Last week a few crypto exchanges announced that they would delist some of the so-called privacy coins such as Monero, Dash, and Zcash. For example, Bittrex warned its customers that it would remove these cryptocurrencies on January 15th:
The reason behind the decision to delist the privacy coins is still unclear; some cryptocurrency enthusiasts like Larry Cermak, a crypto expert at The Block, believe that this is just a continuation of the process initiated by the financial authorities to try to regulate the crypto market:
Interestingly, this event didn’t affect the crypto market negatively. The price of Bitcoin skyrocketed and surpassed the psychological level of $30,000 per one digital coin, reaching almost $35,000 on some major exchanges. Therefore, Bitcoin and cryptocurrencies turned out to be the best performing financial market for 2020:
After another very positive week for the cryptocurrencies, the Monday market starts with relatively high volatility. At the time of writing, according to Coin360.com, one Bitcoin costs €23,811.43 (-12.38%), one Ethereum — €757.15 (+13.55%), and one LINK — €10.56 (+3.18%):
Source: Coin360.com (Daily crypto market performance)
Now let’s have a look at the price charts of the leading cryptocurrencies against the euro.
In the daily time frame (1D), it seems that BTC/EUR is trying to reverse the uptrend:
According to the chart, a Long-Legged Doji formed, followed by a big bearish candlestick which covers the body of the bullish candlestick. Therefore, a Bearish Engulfing may come next.
Although there is an accumulation of bearish signals, it is worth highlighting that this is in the daily time frame — a time frame that is very dynamic and volatile sometimes. Moreover, if we move on to the weekly time frame (1W), the current bearish candlestick still has a local low above the local low of the bullish candlestick and its body is still within the body of the previous candlestick:
That’s why we view the current price pullback as temporary volatility, indicating that Bitcoin might be entering a period of consolidation because some traders are booking profit.
Ethereum has undergone a lot of volatility within the last 24 hours. First, it went up to almost €900 per one digital coin, thereby approaching the 76.4 Fibonacci retracement level. Then it dropped below the psychological level of €700. After that, it rebounded and now is consolidating at the 61.8 Fibonacci retracement level or approximately €750 per one digital coin:
In our view, after some consolidation at the current level (61.8 Fibonacci retracement level), ETH/EUR will resume the uptrend and try to approach the 76.4 Fibonacci retracement level once again.
In case of increased price volatility, we consider the 50.0 Fibonacci retracement level (or €626) to be very solid support for the ETH price.
In the 1-hour chart (1H) of LINK/EUR, a breakout took place, and the price chart has exited the Falling Wedge:
As can be seen in the daily chart (1D), LINK/EUR tried to enter the Ascending channel (uptrend), and resume the uptrend:
However, the attempt was unsuccessful because LINK/EUR faced resistance at the lower line of the channel.
Nevertheless, we believe that sooner or later, the price of the cryptocurrency will start to increase again because there is already a Bullish Engulfing in the weekly time frame (1W):
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The analysis is purely informational and does not constitute investment, financial, trading, or any other sort of advice and you should not treat any of Bitvalex’s content as such. Bitvalex does not recommend that any cryptocurrency should be bought, sold, or held by you. You are solely responsible to conduct your own due diligence and consult an advisor before making any investment decisions.