ZB Market Daily: BTC, ETH & TRX weekly technical analysis
Last week, Risk-on sentiment hedged higher as the crypto market extended its rally to 2017 all-time high market capitalization during the Christmas festive season.
The Crypto currency market capitalization increased from $593.4 to $756.3 Billion due to crypto asset demand by retail traders and as investor’s appetite grew rapidly. Bitcoin dominated the crypto market with 70.03% from the heat map below.
Altcoins such as TRX, EOS, and XLM plummeted as Bitcoin rallied to a new all-time high making a remarkable history and competing with major stock market capitalization such as Apple, Microsoft, and Amazon etc. Although Ethereum maintained its bullish position and rode to the upside to hit a fresh high. Bitcoin price crashed by 6.5% in minutes after hitting 28k for the first time in history while crypto bulls took long position to extend ETH’s rally.
Below is the last week outlook of the trading session of Bitcoin & Altcoins, anticipation for the week ahead.
BTC price started last week trading session with a retest of the previous weekly high of $24173.46 on Monday, although it got pulled back as traders anticipated for correction. This pessimistic bias caused BTC price to fall to a weekly low of $22079.30 and retraced back to closed the day trading session at $22677.63.
BTC price consolidated from 21st to 24th of December testing previous highs and lows which created a bullish flag scenario.
On Christmas day, 25th December, BTC price broke out of the consolidation zone to print a high of $24592.30.
Traders rode on the wave of the bullish momentum to the upside. BTC price made a historical record of all time all high of $28400 on 27th December.
From daily perspective, BTC price created a market structure of higher highs and higher lows.
More so, from technical indicators, RSI crawled on the over-bought territory and hit a high of 80 mark. Although this caused a pulled back from the record high as traders booked for profit in the over-bought territory which posed a correction in the mid-term. The 9- EMA acted a dynamic support for the BTC price to the uptrend.
For the week ahead, areas of concentration will be a high of $28306.6297 and low of $24420.98.
If the crypto bulls break above $28306.62, BTC price will extend its rally to a new all-time high. But if it fails, then we could anticipate for correction of the last week rally.
This will create the higher lows for the rally to extend to more breaking records of all-time highs, which will usher more rallies at the beginning of the 2021.
ETH price opened trading session last week with a high of $645.79. Due to the bear pressure that closed the previous session, ETH price dumped to a low of $614.60.
On the 22nd of December, a liquidity grab was created to a high of $637.05. Despite the liquidity grab, the ETH price plunged to a weekly low of $552.24 but rebounced from the low to a support of $580.93.
Volume rolled in on 24th December and ETH price gained momentum to the upside, leading ETH price to rally to all new high of $714.39 at 26.37% from its recent low.
From daily perspective, ETH price nullified the bearish moves on 24th December, which became a fake out after ETH price closed above higher lows to resume the uptrend.
From technical indicators, the moving average cross-over was above the signal line, which indicated bullish bias for probable continuation of the rally.
The commodity channel index up sloped from the sell-off pressure to a buy zone above 100 mark. This also in confluence with the MACD.
For the week ahead, areas of concentration based on uptrend bias will be $661.16 and $713.92. The crypto bulls will need to defend $661.16 as traders booked for profit.
If a bullish candle is printed above this level at the beginning of the week, we could have a retest of the recent high of $713.92, which will be a probable hurdle.
More so if the crypto bulls gather more volume at the anticipate price level, we could break $713.92 and create a new higher highs in the cause of the week.
It was a strong bearish start at the beginning of the week for TRX price due to heavy resistance at $0.0315. This caused TRX price to fall to a weekly of $0.0237 on 23rd December.
TRX price retraced back and closed the sharp bearish moves at $0.0247 support. The crypto bulls leveraged on this support to closed above 3 months’ resistance. The crypto bulls got more volume after the Justin sun, the CEO of Tron made an announcement of a big news coming soon on twitter, which led to spike of TRX price to a weekly high of $0.0309.
From the weekly chart, despite the plunge during the cause of the week, an uptrend bias still remained intact due to crypto bulls that defended $0.02507 as the higher lows platform for traders.
From technical indicators, the money flow index flipped lower due to traders risk off sentiment in holiday. Although we could see accumulation phase at an index of 42.04 mark. The Bollinger band converged which also acted as a confluence zone for accumulation for the underlying asset.
For the week ahead, TRX is faced with a heavy traffic at $0.03524. The bulls will need to wrestle with the bears at this level due to probable sell-off by traders that intend to booked for profit. If the bulls break this level, then we could anticipate for TRX rally.
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