ZB Market Daily: BTC, LTC & ADA technical daily analysis
Blackrock finally indicates interest on Bitcoin investment to join other global fund manager such as Grayscale and Microstratety. The fund manager was officially filed for Bitcoin trading on the SEC website yesterday. Sources said that the fund manager stated that,
‘’A Fund’s investment in bitcoin futures may involve illiquidity risk, as Bitcoin futures are not as heavily traded as other futures based on that the bitcoin futures market is relatively new’’.
This fundamental impact news was not felt on the crypto market due to strong bearish trend of bitcoin.
Bitcoin dominance continued to decline from 66.31% to 65.37% yesterday after a breakout of a support level 65.56%. This dominance will further decline to a low of 64.61% if the bearish trend persist.
The Crypto market capitalization also declined from $1.019 trillion to 950 billion worth of US dollar, causing altcoin market to make major corrections of their previous rally in the course of the day.
BTC Price declined by 13.40% on Wednesday.
Prior to yesterday trading, BTC price created an evening star market structure after price got rejected at $37802.85 supply zone. This zone was created on 16th January, which became a hurdle for BTC price to surpass.
Yesterday, it was a bearish open of the trading session of BTC. The bearish open was due to the signal traders cited in previous trading.
BTC opened the trading session at $35,885.16 with a spike to an intraday high of $36,427.65. Later, it got pulled back due to the bear pressure at minor resistance of $36,373.40.
BTC price plunged to a major support of $33,443.93 at 20:00 UTC but the bulls defended the major support as the bear steam got decreased.
The bears broke the 9-day EMA which acted a dynamic resistance in the intraday session. On a second note, the low band of the Bollinger band acted as a point of confluence to the horizontal support of $33,443.93.
This implies that if the bulls break the middle band of the Bollinger, we could see market retest the major resistance of $37,802.85. Although the first priority for the bulls to battle with in the days ahead will be a minor resistance of $35,795.62.
Failure for the bulls to break out and retest the anticipate level might result to the bears take control of the BTC price and further lower the price to $30,677.21.
The RSI is making an attempt to dip to the over-sold territory, which could support more confluence for sell-off in the days ahead.
LTC declined by 9.04% on Wednesday as the global crypto market capitalization make a correction from its record.
LTC opened the trading session at $151.851 with a wick to the top at $156.773.
The bulls created support at $156.773 on 8th January. This support was broken on 11th January. After the bulls revisited this price level, LTC price got rejection on 15th January. This price level became a sell zone for traders.
Yesterday, the bulls retested this same price level but got wicked up.
This caused a bearish start of the yesterday’s trading session.
LTC tanked to a major support of $138.121 at press time.
Taking a holistic view on the chart, we could see that the head and shoulder pattern has been played out.
The key focus for traders to watch out for is the neckline of the structural market pattern in the day ahead. A break out of the neckline could lead to LTC price further dip to $122.113 in the near term.
If the bears succeed to reject the 151.074 as LTC price climbs higher to retest this level. We could anticipate for more sell-off after the price got rejected.
But on the contrary, if the bulls break out of $153.793 then we could partially anticipate for resumption of the uptrend.
Although first hurdle LTC bull will be faced with $165.248 resistance before we can fully anticipate for uptrend. With that, LTC bulls will need to break above the 9EMA and 20-day SMA as the first step to take to the initiate a bullish bias.
Yesterday, it was a bearish open of the trading session of ADA. ADA started the trading session with an open price of $0.3677. After three days of consolidation, the bears finally break out of the zone to lower ADA price to the downsize.
The bear pressure caused ADA to fall to an intraday low of $0.3275, a previous broken resistance.
The downward moves became invalid as the bulls showed up to create more buying pressure at $0.3275, which prevented the bears to flip price lower due to high volume of accumulation at the demand zone.
ADA price could retest the recent resistance of $0.3877. If the bulls fails to break above this price level, then we could expect some consolidation for days before a probable break out of the resistance to the upside.
At press time, the bulls broke the 9EMA in anticipation to retest the recent high of $0.3877.
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