Bitcoin and Ether Market Update January 14, 2021
Total crypto market cap added $74 billion to its value for the period since Monday morning and now stands at $1.033 trillion. The top ten coins are all in green for the last 24 hours with PolkaDot (DOT) and bitcoin (BTC) being the biggest gainers with 37.1 and 11 percent increases respectively. At the time of writing bitcoin is trading at $38,400 on the Bitstamp daily chart, ether (ETH) climbed to $1,178. Ripple’s XRP is hovering around $0.294.
Bitcoin closed the trading day on Sunday, January 10 at $38,169 after losing 5.1 percent of its value. The coin registered a record all-time high two days earlier ($42,073), but failed to consolidate above the $40,000 mark and initiated a pullback. Not only that, but it was seen as low as $34,264 during intraday before partially recovering in the evening.
Still, BTC was 15 percent up on a weekly basis.
The new trading period started on Monday with a fresh drop, this time to $30,258. The move resulted in a 20.7 percent correction at some point during the day, but the quick reaction from buyers reduced it to just 7 percent at the end of the session.
On Tuesday, January 12, we saw the leading cryptocurrency forming the fourth straight red candle on the daily chart and breaking below the first major line of support at $34,700. It stopped at $33,960.
The crypto trading community and major market analysts were divided in their opinions about the sudden drop. Some pointed to the increasing value of the USD and the apparently exhausted bull trend. Others assured that such deep pullbacks are nothing new and are part of the normal trading cycle of BTC.
The mid-week session on Wednesday was when the head and shoulders pattern on the 4-hour chart was in its final phase, ready to trigger the next big move downwards. The BTC/USD pair, however, once again took all by surprise and skyrocketed all the way up to $37,408 instead, proving all critics wrong (at least temporarily). It increased by 10 percent.
As of the time of writing this, bitcoin is pushing its way up, now at $38,400.
The Ethereum project token ETH fell $70 short of reaching its previous all-time high on Sunday, January 10 by hitting $1,354. It failed to keep up with the momentum though and ended the day with a short red candle to $1,254. Actually, the coin was extremely volatile during this entire last session of the week and was jumping up and down in the wide range between the mentioned high and $1,174. It grew by 28 percent for the seven-day period.
On Monday, the ETH/USD pair dropped all the way down to $908 in the morning part of the session then compensated for some of the losses in the afternoon, but still registered a significant correction of approximately 13 percent (closed at $1087).
It resumed its freefall on Tuesday, January 12 by hitting the weekly support at $1,050. The level seemed to help ether stabilize and avoid further losses, and on the third day of the workweek, it changed its direction by climbing up to $1,131.
As of the time of writing, ETH is trading at $1,178.