Bitcoin stabilized at the middle of 3,500-3,600 USD range amid directionless trading. While the price of the cryptocurrency has managed to recover from Sunday’s low at 3,481 USD, the upside momentum is yet too weak to allow for a sustainable recovery towards critical 4,000 USD.
As there is no fundamental news that might have influenced the price, technical factors coupled with jitters ahead of Constantinople upgrade drive the market.
Bitcoin receives really strong support at the level of 3,127 USD (2018 low). This area is layered with buy orders and creates a strong barrier for Bitcoin bears. However, the price will need to clear a number of weaker hurdles before it gets there.
The next interim support is created by a confluence of technical indicators on approach to 3,400 USD.
On the upside, the nearest resistance comes at 3,560 USD. It is created by the previous week low and 38.2% Fibo retracement 1-month. A sustainable move above this area will provide an additional bullish impulse that may push the price towards a stronger hurdle at 3,700 USD. A confluence of technical indicators clustered in the range from 3,780 USD to 3,820 USD, is likely to prevent Bitcoin from moving towards the ultimate resistance at 4,000 USD.
The other cryptocurrencies are also stable within a bearish market. The ripple is trading at 0.325436 USD level, while Ethereum dropped to 118.39 USD. Bitcoin Cash and EOS are also seriously down and trading at 126.52 USD and 2.31 USD, respectively.
The total value of the cryptocurrency market continues its downward trend, decreasing to 118.85 billion USD.
Ethereum struggled to stay above the 121 USD support but later dropped sharply. The cryptocurrency broke support levels of 121 USD and 120 USD to test the next support at 114 USD. The bottom was around the 113.45 USD level and the price is currently being adjusted higher.
The initial hurdle is the 23.6% Fibo rate since the recent drop from 128 USD to 113 USD.
If there is a break above the levels of 117 USD and 118 USD, Ethereum can be traded around the 120-121 USD area. The specified zone (120-121 USD) was maintained earlier and can now prevent profits.
More important is the fact that were formed two bearish trends, the resistance of which is close to 121 USD. Additionally, the 50% Fibo retracement of the recent drop from 128 USD high to 113 USD low is 121 USD. Therefore, if the price is adjusted higher to 120 USD and 121 USD, it may find a strong interest in selling. Over 121 USD and trend lines, the price can be restored to the 100-hour SMA.
Ethereum is under a lot of pressure below 121 USD and 128 USD. If sellers stay in action, the price is likely to slide to the levels of 105 USD or 100 USD.
Bitcoin and Crypto Exchanges are approved in Thailand
The Thai Securities and Exchange Commission (SEC) announced that the country’s Treasury has approved four candidates for managing Crypto Exchanges. The newly licensed brokers are Bx, Bitkub, Coins and Satang Pro.
This move reaffirms Thailand’s bid to become a key player in the crypto market in Asia, where Japan, Singapore, Taiwan, and Hong Kong have established hubs for blockchain developers.
The fifth Exchange, Coin Asset, is due to be approved soon.
According to the announcement, two exchanges were rejected. Both Cash2Coin Company Limited (Cash2coin) and Digital Exchange Limited (SEADEX) will close their operations by January 14th. The finance minister says that these exchanges were rejected because have weak Know-Your-Customer regulations and insecure security systems.