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Crypto Conjecture For January 12, 2019

Bitcoin Price Analysis [BTC]

Daily Chart:

Bitcoin Price Analysis: Strong Impulse Tests Macro Support Levels

Finally, after about a week or so of a tight, range-bound market, bitcoin poked right through support. This swift move dropped the price nearly 10% in the span of just a few short hours

BTC price analysis for Jan 12Figure 1: BTC-USD, Hourly Candles, 11% Drop

Not only did this move occur on high spread, it occurred on high volume. This level of supply and overall lack of demand is nothing something you would want to see if you are feeling bullish regarding bitcoin’s market structure. Currently, we are sitting right on top of daily support levels and have yet to close a new low:

BTC price analysisFigure 2: BTC-USD, Daily Candles, Current Support Level.

While the volume and spread were pretty intimidating, it should be noted that the most immediate support level (shown above in blue) is currently holding. However, should this support level break, we should fully expect to revisit the support levels toward the bottom of the range in the low $3,000s. Until we see a daily close below the current support level, the trend model remains somewhat neutral. Although the market is swinging 10% in a day, the overall structure is neither bullish nor bearish. It should be noted, however, that expansion of volume and price spread leading into support tests is often a sign of market distribution. A potentially bearish slant to the current downward impulse is present in the Bollinger Bands (BBands):

BTC price analysisFigure 3: BTC-USD, Daily Candles, Bollinger Band Squeeze and Expansion.

The BBands have been squeezing inward for days, which indicates the market has been consolidating — no surprise there since the market hasn’t really moved from its well-defined range. Looking at the daily BBands though, we do see the beginnings of a BBands expansion, indicating the market is done consolidating and is ready for its next major move.
In our case, the BBands are hinting toward a downward continuation. If we manage to break the blue support level shown above, we could potentially see a strong continuation of the macro downtrend.
As I stated before, I would like to see a close below the current support level before I go full-blown bear. Although the current market structure is neutral, it is starting to show the early signs of a strong bearish continuation. It’s also important to note that we are still in a bear market. Just because bitcoin saw a couple of weeks of strong demand, that does not negate the months and months of downward pressure.

Summary

• Bitcoin dropped 11% in one day as it finds itself testing its macro support level.
• We have yet to close a new low, but the BBands are showing the market is coiled and ready for its next major move.
• If we close below our current support level, the next logical test would be of the previous support level in the low $3,000s.

Trading and investing in digital assets like bitcoin is highly speculative and comes with many risks. This analysis is for informational purposes and should not be considered investment advice. Statements and financial information on Bitcoin Magazine and BTC Media related sites do not necessarily reflect the opinion of BTC Media and should not be construed as an endorsement or recommendation to buy, sell or hold. Past performance is not necessarily indicative of future results.

Ethereum Price Analysis [ETH]

Daily Chart:

ETH price analysis for Jan 12

ETH/USD Long-term Trend: Bearish

The price of Ethereum had been in the bullish trend since December 17. On January 1, the crypto’s opening balance had risen to the high of $136 but the bulls could not break the resistance at the $160 price level. On January 10, the bears broke the 12-day EMA and the 26-day EMA to the bearish trend zone because of the inability of the bulls to break the resistance level.
The ETH price is now below the 12-day EMA and the 26-day EMA which indicates that the price is likely to fall. The crypto’s price has fallen and it’s approaching the $128 price level. The crypto will further depreciate if the $120 price level was broken which will make Ethereum reach the lows of $105 and $110. Meanwhile, the stochastic is out of the oversold region but above the 60% range indicating that Ethereum is in a bullish momentum and a buy signal. The MACD line and the signal line are below the zero line which indicates a sell signal.

Resistance Levels: $219, $303, $406,
Support Levels: $120, $110, $83

Ripple Price Analysis [XRP]

Daily Chart:

XRP price analysis for Jan 12

XRP /USD Price Long-term Trend: Ranging

Supply levels: $0.56, $0.58, $ 0.60 Demand levels: $0.30, $0.28, $0.26

The price of XRP/USD pair had been in a sideways trend in the last ten days. The crypto’s price was fluctuating between the levels of $0.34 and $0.38. On January 10, the bears broke the 12-day EMA, the 26-day EMA and price fell to the low of $0.33. From the weekly chart, the XRP price is below the 12-day EMA and the 26-day EMA which indicates that the crypto’s price is likely to fall. However, if the bears continue their bearish move the crypto will find support at the $0.30 price level.
The MACD line and the signal line are below the zero line which indicates a sell signal. In addition, the stochastic indicator is out of the oversold region but above the 20% range indicating that the price of XRP is in a bullish momentum and a buy signal.

Litecoin Price Analysis [LTC]

Daily Chart:

LTC price analysis for Jan 12

The price of Litecoin had been in a bullish trend since December 16, 2018. On January 1, the crypto’s opening price had risen to the high of $30.99. On January 8, the crypto’s price had reached the high of $40 but the bulls could not break the resistance at that level. On January 10, the bears broke the 12-day EMA and the 26-day EMA to the low of $33 price level.
However, from the weekly chart or the daily chart, the crypto’s price is below the 12-day EMA and the 26-day EMA which indicates that price is likely to fall. If the bearish pressure continues, the crypto will fall to the low of $30. However, if the bears break this level, then the crypto will find support at the $23 or $28 price level. Meanwhile, the MACD line and the signal line are below the zero line which indicates a sell signal. The stochastic indicator is out of the oversold region but above the 60% range indicating that the price of Litecoin is in a bullish momentum and a buy signal.

Resistance Levels: $40, $52, $65
Support levels: $30, $24, $20

[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]
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OWLT Market Media Desk publishes press releases from individuals and companies related to the cryptocurrency-related market.

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