Weekly market recap (from Jan. 17th to Jan. 24th)
BTC
Last week we mentioned that BTC may retest the support level, but after reaching the level(40500), it dumped. After dumping over the weekend, the price now stuck at 35200 which generated high volume on Jul.26 last year. The previous support level has turned to a resistance level. In the present situation, it is difficult for the price to threaten the resistance level(40500). We can see that the long side take the attack like the last candle shown, but the current candle almost brought the price back to the previous low. The gap between the long and the short is too large and the short power in the market shows no signs of fading.
Conclusion: Mostly falling. Based on the reaction of long and short, the decline is not over. The resistance level is 40500 and we set support at 30000. For BTC, this support level is a critical position on TA. We think the price may reach 30000 and how the long perform at this price is important. If the long side defends level(30000) successfully, they can make preparation for the escape from the bearish channel later. But if the level is effectively broken through, the consequence is catastrophic. Now, the movement of BTC is not only important to itself, but also to the whole crypto market.
ETH
So far, ETH has fallen by -24% in the last week. The miracle we mentioned didn’t happen. The price did not threaten the upper rail, but the slope of falling increased. The long side has no significant defence at the support level(3000) which we set the last recap, even at 2700, which is another important support level. The support level is like the Maginot Line. The short brought the price to where it was six months ago. To make matters worse, with the dominance of the short, there is still 22.4% to fall to the next effective support level.
Conclusion: Mostly falling. Dumping directly to the support position is possible. The performance of the long side in the past few weeks is useless. It is more likely to tumble with some small-size rebound. Due to the increase in the slope, we think that a direct dump to the support level is possible.
SOL
Until now, SOL has fallen by -39% last week. As the arrow shows on the graph, it took only two weeks for the price to rise from $70 to $190 last year. And now the price is falling as quickly as it used to be. The power of the short side is no less than the long’s when they rose. The support level(68) last year is critical for SOL. For the near look, the candles for SOL is negative. The price fall to the previous again after the rise on Jan.23.
Conclusion: Mostly falling. We think it is the weakest of the three. The price will reach the support level. The relatively low attention makes SOL more vulnerable than BTC and ETH.
Disclaimer: Nothing in the article constitutes investment advice. The article objectively expounded the market situation and should not be construed as an offer to sell or an invitation to buy any cryptocurrencies.
Any decisions made based on the information contained in the article are your sole responsibility. Any investments made or to be made shall be with your independent analyses based on your financial situation and objectives.
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