ZB Market Daily: BTC, ETH technical daily analysis
Cryptocurrency has seen lots of cash inflow from institutional investors in recent times, as financial institutions trying to hedge the asset against inflation.
Michael Miebach, CEO of Mastercard, recently shed light on how Mastercard will include crypto in its network. In an interview with Bloomberg’s CEO Emily Chang who stated that the company would enable its clients to transact using Bahamas digital currency Sand Dollar.
Irrespective of the Mastercard integration of crypto into her platform, Bitcoin continues to hold strong above the $50,000 level without any significant bullish pressure in the course of the trading session. The price hovering in the $52,000 area clearly indicates that there is more room in the upside to flip higher.
Altcoins rallied throughout the sessions with an increase market capitalization from 559 Billion to 626 Billion US Dollar as Bitcoin dominance plunged from 62.61% to 61.64% yesterday.
Yesterday, BTC price opened the trading session at $52,193.01 with an intraday high of $52,480.87, and declined by 3.02% from its record all-time high of $52,579.83.
From our previous analysis, we do mention that “BTC price closed the trading session on 18th January with a shooting star candle, which indicates bearish signal to the day ahead for probable correction of the rally to higher low of $50,987.92”.
In the earlier hours of the Asian session, BTC price created an evening market structural pattern. This was a bearish signal to the start of the trading day.
BTC plunged to an intraday low of $50,912.17, but closed the trading session above a support of $51,056.74 due to buying pressure.
Although the bulls made an attempt to break above the recent resistance of $52,208.17, no avail as multiple rejection was felt at this level due to traders constantly booking for profit.
On the day ahead, BTC price will be faced with a range bound of $51,056.74 and $52,208.17.
The bulls will need lots of volume to break the recent resistance of $52,208.17 and prevent the bears from breaking the 9EMA to resume the rally to print a new all-time high of 60k.
But if the rejection persist in the days ahead, the bears could be forced to break the support of $51,056.74 and 9EMA to push BTC price to a low of $49,162.94 as the Chaikin money flow down tick to a neutral territory.
ETH extended it rally by 5.40% yesterday following on Wednesday gains of 8.92 %.
ETH opened the trading session at $1,850.71 without an intraday low due to the bullish pressure. ETH was very volatile yesterday as the bullish sentiment to the upside was instigated by retails traders to hit a psychological level of 2k.
ETH rallied to a high of $1,950.41, although there was minor pull back as traders took partial profit.
From the charting pattern, ETH printed higher highs and higher lows as the uptrend continued. The moving averages acted as a dynamic support to the uptrend. RSI uptick to the over-bought territory.
The bulls have upper hand in the market to extend ETH price to the psychological of 2k since many traders steered at this price level while holding their long position.
A correction to a low of $1,894.33 could play out if the bulls fails to test the 2k level 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.
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.
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