The Bitcoin price lost another 4% today falling to 3,586 USD, losing the support of 3,600 USD. However, the cryptocurrency found a strong buyer interest near support levels of 3,480 USD and 3,500 USD. As a result, there was a sharp jump above 3,560 USD.
The other major cryptocurrencies are also down by 4-7%. Ripple lost 3.76% to 0.3188 USD, while Ethereum fell by almost 5% to 118.80 USD.
On the weekly chart, the price of Ripple is lower than 0.332 USD, the price at which XRP started the week — and also lower than 0.337 USD, the midweek high reported on January 14. Meanwhile, Ethereum’s current value is lower than 125 USD, the price of the coin seven days ago.
Over the past two weeks, Bitcoin has fallen by 3%, while Ethereum and Litecoin are down by 20% and 7% respectively.
This past week, Bitcoin price dived below the 3,560 USD support level. However, the cryptocurrency found a strong buying interest near the 3,480 USD and 3,500 USD support levels. As a result, there was a sharp bounce above the 3,560 USD level. The price climbed above the 3,600 USD and 3,640 USD resistance levels. Besides, there was a break above the 23.6% Fib retracement level of the last decline from the 4,111 USD high to 3,489 USD low. Later, there was a consolidation pattern formed above the 3,600 USD level.
Finally, there was a break above a contracting triangle with resistance at 3,635 USD. The price tested the 100 simple moving average (4-hours) and the 3,800 USD resistance level. However, the price failed to stay above the 50% Fib retracement level of the last decline from the 4,111 USD high to 3,489 USD low. There was a fresh downside move below the 3,700 USD level and the price is currently trading in a range. On the upside, there are many hurdles, starting with 3,750 USD and ending with 3,850 USD. Furthermore, there is a crucial bearish trend line in place with resistance near 3,850 USD on the same chart.
Litecoin and Ethereum analysis
The Fibo adjustments of Litecoin and Ethereum from the bottom in December to the highest levels have similar trends. The bulk of weekly trading in both currencies took place at a Fibo adjustment level of 50%.
The bearish movements over the past 24 hours have led to a fall in both cryptocurrency fluctuations below the 50% Fibo correction. After falling below this level, Eterium has support at 114 USD, which was the breakthrough point at the end of December.
Similarly, the Litecoin is backing after falling below the 50% correction. The cryptocurrency has found support near 30 USD area, which is a psychological point for traders and has also come into play as support.
Is it good time to buy Bitcoin?
Despite the prolonged cryptocurrency fall, the investors are still optimistic and patiently waiting for another bullish market. But many people have distanced themselves from the market.
No one would accuse them of their actions. After all, we’ve all seen that Bitcoin has reached 20,000 USD, but today the market has fallen by nearly 90%, resulting in serious losses for many.
Whatever the current market situation, some people still want to invest, but they get confused about when it’s time to join the trade or when to buy more. Maybe the Bitcoin has not seen the bottom yet?
But considering the latest and forthcoming developments in the crypto industry that will help popularize the cryptocurrency, maybe it is time to buy.
First, Bakkt aims to bring more institutional investment into the cryptocurrency industry. The start of Bakkt is scheduled for April 2019, after several delays due to regulatory issues. It is a crypto firm established by the Inter-Continental Exchange (ICE).
Bakkt said a well-regulated and related platform would allow customers and institutions to sell digital assets without any problems. This will help build trust, confidence and efficiency in cryptocurrencies.
When Bakkt is finally released, we will see more institutional money to pour into the market and change the crypto space.
At the same time, government authorities chose to regulate cryptocurrencies instead of full bans. Countries like Malaysia and South Africa will provide a framework for checking the crypto activities this year.
As more countries recognize digital assets as tradable goods and provide provisions to protect people from fraud, investors will gain more confidence in cryptocurrencies without fear of being deceived.
On January 17, local media in Thailand announced that the stock exchange in the country is seeking a license to add crypto-exchange to its services this year.
The Thai Stock Exchange said it is launching a digital asset swap because its securities firms have shown interest in becoming crypto brokers and dealers. Thai Stock Exchange also expects cryptocurrency to grow as more and more investors start to understand them.
With these bright signs, it can be noted that the industry is growing and if the bulls come back on the market, as we saw in 2017.
As the Bitcoin maintains relative stability between 3,500 USD and 3,700 USD this week, analysts predict that we could soon see a bullish market to 5,000 USD.