Bitcoin Consolidation Looking To Break 40K?

We are long from 37,550 and shared another idea that will be in play upon the break of 36,450. As long as the 32.5 support level continues to hold, Bitcoin is likely to squeeze higher in the coming week. Such a squeeze can lead to a test of the 40K range high and a break out should take price into the 45 to 46K area at least. This would be the follow-through of a Wave 5 of 3.

IF Bitcoin breaks the 32.5K support instead, it increases the chances of a test of the next support which is 27.5K. IF this support is compromised, Bitcoin will then most likely be in a broad Wave 4 consolidation. A good example of such a formation is a Gold chart from the August peak to the December low. It can linger for weeks.
All markets are driven by irrational forces of greed and fear. Trying to figure out “why” it is retracing will not help you make better informed decisions. Price information is the purest form of information we can gather and evaluate because it is a reflection of all the known information in the world at the moment.
Our swing trade strategy looks to capitalize on the broader trend in a market that can take days or weeks to unfold. It is rules based which minimizes the adverse effects of our opinions, and other irrational behaviors. If you want to learn more about how it works, or see first hand examples of trades that we share, visit https://bit.ly/marketsignals and register for our free membership. Each week we send out a swing trade idea for free.

BTC/USD Breaks below Support and 35,000, ETH/USD Breaks down to 1,260 but Makes It Back above 1,325

BTC/USD

With the falling continuing, the price broke down below the local support level at 33,937between 09:00 and 10:00 UTC.

At 11:00 UTC, the pair slowed down the face of its downward price action and started finding support at around 33,450. From 12:00 to 18:00 UTC, the pair was mainly contained between 33,450 and a local technical level at 33,937, with a brief dip below 33,500 taking place between 16:00 and 17:00 UTC. But some measure of resistance was found at 33,450 between 11:00 and 17:00 UTC did not let the price break it down. At 17:00 UTC, BTC/USD attempted an upturn above the resistance level and was able to do it in the hour between 18:00 and 19:00 UTC.

The exit outside the symmetrical triangle increases the chances of further downside dynamics for BTC/USD in the near future. It means that the 2.618 Fibonacci retracement level will be the next target level for the pair. There is a local support level at 33,817, but it should not pose a serious obstacle for BTC/USD on its way to 31,000.

ETH/USD

ETH/USD opened 20th January at 1,367.9 as per the exchange rate on CEX.IO. The overall dynamics were quite reminiscent of those of BTC/USD. The trading pair took a bounce to 1,405 in the first hour of the day and dropped to 1,343 between 03:00 and 04:00 UTC. Some certain sideways trading was taking place between 04:00 and 09:00 UTC.

Between 09:00 and 10:00 UTC, ETH/USD once again dropped handsomely to 1,300. The third big drop of the day took place between 11:00 and 12:00 UTC when the pair fell below 1,260 and quickly bounced off 1,240. But further falling was retraced with countertrade volumes, and the ETH/USD cross rate continued trading mainly between 1,260 and 1,310 for the most part of the time between 12:00 and 18:00 UTC.

A break back above the 4.326 Fibonacci retracement level occurred between 19:00 and 20:00 UTC, with the price suddenly rising 1,350. ETH/USD continued trading above 1,325 until 21:00 UTC.

The ETH/USD took a substantial downswing to 1,260 but the late retracement above 1,350 fairly nullified those downside efforts, showing a continuing bullish sentiment in ETH/USD. ETH/USD remains under temporary selling pressure, but the uptrend on the 4-hour timeframe remains unbroken with new lows going consistently above the previous ones. Therefore, the closest target for ETH/USD is an upside one at 1,430.

Konstantin Anissimov, Executive Director at CEX.IO

The Crypto Daily – Movers and Shakers – January 20th, 2021

Bitcoin, BTC to USD, fell by 2.17% on Tuesday. Reversing a 2.22% gain from Monday, Bitcoin ended the day at $35,890.0.

It was a mixed start to the day. Bitcoin rose to an early morning high $37,450.0 before hitting reverse.

Falling short of the first major resistance level at $37,889, Bitcoin slid to a mid-morning low $36,299.0.

Steering clear of the first major support level at $35,176, however, Bitcoin rallied to a late afternoon intraday high $37,936.6.

Continuing to fall short of the first major resistance level at $37,889 Bitcoin slid to a final hour intraday low $35,863.0.

In spite of the late sell-off, Bitcoin continued to steer clear of the first major support level at $35,176.

The near-term bullish trend remained intact, in spite of the latest reversal. For the bears, Bitcoin would need to slide through the 62% FIB of $18,504 to form a near-term bearish trend.

The Rest of the Pack

Across the rest of the majors, it was another mixed day on Tuesday.

Binance Coin and Chainlink slid by 6.05% and by 6.79% respectively to lead the way down.

Cardano’s ADA (-1.04%) also saw red on the day.

It was a bullish start to the week for the rest of the majors, however.

Ethereum rallied by 8.70% to lead the way.

Crypto.com Coin (+5.12%), and Ripple’s XRP (+2.87%) also found strong support.

Bitcoin Cash SV (+0.10%), Litecoin (+0.06%) and Polkadot (+0.92%) trailed the front runners, however.

In the current week, the crypto total market cap fell to a Monday low $958.80bn before rising to a Tuesday high $1,080.72bn. At the time of writing, the total market cap stood at $1,029.91bn.

Bitcoin’s dominance rose to a Monday high 67.47% before falling to a Tuesday low 65.20%. At the time of writing, Bitcoin’s dominance stood at 65.65%.

This Morning

At the time of writing, Bitcoin was up by 1.14% to $36,298.6. A mixed start to the day saw Bitcoin fall to an early morning low $35,602.0 before rising to a high $36,353.0.

Bitcoin left the major support and resistance levels untested early on.

Elsewhere, it was a mixed start to the day.

Binance Coin (-0.33%) and Chainlink (-1.85%) saw red to buck the trend early on, with Bitcoin Cash SV flat.

It was a bullish start for the rest of the majors, however.

At the time of writing, Crypto.com Coin was up by 4.04% to lead the way.

BTCUSD 200121 Hourly Chart

For the Bitcoin Day Ahead

Bitcoin would need to avoid a fall through the pivot level at $36,563 to bring the first major resistance level at $37,263 into play.

Support from the broader market would be needed for Bitcoin to break back through to $37,000 levels.

Barring an extended crypto rally, first major resistance level and Tuesday’s high $37,936.6 would likely cap any upside.

In the event of an extended crypto rally, Bitcoin could test resistance at $40,000 before any pullback. The second major resistance level sits at $38,637.

Failure to avoid a fall through the $36,563 pivot would bring the first major support level at $35,190 into play.

Barring an extended crypto sell-off, Bitcoin should steer clear of sub-$35,000 levels. The second major support level sits at $34,490.

Will 2021 Be Another Historic Year for Crypto?

We’ve also seen the market cap of the entire crypto space breaking above $1 trillion for the first time ever. Having covered the entire run-up since the end of the bear market, it’s been fascinating to observe these shifts in sentiment.

4-Hour Chart of Total Crypto Market Cap. Source: TradingView 

Aversion Gives Way to Appetite

The crash of 2018, followed by the coronavirus sell-off last year in March, weighed heavily on investor confidence. Each new high was met with expectations of an imminent sell-off. Remember that the asset was already looking overbought before it broke its 2017 highs at the close of 2020. As bitcoin traded closer to those highs, many expected a prolonged correction because it had already rallied by almost 200% in 2020 alone, and this sentiment was held despite coronavirus.

However, as we learned back in 2017, expectations are easily confounded when animal spirits are woken in crypto. We’re barely into the first half of January and bitcoin has doubled again, trading as high as $42,000 on January 8. Over the past weekend, we’ve seen profit-taking as traders hunt for a top. At the time of writing, the price has dipped as low as $32,600.

So, where to next?

As much as the entire market has already run, there are a number of factors possibly converging to support higher crypto prices. What’s notable about the shift in sentiment is that it seems to be remaining positive, even at these inflated prices. It’s worth noting that even as recently 2019, there were nowhere near as many institutional traders publicly discussing bitcoin, making price predictions, or allocating a percentage of their capital to it. Bitcoin seems to have become a part of the broader reflation narrative that sees 2021 ushering in a commodity bull cycle and a cheaper dollar, both of which should be positive for crypto assets.

All this is happening while bitcoin itself is at a very bullish part of its own internal cycle. The “halvening” event, where the number of new bitcoins minted per block is cut in half, takes place every four years and the last one almost went by unnoticed with coronavirus dominating the headlines throughout 2020. Now, with less supply and more interest from institutional and retail alike, we could be at a crucial turning point in the asset’s history. In November, it was reported that PayPal and Square’s CashApp alone, had been scooping up 100% of all newly minted bitcoins, and that’s just for the retail crowd.

Then there’s the amount of fiscal and monetary stimulus that’s already been conducted globally, and all that’s to transpire due to COVID-19 still not firmly in the rearview. The debate as to whether or not inflation is here due to unprecedented central bank largesse is moot when you’re trying to purchase anything that cannot be “eased.” Hard assets like gold, bitcoin, and even industrial metals like copper, have undoubtedly inflated since last year. So, with more printing on the cards, there will be more money vying for the same scarce assets.

How to handle it

If you’re new to the crypto space, keep in mind that it’s a highly volatile asset class and the experience of trading it with no leverage at all is similar to using leverage on less volatile markets like FX. For this reason alone, be very judicious in your use of leverage (if any) when trading crypto. If you’re completely new to trading as a whole, it is best to use no leverage at all. This will help you avoid large losses of capital as you learn how to trade, and is critical in many traders’ long-term ability to stay in the markets.

For those of you with both a basic grasp of trading and crypto markets, it pays to remember that a rising tide lifts all boats, so inflated bitcoin prices eventually spill over into the rest of the crypto market. Some of you will be holding bitcoin all the way up, others will attempt to capitalise on short- and medium-term corrections. For those wanting to trade the chop, a rudimentary understanding of technical analysis will stand you in good stead.

The more ambitious among you who are considering venturing into the other cryptocurrencies should be aware that there’s a relationship between bitcoin and the rest of the “altcoin” market that needs to be researched and understood. If past is prologue, investing in the strongest of the “alts” at the right point of the cycle can lead to trades that outperform bitcoin itself. In 2017, it was all about ether. It may be the same story in 2021-2022, however, there are a few notable contenders out there in the smart contract vertical who are bringing some interesting technologies to market. These should be researched and understood by anyone seeking to trade the altcoin market in 2021.

by Giles Coghlan, Chief Currency Analyst, HYCM

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Note: Cryptocurrencies are not available for trading under HYCM (Europe) Ltd and Henyep Capital Markets (UK) Ltd.


About HYCM

HYCM is the global brand name of Henyep Capital Markets (UK) Limited, HYCM (Europe) Ltd, Henyep Capital Markets (DIFC) Ltd and HYCM Limited, all individual entities under Henyep Capital Markets Group, a global corporation founded in 1977, operating in Asia, Europe, and the Middle East. 

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Bitcoin and Chainlink – Weekly Technical Analysis – January 18th, 2021

Bitcoin

Bitcoin, BTC to USD, fell by 6.02% in the week ending 17th January. Partially reversing a 15.8% rally from the previous week, Bitcoin ended the week at $35,900.0.

A bearish start to the week saw Bitcoin tumble to a Monday intraweek low $30,635.0 before finding support.

Bitcoin fell through the 23.6% FIB of $33,008 to come within range of the first major support level at $30,504.

After another bearish day on Tuesday, Bitcoin rallied to a Wednesday intraweek high $40,001.0 before hitting reverse.

While falling well short of the first major resistance level at $43,933, Bitcoin broke back through the 23.6% FIB of $33,008.

A bearish end to the week, however, saw Bitcoin revisit sub-$34,000 levels before wrapping up the week at $35,900 levels.

5 days in the red that included an 7.31% tumble on Monday and a 6.12% slide on Friday delivered the downside.

For the week ahead

Bitcoin would need to avoid a fall through $35,512 pivot to support a run the first major resistance level at $40,389.

Support from the broader market would be needed for Bitcoin to break back through to $40,000 levels.

Barring an extended crypto rally, resistance at last week’s high $40,001 would likely cap any upside.

In the event of an extended breakout, Bitcoin could test resistance at $45,000 before any pullback. The second major resistance level sits at $44,878.

Failure to avoid a fall through the $35,512 pivot would bring the 23.6% FIB of $33,008 and the first major support level at $31,023 into play.

Barring an extended sell-off, however, Bitcoin should steer clear of sub-$30,000 support levels and the 38.2% FIB of $27,465. The second major support level sits at $26,146.

At the time of writing, Bitcoin was up by 0.28% to $35,999.0. A mixed start to the week saw Bitcoin fall to an early Monday morning low $35,630.0 before rising to a high $36,244.0.

Bitcoin left the major support and resistance levels untested at the start of the week.

BTCUSD 180121 Daily Chart

Chainlink

Chainlink surged by 43.53% in the week ending 17th January. Following on from an 18.11% gain from the week prior, Chainlink ended the week at $23.30.

It was a particularly bearish start to the week. Chainlink slid to a Monday intraweek low $12.50 before ending the day at $16 levels.

The sell-off saw Chainlink briefly fall through the 38.2% FIB of $12.9 and the first major support level at $12.87.

After a bearish Tuesday, Chainlink surged to a Sunday intraweek high and a new swing hi $23.7392.

The breakout saw Chainlink break through the week’s major resistance levels to end the week at $23 levels.

4-days in the green included a 13.86% rally on Wednesday, a 12.48% gain on Thursday, a 15.7% jump on Friday, and a 15.82% breakout on Sunday.

For the week ahead

Chainlink would need to avoid a fall through the pivot level at $19.85 to support a run at the first major resistance level at $27.19.

Support from the broader market would be needed, however, for Chainlink to break out from last week’s all-time high $23.7392.

Barring another extended crypto rally, the first major resistance level would likely cap any upside.

In the event of another breakout, Chainlink could test resistance at $30 before any pullback. The second major resistance level sits at $31.09.

Failure to avoid a fall through the pivot level at $19.85 would bring 23.6% FIB of $18.5 into play before any recovery.

Barring a crypto meltdown, however, Chainlink should steer well clear of last week’s low $12.50. The first major support level at $15.95 and the 38.2% FIB of $15.2 should limit any downside.

At the time of writing, Chainlink was flat at $23.30. A mixed start to the week saw Chainlink fall to an early Monday morning low $22.9074 before rising to a high $23.6632.

Chainlink left the major support and resistance levels untested at the start of the week.

LINKUSD 180121 Daily Chart

The Crypto Daily – Movers and Shakers – January 18th, 2021

Bitcoin, BTC to USD, slipped by 0.38% on Sunday. Following on from a 1.91% fall on Saturday, Bitcoin ended the week down by 6.02% to $35,900.0.

It was a mixed start to the day. Bitcoin rose to an early morning intraday high $36,928.0 before hitting reverse.

Falling short of the first major resistance level at $37,553, Bitcoin slid to a late morning intraday low $33,868.0.

Bitcoin fell through the first major support level at $34,974 and the second major support level at $33,906.

Steering clear of the 23.6% FIB of $33,008, Bitcoin revisited $36,900 levels before falling back to sub-$36,000 levels.

The near-term bullish trend remained intact, in spite of the latest reversal. For the bears, Bitcoin would need to slide through the 62% FIB of $18,504 to form a near-term bearish trend.

The Rest of the Pack

Across the rest of the majors, it was another mixed day on Sunday.

Chainlink jumped by 15.8% to lead the way, with Binance Coin  and Cardano’s ADA rallying by 6.38% and by 8.64% respectively. Ethereum also avoided the red, rising by a modest 0.43%.

It was a bearish day for the rest of the pack.

Bitcoin Cash SV and Polkadot led the way down, with losses of 3.42% and 4.67% respectively.

Crypto.com Coin (-0.63%), Litecoin (-0.54%), and Ripple’s XRP (-0.68%) saw modest losses on the day.

For the week ending 17th January, it was also a mixed bag for the majors.

Polkadot surged by 95.6% to lead the way, with Chainlink jumping by 46.2%.

Cardano’s ADA also found strong support, rallying by 26.3%, with Binance Coin rising by 7.99%.

It was a bearish week for the rest of the pack, however.

Bitcoin Cash SV slid by 21.9% to lead the way down.

Litecoin and Ripple’s XRP also struggled, sliding by 16.1% and by 12.0% respectively.

Crypto.com Coin and Ethereum saw relatively modest losses of 2.7% and 1.8% respectively.

In the week, the crypto total market cap fell to a Monday low $803.97bn before rising to a Thursday high $1,083.27bn. At the time of writing, the total market cap stood at $1,002.00bn.

Bitcoin’s dominance rose to a Thursday high 70.28% before falling to a Sunday low 66.33%. At the time of writing, Bitcoin’s dominance stood at 66.68%.

This Morning

At the time of writing, Bitcoin was up by 0.33% to $36,018.0. A mixed start to the day saw Bitcoin fall to an early morning low $35,630.0 before striking a high $36,071.0.

Bitcoin left the major support and resistance levels untested early on.

Elsewhere, it was a mixed start to the day.

Bitcoin Cash SV (-0.28%), Chainlink (-0.21%), and Ripple’s XRP (-0.03%) saw red early on.

It was a bullish start for the rest of the majors, however.

At the time of writing, Cardano’s ADA was up by 3.08% to lead the way, with Binance Coin up by 2.07%.

BTCUSD 180121 Hourly Chart

For the Bitcoin Day Ahead

Bitcoin would need to avoid a fall through the pivot level at $35,565 to bring the first major resistance level at $37,263 into play.

Support from the broader market would be needed for Bitcoin to break back through to $37,000 levels.

Barring an extended crypto rally, first major resistance level and resistance at $37,500 would likely cap any upside.

In the event of an extended crypto rally, Bitcoin could test resistance at $40,000 before any pullback. The second major resistance level sits at $38,625.

Failure to avoid a fall through the $35,565 pivot would bring the first major support level at $34,203 into play.

Barring another extended crypto sell-off, Bitcoin should steer clear of the second major support level at $32,505. The 23.6% FIB of $33,008 should limit any downside.

The Crypto Daily – Movers and Shakers – January 17th, 2021

Bitcoin, BTC to USD, fell by 1.91% on Saturday. Following on from a 6.15% slide on Friday, Bitcoin ended the day at $36,041.0.

It was a mixed start to the day. Bitcoin fell to an early morning low $35,551.0 before making a move.

Steering clear of the major support levels, Bitcoin rose to a late morning intraday high $37,997.0.

Falling short of the first major resistance level at $39,461, Bitcoin slid to a late intraday low $35,418.0.

Steering clear of the first major support level at $34,260, Bitcoin moved back through to $36,000 levels to reduce the deficit on the day.

The near-term bullish trend remained intact, in spite of the latest reversal. For the bears, Bitcoin would need to slide through the 62% FIB of $18,504 to form a near-term bearish trend.

The Rest of the Pack

Across the rest of the majors, it was another mixed day on Saturday.

Polkadot surged by 39.53% to lead the way.

Cardano’s ADA (+16.05%) and Crypto.com Coin (+15.91%) also found strong support.

Binance Coin (+5.28%) and Ethereum (+4.97%) trailed the front runners.

It was a bearish day for the rest of the pack.

Chainlink slid by -3.24% to lead the way down.

Bitcoin Cash SV (-0.21%), Litecoin (-0.17%), and Ripple’s XRP (-0.36%) saw modest losses on the day.

In the current week, the crypto total market cap fell to a Monday low $804.97bn before rising to a Thursday high $1,083.27bn. At the time of writing, the total market cap stood at $1,004.03bn.

Bitcoin’s dominance rose to a Thursday high 70.28% before falling to a Saturday low 66.73%. At the time of writing, Bitcoin’s dominance stood at 67.26%.

This Morning

At the time of writing, Bitcoin was up by 0.47% to $36,211.0. A mixed start to the day saw Bitcoin fall to an early morning low $35,565.0 before striking a high $36,348.0.

Bitcoin left the major support and resistance levels untested early on.

Elsewhere, it was a mixed start to the day.

Bitcoin Cash SV (-2.05%), Crypto.com Coin (+2.27%), Ethereum (-0.19%), and Polkadot (-0.52%) struggled early on.

It was a bullish start for the rest of the majors, however.

At the time of writing, Cardano’s ADA was up by 2.87% to lead the way, with Binance Coin up by 2.22%.

BTCUSD 170121 Hourly Chart

For the Bitcoin Day Ahead

Bitcoin would need to move through the pivot level at $36,485 to bring the first major resistance level at $37,553 into play.

Support from the broader market would be needed for Bitcoin to break back through to $37,000 levels.

Barring an extended crypto rally, first major resistance level and Saturday’s high $37,997.0 would likely cap any upside.

In the event of an extended crypto rally, Bitcoin could test resistance at $40,000 before any pullback. The second major resistance level sits at $39,064.

Failure to move through the $36,485 pivot would bring the first major support level at $34,974 into play.

Barring an extended crypto sell-off, Bitcoin should continue to steer clear of the second major support level at $33,906 and the 23.6% FIB of $33,008.

The Crypto Daily – Movers and Shakers – January 16th, 2021

Bitcoin, BTC to USD, slid by 6.15% on Friday. Reversing a 4.73% rally from Thursday, Bitcoin ended the day at $36,741.0.

It was a mixed start to the day. Bitcoin rise to an early morning intraday high $39,701.0 before hitting reverse.

Falling short of the first major resistance level at $40,536, Bitcoin slid to a late afternoon intraday low $34,500.0.

Bitcoin fell through the first major support level at $37,201 and the second major support level at $35,266.

Finding support late in the day, however, Bitcoin broke back through the second major support level to end the day at $36,700 levels.

The near-term bullish trend remained intact, in spite of the reversal. For the bears, Bitcoin would need to slide through the 62% FIB of $18,504 to form a near-term bearish trend.

The Rest of the Pack

Across the rest of the majors, it was a mixed day on Friday.

Chainlink bucked the trend on the day, rallying by 15.7%.

It was a bearish day for the rest of the pack.

Bitcoin Cash SV and Crypto.com Coin slid by 7.11% and by 7.93% respectively to lead the way down.

Ethereum (-5.16%), Litecoin (-5.74%), and Ripple’s XRP (-5.30%) also saw heavy losses.

Binance Coin (-2.18%),Cardano’s ADA (-3.13%), and Polkadot (-3.15%) saw relatively modest losses on the day.

In the current week losses, the crypto total market cap fell to a Monday low $804.33bn before rising to a Thursday high $1,083.27bn. At the time of writing, the total market cap stood at $1,011.91bn.

Bitcoin’s dominance rose to a Thursday high 70.28% before falling to a Friday low 68.27%. At the time of writing, Bitcoin’s dominance stood at 68.47%.

This Morning

At the time of writing, Bitcoin was up by 1.27% to $37,207.0. A bullish start to the day saw Bitcoin rise from an early morning low $36,731.0 to a high $37,388.0.

Bitcoin left the major support and resistance levels untested early on.

Elsewhere, it was also a bullish start to the day.

At the time of writing, Polkadot was up by 12.43% to lead the way, with Crypto.com Coin up by 7.74%.

BTCUSD 160121 Hourly Chart

For the Bitcoin Day Ahead

Bitcoin would need to avoid a fall through the pivot level at $36,981 to bring the first major resistance level at $39,461 into play.

Support from the broader market would be needed for Bitcoin to break back through to $39,000 levels.

Barring an extended crypto rally, first major resistance level and resistance at $40,000 would likely cap any upside.

In the event of an extended crypto rally, Bitcoin could test resistance at the all-time high $41,969 and at $42,000 before any pullback. The second major resistance level sits at $42,182.

Failure to avoid a fall through the $36,981 pivot would bring the first major support level at $34,260 into play.

Barring an extended crypto sell-off, Bitcoin should continue to steer clear of the second major support level at $31,780. The 23.6% FIB of $33,008 should limit the downside.

The Crypto Daily – Movers and Shakers – January 15th, 2021

Bitcoin, BTC to USD, rose by 4.73% on Thursday. Following on from a 9.54% rally on Wednesday, Bitcoin ended the day at $39,136.0.

It was a mixed start to the day. Bitcoin fell to an early morning low $36,666.0 before making a move.

Steering clear of the first major support level at $33,937, Bitcoin rallied to an early afternoon intraday high $40,001.0.

Bitcoin broke through the first major resistance level at $39,277 to test resistance at $40,000 before easing back.

A late pullback saw Bitcoin fall back through the first major resistance level to wrap up the day at $39,130 levels.

The near-term bullish trend remained intact, supported by the latest visit to $40,000 levels. For the bears, Bitcoin would need to slide through the 62% FIB of $18,504 to form a near-term bearish trend.

The Rest of the Pack

Across the rest of the majors, it was a mixed day on Thursday.

Cardano’s ADA (-0.11%), and Ripple’s XRP (-3.29%) saw red to buck the trend on the day.

It was a bullish day for the rest of the majors, however.

Polkadot surged by 26.43% to lead the way once more, with Chainlink (+12.48%) and Crypto.com Coin (+11.04%) also on the move.

Binance Coin (+4.28%), Bitcoin Cash SV (+4.17%), Ethereum (+8.89%), and Litecoin (+3.27%) trailed the front runners, however.

In the current week, the crypto total market cap fell to a Monday low $804.33bn before rising to a Thursday high $1,083.43bn. At the time of writing, the total market cap stood at $1,055.94bn.

Bitcoin’s dominance rose from a Monday low 68.39% to a Thursday high 70.28%. At the time of writing, Bitcoin’s dominance stood at 69.36%.

This Morning

At the time of writing, Bitcoin was up by 0.88% to $39,481.0. A mixed start to the day saw Bitcoin fall to an early morning low $39,025.0 before rising to a high $39,701.0.

Bitcoin left the major support and resistance levels untested early on.

Elsewhere, it was a mixed start to the day.

Cardano’s ADA and Polkadot were down by 0.21% and by 1.69% to buck the trend early on.

It was a bullish start to the day for the rest of the majors, however.

At the time of writing, Crypto.com Coin was up by 2.82% to lead the way.

BTCUSD 150121 Hourly Chart

For the Bitcoin Day Ahead

Bitcoin would need to avoid a fall through the pivot level at $38,601 to bring the first major resistance level at $40,536 into play.

Support from the broader market would be needed for Bitcoin to break back through to $40,000 levels.

Barring an extended crypto rally, first major resistance level and resistance at $41,000 would likely cap any upside.

In the event of an extended crypto rally, Bitcoin could test resistance at the all-time high $41,969 before any pullback. The second major resistance level sits at $41,936.

Failure to avoid a fall through the $38,601 pivot would bring the first major support level at $37,201 into play.

Barring another extended crypto sell-off, Bitcoin should continue to steer clear of sub-$36,000 levels. The second major support level sits at $35,266.

The Crypto Daily – Movers and Shakers – January 13th, 2021

Bitcoin, BTC to USD, fell by 3.63% on Tuesday. Following on from a 7.31% slide on Monday, Bitcoin ended the day at $34,123.0. It was the 4th consecutive day in the red.

It was a mixed start to the day. Bitcoin slipped to an early morning low $33,762.0 before making a move.

Steering clear of the 23.6% FIB of $33,008 and the first major support level at $31,270, Bitcoin struck a mid-morning intraday high $36,656.0.

Falling short of the first major resistance level at $38,912, Bitcoin slid to an early afternoon intraday low $32,427.

While steering clear of the first major support level, Bitcoin fell through the 23.6% FIB of $33,008.

Late in the day, Bitcoin briefly revisited $35,500 levels before sliding back into the deep red.

Despite of the late reversal, Bitcoin avoided a fall back through the 23.6% FIB of $33,008.

The near-term bullish trend remained intact, in spite of the latest sell-off. For the bears, Bitcoin would need to slide through the 62% FIB of $18,504 to form a near-term bearish trend.

The Rest of the Pack

Across the rest of the majors, it was a mixed day on Tuesday.

Bitcoin Cash SV  rallied by 10.22% to lead the day.

Binance Coin (+0.12%), Cardano’s ADA (+4.89%), Crypto.com Coin (+5.88%), Polkadot (+4.45%), Ripple’s XRP (+1.66%) also found support.

It was a bearish day for the rest of the majors, however

Chainlink (-4.13%), Ethereum (-3.56%), and Litecoin (-4.28%) joined Bitcoin in the red.

Early in the week, the crypto total market cap rose to a Monday high $1,040.51 before falling to a Monday low $804.33bn. At the time of writing, the total market cap stood at $888.48bn.

Bitcoin’s dominance rose from a Monday low 68.39% to a Monday high 69.97%. At the time of writing, Bitcoin’s dominance stood at 69.00%.

This Morning

At the time of writing, Bitcoin was down by 3.12% to $33,058.0. A bearish start to the day saw Bitcoin fall from an early morning high $34,105.0 to a low $32,931.0.

While leaving the major support and resistance levels untested early on, Bitcoin fell through the 23.6% FIB of $33,008.

Elsewhere, it was a mixed start to the day.

Polkadot bucked the trend early on, rising by 0.69%, with Bitcoin Cash SV and Crypto.com Coin flat.

It was a bearish start for the rest of the majors, however.

At the time of writing, Ethereum was down by 3.65% to lead the way down.

BTCUSD 130121 Hourly Chart

For the Bitcoin Day Ahead

Bitcoin would need to move through the pivot level at $34,402 to bring the first major resistance level at $36,631 into play.

Support from the broader market would be needed for Bitcoin to break out from $35,500 levels.

Barring an extended crypto rally, first major resistance level and Tuesday’s high $36,656.0 would likely cap any upside.

In the event of an extended crypto rally, Bitcoin could test resistance at $40,000 before any pullback. The second major resistance level sits at $38,631.

Failure to move through the $34,402 pivot would bring the 23.6% FIB of $33,008 and the first major support level at $32,148 into play.

Barring another extended crypto sell-off, Bitcoin should steer clear of sub-$30,000 levels. The second major support level at $30,173 should limit the downside.

Gold Analysis – This Moving Average has Something to Say

The hardest to react to such an increase of the US Dollar index was Bitcoin losing 20% yesterday. Gold was stable yesterday and didn’t show signs of a bearish reversal amid a sudden surge of Covid-19 cases in China.

The US Dollar Dollar index set so far the lowest point on January 06 this year at 89.391 and was able to recover and breakout from the descending downtrend channel of November 02, 2020.

DXY chart by TradingView

If the US Dollar closes above 90.720 it might show one of the sharpest jumps up to 92.100 after testing a resistance at 91.120.

The gold chart below shows that the precious metal is back in the descending channel. As seen on the chart the further uptrend of XAU/USD was denied by the MA200. This Moving Average on the chart signalled the bearish continuation, examples are September 10, 15-16, October 09, November 16 and December 08 of 2020. Hence, Gold needs to close above this MA200 to continue the uptrend.

Gold price on Overbit

By the time of writing this article, XAU/USD quote on Overbit is $1845 per ounce and remains above the dynamic support and the neckline of the previously confirmed Head and Shoulders pattern, see the pink line on the chart below.

Gold price on Overbit

While Gold remains above this dynamic support, it still holds all the chances to continue bullish. The first resistance Gold will face when closing above the MA200 is $1880. The bullish run of XAU/USD is also supported by RSI and MACD indicators, however MACD hasn’t crossed the signal line yet, although is very close to doing so.

If Gold closes below the dynamic support it will drop towards $1817 and below that to $1780. The US JOLTS Job openings as per November announced just now 6.527M, higher than the forecasted 6.632M and the previous month’s 6.494M, this data signals the recovery and could trigger investors to bet on the US Dollar rather Gold.

Another important data from the US which Gold investors should trace is tomorrow’s CPI and Core CPI. Forecasts are mixed, while the MoM CPI as per December is expected to surge and be at 0.4%, Core CPI (MoM) as per December is expected to fall and be at 0.1%. While the JOLTS Job Openings look positive and announced numbers are higher than expected, the CPI data could be more positive as well.

Bitcoin Start Triangle After Massive Uptrend Breaks $40k

The BTC/USD (Bitcoin) has broken above the $40,000 resistance zone after an exceptionally strong move up. Is the trend overstretched? Let’s review the wave and chart patterns.

Price Charts and Technical Analysis

BTC/USD 12.01.2021 4 hour chart

The BTC/USD is not showing any significant signs of a reversal. There is no divergence on the 4 hour chart or higher time frames. Also, the momentum up is very strong.

That said, the counter trend decline did reach the 50% Fibonacci retracement level. This could indicate a deep or longer retracement via an ABC correction or ABCDE triangle.

As long as price stays above the 50-61.8% Fibonacci support zone, an uptrend has the best chance of continuing higher (blue arrow) for new high. Only a break below the deep Fibonacci levels would change and invalidate that view.

On the 1 hour chart, price action seems to have completed a wave A (pink) of a wave 4 (purple) correction. The wave could become numerous different types of corrections:

  • ABC flat
  • ABCDE triangle
  • ABC zigzag

The first two options are the most likely scenarios. This means that a deeper retracement towards the resistance and then a bounce back down is the most likely pattern.

BTC/USD 12.01.2021 1 hour chart

For a look at all of today’s economic events, check out our economic calendar.

Good trading,

Chris Svorcik

The analysis has been done with the indicators and template from the SWAT method (simple wave analysis and trading). For more daily technical and wave analysis and updates, sign-up to our newsletter

 

Gold Claws Back above its 200-day Moving Average

Even more alarming was the fact that after trading to a low of $1828, gold futures traded off the low closing at $1,836 which is four dollars below its 200-day moving average. Today we have seen an increase in volatility and an exaggerated range with gold opening at $1849, a mere $9 above the 200-day moving average, and then trading to an intraday low during the evening session of $1817 before recovering.

As of 4:48 PM EST gold’s most active February 2021 Comex contract currently up by $11.60 and fixed at $1,847.00. With all three major indices, the Dow, the S&P 500, and the NASDAQ composite trading lower on the day, and concurrently a strong selloff in Bitcoin, market participants have re-focused their attention on the safe-haven aspect of gold. Today’s price increase was strong enough to overcome dollar strength. Gold futures are currently trading up +0.63%, and the U.S. dollar is up +0.48% currently fixed at 90.485. This means that had we seen a neutral dollar today gold would have gained a total of 1.11%.

gold jan 11

Many analysts including myself believe that Friday’s strong selloff in gold was magnified or exaggerated possibly reflecting a rebalancing from gold into Bitcoin as the cryptocurrency broke $40,000 per coin for the first time in history. On Friday BTC hit an intraday high of 42,611.00. Recent action in BTC took pricing parabolic, with last week’s range containing a low of proximately $28,000 and a high of $42,000. But as any market analyst will explain typically a market that moves up in a parabolic manner has that same strength when it corrects, exactly what occurred today. Currently the most active BTC contract (CME’s bitcoin futures) is fixed at $33,800 putting it down $5,720 (-14.42%).

Our technical studies have indicated the following levels could become major levels of support. The lowest of these levels occurs at the 50% retracement that is currently fixed at $1,768.60. Above that price point, the next level is the 200-day moving average is currently fixed at $1,840 just above that is the 38.2% Fibonacci retracement level created from a data set beginning in March when gold traded at $1,400 to the all-time record high of August 2020 at $2,088. While current gold pricing is close to the levels of support that we have spoken about the first strong level of resistance occurs at $1,869 which is the current 50-day moving average.

The fundamental events that took pricing to a new record high are still very much with us. They continue to shape and determine market sentiment. On Thursday President-elect Joe Biden will lay out his budget for the next round of fiscal stimulus in which he has warned that it will be in the multiple trillions of dollars. When added to the $4 trillion worth of fiscal stimulus allocated over two rounds by the U.S. Treasury Department the net result takes the United States budget deficit the largest amount in history.

Also because of this recession, brought on by the Covid-19 pandemic continues to worsen even as vaccines are being rolled out globally. Then there is the potential, although remote, that Trump supporters will continue to wreak havoc with intel suggesting militants plan on storming capital buildings in every state next week.

Collectively these events will at best slow down the attempted economic recovery, and at worse could have the ultimate effect of a continuing economic contraction worldwide. It is for those reasons that the upside potential remains solid even though gold traded dramatically lower on Friday.

For more information on our service simply use this link.

Wishing you as always, good trading and good health,

Gary S. Wagner

For a look at all of today’s economic events, check out our economic calendar.

Bitcoin Rises to New All-Time Highs, Generating over 20% in Weekly Returns

Within a few hours after the weekly open, more than $2 billion were liquidated across the board while BTC dropped to $27,500.00.

Sidelined investors seem to have taken advantage of the downward price action to get back into the market. As a significant number of buy orders were getting filled while prices were going down, Bitcoin was able to rebound and recover lost ground. By January 5th, at 20:00 UTC, the pioneer cryptocurrency was trading at a high of $34,490.00, surpassing the weekly open.

The upswing was interpreted as a bullish sign by many investors who rushed to exchanges to add more tokens to their positions. The considerable spike in buying pressure seen on Tuesday, January 5th, spilled over the rest of the week, allowing Bitcoin to surge more than 22%. By Friday, January 8th, the bellwether cryptocurrency had reached a new all-time high of $41,999.90, according to the exchange rate of CEX.IO.

As the weekly trading session was coming to an end, some traders appear to have booked in profits. The increase in downward pressure pushed BTC down over 3.50%. Thus, Bitcoin closed Friday’s trading session at $40,553.10, providing investors with a weekly return of 21.10%.

Ethereum Whales Go into Buying Spree, Pushing Prices Up Over 24%.

Like Bitcoin, Ethereum experienced high levels of volatility after the weekly trading session of January 4th began. The smart contracts giant jumped by more than 19%, from an opening price of $975.65 to a high of $1,165.48. Then, ETH plummeted by nearly 25% to hit a low of $973.00.

The erratic price action seen on Monday, January 4th, generated over $1.2 billion in liquidations across the board. Regardless, Ether was able to stabilize and maintain a steady uptrend as whales added more tokens to their bags.

On-chain data reveals that throughout the week of January 4th, five new addresses holding 100,000 to 10,000,000 ETH joined the network, adding fuel to the upward price action.

Given the significant increase in buying pressure, Ethereum surged by nearly 33% to hit a high of $1,289.00 on Thursday, January 7th, according to the exchange rate of CEX.IO. A considerable number of traders enjoyed the rising prices to realize profits, which resulted in a significant correction. Indeed, Ether took an 18% nosedive due to the increase in sell orders to hit a low of $1,067.00.

Ethereum was able to recover quickly after the downswing, gaining more than 14% in market value. The second-largest cryptocurrency by market capitalization closed Friday, January 8th, at a high of $1,218.17, according to the exchange rate of CEX.IO. Ether holders were able to grasp a weekly return of 24.30% due to the bullish price action.

In the Vicinity of a Correction

Despite the impressive uptrend that Bitcoin and Ethereum went through over the week, multiple technical indicators suggest that these cryptocurrencies are approaching overbought territory. For instance, the Tom Demark (TD) Sequential indicator presents sell signals in the form of green nine candlesticks on both of these digital assets’ daily charts. The bearish formations forecast a one to four daily candlesticks correction or the beginning of a new downward countdown.

If validated, BTC and ETH could be about to go through a steep correction since they have not had any significant pullbacks since the uptrend began in September 2020. A spike in selling pressure may see Bitcoin retrace to $32,000 and Ethereum towards $1,000. Only a daily candlestick close about their respective yearly highs will invalidate the bearish outlook and lead to further gains.

Konstantin Anissimov, Executive Director at CEX.IO

Investors Tempering their Bearish Bets on U.S Dollar

At press time, the U.S. Dollar Index that gauges the greenback against a basket of major global currencies rallied by over 0.30%, minting impressive gains and thus climbing above the 90 price level, on the U.S dollar index.

Almost all assets including Bitcoin, Gold, Crude oil, and global stocks dropped significantly at the time of drafting this report, as It appears this time currency traders and global investors are struggling to iron out if the triggered nominal rise sighted on U.S Treasury yields could be a pre-cursor to a change in America’s monetary policy, which is the primary indicator for determining the direction of the US dollar from a monetary perspective.

Right now, FX dollar bears hold on the safe-haven market is virtually fizzling out, on the account that higher U.S Treasury yield differentials are giving dollar bulls enough gas to stay above the 90 index point level amid growing sentiments that the world’s largest economy will recover quicker than Europe in particular as the incoming American president aggressively pushes for more COVID-19 vaccination efforts.

On the greenback’s activity in the near term, it might be a case of a significant amount of volatility coming to play on the bias that whenever the risk-on sentiment like global stocks raises, the greenback relatively turns negative as capital is allocated elsewhere, meaning it’s not clear yet, if the U.S dollar recent bullish run can be sustained.

However, some leading currency experts anticipate the broad US dollar momentum will likely extend in the coming days even though it seems riskier assets like stocks and crypto are attracting record inflows of funds but there is also a growing reluctance to sell the greenback arbitrarily with the reckless upsurge in COVID-19 caseloads globally.

For a look at all of today’s economic events, check out our economic calendar.

Bitcoin Down 20% from Top; Any Technical Experts Brave Enough to Call it Bearish?

Cryptocurrencies are down sharply across the board on Monday, with Bitcoin dropping more than 15% to a one-week low. Some traders are saying rising U.S. yields are hurting the non-income paying assets. Others are saying the bubble has burst on its parabolic rise, putting it in a position to plunge substantially.

At 07:25 GMT, Bitcoin is trading 33850, down 5670 or -14.35%.

Before I go on, I just want to mention that I don’t own Bitcoin at the moment and in fact, I don’t and never have owed any cryptocurrencies. I mention this because I want to give those who think I’m not qualified to comment on the market since I don’t have any skin in the game to stop reading any further.

I don’t analyze Bitcoin on a daily basis, but since it is a competing asset with stocks, bonds and gold to name a few, I am aware of the price action in the market. So I wouldn’t call myself completely naïve to its movement.

In 2020, I wrote only one article on Bitcoin. It was published on October 23 on FXEmpire.com. I didn’t just wake up that day and decide to write about. I saw some movement in the market on the chart that raised my interest and I decided to investigate it further.

I concluded at that time that PayPal’s entry into the cryptocurrency market was behind the move. This wasn’t a guess, but rather my knowledge and experience behind what moves a market. I am mainly a technician, but after years of experience, I think I have a good grasp on how the fundamentals and technicals work together.

I believe the technicals precede the fundamentals, which is why the 5% spike in prices encouraged me to delve into the fundamental reason behind the move.

What really surprised me about Bitcoin wasn’t the price action, but the lack of really good technical and fundamental analysis. I acknowledge that I’ve seen the articles on halving and mining, and such, but I’m confused by most of the analysis.

I read comments and analysis but I don’t know if these experts are long-term investors or short-term traders. I do know this, just about every Bitcoin analyst slaps a few percentage retracement lines on a chart and thinks they are helping an investor decide what to do. But my biggest beef is that very few every day analysts are telling me if I should buy it or sell it. But mostly, what’s my exit if I’m wrong.

Prior to the big rally from about $12,000 to $42,730, there were very few fresh articles published on FXEMPIRE, but once it started to climb sometimes thousands of dollars per day and it took out the $20,000 level, many articles were published. And of course, the obligatory $100,000 target pieces were written.

What I’ve concluded is that Bitcoin analysts love momentum when its breaking out to the upside, but when it comes to sell-offs, very little is written. I mean, who doesn’t like a volatility breakout when all you have to do is throw out targets.

Daily Bitcoin

The Challenge

As of early Monday, Bitcoin is down more than 20% from its top. My question for Bitcoin experts, are we in a bear market? I mean on the way up, you seem to think conventional technical analysis works so why wouldn’t it work on the downside. Do you have the courage and conviction in your analysis to say that Bitcoin is now in a bear market since it has corrected more than 20% from its top?

Maybe 20% isn’t the figure. Perhaps it is 30% or 40%.

My point is, it’s easy to whip out the Elliott Wave when Bitcoin is rising. It’s easy to make predictions like it’s going to $100,000 when it’s moving higher exponentially, but what about the downside when investors need you most.

Where are the longs wrong? If you think Bitcoin is overvalued, where is the value zone for the next buy? Does technical analysis really work for Bitcoin since it is supposed to be such a unique financial instrument?

I don’t have the answers, but if I was pressed to make a prediction, I would say that $24203 to $19830 is a good place to start looking for value.

Bull market or bear market, it doesn’t matter to me, but what I would like to see is some decent analysis when Bitcoin is going down, not just crickets.

For a look at all of today’s economic events, check out our economic calendar.

Bitcoin and Stellar’s Lumen – Weekly Technical Analysis – January 11th, 2021

Bitcoin

Bitcoin, BTC to USD, rallied by 15.8% in the week ending 10th January. Following on from a 25.6% breakout from the previous week, Bitcoin ended the week at $38,200.

It was a bearish start to the week. Bitcoin fell to a Monday intraweek low $28,540.0 before making a move.

Steering clear of the first major support level at $27,594, Bitcoin surged to a Friday intraweek high and a new swing hi $41,969.0.

Bitcoin broke through the first major resistance level at $36,608 and the second major resistance level at $36,608 on the way to a new all-time high.

A bearish end to the week, however, saw Bitcoin fall back to end the week at sub-$39,000 levels. In spite of the pullback, however, Bitcoin avoided a fall back through the second major resistance level at $36,608.

4 days in the green that included an 8.17% rally on Wednesday and a 7.18% gain on Thursday delivered the upside.

For the week ahead

Bitcoin would need to move back through $36,236 pivot to support a run the first major resistance level at $43,933.

Support from the broader market would be needed for Bitcoin to break back through to $40,000 levels.

Barring an extended crypto rally, resistance at last week’s new swing hi $41,969 would likely cap any upside.

In the event of another breakout, Bitcoin could test resistance at $45,000 before any pullback. The second major resistance level sits at $49,665.

Failure to move back through the $36,236 pivot would bring 23.6% FIB of $33,008 and the first major support level at $30,504 into play.

Barring another extended sell-off, however, Bitcoin should steer clear of sub-$30,000 support levels. The second major support level sits at $22,807.

At the time of writing, Bitcoin was down by 8.79% to $34,844.0. A bearish start to the week saw Bitcoin slide from an early Monday morning high $38,277.0 to a low $33,642.0.

Bitcoin left the major support and resistance levels untested at the start of the week.

BTCUSD 110121 Daily Chart

Stellar’s Lumen

Stellar’s Lumen surged by 108.3% in the week ending 10th January. Following a 5.77% decline from the week prior, Stellar’s Lumen ended the week at $0.2849.

It was a particularly bullish start to the week. Stellar’s Lumen surged from a Monday intraweek low $0.12852 to a Wednesday intraweek high and a swing hi $0.44.

The surge saw Stellar’s Lumen break through the week’s major resistance levels.

More significantly, Stellar’s Lumen also broke out from the 62% FIB of $0.1989 to form a near-term bullish trend.

A bearish second half of the week, however, saw Stellar’s Lumen slide back to end the week at $0.28 levels.

While avoiding the third major resistance level at $0.2016, Stellar’s Lumen fell through the 23.6% FIB of $0.3426.

The 38.2% FIB of $0.2823 limited the downside late in the week.

4-days in the green that included a 20.1% surge on Monday a 17.79% rally on Tuesday, and an 80.5% breakout on Wednesday delivered the upside.

For the week ahead

Stellar’s Lumen would need to move back through 38.2% FIB of $0.2823 and the pivot level at $0.2845 to support a run at the first major resistance level at $0.4404.

Support from the broader market would be needed, however, for Stellar’s Lumen to break back through to $0.40 levels.

Barring another extended crypto rally, the 23.6% FIB of $0.3426 would likely leave Stellar’s lumen short of the major resistance levels.

In the event of another breakout, Stellar’s Lumen could test resistance at $0.50 before any pullback. The second major resistance level sits at $0.5960.

Failure to move back through 38.2% FIB and the $0.2845 pivot would bring 62% FIB of $0.1850 into play.

Barring an extended sell-off, however, Stellar’s Lumen should steer well clear of the first major support level at $0.1289

At the time of writing, Stellar’s Lumen was down by 12.55% to $0.2491. A mixed start to the week saw Stellar’s Lumen rise to an early Monday high $0.2856 before sliding to a low $0.2272.

While leaving the major support and resistance levels untested. Stellar’s Lumen fell through the 38.2% FIB of $0.2823.

XLMUSD 110121 Daily Chart

The Crypto Daily – Movers and Shakers – January 11th, 2021

Bitcoin, BTC to USD, slid by 4.90% on Sunday. Following on from a 0.82% decline on Saturday, Bitcoin ended the week up by 15.79% to $38,200.0.

It was a mixed start to the day. Bitcoin rose to an early morning intraday high $41,399 before hitting reverse.

Falling short of the first major resistance level at $41,478, Bitcoin slid to a late intraday low $35,260.0.

The sell-off saw Bitcoin fall through the first major support level at $38,779 and the second major support level at $37,390.

Steering clear of sub-$35,000 support levels, however, Bitcoin revisited $38,900 levels before easing back.

The first major support level pinned Bitcoin back late in the day.

The near-term bullish trend remained intact, supported by the latest breakthrough to $41,000 levels. For the bears, Bitcoin would need to slide through the 62% FIB of $18,504 to form a near-term bearish trend.

The Rest of the Pack

Across the rest of the majors, it was a mixed day on Sunday.

Polkadot bucked the trend on the day, rising by a modest 0.23%.

It was a bearish day for the rest of the majors, however.

Bitcoin Cash SV  slid by 11.27% to lead the way down, with Cardano’s ADA (-9.16%) and Chainlink (-7.90%) also seeing heavy losses.

Binance Coin (-3.54%), Crypto.com Coin (-1.34%), Ethereum (-2.04%), Litecoin (-4.32%), and Ripple’s XRP (-3.16%) also struggled, however.

For the week, it was also mixed for the majors.

Polkadot bucked the trend for the week, falling by 20.7%.

It was a bullish week for the rest of the majors, however.

Bitcoin Cash SV (+48.6%), Cardano’s ADA (+45.9%), Crypto.com Coin (+35.4%), and Ripple’s XRP (+39.65%) led the way.

Chainlink (+18.11%) and Ethereum (+28.02%) also saw solid gains, while Litecoin rose by just 5.43%.

In the week, the crypto total market cap slid to a Monday low $735.72bn before rising to a Sunday high $1,109.78bn. At the time of writing, the total market cap stood at $1,018.17bn.

Bitcoin’s dominance fell to a Monday low 67.66% before rising to a Friday high 71.37%. At the time of writing, Bitcoin’s dominance stood at 68.93%.

This Morning

At the time of writing, Bitcoin was down by 1.69% to $37,556.0. A mixed start to the day saw Bitcoin rise to an early morning high $38,277.0 before falling to a low $37,435.0.

Bitcoin left the major support and resistance levels untested early on.

Elsewhere, it was a bearish start to the day.

At the time of writing, Crypto.com Coin was down by 7.03% to lead the way down.

BTCUSD 110121 Hourly Chart

For the Bitcoin Day Ahead

Bitcoin would need to move through the pivot level at $38,286 to bring the first major resistance level at $41,313 into play.

Support from the broader market would be needed for Bitcoin to break back through to $40,000 levels.

Barring an extended crypto rally, first major resistance level and Sunday’s high $41,399 would likely cap any upside.

In the event of an extended crypto rally, Bitcoin could test resistance at $44,000 before any pullback. The second major resistance level sits at $44,425.

Failure to move through the $38,286 pivot would bring the first major support level at $35,174 into play.

Barring another extended crypto sell-off, Bitcoin should steer well clear of the 23.6% FIB of $33,008. The second major support level sits at $32,147.

The Crypto Daily – Movers and Shakers – January 10th, 2021

Bitcoin, BTC to USD, fell by 0.82% on Saturday. Partially reversing a 2.85% gain from Friday, Bitcoin ended the day at $40,168.0.

It was a mixed start to the day. Bitcoin rose to an early morning high $40,915.0 before hitting reverse.

Falling short of the major resistance levels, Bitcoin fell to a mid-morning intraday low $38,700.0.

Steering clear of the first major resistance level at $37,386, Bitcoin rallied to a mid-afternoon intraday high $41,399.0.

Falling short of the first major resistance level at $42,800, Bitcoin fell back to sub-$40,000 levels.

Finding late support, however, Bitcoin moved back through to $40,000 levels to reduce the deficit on the day.

The near-term bullish trend remained intact, supported by the latest breakthrough to $41,000 levels. For the bears, Bitcoin would need to slide through the 62% FIB of $18,504 to form a near-term bearish trend.

The Rest of the Pack

Across the rest of the majors, it was a bullish day on Saturday.

Bitcoin Cash SV surged by 61.14% to lead the pack, with Chainlink rallying by 15.41%.

Cardano’s ADA (+8.99%), Ethereum (+5.27%), and Polkadot (+5.97%) also made solid gains.

Binance Coin (+3.71%), Crypto.com Coin (+3.40%), Litecoin (+3.14%), and Ripple’s XRP (+1.36%) trailed the front runners.

In the current week, the crypto total market cap slid to a Monday low $735.72bn before rising to a Friday high $1,115.32bn. At the time of writing, the total market cap stood at $1,086.23bn.

Bitcoin’s dominance fell to a Monday low 67.66% before rising to a Friday high 71.37%. At the time of writing, Bitcoin’s dominance stood at 69.47%.

This Morning

At the time of writing, Bitcoin was up by 0.85% to $40,510.0. A bullish start to the day saw Bitcoin rise from an early morning low $40,170.0 to a high $40,540.0.

Bitcoin left the major support and resistance levels untested early on.

Elsewhere, it was a mixed start to the day.

Bitcoin Cash SV (-6.14%) and Polkadot (-0.34%) saw red early on to buck the trend.

It was a bullish start to the day for the rest of the majors, however.

At the time of writing, Chainlink was up by 1.89% to lead the way.

BTCUSD 100121 Hourly Chart

For the Bitcoin Day Ahead

Bitcoin would need to avoid a fall through the pivot level at $40,089 to bring the first major resistance level at $41,478 into play.

Support from the broader market would be needed for Bitcoin to break out from Saturday’s high $41,399.0.

Barring an extended crypto rally, first major resistance level and resistance at $41,500 would likely cap any upside.

In the event of another extended crypto rally, Bitcoin could test resistance at $43,500 before any pullback. The second major resistance level sits at $42,788.

Failure to avoid a fall through the $40,089 pivot would bring the first major support level at $38,779 into play.

Barring another extended crypto sell-off, Bitcoin should continue to steer clear of sub-$38,000 levels. The second major support level sits at $37,390.

The Crypto Daily – Movers and Shakers – January 9th, 2021

Bitcoin, BTC to USD, rose by 2.85% on Friday. Following on from a 7.09% rally on Thursday, Bitcoin ended the day at $40,509.0.

It was a mixed start to the day. Bitcoin fell to an early morning intraday low $36,555.0 before making a move.

The pullback saw Bitcoin fall through the first major support level at $36,889.

Steering clear of sub-$36,000 levels, Bitcoin rallied to a mid-afternoon intraday high and a new swing hi $41,969.0.

Bitcoin broke through the first major resistance level at $41,148 before falling back to sub-$39,000 levels.

Finding late support, however, Bitcoin move back through to $40,500 levels to deliver the upside for the day.

The near-term bullish trend remained intact, supported by the latest breakthrough to $41,000 levels. For the bears, Bitcoin would need to slide through the 62% FIB of $18,504 to form a near-term bearish trend.

The Rest of the Pack

Across the rest of the majors, it was a mixed day on Friday.

Chainlink and Polkadot slid by 4.64% and by 6.19% to lead the way down.

Binance Coin (-2.81%), Ethereum (-0.83%), and Ripple’s XRP (-0.84%) also saw red on the day.

It was a bullish day for the rest of the majors, however.

Bitcoin Cash SV rose by 3.39% to lead the pack.

Cardano’s ADA (+1.71%), Crypto.com Coin (+2.71%), and Litecoin (+1.60%) also joined Bitcoin in the green.

In the current week, the crypto total market cap slid to a Monday low $735.72bn before rising to a Friday high $1,115.32bn. At the time of writing, the total market cap stood at $1,052.85bn.

Bitcoin’s dominance fell to a Monday low 67.66% before rising to a Friday high 71.37%. At the time of writing, Bitcoin’s dominance stood at 70.99%.

This Morning

At the time of writing, Bitcoin was down by 0.84% to $40,169.0. A mixed start to the day saw Bitcoin rise to an early morning high $40,915.0 before falling to a low $40,136.0.

Bitcoin left the major support and resistance levels untested early on.

Elsewhere, it was a mixed start to the day.

Cardano’s ADA and Polkadot bucked the trend, with gains of 0.30% and 0.36% respectively.

It was a bearish start for the rest of the majors, however.

At the time of writing, Ripple’s XRP was down by 3.26% to $0.31062.

For the Bitcoin Day Ahead

Bitcoin would need to avoid a fall through the pivot level at $39,678 to bring the first major resistance level at $42,800 into play.

Support from the broader market would be needed for Bitcoin to break out from Friday’s high $41,969.0.

Barring an extended crypto rally, first major resistance level and resistance at $43,000 would likely cap any upside.

In the event of another extended crypto rally, Bitcoin could test resistance at $45,500 before any pullback. The second major resistance level sits at $45,092.

Failure to avoid a fall through the $39,678 pivot would bring the first major support level at $37,386 into play.

Barring another extended crypto sell-off, Bitcoin should continue to steer clear of sub-$36,000 levels. The second major support level sits at $34,264.