ZB Market: BTC & ETH technical weekly analysis
Last week, risk-on sentiment hedged higher as the crypto market extended its rally to all-time high market capitalization in the course of the week trading session.
The Crypto currency market capitalization increased from $882 billion to 1.1 trillion worth of US dollar for the first time due to crypto asset demand by global financial institutions and retail traders.
Investor’s risk appetite grew rapidly in Grayscale and Micro strategy which increased its portfolio size of Bitcoin, pension’s funds also dive into dip accumulation of Bitcoin. Many hedge funds manager were closing their position on Gold and opening long position on digital asset. This created bullish sentiment in the course of last week trading session.
Bitcoin made a huge rally to the anticipate 40k as predicted from our previous weekly analysis. Ethereum also took the bull by the horn and made a rally to the upside by 29%, ripple recovered from dip by 68% gains as XRP sued Coinbase to court. Below is the heat map.
BTC
Last week, it was a strong bearish open of the trading session of BTC price after it made a high of $34,850.87 which closed with inverted shooting star candle on 3rd January. This ushered bearish sentiment at the beginning of last week trading session.
BTC price opened the trading session with $33,318.10 on Monday, the 4th of January. BTC price dipped to a low of $28,413.24 although it got retracement back to a high of $31,785.33 due to institutional accumulation of the underlying asset.
Many retails traders also took the opportunity to buy the dip since BTC price was making a solid consolidation on a range bound of $30,252.56 and $33,011.55.
On the 5th of January, the bulls broke a minor resistance of $32,934.91. This created a bullish momentum which caused BTC price to rally to all time high of $41,824.98.
From daily perspective, BTC price is creating an evening star market structure which is a bearish signal if the daily candle closed bearish at press time.
RSI is at 85 mark on the over-bought territory which many retail traders will leverage on for probable sell-off in the week ahead.
We could see clean traffic looking at the left on the weekly chart. This means there is probable correction of the rallied in the week ahead.
Probable retracement of BTC price will be at 23.6% level which is penciled at $34,251.17 as first leg down to support and also at 38.2% level at $29,492.03 of the Fibonacci price action.
On the contrary, if institutions load more bags of bitcoin, we could expect bitcoin to hit a record all-time high of 45k in the week
ETH
Prior to last week trading session, the bulls broke out of a weekly resistance of $680.66 in previous two weeks trading session
Last week, it was a bullish open of ETH. ETH price opened the trading session at $981.32. ETH price wicked down to a weekly low of $896.95.
The bulls were able to defend the open price which caused ETH to rally to a daily high of $1,165.43 on the 4th of January.
This rally set the pace for the rest of the week bullish pressure to the upside while the bulls steered at the 2017 all-time high of $1,500.
As of the time of writing, the ETH bulls extended the rally to a high of $1,346 at the close of the week session.
ETH price created a higher highs and higher lows market structure from weekly time frame perspective. ETH price broke previous higher highs $689.95 from the charting pattern and printed a fresh higher high of $1,346.
RSI is at the over-bought territory. This also indicates that traders will probably booked for profit as to correct some percentage of the rallied that occurred in the course of last week sessions.
The Bollinger is over-stretched and also the 9 EMA acted as a dynamic support to the uptrend. If the bears break below the 9 EMA, ETH will undergo major correction.
Hence, for the day ahead, ETH price will have a range bound of $1,165.43 as horizontal support to the upside and also the bulls will be faced with a major resistance of $1,340.45. If the bulls successfully thrust ETH price above this price level, we should expect another extension of the rally to $1,500 in the week ahead.
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.
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