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The Crypto Daily – Movers and Shakers – January 16th, 2021

By:
Bob Mason
Published: Jan 16, 2021, 01:05 UTC

It's a bullish start to the day for the majors. A bitcoin move back through to $39,000 levels would signal an extended rally.

Pattern of coins LTC, ETH, BTC, XMR, XRP on a dark background. Business concept.

In this article:

Bitcoin, BTC to USD, slid by 6.15% on Friday. Reversing a 4.73% rally from Thursday, Bitcoin ended the day at $36,741.0.

It was a mixed start to the day. Bitcoin rise to an early morning intraday high $39,701.0 before hitting reverse.

Falling short of the first major resistance level at $40,536, Bitcoin slid to a late afternoon intraday low $34,500.0.

Bitcoin fell through the first major support level at $37,201 and the second major support level at $35,266.

Finding support late in the day, however, Bitcoin broke back through the second major support level to end the day at $36,700 levels.

The near-term bullish trend remained intact, in spite of the reversal. For the bears, Bitcoin would need to slide through the 62% FIB of $18,504 to form a near-term bearish trend.

The Rest of the Pack

Across the rest of the majors, it was a mixed day on Friday.

Chainlink bucked the trend on the day, rallying by 15.7%.

It was a bearish day for the rest of the pack.

Bitcoin Cash SV and Crypto.com Coin slid by 7.11% and by 7.93% respectively to lead the way down.

Ethereum (-5.16%), Litecoin (-5.74%), and Ripple’s XRP (-5.30%) also saw heavy losses.

Binance Coin (-2.18%),Cardano’s ADA (-3.13%), and Polkadot (-3.15%) saw relatively modest losses on the day.

In the current week losses, the crypto total market cap fell to a Monday low $804.33bn before rising to a Thursday high $1,083.27bn. At the time of writing, the total market cap stood at $1,011.91bn.

Bitcoin’s dominance rose to a Thursday high 70.28% before falling to a Friday low 68.27%. At the time of writing, Bitcoin’s dominance stood at 68.47%.

This Morning

At the time of writing, Bitcoin was up by 1.27% to $37,207.0. A bullish start to the day saw Bitcoin rise from an early morning low $36,731.0 to a high $37,388.0.

Bitcoin left the major support and resistance levels untested early on.

Elsewhere, it was also a bullish start to the day.

At the time of writing, Polkadot was up by 12.43% to lead the way, with Crypto.com Coin up by 7.74%.

BTCUSD 160121 Hourly Chart

For the Bitcoin Day Ahead

Bitcoin would need to avoid a fall through the pivot level at $36,981 to bring the first major resistance level at $39,461 into play.

Support from the broader market would be needed for Bitcoin to break back through to $39,000 levels.

Barring an extended crypto rally, first major resistance level and resistance at $40,000 would likely cap any upside.

In the event of an extended crypto rally, Bitcoin could test resistance at the all-time high $41,969 and at $42,000 before any pullback. The second major resistance level sits at $42,182.

Failure to avoid a fall through the $36,981 pivot would bring the first major support level at $34,260 into play.

Barring an extended crypto sell-off, Bitcoin should continue to steer clear of the second major support level at $31,780. The 23.6% FIB of $33,008 should limit the downside.

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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