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The Crypto Daily – Movers and Shakers – January 22nd, 2021

By:
Bob Mason
Published: Jan 22, 2021, 00:52 UTC

It's a particularly bearish day for the crypto majors. Failure for Bitcoin to move back through to $30,000 levels would weigh heavily on the broader market.

Cryptomania

In this article:

Bitcoin, BTC to USD, tumbled by 13.06% on Thursday. Following a1.04% decline on Wednesday, Bitcoin ended the day at $30,872.0.

It was a mixed start to the day. Bitcoin rose to an early morning high $35,616.0 before hitting reverse.

Falling short of the first major resistance level at $36,858, Bitcoin slid to a late intraday low $30,196.0.

Bitcoin fell through the first major support level at $33,739 and the second major support level at $31,961.

More significantly, Bitcoin also fell through the 23.6% FIB of $33,008.

Steering clear of sub-$30,000 support levels, Bitcoin briefly revisited $31,000 levels before falling back. Despite the late support Bitcoin failed to break back through the second major support level.

The near-term bullish trend remained intact, in spite of the latest sell-off. 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 Thursday.

Polkadot bucked the trend on the day, rising by 2.26%.

It was a particularly bearish day for the rest of the majors, however.

Cardano’s ADA and Ethereum slid by 18.10% and by 19.35% respectively to lead the way down.

Chainlink and Litecoin weren’t far behind, however, with losses of 15.73% and 13.40% respectively.

Binance Coin  (-9.43%), Bitcoin Cash SV, (-7.28%), Crypto.com Coin (-7.29%), and Ripple’s XRP (-9.43%) also struggled.

In the current week, the crypto total market cap rose to a Tuesday high $1,080.72bn before sliding to an early Friday low $824.13bn. At the time of writing, the total market cap stood at $844.25bn.

Bitcoin’s dominance rose to a Monday high 67.47% before falling to a Thursday low 64.74%. At the time of writing, Bitcoin’s dominance stood at 65.56%.

This Morning

At the time of writing, Bitcoin was down by 3.73% to $29,719.0. A bearish start to the day saw Bitcoin slide from an early morning high $30,890.6 to a low $29,317.0.

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

Elsewhere, it was a mixed start to the day.

Bitcoin Cash SV was up by 0.55% to buck the trend early on.

It was a bearish start for the rest of the majors, however.

At the time of writing, Crypto.com Coin and Cardano’s ADA were down by 7.05% and by 5.63% respectively to lead the way down.

BTCUSD 220121 Hourly Chart

For the Bitcoin Day Ahead

Bitcoin would need to move through the pivot level at $32,228 to bring the first major resistance level at $34,260 into play.

Support from the broader market would be needed for Bitcoin to break out from the 23.6% FIB of $33,008.

Barring an extended crypto rally, first major resistance level and resistance at $34,500 would likely cap any upside.

In the event of an extended crypto rally, Bitcoin could test resistance the second major resistance level at $37,648.

Failure to move through the $32.228 pivot would bring the first major support level at $28,840 into play.

Barring another extended crypto sell-off, Bitcoin should avoid the 38.2% FIB of $27,465. The second major support level sits at $26,808.

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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