The news of the past week was eventful and showed a strong impact on the cryptocurrency market. Bitcoin in the beginning of the week have already identified a trend in the decline in Tuesday, after overcoming the mark of $12 800, selling has intensified.
Tuesday revealed the United front of the «red zone» on the cryptocurrency market. The daily decline of more than 10% was observed for all most capitalized coins.
In South Korea there remains the tension around a possible ban of the trade in cryptocurrencies, despite the active opposition of the community. The fire was pontito after the statement by the Chinese authorities about the intention to block access to foreign and local cryptomeria, as well as online platforms that offer exchange services of crypto currencies. However, they will also focus on social media groups, channels, messengers, and other resources. More precisely, the effect will have an impact on the OTC market.
Recall that these countries have significant trading volume, so the reaction of market participants to sell its assets was imminent.
No cost this week and without speculation. There is a perception that the market is allegedly «specifically omitted» to the big players from the «bears» were able to make a profitable expiration of the January futures contracts on THEIR own. The expiration date came on January 17, when «digital gold» reached its lowest level for the month of $9242. It is important to consider that the bitcoin trading volume commensurate with the volume of futures trades, so this statement should be considered just a rumor.
Was good news: at the end of week 18 of January it became known about the launch of exchange-traded funds (ETFs) focused on blockchain startups. Thus, according to the prospectus, these funds will invest in companies with the largest capitalization. These funds, however, will not directly buy the cryptocurrency or token.
Now technical analysis:
BTC/USD H4: not too soon to rejoice?
Bitcoin (BTC) after reaching a low near $9400 reversed, thereby calming market participants — at least temporarily. At the moment there is strong resistance around $12649, and while there is no signal on its passage. In addition, the price chart is testing the resistance of the descending channel inside the downtrend, the position is «digital gold,» terms of trade tactics, says wait and see attitude among market participants. In the case of assured passage of the $12649, it is possible to speak about continuation of growth with the target at higher levels, up to $15378 and $17243.
If you look at the graph from the perspective of Elliott waves, there are hints at the end of the correction formation A-B-C. however, if there is a break of the boundaries of graphical analysis ($12649), then we can talk about the formation of a new phase of the upward movement.
Don’t forget about the risks, there is a negative scenario for the continuation of wave C in order to $9400 and the possibility of further decline.
ETH/USD H4: at the intersection of trends
The technical picture of the ether (ETH) said a wait of traders, as in the case of bitcoin. After trying to gain a foothold in the range of $1426 – $1050 the air is still a bit corrected. Inhibits the price chart support at $1050, and judging by the history of trades, this level can serve as a reliable Outpost against the decline.
From the point of view of graphical analysis, the price chart is still in the correction, and it is too early to talk about steady consolidation at higher levels. In addition, a visible rebound from the lower border of the rising trend, and this once again recalls that locally cryptocurrency is overbought, therefore, this decline is logical.
The wave count says it is willing to form a wave In, so the growth of the next week is quite likely.
Negative scenario: breakout of the support with a target of $935.
LTC/USD H4: litecoin «holds» the level of support
Litecoin (LTC) trading dynamics of repeated «big brother», but at the moment support at $196 «holds» the cryptocurrency of sales. In addition, do not forget that the coin is still within the descending trend too early to talk about exit of a trend. Only the breakdown level of $236 will give a strong buy signal until around $284.
Elliott wave say about the end of the correction formation A-B-C, but the negative scenario of the continuation of wave C is not excluded.
XRP/USD H4: takes a pause
Ripple (XRP) stopped near resistance near $1.60656. Like other cryptocurrencies, XRP adheres wait-and-see position. But the good news is that the schedule came from the framework of the downward trend, and this is a positive signal. In the case of passing $1.60 and $1.88, opens the prospect of reaching the level of around $2.42.
Like other cryptocurrencies, correction within the A-B-C showed a possible completion. In the case of strong bearish sentiment and the continuation of wave C, we can expect a breakout of the support around $1.24.
DSH/USD H4: important level failed
Dash (DASH) could not pass the resistance at $950, in addition, this level coincides with the resistance line of descending trend. Such a rebound that signals a readiness to go in the direction of the downward trend, and if it continues, we can expect a breakout of support at $790.
A positive scenario for DASH — this is the puncture resistance of $950 c fixation in the region of $1125 (wave 3). In this case we can speak about correction is completed within A-B-C.