ZB Market Daily: BTC, ETH & DOT technical weekly analysis
Institutional investors Anchorage bought the dip of previous weekly session which created high volatility in the crypto market. Bitcoin reclaimed its 40k mark in the course of the week.
Despite a good start to the last week trading session, bearish sentiment bias rolled in as the ECB President Christine Lagarde called for global regulation of Bitcoin, saying that “the digital currency had been used for money laundering activities in some instances and that any loopholes needed to be closed.” This press release resulted to panic selling which caused Bitcoin and Altcoin to flip lower on the 15th of January.
XRP experienced more sell- off as the Grayscale investment manager liquidated their XRP holdings and made plans to distribute the net cash proceeds to XRP Trust shareholders after deducting expenses after liquidating it.
DOT took the bulls by the horn, replacing XRP position, ranked as the 4th largest crypto asset by market capitalization with over again of 262% on Coinmarketcap and as shown on the heat map below.
Bitcoin dominance dropped to 66.44% which gave room for Altcoins to soar higher during last week session.
From Previous week session, BTC price made correction of the rally to 50% Fibonacci retracement level at $31402.91, the bears exhausted its steam at this price level due to high level of demand zone that was created on the 4th of January.
Last week, it was a strong bullish open of the trading session of BTC price.BTC price opened the trading session with $31,485.46 on Monday, 11th January.
BTC price wicked down to the weekly low of $30,577.44. The 20-day SMA was in a confluence with the horizontal support at the same price level. This created a bullish sentiment to spot traders to accumulate more position.
This low became a fuel wick to ride on the wave of the bullish momentum to the upside to a weekly high of $40,199.83. Although traders booked for profit due to uncertainty in the crypto market after ECB release red impact news.
From a daily perspective, the bears broke the 9-day EMA to the downside and also the bulls tried to pulled back BTC price but got rejected at the 9-day EMA.
More so, BTC price is creating lowers highs as the bulls lack steam to retest previous highs during last week sessions.
For the day ahead, BTC is faced with a heavy resistance of $40,700.49 and minor support of $33,913.52. If the bears break this minor support, BTC price will dip to a major support of $31,513.70.
But on the contrary, if the bulls can break above the $39,593.08, then we could a see a record of all-time high of 45k in the week ahead.
Last week, it was a bearish start of ETH price. ETH price fell from a high of $1,257.01 after it printed an evening star market structure on the Monday, 11th January.
The bears lowered ETH price to a weekly low of $994.81. Then the bears became weak to further lower price to the downside.
On the 16th of January, from a 4-hour time frame perspective, the bulls built a momentum and increased the buying pressure of ETH which caused a decent rally to a high of $1,290.38.
Technically, ETH is making an attempt to create a higher high of $1,500.
From the week ahead, the bulls will be faced with $1,278.46 resistance that was printed on 9th January.
If the bulls succeed to break this level, then we could anticipate for higher highs of $1,500 in the week ahead.
On the contrary if the bears break below $1,039.16, we could see a dip of ETH price to a low of $754.07 in the week ahead.
The bulls presence was highly felt on DOT market.
Last week, it was bullish open of the trading session of DOT price after the correction of previous week session rally that achieved at the 50% Fibonacci retracement level on the 11th of January.
On the 13th of January, a bullish momentum was driven into DOT price to break the 9-day EMA and also the 20-day SMA. This bullish pressure further led to the daily break out of resistance of $10.45 on 14, January.
With lot of bullish bias traders load long position, DOT price rally to a record high of $19.28 during last week weekend.
DOT price got pulled back after traders booked for profit.
The DOT price closed last day bearish, this implies that DOT price could be lowered to create a market structure of higher lows at $12.18, which will be a good start for a healthy uptrend structure.
The bulls will need to defend this price level to prevent the bears from taking advantage to plunge DOT price.
For the day ahead, the bulls will need more volume to break above the recent resistance of $18 to further extend the rally to a new record high. More so, if the bulls succeed to break the resistance , traders can leverage on this platform to take long position.
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