether behaved as we’ve expected for the past few weeks and surged on the upside, currently approaching the upper line of a channel formation that goes back to August 2019. From a historical point of view, we already have two touches of that line and each time impulsive selling had started.

Because of that, traders should start to cautious as we near the key resistance area, since choppy activity might await in the next few days. If impulsive selling will start again, Ether might be headed for a new slump towards the $120 area.

However, if selling is contained, that will show the market is treating the channel differently and the price could continue towards the $200 area in the near term. We believe that volatility could pick up in the next few days and traders looking to enter a position should wait and see for some clear signs that might show the next direction of the price. At the present time, the odds are 50-50, so we need more data.

LTCUSD Coinbase

LTCUSD technical analysis
Source: tradingview.com

Since December 18th, 2019, Litecoin had started a consistent parabolic move on the upside, that had driven the price up by close to 90%. This is the strongest and largest bullish move we’ve seen since June 2019 and it raises the prospects for the short to medium-term horizon. Still, since we approach the key $65 area + daily 200 moving average, some weakness should not be excluded.

In case sellers will start to emerge there, we should watch for how intense the price will react. A minor pullback could suggest that the bull run will continue in the next few weeks. A breakout above the resistance will open more room towards the $80 area, which is where the September 2019 high is located. A failure to break above $65 could mean that a pullback towards $50 should not be excluded.

Briefings about ICOs

The Liqio Exchange is an ICO based in Estonia that will run until the 21st of February. It’s an exchange platform that promises to offer dividends for holders of LQO tokens. 50% of the fees collected by the exchange will be returned to LQO holders.

Prometheus is a Serbian ICO that will start on February 1st, aiming to provide a solution for the implementation of the blockchain technology for specific businesses in order to make the blockchain use more affordable.

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