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Technical Analysis

BTC/USD Analysis – January 14, 2022

Bitcoin Price Prediction

The BTC/USD closed at $42,562.0 after hitting a high of $44,426.70 and a low of $42,334.0. After two consecutive green sessions, BTC/USD reversed course and turned red on Thursday. The International Monetary Fund (IMF) has recognized that unregulated use of Bitcoin and other cryptocurrencies might cause a domino effect and destabilize global financial markets. The report from the IMF warned about the risks posed by the volatility of cryptocurrencies on economies and stock markets.

During the pandemic crisis, the central banks released an immense amount of cheap money in the form of stimuli to prevent the recession from worsening, which pushed assets like cryptocurrencies to the upside. Wall Street hit all-time highs in 2021, along with the rest of the world’s stocks, which saw a strong recovery. Furthermore, the returns on digital assets also surged to record levels in 2021. The economists from the IMF wrote that the correlation of crypto assets with traditional holdings like stocks had increased significantly, limiting their perceived risk diversification benefits and raising the risk of contagion across the financial markets. According to experts at the IMF, the crypto-equity correlation started with the extraordinary central bank crisis responses of early 2020. Greater investors’ risk appetite and easy global financial conditions pushed higher US stocks and crypto prices. IMF analysts added that the stronger correlation suggests that Bitcoin has been acting as a risky asset, and the increased correlation raises the possibility of spill overs of investor sentiment between those asset classes. This warning from the IMF added a negative impression on BTC/USD prices on Thursday.

Furthermore, a former lawyer for the Pacific island nation of Tonga shared an approach to adopting bitcoin as legal tender. By following in El Salvador’s footsteps, Lord Fusitu’a, a former MP of Tonga, anticipated that his country could adopt Bitcoin by November or December this year. The process was copied from El Salvador’s playbook and is expected to onboard more than 100,000 Tongans onto the Bitcoin network. Tonga is a remote island nation that relies on remittances from countries including Australia, New Zealand, and the United States. The International Finance Corporation estimated that Tonga receives more income from remittances than any other country in the world, contributing up to 30% of household income.

BTC/USD Intraday Technical Levels

Support Resistance
41788.5 43881.2
41014.9 45200.3
39695.7 45973.9
Pivot Point: 43107.6

BTC/USD – Technical Outlook

Bitcoin’s price continued to rise beyond the $43,200 resistance level. Before the bears intervened, BTC even broke beyond the $44,000 barrier twice. The price has since corrected lower after reaching a peak of $44,420. The price fell below the 23.6 percent Fib retracement level of the critical rise from the swing low of $39,660 to the high of $44,420.Moreover, on the hourly timeframe of the BTC/USD pair, there was a breach below a significant bullish trend line with support near $43,250.

If Bitcoin fails to start a new uptrend over $43,200, it may continue to drop. On the downside, there is next support near $42,500. The first significant support is seen as being near $42,000. The 50% Fib retracement level of the important climb from the $39,660 swing low to the $44,420 high is very close to $42,000. A breach below the $42,000 support level might push the price down to $41,500. In the next few sessions, any further losses might drive the price down to the $40,500 support level.

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Technical Analysis

GOLD Analysis – January 12, 2022

Gold’s Daily Price Analysis

Gold prices ended the day at $1820.30, having reached a high of $1822.95 and a low of $1801.10. Gold maintained its bullish trend on Tuesday, rising for the third day in a row as the US dollar fell. The US Dollar Index, which measures the value of the US dollar against a basket of six major currencies, fell to 95.58 on Tuesday. The yield on the benchmark 10-year US Treasury note decreased on Tuesday and remained at 1.73 percent. The day’s rise in gold prices was fueled by a weaker dollar and lower Treasury yields. On the data front, the NFIB Small Business Index stayed steady at 15:50 GMT, with expectations of 98.9. At 20:00 GMT, the IBD/TIPP Economic Optimism Index fell to 44.7 from a forecast 50.2, weighing on the US dollar and pushing gold higher.

According to Cleveland Fed President Loretta Mester, the Federal Reserve may need to raise interest rates at least three times in 2022 and begin shrinking its balance sheet in order to respond to a tight labour market and persistently high inflation. Mester stated that the final monetary policy decisions would be determined by the progression of the coronavirus epidemic as well as economic factors. She went on to say that Fed officials needed to rebalance policy in order to manage inflation, which was substantially above the US Federal Reserve’s goal level.

Furthermore, Esther George, President of the Kansas City Federal Reserve, stated on Tuesday that the US central bank should work quickly to shrink its massive $8.5 trillion pile of bond holdings in order to slow the rate of the biggest US inflation in nearly 40 years. She believes the Fed’s efforts to curb inflation would be more effective if the bank reduced its holdings of long-term bonds while progressively raising short-term interest rates.

Meanwhile, US Federal Reserve Chair Jerome Powell claimed that the US economy was healthy enough and that stricter monetary policy was required. Powell stated during his re-nomination hearing before the Senate Banking, Housing, and Urban Affairs Committee on Capitol Hill that he anticipates a series of rate hikes this year, as well as a reduction in balance sheet assets.

The two Fed officials, as well as Powell’s support for raising interest rates as early as March and for the Central Bank to wind down its bloated balance sheet sooner rather than later, should have pushed the dollar higher, but the market turned red, and the US dollar came under pressure, eventually pushing gold higher.

US markets were most likely positioning themselves ahead of the release of US inflation data on Wednesday, and they mostly ignored the comments made by Fed officials on Tuesday. However, the cautious behaviour of US investors weighed on the currency and boosted gold prices.

GOLD Intraday Technical Level

Support Resistance
1806.61 1828.46
1792.93 1836.63
1784.76 1850.31
Pivot Point: 1814.78

GOLD – Technical Outlook

Although a clear upward break of the 200-day moving average helped gold prices rise the most in a month the day before, a downward sloping trend line from mid-November, around $1,825, poses a challenge to bulls. It should be observed that the MACD remains sluggish, but the higher low formation and recently strengthening RSI point to the metal’s potential for further gains over the immediate resistance line.

Following that, tops near $1,834 recorded in July and September will be scrutinized before sending gold investors towards the $1,850 barrier. Meanwhile, a bearish break of the 200-DMA level of around 1,802 will require a confirmation from the $1,800 level to persuade gold sellers.

Even so, the upward trending support line from August, currently near $1,787, will be a difficult nut to break for gold bears. To summarise, gold prices are likely to rise more technically, but fundamentals will be significantly more critical during the pivotal day.

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Technical Analysis

EUR/USD Analysis – January 12, 2022

Daily Price Outlook

The EUR/USD exchange rate closed at $1.1364 after reaching a high of $1.1375 and a low of $1.1313. The EUR/USD reversed course again on Tuesday, turning green despite the day’s weak US dollar. On Tuesday, the greenback was low as the DXY dropped to 95.58 levels. The US dollar was experiencing a period of disinterest due to investors’ cautious behaviour ahead of the US inflation data. Since the start of November, the Fed has shown interest in tapering the pace of its QE program; now, it has increased tapering to allow a potentially earlier start of a rate hike. Furthermore, the Federal Reserve has also introduced the likelihood of future balance sheet reductions.

All the talk about reducing balance sheets and increasing interest rates has given plenty of demand for the greenback and pushed US yields higher. However, despite the same hawkish points mentioned in the Fed minutes, the dollar has failed to capitalize on much of them. The DXY was down on Tuesday mainly because investors had already priced in this optimism, and now they were probably booking their profits. The reason for the US dollar’s decline could be investors’ cautious behaviour ahead of the release of US inflation data on Wednesday.

On the data front, at 14:00 GMT, Italian retail sales dropped by 0.4% against the expected 0.3% and weighed on the single currency euro, which further capped gains in the EUR/USD pair. From the US side, at 15:50 GMT, the NFIB Small Business Index remained unchanged at 98.9. At 20:00 GMT, the IBD/TIPP Economic Optimism declined to 44.7 from the anticipated 50.2 and weighed on the US dollar, pushing EUR/USD further higher.

On the flip side, the euro was under pressure on Tuesday, which further capped gains in EUR/USD. On Tuesday, the WHO said that more than half of the people in Europe were projected to catch the Omicron variant by the end of March. The rising spread of the Omicron variant has pushed countries to impose fresh measures and scramble to roll out vaccine booster shots as Europe has become the epicentre of alarming new outbreaks, which says that Omicron could infect half of all people in European countries.

EUR/USD Intraday Technical Levels

Daily Technical Levels
Support Resistance
1.1327 1.1389
1.1288 1.1414
1.1264 1.1452
Pivot Point: 1.1351

EUR/USD – Technical Outlook

On Wednesday, the EUR/USD is trading bullish at the 1.1370 level, violating downward trendline resistance at the 1.1350 level. On the bullish side, the breakout of 1.1350 exposes the EUR/USD pair towards the next resistance level of 1.1413 or 1.1452. Furthermore, the EUR/USD has formed a “Three White Soldiers” pattern supporting the uptrend. Therefore, the bullish bias remains strong above the 1.1350 level. On the flip side, the EUR/USD’s immediate support stays at 1.1350, and below this, 1.1326 or 1.1288 will operate as support. All the best!

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Technical Analysis

BTC/USD Analysis – January 12, 2022

Bitcoin Price Prediction

The BTC/USD pair closed at $42,743.0 after placing a high of $43,113.0 and a low of $41,287.0. BTC/USD found some support and turned upside down with a minor correction. On Tuesday, Federal Reserve Chairman Jerome Powell discussed the possibility of the central bank issuing CBDC during his re-nomination hearing before the Senate.

Powell appeared to have reversed one of his previous positions on the relationship between CBDCs and stable coins. He suggested that both could co-exist without the former replacing the latter. Powell also suggested that he had no intention of banning cryptocurrencies outright as he was setting the U.S. regulatory approach apart from China’s. This provided some support to the declining prices of the BTC/USD on Tuesday.

On the other hand, billionaire fund manager Jeff Gundlach warned about the recession happening later this year. The CEO of Doubleline Capital, with assets under management worth $137 billion, is also sometimes referred to as the “Bond King” after appearing on Barron’s cover in 2011 as the “New Bond King.” Institutional investors named him Money Manager of the Year in 2013, and Bloomberg Markets named him one of “the Fifty Most Influential” in 2012, 2015, and 2016. His net worth is currently $2.2 billion, according to Forbes.

He warned that bond markets were already showing enough of the recession indicators that in 2023 there would be a recession. He also said that the Fed would have to increase interest rates four times this year, after which recession signals would be more visible. He said there was undoubtedly a non-zero probability of a recession in the latter part of 2022.

On Monday, the CEO of JP Morgan, Jamie Dimon, said that the Fed might have to increase the interest rate more than four times this year as inflation was worse than people thought. He even said that he would be surprised if the Fed only raised interest rates four times this year.

Gundlach stressed that cryptocurrency was for speculators, and those who were thinking of buying BTC at this moment should wait for it to decline to $25,000, and then they should buy it. This prediction added further weight to BTC prices on Tuesday.

Furthermore, the U.S. basketball players Klay Thompson and Andre Iguodala have also revealed that they want to get half of their salary in cryptocurrency. The NBS stars have announced their pay check plans on Twitter and showed that they would be receiving part of their salaries in Bitcoin. This report might have supported the declining prices of BTCUSD on Tuesday.

BTC/USD Intraday Technical Levels
Support Resistance
41649.0 43475.0
40555.0 44207.0
39823.0 45301.0
Pivot Point: 42381.0

BTC/USD – Technical Outlook

Bitcoin has built a support base and has risen beyond the $42,000 barrier level. BTC even traded above $42,500 and the 100 hourly simple moving average to enter the green zone. The increasing trend accelerated, and the price surpassed the $43,000 mark. A high near $43,127 has been achieved, and the price is now reversing gains. It was trading under the $42,800 support level. The price fell below the 23.6 percent Fib retracement level of the upward run from the swing low of $41,315 to the high of $43,127.

If bitcoin does not return over $43,000, it may begin a new slide. On the downside, there is immediate support near $42,500. The first significant support is near $42,200, as is the bullish trend line. The trend line is close to the 50 percent Fib retracement level of the upward move from the swing low of $41,315 to the high of $43,127. If the price breaks below the trend line support, it may move towards the $41,800 level and the 100 hourly SMA. Any further losses might drive the price down to the $40,500 support level in the next sessions.

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Technical Analysis

GOLD Analysis – January 11, 2022

Gold’s Daily Price Analysis

Gold prices ended the day at $1801.10, having reached a top of $1802.50 and a low of $1789.45. Gold maintained its upward momentum on Monday, posting minor gains to recoup some of its prior losses. The sharp drop in the benchmark 10-year note US Treasury Yield on Monday could be related to surging gold prices. After climbing for five consecutive sessions, the US Treasury Yield fell on Monday to 1.75 percent, assisting gold to turn positive for the day. The US Dollar Index (DXY), which measures the value of the US dollar against a basket of six major currencies, remained solid for the day, staying around 95.99.

The benchmark US Treasury Yield touched a nearly 2-year high on Monday, as market players increasingly anticipate the US Federal Reserve to begin tightening policy with an interest rate hike as early as March. However, after reaching a two-year high, Treasury rates fell, most likely due to the price correction, and gold benefited from the dip.

Traders are now looking forward to publishing the CPI report on Wednesday, which will provide a better picture of the Fed’s forthcoming rate hike decision. The country’s significant rise in consumer prices and inflation levels has enhanced the necessity for a rate hike. Gold is regarded as a hedge against increasing inflation, but speculation of rate hikes has weighed on gold, as they tend to raise the opportunity cost of keeping non-yielding bullion. This is why gold’s gains on Monday were pretty restricted. There wasn’t much to look forward to on the statistics front from the United States. At 20:00 GMT, the Final Wholesale Inventories jumped to 1.4 percent vs. the predicted 1.2 percent, weighing on the US currency and ultimately pushing gold higher.

Another factor for the constant rise of gold prices could be Goldman Sachs’ latest estimate of a rate hike. The investment bank changed its forecast that the Fed will raise interest rates four times this year and begin the process of shrinking its balance sheet as early as July. Previously, the bank forecasted three rate increases in 2022, in March, June, and September. However, the bank forecasts another rate hike in December, putting additional pressure on gold prices and capping its gain on Monday.

Furthermore, Pfizer’s Chief Executive Officer, Albert Bourla, stated on Monday that Pfizer is operating on developing a vaccine that will be effective for the Omicron form and that the vaccine will be ready as soon as March. He stated that two vaccine doses plus a booster shot had previously offered reasonable protection against the serious health effects of Omicron; nevertheless, he was unsure if further vaccine specific to the Omicron version would be required in this scenario. These remarks by Bourla capped additional advances in gold by lowering risk-off market sentiment.

GOLD Intraday Technical Level

Support Resistance
1792.86 1805.91
1784.63 1819.73
1779.81 1818.96
Pivot Point: 1797.68

GOLD – Technical Outlook

Gold is trading with a strong bullish bias at $1,805, having rebounded above the $1,799 resistance level, which now is functioning as support for gold. Further to the upside, the next resistance level is at 1,815, and a break above this might push the gold price up to the 1,829 level. On the downside, support is holding around 1,799, and a breach below this level might expose the metal towards next support level of 1,782 and 1,776 level. All the best!

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Technical Analysis

EUR/USD Analysis – January 11, 2022

Daily Price Outlook

EUR/USD closed at $1.1324 after hitting a high of $1.1362 and a low of $1.1285. The EUR/USD dropped on Monday and lost some of its previous gains on the back of the rising US dollar’s strength. The US Dollar Index was strong on the day, closing at 95.99. The dollar was high because of the bets that the Fed would decide to increase interest rates sooner than expected this year.

Market participants were awaiting US CPI report, which is due on Wednesday, giving clues about the potential rate hike. Ahead of this report, US dollar investors kept buying and pushed DXY higher for the day. On the data front, at 14:00 GMT, the Italian Monthly Unemployment Rate dropped to 9.2%, against the expected 9.3%, and supported the single currency euro.

At 14:30 GMT, the Sentix Investor Confidence rose to 14.9 against the forecasted 12.6 and supported the Euro. At 15:00 GMT, the unemployment rate for Europe remained flat at 7.2%. Most of the data from Europe favored the Euro, which limited the decline in the EUR/USD currency pair on Monday. From the US side, there was not much data released on Monday. However, at 20:00 GMT, the final wholesale inventories rose to 1.4% against an estimated 1.2% and weighed on the US dollar, which also capitulated further losses in the EUR/USD pair.

On the other hand, the Euro was under pressure following the latest comments from ECB board member Isabel Schnabel. She said that persistently high energy prices run the risk of leading to unsustainable inflation, which might push the ECB to increase its initial forecasts. However, she stressed that the bloc’s climate policies likely mean high energy values will linger or increase further. According to EU data last week, inflation in the eurozone surged to a yearly rate of 5% in December, which was well above the target of 2%. However, it was still not prompting the ECB to tighten monetary policy. These comments from Schnabel suggest that any uptick in the ECB’s inflation forecast at its upcoming meeting in March could increase the expectations of earlier tightening from the ECB. However, there are clear signals from the US Federal Reserve that the interest rate might increase in March.

This was keeping the Euro under pressure against the dollar and dragging EUR/USD to the downside on Monday. The US dollar was gaining strength from bets on an aggressive path of rate hikes from the Federal Reserve as soon as March. These are only expected to accelerate later this week after the release of US inflation data on Wednesday. The US is expected to report its fastest inflation rate since 1982, which will only push the Fed closer to raising interest rates in March. The strength of the US dollar dragged the EUR/USD pair to the downside on Monday. Meanwhile, Pfizer reported that it was developing a vaccine specifically for the Omicron variant and that the vaccine would be ready in March. This report sparked some market optimism and limited further losses in the riskier currency pair of EUR/USD.

EUR/USD Intraday Technical Levels

Daily Technical Levels
Support Resistance
1.1284 1.1361
1.1246 1.1400
1.1208 1.1438
Pivot Point: 1.1323

EUR/USD – Technical Outlook

On Tuesday, the EUR/USD is trading bullish at the 1.1341 level, soaring above an intraday pivot point level of 1.1321. On the downside, the EUR/USD’s immediate support stays at 1.1321 or 1.1260 level, and a break below 1.1260 level exposes the pair towards 1.1233 level.

The EUR/USD’s major resistance stays at 1.1358 or 1.1396 levels on the bullish side. The RSI and Stoch RSI are holding in a buying zone; therefore, the breakout of the 1.1358 support level adds a buying pressure. Thus, bullish bias dominates above 1.1321 and vice versa. All the best!

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Technical Analysis

BTC/USD Analysis – January 11, 2022

Bitcoin Price Prediction

The BTC/USD closed at $41,839.0 after hitting a high of $42,270.0 and a low of $39,677.0. BTC/USD fell further, reaching its lowest level since August 2021. Similar to many other European countries, Kosovo authorities also banned crypto mining, which resulted in the seizure of nearly 300 cryptocurrency mining machines. The nation’s Minister of Energy and Economy said that this seizure would save tens of thousands of euros per month. Kosovo is currently struggling with an energy crisis prompted by a sharp price increase in electricity.

To eliminate power shortages and curb consumption during the winter, the government banned cryptocurrency mining, the first seizure by the government since the announcement of the ban. The latest ban on crypto mining added negative pressure on BTC/USD and dragged its prices to their lowest level in five months. Furthermore, a study from the Library of Congress in the United States found that the list of countries that have adopted regulatory policies that raise taxes or ban cryptocurrencies has grown in the last three years. As of November last year, the total number of countries that had banned the use of cryptocurrencies was nine, among which China stands out.

While countries are banning crypto mining operations from saving energy and the crypto market is crashing, many investment firms plan to dig into the opportunity and buy the dip in leading cryptocurrencies. The Nasdaq-listed Canadian cryptocurrency mining firm Bitfarm has announced that it invested about $43.2 million in BTC after the price dropped around 12% in the first week of the year. The latest purchase of BTC pushed its total holding of BTC to 4300 BTC, worth about $180 million.

On the other hand, Spanish lawmakers saw the Bitcoin mining collapse in Kazakhstan as an opportunity and decided to make Spain the next bitcoin mining hotspot. The deputy for the Spanish Ciudadanos political party, Maria Munoz, has proposed a bill to make Spain a BTC mining hub following the internet shutdown that caused a mining outage in Kazakhstan. This news kept the losses in BTC/USD limited for the day.

Additionally, the United Arab Emirates is taking a different approach while many countries are banning bitcoin and digital assets. The county has been consistently enacting its vision of becoming a blockchain capital by providing frameworks to guide crypto businesses operating under the laws. This news also capped a further decline in BTC.USD prices on Monday.

BTC/USD Intraday Technical Levels

Support Resistance
40254.0 42847.0
38669.0 43855.0
37661.0 45440.0
Pivot Point: 41262.0

BTC/USD – Technical Outlook

The BTC/USD continued to fall below the $40,500 support level. BTC even fell below the $40,000 mark, trading as low as $39,659. There has recently been a powerful recovery wave above the $40,000 mark. The price has risen above the $40,500 and $41,200 resistance levels. The bulls even pushed the price beyond the 50% Fib retracement level of the latest drop from the $42,739 swing high to the $39,659 low.

On the upside, the first big resistance is located near $42,750. The next significant resistance is located near the $43,500 level. It is close to the 1.236 Fib extension level of the recent slide from the swing high of $42,739 to the low of $39,659. Any further gains might push the price up to $44,500. The next significant resistance level is near $45,500, where the bears appear. If bitcoin does not return over $43,500, it may begin a new drop. On the downside, there is immediate support near the $41,800 level and the 100 hourly SMA.

The first significant support is near $41,500, as is the broken trend line. A drop below the trend line support on the downside might push the price down to $41,000. If the price continues to fall, it may reach the $40,000 support level in the next sessions. All the best!

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Technical Analysis

GOLD Analysis – January 7, 2022

Gold’s Daily Price Analysis

Gold prices ended the day at $1791.15, having reached a high of $181.25 and a low of $1785.95. Following the emergence of risk sentiment in the market, gold reversed course and fell dramatically to its 14-day low on Thursday.

Treasury rates on benchmark 10-year notes in the United States rose for the fourth session, reaching 1.75 percent, their highest level since April 2021. The dollar index, which measures the value of the US currency against a basket of six major currencies, gained and turned green on Thursday, reaching 96.39.

The release of the Federal Reserve’s December meeting minutes was the catalyst for the strong currency and higher rates. The minutes indicated that Fed officials discussed raising interest rates to manage the escalating inflationary threats. According to Fed officials, the tight labour market may drive the Fed to raise interest rates sooner than planned and reduce the bank’s overall asset holdings in order to contain growing inflation.

The minutes issued by the Federal Reserve on Thursday confirmed market predictions that the Fed will raise interest rates to manage increasing inflation, which is expanding at its fastest rate in 40 years in the United States. This raised the opportunity cost of storing bullion while also pushing treasury yields and the dollar higher. As a result, gold dropped from its main support level of $1800 on Thursday, losing more than 2% in a single day.

On the statistical front, at 17:30 GMT, the Challenger Job Cuts fell to -75.3 percent from -77.0 percent previously. At 18:30 GMT, unemployment claims from the previous week had risen to 207,000, exceeding the anticipated 199,000, weighing on the dollar. The trade balance recorded a deficit of -80.2 billion, which was expected. At 20:00 GMT, the ISM Services PMI fell to 62.0 from 67.0 expected, weighing on the US dollar. The dollar was strengthened by a 1.6 percent gain in industrial orders, versus the projected 1.5 percent increase. On Thursday, the majority of US data was unfavourable, which restrained gold price losses for the day.

Gold losses were also limited by the World Health Organization’s recent warning, which stated that the number of coronavirus cases worldwide was fast increasing. Tedros Adhanom Ghebreyesus, the chairman of WHO, stated that the Omicron variety causes less severe disease than the globally dominant Delta strain, but it should not be classified as mild. Authorities around the world were increasing restrictions as the Omicron variety continued to increase coronavirus cases worldwide.

GOLD Intraday Technical Level

Support Resistance
1780.09 1806.29
1770.82 1821.42
1755.69 1831.59
Pivot Point: 1796.12

GOLD – Technical Outlook

Gold is trading with a bearish bias at the 1,790 level, having disrupted the support level of 1,796. An intraday pivot point level extended this support level, and now it’s working as a resistance. Below this, the precious metal gold may find immediate support at 1,786, and violation of this exposes the metal towards 1,780 or 1,771 support levels. On the bullish side, the resistance stays at 1,796, and a crossover above this level exposes the metal price towards 1,806 or 1,821 level. The RSI and Stoch RSI are holding a buying zone. However, the bearish bias dominates below 1,796 and vice versa. All the best!

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Technical Analysis

ETH/USD Analysis – January 7, 2022

Daily Price Outlook

The ETH/USD closed at $3407.21 after reaching a high of $3550.42 and a low of $3306.91. ETH/USD dropped further on Thursday and reached its lowest level since October 2021 amid the prevailing negative market mood. Big cryptos like Ethereum and Bitcoin suffered on Thursday after the US Federal Reserve released its December policy minutes, which revealed that the Fed has decided to raise interest rates sooner than earlier expected to mitigate the effects of high inflation.

Cryptocurrencies have been gaining much attention lately amid the rising inflation all over the globe. It has even pushed El Salvador to make bitcoin its legal tender. However, the news that the central bank of the leading economy in the world will take steps to control rising inflation sooner than anticipated had a negative impression on cryptocurrencies like BTC and ETH.

On the other hand, most countries were looking for ways to regulate the whole crypto industry as it posed a threat to fiat currencies and the risks associated with the industry. Moreover, the increasing rate of cybercrimes involving cryptocurrencies and the high volatility of these digital assets calls for a regulatory body for the whole industry. It is also worth mentioning that the environmental threat these cryptocurrencies impose was another hot topic calling for regulatory help, and all these things were dragging down the leading digital assets like BTC and ETH.

On the other hand, the co-founder of Ethereum, Vitalik Buterin, has put forth a proposal titled “Multidimensional EIP-1559,” which states that different resources in the Ethereum Virtual Machine have different demands in terms of gas usage. Buterin outlined a complicated proposed change with much technical math, but in a nutshell, the proposal offered two potential solutions using multidimensional pricing.

Recently, Ethereum is undergoing a significant upgrade that will end the proof-of-work consensus, and it remains to be seen whether this proposal will receive approval since the next major upgrade is the next major upgrade. However, this proposal failed to attract any bullish bets, and ETH/USD remained on the downside for the rest of Thursday.

Meanwhile, the recently released FOMC meeting minutes from the Federal Reserve added strength to the US dollar as they showed that the Fed would raise interest rates sooner than expected this year. As a result, the local currency gathered strength and started gaining bullish bets, which weighed on leading cryptocurrencies like BTC and ETH, as they negatively correlate with the US dollar.

ETH/USD Intraday Technical Levels

Daily Technical Levels
Support Resistance
3292.60 3536.11
3178.00 3665.02
3049.09 3779.62
Pivot Point: 3421.51

ETH/USD – Technical Outlook

Ethereum failed to break over the $3,850 resistance level, resulting in a significant drop. ETH fell below the $3,750 and $3,700 support levels, entering the bearish zone. On the hourly timeframe, there was a break below a major contracting triangle with support near $3,800. A closure below $3,600 occurred, as did a close below the 100 hourly simple moving average. The bears have even pushed the price below $3,500.

A low near $3,411 was formed, and the price is presently trying to rebound. The price of ether is currently trading below $3,550 and the 100 hourly simple moving average. The $3,500 threshold is an instant barrier. It’s near 23.6 percent Fib retracement level of the decline from the $3,847 swing high to the $3,411 low. The next significant resistance is located near $3,630, close to the 50% Fib retracement level of the decline from the $3,847 swing high to the $3,411 low.

If Ethereum does not begin a new upward trend over $3,550, it may continue to fall. On the downside, an initial support level is near $3,420. The first major support is presently emerging near $3,400. A break below $3,400 might push the price towards the critical $3,320 support in the short term. The next significant support is around $3,200. All the best!

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Technical Analysis

BTC/USD Analysis – January 07, 2022

Bitcoin Price Prediction

The BTC/USD was closed at $43,111.0 after a high of $43,777.0 and a low of $42,487.0. BTC/USD continued its bearish rally for the fifth consecutive session and fell to extend its losses amid the negative developments surrounding the BTC/USD environment. The CEO of an asset management firm and financial advisory, Devere Group, has predicted three countries will adopt bitcoin as legal tender this year. He seemed to be more bullish than the president of El Salvador, who predicted that two countries would make bitcoin their national currency this year. He said that low-income countries have long suffered because their currencies are weak and highly vulnerable to market changes, which triggers rampant inflation. He said that countries like Panama, Guatemala, and Honduras could adopt bitcoin this year due to their reliance on remittances similar to El Salvador’s.

Meanwhile, the mayor of New York City, Eric Adams, has recently confirmed that he will take his first three pay checks in the leading cryptocurrency, Bitcoin. Adams joined as Mayor of New York City at the beginning of this year and pledged to take his first three pay checks in BTC, just like he said before taking the position. This confirmation by Adams should have supported the bitcoin prices, but BTC/USD remained on the downside for Thursday.

Furthermore, the US National Defence Fellow, Jason Lowery, has argued that the proof of work consensus model of Bitcoin and replaces their reliance on military might for digital property and money. For example, Jason Lowery is an officer in the US Space Force, and a US National Defence Fellow enrolled at MIT, whose full-time job is to research Bitcoin for the US Department of Defence. His master’s thesis aims to investigate how proof-of-work miners are functionally equivalent to militaries and might be used as a stand-in for war in terms of gaining global consensus on the present state and chain of liberty and digital property.

Moreover, the United Kingdom’s Advertising Standards Authority (ASA) has approved an official ban on two mobile application advertisements from popular trading platform Crypto.com that promoted the ease of purchasing cryptocurrencies like BTC and earning yield rewards on digital assets. The agency stated that the advertisements breached several financial watchdog rules, including failing to effectively state the risk potential of the investment, abusing consumers’ lack of market understanding, and not specifying the limitations of purchasing crypto with credit cards. This news had a negative impact on BTC/USD prices.

BTC/USD Intraday Technical Levels

Support Resistance
42473.0 43763.0
41835.0 44415.0
41183.0 45053.0
Pivot point: 43125.0

BTC/USD – Technical Outlook

During the Asian session, the BTC/USD fell sharply to trade at the 41,636 level, having violated the support levels of 42,285 and 40,955 levels. The closing of candles under the 42,965 support zone suggests a strong selling bias in Bitcoin. On the lower side, BTC/USD’s immediate support stays at the 40,955 level. Conversely, the BTC/USD’s immediate resistance stays at 41,636 and 42,285 levels. Further on the higher side, the next resistance stays at the 43,613 level. The RSI and Stoch RSI are holding under 50, supporting a selling bias in Bitcoin. Lastly, the downward trendline is supporting a selling bias in BTC/USD. Good luck!