Total crypto market cap added $130 billion from its value for the period since Monday and now stands at $2.07 trillion. The top ten coins are all in green for the last 24 hours with Solana (SOL) and Terra (LUNA) leading the group with a 6.3 and 4.5 percent increase respectively. At the time of writing bitcoin (BTC) is trading at $432,677. Ether (ETH) is at $3,343.
Bitcoin dropped to a 3-month low last Saturday hitting $40,450 during intraday trading before recovering to $41,70 at the daily candle close. The Relative Strength Index (RSI) also reached a level last seen during the May 2021 crash as BTC remained heavily oversold.
On Sunday, January 9, the coin formed a small green candle up to $41,900 as many traders were betting on the $40,000 – a solid horizontal support and resistance line. A short-term relief bounce can be expected.
The BTC/USDT pair ended the last seven-day period with an 11 percent loss.
On Monday, bulls saw the price of BTC dropping down to $39,700 in the first part of the session as a result of the ongoing debate at the FED about the upcoming interest rate hikes to tackle inflation in 2022. It is expected that an interest rate increase will impact risk assets like stocks and crypto.
The Tuesday session was quite different though. The biggest cryptocurrency initiated a reversal to the upside by jumping 2.3 percent up to $42,780. The move was followed by another strong trading day on Wednesday during which buyers pushed the price up to $44,000. Still, it remained below the 21-day EMA and the former short-term support around $45,500 – $46,000.
What we are seeing midday on Thursday is a relatively calm session with BTC trading at $43,677.
The Ethereum project token ETH hit the September weekly bottom at $3,000 on Saturday, January 8. The coin was closely following Bitcoin on its way down, but unlike its big brother, it was showing some signs of strength, mainly on the weekly timeframe where the $3,900 support was last broken but not the last low registered during the September 2021 correction.
On Sunday, it formed a short green candle to $3,140 but still ended the week with a 17 percent loss.
The RSI indicator hit 27 – a value not seen since the March 2020 coronavirus crash. Analysts were pointing to this as a short-term buying signal now that the Federal Reserve interest hike news has been absorbed and priced in.
The Monday session started with a new low – $2,941. However, bulls reacted quickly and regained positions back above the mentioned support above $3,000 and the Volume Profile Point of control.
On Tuesday, January 11, the ETH/USDT pair climbed up t $3,237 adding 5.4 percent to its value.
The ether formed its second consecutive green candle on the daily chart on Wednesday reaching $3,372 – a potential resistance zone.
As of the time of writing, the coin is trading at $3,347.
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