Bitcoin and Ether Market Update January 20, 2022
Total crypto market cap erased $60 billion from its value for the period since Monday and now stands at $1.98 trillion. The top ten coins showed mixed results for the last 24 hours with Terra (LUNA) adding 4.4 percent to its value while Cardano (ADA) lost 2.7 percent. At the time of writing bitcoin (BTC) is trading at $42,100. Ether (ETH) is at $3,145.
Bitcoin remained flat during the weekend trading after failing to break above its 21-day EMA on the daily chart earlier in the week. The coin successfully bounced back up from the January 10 low when it hit $39,500, but was struggling to initiate a reversal to the upside since then.
It ended the seven-day period at $43,000 and with a 2.6 percent of price increase. It is worth noting again that the $40,000 horizontal support is the neckline of the big head and shoulders pattern the biggest cryptocurrency started drawing back in September 2021. A break below this line will give bears full control over the market.
On Monday, January 17, the BTC/USDT pair started moving in the downward direction. It lost 2.1 percent to end the trading day at $42,200.
Then on Tuesday, it fell even lower – to $41,200 during the intraday trading, but bulls were quick to react and pushed the price back up to $42,400, forming a small green candle on the daily timeframe.
The third day of the workweek came with another re-test of the zone below $41,500. The coin, however, successfully bounced back from its daily low and closed with a small loss at $41,700.
As of the time of writing, BTC is trading slightly higher – at $42,100.
The Ethereum project token ETH was on its way up ever since it touched the $2,925 low on January 10. Bulls, however, were unable to surpass the $3,400 resistance, which was a significant S/R line also back in August/September 2021.
The ETH/USDT pair suffered rejection for the fourth time in five days around that area on Sunday, January 16. Still, they ended the week with a 5.8 percent price increase.
The zone right above $3,000 was confirmed as stable support on the larger timeframes as it remains unbreakable since August 2021. In terms of trading volumes, they continued to be relatively stable, but still below the November/December values.
On Monday, the ETH/USDT pair dropped down to $3,200 erasing 4.3 percent of its value during the session.
Things did not change drastically on Tuesday and the leading altcoin continued to lose ground. It moved lower, to $3,160 as the Relative Strength Index (RSI) could not escape the oversold area.
On Wednesday, January 19, the coin re-tested the September 2021 weekly bottom line at $3,060 but managed to partially recover in the evening part of the session and closed above the mentioned support.
ETH is currently trading at $3,140 as buyers are once again attempting to escape the danger zone.