Crypto Market Update: Bitcoin, Ethereum, EOS & Litecoin Price Analysis 3rd Jan
Bitcoin price declined in the past few days below the $7,300 and $7,100 support levels. BTC/USD tested the $6,900 support and it is currently correcting higher over $7300. However, there are many hurdles on the upside, starting with $7,300 and up to $7,500.
Similarly, there was an increase in selling on most major altcoins, including Ethereum (ETH), ripple (XRP), bitcoin cash (BCH), litecoin (LTC), binance coin (BNB), stellar (XLM), ADA, EOS, and TRX. Overall, the market sentiment is slightly bearish and there could be more losses unless bitcoin climbs back above $7,300 and $7,400.
Key Takeaways:
- Bitcoin price is recovering from the $6,900 support area.
- Ethereum price is facing a strong resistance near the $134.80 and $136.00 levels.
- Ripple price is now trading well below the $0.2000 resistance area.
- EOS price is finding bids near the $2.400 support and it could bounce back.
- Litecoin price is likely to struggle near $41.50 and $42.20.
- XcelToken Plus (XLAB) and AGRO rallied more than 200% in the past 7 days.
Bitcoin Price Analysis
After a couple of failed attempts near the $7,500 and $7,600 levels, bitcoin price started a fresh decline. BTC/USD broke the $7,200 and $7,100 support levels before it found strong bids near the $6,900 area.
Bitcoin Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price traded as low as $6,908 and it is currently recovering. There was a nice upward from the recent low and the price jumped above the $7,000 resistance.
Moreover, there was a strong spike above the $7,100 level and the 21 simple moving average (4-hours). The price rallied above the 50% Fib retracement level of the downward move from the $7,552 high to $6,908 low.
The upward move was strong as the price rallied towards the $7,400 resistance. It seems like the upward move was capped by the 76.4% Fib retracement level of the downward move from the $7,552 high to $6,908 low.
On the upside, there are many key hurdles forming near $7,300, $7,400 and $7,550. More importantly, there is a major bearish trend line forming with resistance near $7,550 on the same chart.
The price is currently trimming gains, but it might find support near $7,180 and the 21 simple moving average (4-hours). The next major support is near the $7,110 level, below which there is a risk of a fresh decline towards the $6,900 support area.
Conversely, bitcoin needs to settle above the $7,400 and $7,550 resistance levels to start a sustained upward move. The next major resistance in the mentioned case could be near the $7,800 and $8,000 levels.
Ethereum Price Analysis
Ethereum price mostly remained in a broad range below the $134.80 and $136.00 resistance levels. ETH/USD declined recently and traded below the $130.80 support area.
Ethereum Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price even traded below the $128.50 support and the 21 simple moving average (4-hours). Besides, there was a break below a contracting triangle with support near the $129.50 level.
Finally, the price spiked below the 61.8% Fib retracement level of the upward move from the $122.88 low to $138.69 high.
However, the price found support near the $126.60 level and it is currently recovering similar to bitcoin. It seems like the 76.4% Fib retracement level of the upward move from the $122.88 low to $138.69 high acted as a support.
On the upside, it seems like the 21 simple moving average (4-hours) is currently acting as a resistance near the $130.80 level.
If there are more gains above the 21 simple moving average (4-hours), Ethereum price might recover further towards the main $134.80 and $136.00 resistance levels.
A successful close above the $136.00 resistance is needed to start a strong upward move. Conversely, the price could restart its decline below the $128.50 and $126.60 levels.
The main supports on the downside are near the $123.80 and $120.30 levels. If ETH/USD settles below $120.30 and $120.00, there is a risk of a sharp decline. In the mentioned bearish case, the price might slide towards the $110.00 and $105.00 levels.
EOS Price Analysis
EOS price followed a nice bullish path above the $2.300 and $2.400 resistance levels against the US Dollar. The price even climbed above the $2.650 resistance area before it struggled to clear the $2.725 level.
EOS Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price started a downside correction from the $2.725 high. There was a break below the $2.650 support level and the 21 simple moving average (4-hours).
Moreover, there was a break below the 23.6% Fib retracement level of the upward move from the $2.163 low to $2.725 high.
The price broke the $2.500 support area and traded close to the $2.400 support level. It seems like the 50% Fib retracement level of the upward move from the $2.163 low to $2.725 high is currently acting as a support.
The price is currently recovering and trading above the $2.500 level. However, there is a strong resistance forming near the $2.570 level and the 21 simple moving average (4-hours).
Additionally, there is a connecting bearish trend line in place with resistance near $2.600 on the same chart. If there is a clear break above the $2.600 resistance, there are chances of a decent upward move.
Conversely, if there is no upside break above $2.600 and $2.650, the price will most likely resume its decline. The main supports on the downside are near $2.420 and $2.400.
Litecoin Price Analysis
Litecoin price also followed a similar pattern to bitcoin and formed a short term top near the $44.25 level against the US Dollar. The LTC/USD pair declined and broke many key supports near $42.75 and $41.50.
Litecoin Price Chart: Click to Enlarge
Looking at the 4-hours chart, the price settled below the $41.50 pivot level and the 21 simple moving average (4-hours). The decline was such that the price even traded below the $40.00 support.
A new yearly low is formed near $38.96 and the price is currently correcting higher. It broke the 23.6% Fib retracement level of the downward move from the $44.27 high to $38.96 low.
On the upside, there are many hurdles near the $41.50 and $41.60 levels. Besides, the 21 simple moving average (4-hours) is also near the $41.50 level to stop the upward move.
More importantly, the 50% Fib retracement level of the downward move from the $44.27 high to $38.96 low is also near the $41.60 level.
Therefore, a clear break above the $41.60 level and the 21 SMA is needed for a fresh increase in the near term. In the mentioned bullish case, the litecoin price will most likely continue to rise towards the $44.00 and $45.00 resistance levels.
If not, there is a risk of another decline below the $42.00 and $39.00 levels. The next major support on the downside for litecoin is near the $36.50 level.
Top Gainers
During the past 7 days, a few small cap altcoins gained more than 800%, including BST, XLAB, AGRO, LEND, BNANA and NBV (trading volume more than $50K). Out of these, XLAB rallied around 250% and AGRO gained nearly 230%.
Overall, bitcoin price is trading above the $7,000 and $7,100 support levels. However, BTC/USD is still facing a lot of hurdles on the upside near the $7,300, $7,400 and $7,550 levels.
Therefore, upsides might remain capped in the near term unless it breaks the $7,550 resistance. Similarly, major altcoins might struggle to continue higher such as Ethereum, ripple, bitcoin cash, litecoin, XLM, ADA, TRX, EOS, ICX, BNB, XMR, NEO, and WTC could also start a decent recovery in the coming days.
The market data is provided by TradingView, Bitfinex.
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OhNoCryptocurrency via https://www.ohnocrypto.com/ @Dr. Latika Mehrotra, @Khareem Sudlow