ZB Market: BTC & ETH Technical Weekly Analysis
Last week, Yellen, the US Treasury Secretary, said that cryptocurrency is being used “mainly for illicit financing.” She delivered a profound statement during a hearing with the Senate Finance Committee and also encouraged for major fiscal stimulus by telling the Congress to “act big” when it comes to aid for the ailing U.S. economy.
This statement created a bearish sentimental bias for the crypto market to the start of the week.
Bitcoin dominance plummeted from 66.78% to 62.90% which gave room for Altcoins to climb higher during last week’s trading session.
DEFI projects such as UNI, AAVE, CRV, SUSHI etc. skyrocketed as the Bitcoin consolidated.
XRP continued to remain in the negative territory due to SEC lawsuit case.
At the close of the previous weekly session, the bears became a little bit weak due to less pressure on the BTC price.
Last week, it was bullish start to the week of BTC but more sell- off took place due to the negative impact news from the US secretary. Traders leveraged on the fundamental impact news to take short position both on the future and spot market.
BTC price opened the trading session with $35,685.33 on Monday, 18th January.
BTC price created a minor support on 18th January, after the bulls failed to break daily lower high of $39,128.39. The bears broke the minor support, caused BTC price to plunge to a weekly low of $29,179.54.
Although BTC price got retracement and closed at $30,717.98 as earlier forecasted from our previous analysis.
From a daily perspective, Bitcoin is on a down trend because it created a market structure of lower lows and lower highs. Every lower high became a resistance and also as a platform for traders to continue to short BTC price and print a fresh lower low
Areas of concentration of BTC price on the day ahead will be $30,717.98 and $33,738.61.
For the bears to continue to pressure BTC price to the dip, the bears will need to break $30,614.57 support that was created on 4th January. If the bears succeed, BTC price could further dip to a low of $24,011.15 during upcoming week.
But on the contrary, if the bulls get lot of volume from institutional traders, BTC could retest $36,600.37 and also with this volume and momentum on the side of the bulls, BTC might revisit the $40,588.50 in the week ahead.
Last week, it was a bullish start of ETH price. ETH price rose from an opening price of $1,233.28 to a high of $1,259.00 on Monday, 18th January.
ETH’s total market capitalization spiked from a low of 140.66 Billion US dollar to 168.27 Billion US Dollar. With this rise in volume, ETH price rallied to a high of $1,434.11
Irrespective of this rally, ETH price made a correction to a low of $1047.15 on 21st January.
On 22nd January, from a daily time frame perspective, the bulls built a momentum and increased the buying pressure of ETH, which caused it to resume the rally to a high of $1437.77 at press time.
Technically, ETH is very bullish at the start of the upcoming new week. We could expect ETH to hit an all-time high of $1,500.
If the bulls fail to break above this anticipated price level above, we should expect a correction of ETH price before more rally can take place in the week ahead.
RSI is 86 mark on the over-sold territory, although it shows the bulls still have more strength to push ETH price to $1500.
About ZB Group
ZB Group was founded in 2012 with the goal of providing leadership to the blockchain development space and today manages a network that includes digital assets exchanges, wallets, capital ventures, research institutes, and media. The Group’s flagship platform is ZB.com, the industry leading digital asset exchange. The platform launched in early 2013 and boasts one of the world’s largest trading communities.
ZB Group also includes ZBG the innovative crypto trading platform, and BW.com, the world’s first mining-pool based exchange. Other holdings include wallet leader BitBank.
Industry intelligence and standards are headed by the recently launched ZB Nexus who embody the core values of ZB Group and open-source their reports and analysis for the public.
Learn more about ZB Exchange by visiting www.zb.com.