After a volatile start of the year in the cryptocurrency market, the situation is calming down a little, especially for the price of Bitcoin which is entering a consolidation phase at around €29,000 ($35,000). A phase that could still last several days before giving a new direction to the market. In the detailed technical analysis, we give you the price levels to watch out for in order to enter the market while we remain in a strong uptrend since September 2020.
As you have probably noticed, the past week has been a pleasure for the altcoins owners! Ethereum comes to flirt with its historical high of January 2018 at $1,430 (€1,200). But other projects offer impressive performances, starting with Polkadot (DOT) which appreciated more than 100% in one week on January 9th. Aave remains the leader in the decentralized finance sector (DeFi) with +43% in one week. Note that outside of Bitcoin, projects related to the interoperability of blockchains or decentralized finance are those that perform the most.
Don’t forget that the market has been in a strong uptrend for several months. Corrections are normal. A market never rises in a straight line. Patience often rewards those who have kept a portion of their capital to be able to position themselves to buy during corrections.
- According to CoinGecko, market capitalization exceeds the symbolic threshold of $1 trillion to $1008 billion.
- Bitcoin’s dominance drops to 64% market share.
- The best performance of the top 50 is to be attributed to Polkadot (DOT) with +88% over one week.
We invite you to discover our analysis in video (in french and dated January 19) :
Bitcoin (BTC)
Coinhouse recommendation :
Hold
- Bitcoin has entered a consolidation phase around €29,000 ($35,000). The price fluctuations are reducing and allow us to draw a chartist triangle. On January 20, the price seems to be correcting further but we will wait for confirmation at the end of the day before considering a possible clear direction. At this point, we advise to hold. There are no alarming reversal signals. On the other hand, we are not making new purchases until the situation is clarified.
- If we come out of this consolidation phase from the bottom, we will wait for the price to come to an identified buying zone: between €22,000 and €24,400 ($26,900 and $29,800). On the other hand, a daily closing above 30,800€ ($38,000) will correspond to a bullish resolution after this consolidation. We will then revert to a price discovery asset strategy, with a hold and slight profit taking on symbolic price levels such as $45,000 or $50,000.
Ethereum (ETH)
Coinhouse recommendation :
Buy on breakout
- Ethereum (ETH) has just offered a very nice week with +26%, at €1078 ($1300). The price reached an all-time high of €1180 ($1430) in January 2018. We would like to draw your attention to the fact that you should remain cautious if you wish to buy Ethereum on the current levels: the chart is currently rejected by this resistance level. You should wait for confirmations.
- If the price finishes a day above €1180 ($1430), then the more aggressive can try to buy this breakout, to play the bullish chase and target a profit-taking zone between $1710 and 1900. On the other hand, if a larger correction occurs, we will wait for the price to return to the $700-$780 ($850-$950) zone of interest before making new purchases.
Cardano (ADA)
Coinhouse recommendation :
Buy on breakout
- Cardano (ADA) also gratifies us with a good week. Assets are trading at €0.29 ($0.34), gaining 22% over the week. The configuration is quite similar to that of Ethereum, with the difference that Cardano’s price is currently on a resistant zone dating from April 2018, and not on its historical high. It is risky to buy blind here. If the price ends a day above €0.33 ($0.40), then it will be possible to buy this break and play a continuation, with profit taking in the price zone between $0.48 and $0.55. In case of a correction, we will wait for the €0.21 ($0.25) zone to buy depending on the price action.
Tops & flops of the week (top 50 marketcap)
Tops
1- Polkadot (DOT) : +88%
2- Avalanche (AVAX): +53%
3- Kusama (KSM): +53%
Flops
1- Maker (MKR) : -10,4%
2- Dash : -9,2%
3- OKB : -6,4%
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