ZB Market Daily: BTC, DOT & AAVE Technical Daily Analysis
On January 26, Shenzhen, China issued a notice stating that with the recent rise in the prices of Bitcoin and Ethereum, virtual currency crimes have increased, suspected of engaging in illegal fundraising, pyramid schemes, online gambling, fraud and others. This fundamental news got some level of red impact on the crypto market yesterday.
But on the contrary, towards the end of the New York trading session, sources said ‘’Columbia, Estonia upload the Bitcoin whitepaper to their respective government website in other to educate the public about the Bitcoin industry”. Which gave a little relief from the bear pressure yesterday.
Bitcoin dominance is on a range bound of 64.09% and 63.48% with market capitalization of 594 billion US dollar.
The Altcoins market capitalization regained 100% of its intraday losses and currently at 345 billion US dollar.
On 25th January, the bears broke a minor support of $33,081.76. The break of this support created a bearish bias to traders to short their position for a probable target of $31,279.07.
Yesterday, with the previous day trading session momentum, BTC price opened the trading session with a strong bearish candle at $32,292.12 with a spike to an intraday high of $32,888.74.
BTC price fell to an intraday low of $30,853.22 as the sell-off pressure increased at the early hours of the Asian session.
From market indicators, the Bollinger band converges with respect to a consolidation zone of $34,788.08 as a resistance and $30,826.07 as a support. The 9-day EMA and the 20-day SMA prevented the bulls to ride to the upside. This indicates the bears have some level of control on the market. The RSI is also moving on the neutral territory due to the consolidation of Bitcoin.
For the day ahead, BTC will need to break above the 9-day EMA and revisit the horizontal resistance of $34,788.08. If the bulls succeed to break above this price level, uptrend for the market will resume and traders can leverage on the anticipated broken resistance to long their position.
On the contrary, if the bear pressure force BTC price to break the support of $30,826.07, BTC price could dip to next support of $26435.04 in the days ahead.
After a huge rally that lasted for period of 5days, DOT price is now set for correction for healthy rally to reemerge on the long term. DOT price made a retracement to the 23.8% Fibonacci level at $16.30.
Yesterday it was a strong bearish of the trading session for DOT. DOT opened the trading session at $17.1805 with an intraday high of $17.9233.
Due to the selling pressure from major crypto asset such as Bitcoin, DOT price followed suit to the downside for retesting the support of $16.0664.
From market indicators, the Bollinger band converges as DOT price made an east-west movement. More so, the bears have an upper hand on the DOT price as the bulls were unable to break above the 9-day EMA and also the 20-day SMA acted as dynamic support to the downside.
The RSI down ticks to the over-sold territory. This implies that if the bulls defend a horizontal support of $16.0664, DOT price could rebounce to retest a high of $19.1563 in the days ahead.
But on the contrary, if the bears break $16.0664, DOT price could fall to 38.2% Fibonacci level at $14.6634.
AAVE’s rally extended by 17.21% after a minor correction was made on 25th January.
It was strong bullish of the trading session as the bears got weak to lower price down below $244.183
AAVE spiked to an early morning high of $270.545 but got pulled back at a resistance of $270.545 as traders quickly booked for profit.
From the Gann fan, the AAVE is on a bullish channel of ½ fan. Technically, AAVE created a market structure of higher highs and higher lows. AAVE got volume and momentum at the higher low of $247.149.
RSI is at 60 mark in a positive territory, this implies that the bullish trend is still valid as long as the bulls break above the higher highs to print a fresh higher highs.
For the day ahead, we could expect further extension of the rally if the bulls break a high of $288.859. More so, if minor correction is done as traders liquidate their long position from the recent highs, the bulls must defend a broken resistance of $271.569 for a healthy rally to continue in the days 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.
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