Crypto Frontline

Weekly Crypto Analysis January 9th-15th, 2023

Weekly Crypto Analysis January 9th-15th, 2023
January 08
11:36 2023

BTCUSD (Coinbase)

BTCUSD technical analysis
Source: TradingView

Although at a tepid pace, Bitcoin managed to rebound during the first week of 2023. Trading activity is still not at normal levels, so everything could happen from this point forward. However, when looking at the daily chart, the picture looks good for bulls, at least in the short term.

BTC formed a bottom around $15,500 and since then managed to consolidate at higher levels. A bullish trend line is in play and as long as it will be respected, we suspect the price can head higher. The first major resistance area to watch is $18,150- $18,500.  Above it, we see the daily 200 SMA as another strong cap for the price.

Sentiment switches to bearish on a strong break and continuation below the trend line. That would put renewed pressure on $16,000 and $15,500. The US Dollar eased and Treasure yields dropped, so if this trend continues next week, then we expect to see more gains piling up in Bitcoin. Be aware volatility could pop on either side, which is why you need to read the price action and see how critical levels perform.

ETHUSD (Kraken)

ETHUSD technical analysis
Source: TradingView

A relatively similar picture unfolds Ether, where the price gradually climbed higher, only to encounter resistance around $1,350. That’s a key upside level and a breakout point that could unlock further potential toward the 200 SMA and then $1,650.

Traders should be on high alert, though, because gains are materializing at a slow pace. This sort of price action development suggests there is still a reluctance to buy large volumes. As long as our upward trend line remains in place, the momentum favors the bulls, yet the weak recovery suggests there is still scope for sudden dips down the road.

Those who missed this week’s rebound can wait for a pullback close to $1,200 because that means they will enter the market at attractive levels. Sellers might want to wait until the price gets to one of the key resistance areas we’ve mentioned.

ADAUSD (Binance)

ADAUSD technical analysis
Source: TradingView

Cardano is up over 15% during the last week, suggesting there has been higher interest in this token. At the beginning of 2023, ADA was trading at levels not seen since January 2021, and conditions were oversold.

This is one of the top 10 cryptocurrencies and combined with a fairly cheap price (28 cents) there should be no surprise to see bullish interest spiking around extremes. However, ADA continues to be in a bear market and a temporary counter-trend move is not enough to negate the broader picture.

That is why we think traders should remain cautious, especially if the price reaches the 30 cents area. Sellers could resume impulsively there and there’s little chance to see this coin surging higher, with no pullbacks to the downside.

We expect support around 27 and then 22 cents, in case ADA drops below the 20 EMA once again. Failure to maintain above the 2022 lows would open more ground towards 20 cents, which is a psychological area.


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