Bitcoin price surged significantly this week towards $8,400 before starting a downside correction. BTC traded below the $8,000 support, but it is likely to find a strong buying interest near $7,000 and $6,880.
Similarly, there were solid gains in major altcoins such as binance coin (BNB), Ethereum (ETH), ripple (XRP), bitcoin cash (BCH), litecoin (LTC), stellar (XLM), ADA, EOS, and TRX. Recently, they corrected lower sharply (similar to bitcoin) and seems to be approaching important support zones.
- Bitcoin price traded to a new multi month high at $8,350 before correcting lower.
- Ethereum price climbed more than 30% and tested the $280.00 resistance area.
- Ripple price surged higher significantly towards $0.4780 and recently corrected below $0.4250.
- EOS price jumped above $6.500 and $6.800 before correcting lower towards $6.000.
- CCCX, SPEC and MATIC surged more than 250% in the past 7 days.
Bitcoin Price Analysis
This week, bitcoin price climbed significantly above the $7,000 and $7,500 resistance levels. BTC even broke the main $8,000 resistance level and traded to a new multi month high at $8,350. Recently, it started a strong downside correction below the $8,100 and $8,000 support levels.
Bitcoin Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price broke a short term ascending channel with support near $7,950 to start a major downside correction. It broke down below the $7,800 support and 21 simple moving average (4-hours).
The price even broke the $7,600 support level and the 50% Fib retracement level of the recent wave from the $6,872 low to $8,350 high.
It opened the doors for more losses and the price spiked below the $7,250 and $7,100 support levels. BTC tagged the $7,000 support level and the 76.4% Fib retracement level of the recent wave from the $6,872 low to $8,350 high.
There are many supports on the downside near the $7,000 level and a connecting crucial bullish trend line with currently support at $6,880 on the same chart.
If the price fails to stay above the trend line, it could decline further towards the $6,525 support level. The $6,525 level is a major support since it coincides with the 1.236 Fib extension level of the recent wave from the $6,872 low to $8,350 high.
As long as bitcoin price is above the $7,000 and $6,880 support levels, it is likely to bounce back. An immediate resistance is at $7,600, above which the price may struggle near the $7,880 and $8,000 resistance levels.
Ethereum Price Analysis
Ethereum price started a solid upward move after it broke the key $180.00 and $200.00 resistance levels. ETH surged above the $250.00 resistance level and even spiked above the $275.00 pivot level.
Ethereum Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price traded close to the $280.00 level and settled above the 21 simple moving average (4-hours). A new 2019 high was formed near $279.33 and recently the price corrected lower sharply.
There was a break below the $260.00 support and the 23.6% Fib retracement level of the last wave from the $199.85 swing low to $179.33 high.
The price even spiked below the $250.00 support and the 50% Fib retracement level of the last wave from the $199.85 swing low to $179.33 high. However, the $235.00 level and the 21 simple moving average (4-hours) acted as strong supports.
It seems like there is a strong support forming near $230.00 level, the 21 simple moving average (4-hours), and the 61.8% Fib retracement level of the
There is also a major bullish trend line forming with support at $225.00 on the same chart. As long as the price is above the trend line support, it is likely to rebound above $250.00 and $260.00 in the near term.
Conversely, if Ethereum price declines below the $230.00 support, there is a risk of an extended drop towards the $200.00 support area.
Ripple Price Analysis
Ripple price joined the party later, but it surged significantly after it broke the $0.3285 resistance level against the US Dollar. As a result, XRP/USD climbed higher and broke many resistances, including $0.3800, $0.4000 and $0.4200.
Ripple Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price even broke the $0.4400 resistance and the 21 simple moving average (4-hours). It traded close to the $0.4800 level and formed a new 2019 high at $0.4758.
Recently, it started a strong downside correction below the $0.4400 support and the 23.6% Fib retracement level of the upward move from the $0.3147 low to $0.4785 high.
The decline was such that the price even broke the $0.4000 support and the 50% Fib retracement level of the upward move from the $0.3147 low to $0.4785 high. Besides, there was a break below the 21 simple moving average (4-hours) and a connecting bullish trend line with support at $0.4100 on the same chart.
It tagged the $0.3770 support and the 61.8% Fib retracement level of the upward move from the $0.3147 low to $0.4785 high. However, the current price action suggests that there could be more losses below the $0.3770 support.
The next key support is near the $0.3550 level and another bullish trend line on the same chart. On the upside, the recent support near the $0.4100 level might act as a resistance.
If there is a successful close above $0.4100 and the 21 simple moving average (4-hours), ripple price could start a fresh increase in the near term.
EOS Price Analysis
EOS price formed a strong support above the $5.000 and $5.200 levels against the US Dollar. As a result, the price started a strong upward move and broke the $5.800, $6.200 and $6.500 resistance levels.
EOS Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price even broke the $6.800 resistance level and settled above the 21 simple moving average (4-hours). It traded as high as $6.880 and recently started a major downside correction.
It broke the key $6.300 support level and the 50% Fib retracement level of the last wave from the $5.242 low to $6.880 high.
There was a close below the $6.200 support and the 21 simple moving average (4-hours). The price tagged the $5.860 support area and the 61.8% Fib retracement level of the last wave from the $5.242 low to $6.880 high.
On the downside, there is a major bullish trend line with support at $5.850 on the same chart. As long as the price is trading above the trend line, it could bounce back above $6.200 and $6.400.
Overall, EOS price declined heavily below $6.200 and it is now trading close to a couple of important supports near $5.850 and $5.800.
During the past 7 days, a few small cap altcoins rallied sharply and gained more than 120%, including CCCX, SPEC, MATIC, GMB, BQ, VNX, BTW, UCT and MFTU (trading volume more than $50K). Out of these, CCCX rallied around 320% and SPEC gained nearly 260%.
Overall, bitcoin price is back in a strong uptrend above $6,500 and $7,000. The recent decline in BTC could be seen as a corrective decrease and it is likely to bounce back above $7,500 and $8,000 in the coming days. Similarly, there could be a fresh increase in Ethereum, ripple, bitcoin cash, litecoin, XLM, ADA, TRX, EOS, DASH, BNB, XMR, NEO, and IOTA.
The market data is provided by TradingView, Bitfinex.
BTC, ETH, XRP — Is It the Right Time to Enter the Market?
The cryptocurrency market has changed its mood to bearish as the recent rise was absorbed just over a few hours. All top 10 coins are located in the red zone. The biggest loser is Bitcoin Cash (BCH) which recently was the top gainer. Currently, it is losing more than 10% over the last 24 hours.
The main information about Bitcoin (BTC), Ethereum (ETH), and XRP:
|Name||Ticker||Market Cap||Price||Volume (24h)||Change (24h)|
|Bitcoin||BTC||$156 995 296 074||$8 640,68||$35 219 700 233||-3,10%|
|Ethereum||ETH||$18 088 343 152||$165,43||$15 026 408 476||-2,92%|
|XRP||XRP||$10 137 065 423||$0,232215||$2 526 270 159||-2,58%|
Our recent Bitcoin price analysis is coming true as the growth was rather a track for buyers before an expected sharp decline.
On the daily chart, Bitcoin (BTC) has touched the MA 200. However, the rate sharply went down when the line crossed it.
Must ReadBitcoin (BTC) Price Plunges to $8,400 in Minutes. Is This the End of Bull Rally? –
Respectively, the growth was a fake one and the decline is supposed to continue. Summing up, the nearest crucial zone is $8,000.
Bitcoin is trading at $8,618 at press time.
Although Ethereum (ETH) has declined along with Bitcoin (BTC), its position is more bullish in terms of the long-term perspective.
Applying Fibonacci retracement on the chart, the main altcoin is supposed to decrease to $150 (50%). Moreover, the line of the Relative Strength Index is looking downward, confirming the decline. In this case, the short-term scenario is bearish and if bulls cannot hold $150, the coin will move to $143.19 (38.2%).
Ethereum is trading at $163.52 at press time.
Even though XRP has broken the long descending channel, its long-term scenario remains bearish. At the moment, the rate of the coin has decreased much less compared to Bitcoin (BTC), and Ethereum (ETH).
XRP is located within the ‘Wedge’ figure with the upcoming downward movement. The blue line of the MACD indicator is about to change to bearish and that will confirm the bearish sentiment. All in all, the coin might come back to the critical $0.20 mark at the beginning of February.
XRP is trading at $0.2306 at press time.
Healthy Correction or Reason To Panic? Price Analysis & Overview
Bitcoin has fabulous times since entering the new decade. However, when we see such a parabolic move to the upside, we can expect volatile moves to the other side, as well.
Just yesterday, we mentioned Bitcoin price reaching its first major test – the 200-days moving average line (marked light green on the following chart). Many analysts see this tough resistance as the barrier between Bear and Bull markets.
Today, Bitcoin surpassed the crucial moving average line (roughly around $9060). However, shortly after recording a daily high (and year to date) at $9188 (Bitstamp), we received a MEGA dump.
Besides, on the 4-hour chart, we can clearly see Bitcoin reaching the top area of the marked ascending channel.
Bitcoin lost over $700, plunging to the $8400 old resistance level. As of writing these lines, Bitcoin had recovered a bit, trading above the $8600 resistance level.
Market Cap Evaporated $13 Billion In Minutes
So far, there is no reason to panic, in my opinion. It’s OK not to overcome the significant MA-200 at the first chance.
Another thing to keep in mind is the CME Futures’ Friday low at $8720. This means that as of now, there will be a positive price gap.
Following the drop, the total market cap had reached $250 billion at the top before losing over $13 billion in less than 60 minutes.
Total Market Cap: $237.5 billion
Bitcoin Market Cap: $157.5 billion
BTC Dominance Index: 66.4%
*Data by CoinGecko
Key Levels To Watch & Next Targets
– Support/Resistance levels: Bitcoin is now trying to keep above the $8600 resistance turned support level. If the
Further below lies the $8000 area, along with the 100-days moving average line (marked by white). This also contains the bottom trend-line of the ascending channel.
From above, $8730 will be the first level of resistance Bitcoin will face (38.2% Fib level). The next major resistance is $8900, along with the Golden Fib of %61.8.
Further above is $9000, along with the most significant resistance at the current price area – the 200-days moving average line.
– The RSI Indicator: The RSI that was hovering at its highest levels since June had plunged together with the price. It will be interesting to see if the RSI can hold the mini-ascending trend-line.
A bearish sign might be coming on behalf of the Stochastic RSI oscillator, as it made a bearish cross-over and about to enter the neutral territory, which can ignite a further correction.
– Trading volume: We need to keep in mind that the vast move is taking place during the weekend when it’s easier to shift the markets.
BTC/USD BitStamp 4-Hour Chart
BTC/USD BitStamp 1-Day Chart
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Cryptocurrency charts by TradingView.
Technical analysis tools by Coinigy.
Cryptocurrencies’ legitimization shouldn’t be restricted by AML risk: Perianne Boring
2019 saw regulators around the world paying serious attention to cryptocurrencies and its regulation. Even though many countries are still skeptical about digital assets, some have embraced crypto, along with blockchain. Even the U.S. has long been dealing with cryptocurrencies and its regulations and according to Perianne Boring, President of the Chamber of Digital Commerce, 2020 has already been a “remarkable year” in crypto-time.
The president of the blockchain trade association, a guest on the latest edition of the Off the Chain podcast with Anthony Pompliano, noted that the association has been working with agencies like the U.S. Securities and Exchange Commission by filling them in about cryptocurrencies and the understanding gap that exists, along with FinCen. According to Boring, crypto’s growth has accelerated over time, so it would be better for the government to “help shape that process than for it to be shaped around you.”
Shifting focus to Washington D.C, Boring
“If that is what you are really concerned about, you should be so excited about Bitcoin because it is a radically transparent system and if your job is to follow the money, we have actually given you the best tool, ever possible to do that. So that kind of pushback is really weird.”
With AML and terrorism financing being the main and genuine concern, she said that tracking money could be the “big step up” for law enforcement agencies as the ledger can be viewed publically by anyone. Boring added that “AML as a risk for cryptocurrencies is not a legitimate reason to not embrace this technology.” However, there are tools available to address this concern and will require law enforcement agencies to learn them, she went on to state.