Crypto Frontline

Weekly Crypto Analysis January 7-12, 2019

Weekly Crypto Analysis January 7-12, 2019

Weekly Crypto Analysis January 7-12, 2019
January 06
10:17 2019

 

Bitcoin

 Bitcoin chart analysis

Source: tradingview.com

As we have expected in our last weekly crypto analysis, there was little activity for the past week and Bitcoin continued to consolidate in a narrow range. However, as we can notice, there’s a nice symmetrical triangle formation on the 1h chart which is expected to be breached in the following days.

A break on the upside will open further room for bulls and the key 4,400 resistance area will be our next mid-term target. Judging by the price action structure, we estimate there’s around a 60% chance of a breakout higher and we remain optimistic for Bitcoin in the near term.

On the other hand, we believe there’s just a 40% chance for a breakout below the triangle. If that will occur, the 3,500 key swing point and support will follow, and the bullish sentiment will have to suffer.

 

Ether

Ether technical analysis

Source: tradingview.com

As we approach the January 16th fork, Ether continues to edge higher. We can see an ascending triangle formation which communicates the buyers are stepping in at higher prices and pressure the sellers out of the market.

This squeezing structure has a high probability of culminating with a breakout higher in the near term. For that to happen, we need the bulls to break above the 159 key resistance level, which is the December 24th high. If that will materialize, we expect the Ether price to continue higher towards the 180 area.

On the other hand, a break below our ascending trend line will expose the 1h chart 200 simple moving average. A break below the lather will definitely be a sign of weakness and 137 is the next support below it. Overall, the price action shows the bulls are in control right now and traders should continue to ride the wave until conditions will change.

 

Litecoin

Litecoin technical analysis

Source: tradingview.com

Another token showing signs of strength is Litecoin, which had managed to hold above the 4h chart 200 moving average. What’s even more interesting is the pressure mounting on the 35.8 key resistance area, with three failed breakout attempts thus far.

However, buyers continue to be persistent and we expect the breakout to eventually take place. Our next mid-term target is located around the 47 area, right where a previously broken floor is located. The break above the moving average + the fact that buyers treated it as a support zone at the end of 2018 suggests that a change in market structure took place and that is why we are confident further gains will follow.

On the other hand, if sellers will be able to prevent a breakout, we could see some short-term weakness, but the selling pressure is not expected to be strong enough to break below the 30 support level and the moving average.

 

Briefings about ICOs

An interesting ICO project currently running its flash sale is Solarex. It is a company that wants to become the largest blockchain-based sustainable energy provider, offering energy at an affordable price for all. The flash sale will run for 3 more days.

An upcoming ICO project, which will start on January 9th, is BCoin.sg. It is the world’s first fiat-crypto exchange with an integrated digital payment solution aiming to empower the masses with the ability to trade, store and spend cryptocurrencies.