Jan 15, 2021
ZB Market Daily: BTC & DOT technical daily analysis
BTC Price extended its rally by 9.01% yesterday. Following on 10.62% gain on Wednesday, BTC Price closed the trading session at $38700.70. After the crash of BTC price on the 11th of January, Bitcoin has made a daily recovery of 3k gains per day till date.
From our previous analysis, we did mention that for spot traders to take decent entry for buys, BTC price will need to break above the $38,349.75 resistance for a probable target of 41k as initial target for profit booking which many exchanges, such as ZB.com, recorded their all time high of BTC price yesterday.
Yesterday it was a weak bearish open of the trading session after the bulls broke on the 12th of January resistance at $36466.9. This breakout changed the bearish narrative of pessimistic bias that BTC will go for another round of dip.
As the buy pressure intensified at 4:00 UTC, the bulls initiated a rally at $38,045.4 after breaking a minor resistance. BTC extended the rally to an intraday high of $40,031.3.
The bulls exhausted their steam at the previous broken support of $40,031.3 as result of a weak bullish candle that’s been printed below this price level. As traders booked for profit, this resulted to bearish close of the day.
Technically as of the time of writing, the BTC 4-hour chart printed an evening star market structure after a retest of the broken support of $39,980.4, which is bearish signal.
Furthermore, BTC price created a higher high of $40,031.3. Hence, for the day ahead, we could see BTC price creating a higher low at a support of $36,295.28. The bulls will need to defend this level as BTC price made a minor correction to this anticipated price level.
From market indicators, BTC price rejected the upper band of the Bollinger band and is currently making a retracement to the 20- day simple moving average. If the bears break the SMA, then this will be a dynamic resistance in the day ahead.
For spot traders, an entry for buy position can be taken if bullish candle is printed at $36,295.28 and also the profit target will be $40,031.3.
DOT
DOT Price extended its rally by 24.87% on Thursday, following on 27.88% gain on Wednesday.
Prior to yesterday’s trading session, from the 4-hour chart, we could see that uptrend for the DOT price was initiated on the 28th of December, 2020. This uptrend made a correction to the 61.8% Fibonacci retracement level from the 4-hour chart.
DOT price gained a support after a massive general sell-off on the crypto market on the 11th of January at a horizontal support of $7.26.
On the 13th of January, the bulls broke out of a major resistance of $10.53 which triggered an extension of the bull run for DOT yesterday.
DOT price rallied to all time high of $13.22, although price fell to a low of 12.2398 as some traders took partial profit from the rally. Irrespective of profit booked, the bulls didn’t gave up on the rally but rather continue to create bullish pressure for probable extension of more rallies in the day ahead.
For the day ahead, if the bulls break above the recent minor resistance of $12.9598, we could expect more new record highs. In support of this bias, if the RSI, which is at 78 mark in the over-bought territory, crawled in this territory in the days ahead, we could see more further push to the upside.
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.
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