Bitcoin price was around $24,600 at the time we published our previous weekly analysis. Since last week, Bitcoin price surged for 21% and today could hit $29,900. If you take a look at Bitcoin daily price chart, you will notice the price just had slight fluctuations and continued rising without any significant pullback. One of the main reasons could be that traders and investors are holding their bitcoins in their wallets. Statistics from Glassnode show that there are only 4.2 million BTC available to trade, which means that almost 78% of total Bitcoins are locked. In this article we are going to have a weekly analysis (27 Dec-02 Jan). Let’s take a look at the charts.
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As you can see in the figure above, a Doji candle formed in bitcoin daily price chart on 31 Dec (orange color arrow). Actually, it signals that sell pressure increased and there is possibility of price decline in the future. However, green candles appeared in the next days. It means, although sellers began a correction trend, greedy buyers entered the market and did not let the price to fall further. These reactions created two possible scenarios.
The first is that, BTC price may surge to $30.000 or even $37,000. The second is that there is high possibility of price decline due to placement of RSI at overbought condition. However, due to greedy buyers, who buys at any price correction, we can expect that BTC price may experience a sideway or have a slight correction to $28,000. Despite the fact, $28,000 is a crucial support level. On condition that the price break this support level, it may fall further to EMA-20 ($25,300).
Weekly Analysis (27 Dec-02 Jan); Ethereum
Ethereum followed Bitcoin by surging 20% and could hit $760 in the last week. However, $760 played role as a strong resistance point. Consequently, the price declined to $715. In contrast to Bitcoin, Ethereum is volatile, which created an opportunity for traders to earn profit. RSI is at 70 and EMA-20 has an ascending slope. These two factors signal a price growth from current level. However, if Bitcoin cannot keep itself sustainable, Ethereum price may fall to $670. Therefore, it would be a great opportunity to a long position.