ZB Market Daily: BTC, ETH & BCH technical daily analysis
Nasdaq-listed Marathon Patent Group announced yesterday that it has purchased around 4,813 Bitcoin for about $150 million. This fundamental impact news was bullish in the course of the early hours of the trading session. BTC and Altcoin did a mid-term recovering from last week’s sell–off as traders liquidated their long position from the price of 37K.
Although during the New York open session, crypto market made some minor correction to its previous low.
After a sharp drop of bitcoin dominance on 24th January, Bitcoin dominance ratio founded a support of 63%. Yesterday, BTC dominance increased to 64.43%. Altcoin market capitalization fell from a high of $361 billion to a support of $339 billion.
Bitcoin lost its earlier gains of $2135 to the bears due to traders liquidating their long position as market uncertainty arises.
BTC opened the trading session at $32,124.16 with a heavy spike to a resistance of $33,622.92, which created a double top market formation in the early hours of the Asian session.
This bearish signal caused retail traders to short their position to retest a broken minor resistance of $32,838.59. After much rejection on this price level, BTC rose to an intraday high of $34,563.09 to break 7-day support which is now a resistance. Although this breakout turned out to be a fakout as BTC price fell below the broken resistance to an intraday low of $32,046.86.
Yesterday market structure was chopping. The bears broke the 9-day EMA and at press time wrestling with the bulls to lower price to a major support of $30,670.66.
From market indicators, the Bollinger band converges and also the RSI slid to 46 mark. The bears still have much control of price.
For the day ahead, if the bears force BTC price to break major support of $30,209.90, BTC could head to a support of $26,168.80, which could initiate a bear market in mid-term.
But on the contrary, if the bulls can add more volume and momentum to revisit and break the $34,563.09 recent resistance, an uptrend could be initiated in the coming days.
ETH rallied yesterday to retest the previous all-time high of 2021 while steering at $1500, the psychological level.
ETH opened the trading session at $1,389.48 yesterday and rose to an early morning intraday high of $1,472.59.
Although ETH price got pulled back and closed the first 4-hour candle below a resistance of $1431.88. This resistance was recently printed on 19th January.
The bulls got multiple rejection at supply level of $1431.88 in the course of the intraday. The bulls gave up on ETH price, as the bears broke the 20-day SMA. ETH price fell to an intraday low of $1297.88.
From market indicators perspective, ETH price got pulled back from previous broken resistance of $1,297.88 and also rejected the 9-day EMA, which prevented the bears to further lower ETH price to the downside. The money flow index is at 60.00 index and also moving sideways. MFI index is in confluence with a horizontal support of $1,297.88 at press time
If the bulls defend $1,297.88 support in the early hours of the Asian session, ETH could create a market structure of higher lows. Traders could leverage on this platform to long position for first target of $1,431.88 for profit booking.
More so .if the bulls break above $1,431.88 resistance, we could have major rally. But on the contrary, if the bulls fail to defend $1,297.88 support, the bears will be forced to lower ETH price to low of $1,104.52.
Yesterday, it was a bullish open of the trading session of BCH. BCH opened the trading session at $442.57 yesterday with a spike to an intraday high of 461.56. BCH revisited the 7-day recent resistance but got rejected as the Altcoin market capitalization plunged.
BCH is currently consolidating on a range of bound of $408.59 and $459.56, although it broke below the 20-day EMA at $454.
The bulls failed to sustain the BCH price above the 20-day EMA, and the bears is making attempt to sink the BCH price to the support of the range at $413.59. If the bears succeed and closed below $413.59, the bears could pull the price down to $366.62 to revisit the broken resistance built on 3rd January.
From Market indicators perspective, RSI is at neutral point as BCH price consolidating. And also despite the break of the 9-day EMA, the EMA moved sideways. These are signal that indicate that either the bulls or the bears are in control. A breakout of the consolidation to the upside will cause a major rally while a breakout to the downside could lead to heavy dip in the days ahead.
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