1-22 Price Analysis – Hedge may be the alternative

Highlights:

Price analysis of BTC, BCH, ETH, LTC and ETC for January 22.

 

BTC/USD

Resistance: $11,800 & $12,000, support: 11000 & $9,500

Data feed from AICoin

Comments:
After breaking below MA 7 during the slump yesterday, BTC has been hovering around it since then. Correction remains the main trend in the short term, making it possible for price to move towards MA 20 on 4-hourly chart. A small-range head and shoulders pattern will be formed and price will keep oscillating or going downwards if BTC fails to break above the left shoulder between $11,800 – $12,000 within session. Overall, price is more likely to close with a short lower shadow on daily chart.

Suggestions:
Investors with short positions can hold on to your chips, day traders can try playing segment, going short should be your main strategy and loses must be stopped after support level is broken.

 

BCH/USD

Resistance: $1,900, support: $1,710 & $1,580.

Data feed from AICoin

Comments:
The support level at $1715.69 can be confirmed and is becoming stronger, making BCH a good option to speculate with proper setup if BCH stably remains above the support level.

Suggestions:
New positions can be set up when price gets close to support level, stop your loses if BTC breaks below its support level and book your profits.

 

ETH/USD

Resistance: $1,170, support: $1,250.

Data feed from AICoin

Comments:
ETH also remains in a descending channel after breaking below MA 7 yesterday. Price still holds the chance to break upward if there’s a trend reversal in MA 7.

Suggestions:
You can hedge against BTC by going long at the bottom price of ETH. Long positions should be cleared if BTC goes downwards, if not, however, new positions of ETH can be set up after BTC breaks above the right shoulder.

 

ETC/USD

Resistance: $35, support: $28.

Data feed from AICoin

Comments:
ETC led the major coins by slumping by 15% yesterday. Both going short or long are risky during oscillating period, meaning that results of hedging operations will be better if you can entry at a relatively low price.

Suggestions:
Operations on ETC can be referred to that of ETH as mentioned above.

 

LTC/USD

Resistance: $205 & $217, support: $182.

Data feed from AICoin

Data feed from AICoin

Comments:
LTC shares a similar move pattern with BTC, operations can be referred to that of BTC.

Suggestions:
Except for paying close attention to price move of BTC, going short should be the short-term strategy.

 

Original by Jerry Chueng from Hashpai, translated by AICoin Jami.

Disclaimer: The information contained herein is not guaranteed, and is strictly for information purposes only. It does not constitute any trading proposal and will not be liable for any loss based on the information herein.

 

Subscribe to our newsletter

Key Points

  • Bitcoin price formed a major bottom at the $9096 low and recovered well against the US Dollar.
  • The BTC/USD pair is currently attempting to settle above two bearish trend lines with resistance at $12,250 on the 4-hours chart (data feed from SimpleFX).
  • The price must settle above the $12800 level to gain upside momentum in the near term.

Bitcoin price is gaining momentum above $11,500 against the US Dollar. BTC/USD is trading with a positive bias and it looks set to break the $12,800 resistance.

Bitcoin Price Resistance

After a major decline, bitcoin price was able to find buyers below the $10,000 level against the US Dollar. A low was formed at $9096 from where an upside recovery was initiated. The price moved higher and was able to trade above the $10,000 resistance. There was a break above the 23.6% Fib retracement level of the last decline from the $14,219 high to $9096 low.

There are many positive signs on the chart above $11,000. More importantly, the price is above the 50% Fib retracement level of the last decline from the $14,219 high to $9096 low. At the moment, the BTC/USD pair is currently attempting to settle above two bearish trend lines with resistance at $12,250 on the 4-hours chart. It is positive sign above $12,000. However, the pair has to settle above the $12,800 level to gain upside momentum. Moreover, the price should clear the 61.8% Fib retracement level of the last decline from the $14,219 high to $9096 low at $13,010.

Bitcoin Price Weekly Analysis BTC USD

Overall, it looks like the pair is around a crucial juncture below $13,000. Should bitcoin succeeds in moving above $13,000, there could be more gains in the near term above $15,000.

Looking at the technical indicators:              

4-hours MACD – The MACD is now slowly moving in the bullish zone.

4-hours RSI (Relative Strength Index) – The RSI is just above the 50 level and is moving down slowly.

Major Support Level – $11,000

Major Resistance Level – $13,000

 

Charts courtesy – SimpleFX

Key Points

  • Bitcoin price traded lower this past week and tested the $12,600 support against the US Dollar.
  • There was a break above a major bearish trend line with resistance at $13,800 on the 4-hours chart of BTC/USD (data feed from SimpleFX).
  • The price has to break the $14,500 level and the 100 simple moving average to gain upside momentum.

Bitcoin price is stable above the $12,600 against the US Dollar. BTC/USD could soon gain momentum above $14,500 to move past $15,000 in the near term.

Bitcoin Price Upside Move

This past week was slightly bearish for bitcoin price as it moved below the $14,000 level against the US Dollar. The price traded lower and moved towards the $12,200 level. A low was formed at $12,670 from where the price started an upside move. It traded above the $13,000 level and the 23.6% Fib retracement level of the last decline from the $17,112 high to $12,670 low.

During the upside, there was a break above a major bearish trend line with resistance at $13,800 on the 4-hours chart of BTC/USD. The pair managed to move above the $13,900 level. However, the upside move was protected by the $14,000 level and the 100 simple moving average. Moreover, the 38.2% Fib retracement level of the last decline from the $17,112 high to $12,670 low also acted as a resistance. It seems like the price has to move above the $14,500 level and the 100 SMA to gain upside momentum.

Bitcoin Price Weekly Analysis BTC USD

Once there is a break above the $14,500 level, there are chances of it breaking the $15,000 level in the near term. The overall bias is stable above the $12,500 level with an initial support on the downside at $13,200.

Looking at the technical indicators:              

4-hours MACD – The MACD is showing a few positive signs of a trend change.

4-hours RSI (Relative Strength Index) – The RSI is struggling to move above the 50 level.

Major Support Level – $12,500

Major Resistance Level – $14,500

 

Charts courtesy – SimpleFX

The ongoing “debate” between BTC and BCH supporters is far from over. Even more companies are taking one side or the other as we speak. BlockExplorer.com has made a rather interesting decision in this regard. The company no longer thinks of BTC as the real Bitcoin, but rather “Bitcoin Legacy”. As a result, they will only support Bitcoin Cash moving forward. Furthermore, the company will start offering similar tools for other cryptocurrencies.

When block explorers grow tired of Bitcoin’s current shape, things are going from bad to worse. Everyone will agree the world’s leading cryptocurrency is not in a good place right now. It’s slow, overly expensive, and inconvenient to use for anything but being a store of value. Even that latter aspect has become problematic as BTC keeps losing value every day. BlockExplorer.com acknowledges these problems and will drop support for this chain.

A Radical Decision by BlockExplorer.com

More specifically, the team labels the “Blockstream fork of Bitcoin” as Bitcoin Legacy. It is the first time a major company denounces BTC as being the real Bitcoin in an official capacity. Although this decision is controversial, the team thinks it’s the right decision. All support for Bitcoin legacy will be dropped in the future. Instead, BlockExplorer.com will switch to Bitcoin Cash moving forward. It is unclear when support for BTC will be deprecated, but it will happen “soon”.

According to the team, the current BTC developments make it a “dead end”. This is a pretty interesting opinion, which will create a fair few debates. Furthermore, BlockExplorer.com will refer to Bitcoin Cash as being the one true Bitcoin. Whether or not this is the right decision, has yet to be determined. Other companies have been somewhat vocal about Bitcoin becoming far less attractive and less useful. If more companies drop BTC support in the future, things could get very interesting real fast.

For the time being, it remains unclear what the future holds for Bitcoin and Bitcoin Cash. The world’s leading cryptocurrency has lost a lot of its allure and the price keeps dropping. Bitcoin Cash has also taken a bit of a beating but seems to be fine otherwise. At this rate, it is highly doubtful BTC will remain the world’s leading cryptocurrency for much longer. Users and investors are getting fed up with the problems, both technically and ideologically. A very interesting future lies ahead for all enthusiasts, that much no one can deny.

Key Points

  • Bitcoin price is recovering and is currently placed nicely above the $15,000 level against the US Dollar.
  • There was a break above a key bearish trend line with resistance at $14,100 on the 4-hours chart of BTC/USD (data feed from SimpleFX).
  • On the downside, there is a connecting bullish trend line forming with support at $15,800 on the same chart.

Bitcoin price is moving positively from $12,500 low against the US Dollar. BTC/USD is currently eyeing more gains as long as above $15,800.

Bitcoin Price Rise

We saw a decent support base formed in bitcoin price around the $12,000 level against the US Dollar. The price started a nice upside move and managed to move above the $13,000 and $14,000 resistance levels. During the upside move, the price also moved above the $15,000 level and the 100 simple moving average (4-hours). Moreover, there was a break above a key bearish trend line with resistance at $14,100 on the 4-hours chart of BTC/USD.

It opened the gates for more gains and the price was able to move above the $15,000 and $16,000 levels. A high was formed recently at $17,048 from where the price may correct a few points lower. An initial support on the downside is around the 38.2% Fib retracement level of the last wave from the $14,040 low to $17,048 high. Moreover, there is a connecting bullish trend line forming with support at $15,800 on the same chart.

Bitcoin Price Weekly Analysis BTC USD

The trend line support is near the 50% Fib retracement level of the last wave from the $14,040 low to $17,048 high. Therefore, if the price corrects lower, it is likely to find support above $15,500. The overall trend is positive for BTC and the price is likely to move further higher above $17,000.

Looking at the technical indicators:              

4-hours MACD – The MACD is placed nicely in the bearish slope.

4-hours RSI (Relative Strength Index) – The RSI is moving lower towards the 55 level.

Major Support Level – $15,800

Major Resistance Level – $17,000

 

Charts courtesy – SimpleFX

This year has been nothing but monumental for Bitcoin and its brethren, the King of crypto has shown an 1800% gain since January. A rise from $950 to $20,000 is a remarkable feat rarely matched by any stock or commodity. However there is a downside with a parabolic rise on a trading chart, things that go up that fast will also crash that quickly as Bitcoin proved by shedding almost 40% in a few days last week. Volatility is too mild a word to use for something that swings by $8,000 in less than 48 hours.

While Bitcoin itself may not be the money of the future, it is on the right path with a decentralized market-driven approach to currency. The lack of mainstream regulation has not hampered the public hype and crypto-mania behind Bitcoin and its sibling altcoins, which have also shown remarkable increases in price this year.

To look at the downsides first, the price could collapse further than it has already done this week due to extreme volatility and exchanges not being able to cover themselves should everyone cash out at the same time. However the trend lines have been rising sharply all year and despite shaving over a third off its value twice in the past six months BTC looks set to continue back upwards.

Analyst John Levi from Bitcoin Arcade points out;

“It’s a revolutionary new technology that is already changing the way that money is perceived and used. For all of the reasons stated above, it’s important that you understand that this is a seismic shift that is poised to completely change everything… not just payments and remittances, but the entire concept of “money” as we know it.”

At the moment Bitcoin is used primarily to invest and trade, you can’t actually live off it. The extreme volatility of the price chart makes it a good platform for trading but completely impractical for day to day living. On the upside the distributed public ledger eliminates the need for middle men, ie banks, to control and profit from your money which makes it in theory the best way to perform international monetary transfers. Once markets have settled and stabilized one or more digital currencies will emerge as the defacto standard, at least temporarily, while the technology evolves and new players emerge.

When people can trade with each other directly without the need for exchanges then crypto will truly become decentralized. At the moment digital currencies are highly experimental and investing in them would be just like investing in a startup, which effectively is what Bitcoin was back in 2009. We’ve seen the Big Bang of cryptocurrencies in 2017, next year will be inflation and expansion so invest wisely and always do your own research. Happy holidays.

Key Points

  • Bitcoin price made a sharp downside move and traded below the $12,000 support against the US Dollar.
  • There was a break below two important bullish trend lines with support near $17,800 on the 4-hours chart of BTC/USD (data feed from SimpleFX).
  • The pair is currently recovering, but it is facing a major resistance near the $15,500 level.

Bitcoin price declined sharply toward $10,000 against the US Dollar. BTC/USD is currently recovering, but it is facing a lot of selling pressure.

Bitcoin Price Resistance

After a great upside run toward the $20,000 level, bitcoin price faced selling pressure against the US Dollar. There was a sharp decline below the $18,000 and $15,000 support levels. More importantly, there was a break below two important bullish trend lines with support near $17,800 on the 4-hours chart of BTC/USD. These trend lines break opened the doors for more losses and the pair tumbled below the $12,000 level. A low was formed at $10,688 from a minor recovery wave was initiated.

The price has moved above the 23.6% Fib retracement level of the last decline from the $19,628 high to $10,688 low. However, there is a bearish trend line forming with current resistance at $15,150 on the same chart. Moreover, the 50% Fib retracement level of the last decline from the $19,628 high to $10,688 low is also acting as a major hurdle for buyers. As long as the trend line resistance is intact, the pair might continue to struggle. Only a close above the $15,500 would negate the bearish pressure and may call for more gains.

Bitcoin Price Weekly Analysis BTC USD

On the flip side, if the price continues to move down, then there can be more slides toward $12,500 in the near term.

Looking at the technical indicators:           

4-hours MACD – The MACD is reducing its bearish slope.

4-hours RSI (Relative Strength Index) – The RSI is struggling to move higher and is below the 50 level.

Major Support Level – $12,500

Major Resistance Level – $15,500

 

Charts courtesy – SimpleFX

Key Points

  • Bitcoin price is gaining pace once again and is currently trading above $18,000 against the US Dollar.
  • There is a monster bullish trend line forming with support at $17,000 on the 4-hours chart of BTC/USD (data feed from SimpleFX).
  • The pair is moving higher and it might soon break the $20,000 level for more gains in the near term.

Bitcoin price is surging higher towards $20,000 against the US Dollar. BTC/USD might soon break the $20k level and gain further traction in the near term.

Bitcoin Price Trend

There were nasty gains in bitcoin price above the $16,000 level against the US Dollar. After a major correction, the price found support above $15,000. Later, buyers gained momentum and were able to push the price above the $17,000 level. It opened the doors for more gains and the price was able to trade to a new all-time high above $19,000. The recent high was $19,426 and it seems like the current upside move is far from over.

During the upside move, the price was able to break a major connecting resistance trend line at $18,000 on the hourly chart. The current price action is positive above $17k and it seems like the price might continue to move higher. On the downside, an initial support is around the 23.6% Fib retracement level of the last wave from the $15,590 low to $19,426 high. Moreover, the broken trend line at $18K could act as a strong support in the near term.

Bitcoin Price Weekly Analysis BTC USD

Moreover, there is a monster bullish trend line forming with support at $17,000 on the 4-hours chart of BTC/USD. Therefore, the current trend is very positive and the pair might accelerate above $20K in the near term.

Looking at the technical indicators:              

4-hours MACD – The MACD is gaining momentum in the bullish zone.

4-hours RSI (Relative Strength Index) – The RSI is reaching the overbought levels, but with no signs of a major correction.

Major Support Level – $17,000

Major Resistance Level – $20,000

 

Charts courtesy – SimpleFX

With the CBOE Bitcoin futures going live, no one is surprised the demand is pretty massive. During the first few hours, things have progressed rather nicely.  At the same time, the massive gains triggered two warnings already. At the 10% and 20% gain level, the CFE halted trading of these Bitcoin futures. In every case, the trading resumes pretty quickly. All of this shows the demand for Bitcoin will not diminish anytime soon.

The Bitcoin futures trading is a big development for the world’s leading cryptocurrency. Institutional investors can now speculate on the future BTC price. As one would expect, the demand for such a speculative vehicle is rather steep. In fact, it is so steep the CFE had to halt trading of CBOE futures twice already. These halted trades are triggered automatically whenever major gains occur. In this case, it happened at a 10% and 20% gain compared to the original price.

Bitcoin Futures Make Their Mark

This goes to show there is a genuine bullish sentiment regarding the Bitcoin price. More specifically, the actual BTC price has also appreciated nicely over time. While the futures are still valued higher than the BTC price itself, it does paint an interesting future. It is very likely we will see the Bitcoin futures halted again whenever new major gains or massive losses are recorded. Now is the time to speculate on the world’s leading cryptocurrency.

It is uncanny how much demand there is for the products offered by CBOE. Their website crashed earlier this morning as well, which isn’t entirely unexpected. Centralized infrastructure has never been able to keep up with demand for Bitcoin whatsoever. Thankfully, those issues have been resolved rather quickly. It will be interesting to see how this Bitcoin futures market evolves in the next few days.

Moreover, the CME Bitcoin futures will go live in a week from today. With more competition on the market, things will get pretty crazy for Bitcoin during the end of the year. The global demand for Bitcoin has never been higher. Even though people don’t buy BTC directly, the futures contracts will force a big shift in holdings for a lot of people. With everything now back on the up and up, all cryptocurrencies are starting to recover as we speak.

Key Points

  • Bitcoin price after a nasty upside ride above the $17,000 level found sellers against the US Dollar.
  • There is a key bullish trend line forming with support at $13,000 on the 4-hours chart of BTC/USD (data feed from SimpleFX).
  • The pair is currently correcting lower and it might extend decline towards the $12,000 level in the near term.

Bitcoin price surged above $17,000 against the US Dollar. BTC/USD is currently under a correction mode and it might test the $12,000 level.

Bitcoin Price Supports

It was a super bullish week for bitcoin price as it moved surged above the $15,000 level against the US Dollar. The upside move was such that the price moved above the $17,000 level and formed a high at $17,095. Later, the price faced a strong resistance and started a downside correction from $17,000. It has moved below the 38.2% Fib retracement level of the last wave from the $8968 low to $17,095 high.

At the moment, the price is testing a major support at $13,000. There is a key bullish trend line forming with support at $13,000 on the 4-hours chart of BTC/USD. The trend line support is around the 50% Fib retracement level of the last wave from the $8968 low to $17,095 high. There are chances of more losses in the near term below $13,000. Once there is a break below the trend line support, there can be an extension towards $12,000. The mentioned level is around the 61.8% Fib retracement level of the last wave from the $8968 low to $17,095 high.

Bitcoin Price Weekly Analysis BTC USD

The overall trend is positive above the $12,000 level. Once the current correction is over, the price will most likely resume its uptrend above $15,000.

Looking at the technical indicators:              

4-hours MACD – The MACD is currently reducing its bullish slope.

4-hours RSI (Relative Strength Index) – The RSI is currently below the 50 level and is moving lower.

Major Support Level – $12,000

Major Resistance Level – $15,000

 

Charts courtesy – SimpleFX