We take a look at Bitcoin price, Ethereum price, and XRP price for the week of January 22, 2021. Aside from fundamentals, we rely heavily on technical analysis to assess overall sentiment. This is achieved by identifying key support and resistance levels that traders and investors will be watching in the short term.
At the time of this report, Bitcoin price is currently sitting at $31,143. Over the last week, Bitcoin has fallen ~ 14%. This was not a surprise, especially following our recent analysis in which we expected the continued sell-off. Despite Bitcoin being up ~ 13.60% year to date, the last two weeks have been tough on bulls. In less than a month, BTC has retraced to $31,000 levels after testing all-time highs of $41,940 just 16 days ago.
Bitcoin Technical Analysis
If you read our Bitcoin analysis from last week, we predicted a sharp sell-off if Bitcoin rejected $39,000 support. Specifically, it was believed that BTC could retest $29,300 support levels if $39,000 was rejected. This theory came to fruition as BTC witnessed a heavy sell-off after rejecting support. Following last week’s price action, we have now adjusted key support and resistance levels to keep on watch going into next week.
As long as Bitcoin price can stay above $29,300 support, we believe it will reverse sentiment in the short term. On the flip side, if BTC rejects $29,300 support, we expect another leg down. In this scenario, we would expect BTC to test $25,300 support in the short-term. It is important to note that Bitcoin momentum is still bearish. The ROC indicator at the bottom of the chart denotes bearish momentum. As long as ROC is under 0.00, BTC momentum will remain bearish. If ROC jumps above 0.00 this week, look for BTC bulls to enter the market.
At the time of this report, Ethereum is currently trading at $1,424. Unlike Bitcoin, Ethereum price was able to see positive growth over the last week ( ~ 15.8% ). When Ethereum was trading at $1,100 during the week of 1/15, Visionary Financial outlined that the second-largest crypto by market cap would most likely outperform in the short-term. ETH has surged ~ 125% over the last month, and ETH just cracked its all-time high a couple of hours ago ( $1,459 ).
Ethereum Technical Analysis
As mentioned in previous Ethereum analysis, we remain bullish in the short-term. We still believe with a high conviction that ETH will create newer all-time highs in the near term. Based on last week’s price action, we have adjusted key support and resistance levels.
We believe that Ethereum will continue to create newer all-time highs unless $1,187 support is rejected. Any downtrend that occurs between the current price and this support level will be considered normalized price action in our opinion. On the contrary, if ETH was to reject $1,187 support, it could trigger a strong sell-off in the short term. This could send Ethereum to $975 support levels. Nevertheless, Ethereum remains bullish going into this week. ROC, which denotes momentum, is positive right now. Unlike Bitcoins technicals, Ethereums ROC shows a bullish environment.
At the time of this report, XRP is currently trading at $0.278. XRP has consolidated over the last week and has only seen ~ 0.40% growth. The fifth-largest cryptocurrency by market cap is continuing to digest the on-going lawsuit between Ripple and the SEC. During its 7 day consolidation, the only major event linked to XRP is that Polkadot flipped XRP to become the fourth largest crypto by market capitalization. As mentioned in previous reports, investors across the globe have a slice idea what the outcome between Ripple and the SEC looks like.
With XRPs behavior during this drama, it seems like investors continue to deploy risk capital into the digital asset. XRP offers some of the largest potential upsides in the market right now, but this is coming with a lot of added risk. Unlike BTC and ETH which have breached their all-time highs this year, XRP is still ~ 1,123% away from its all-time high of $3.40.
XRP Technical Analysis
Similar to our recent XRP analysis, we still believe that XRP remains bullish unless $0.20 support is rejected. Since this original claim a week ago, XRP has continued to build upward momentum. A lot of this upward momentum will not be related to the on-going Ripple / SEC lawsuit. Most of this positive sentiment will come from bullish price action in either Bitcoin or Ethereum. It is important to note that many people entering the crypto space right now are probably not familiar with Ripple’s lawsuit. What they see in XRP is a way to get involved in the crypto market at a fraction of the cost.
Similar to last week, $0.32 resistance is what XRP traders/investors are watching for right now. If XRP can surge above these levels, it could test $0.40 levels shortly after. On the flip side, we still believe that a strong sell-off will occur if XRP falls below $0.20 support, given the fundamentals with Ripple right now.
Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. The information has been obtained from sources we believe to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Authors may own the crypto currency they discuss. The information and content are subject to change without notice. Visionary Financial and its affiliates do not provide investment, tax, legal or accounting advice.