Cointree Crypto Market Update - January 27th 2021

Market update for traders

Jump to the beginner's version Bitcoin falls from the Symmetrical triangle into bear territory... Welcome to this week’s market update and another week in the extremely eventful cryptocurrency market. We began last week with a clear rejection at $50,000 AUD and a Bitcoin breakdown from the symmetrical triangle we were watching. As bears gained momentum we saw a steady fall from $46,848 to the 100 EMA at $43,000, where sellers crushed Bitcoin down to a screaming low of $37,117. Bulls finally responded here and rallied the price back above $45,000 for a brief period until further downside. The overall picture shows that the bounce and the clear lower highs are within a descending channel. The last 7-days was another rollercoaster of rapid 20% swings in either direction. Bitcoin’s weakness at $45,000 and its subsequent consolidation indicates the market is looking to correct further into the pattern, likely toward the red 200 EMA line on the 4hr.

Recapping Monday to Sunday last week in detail: we saw a convincing rejection of the $50,000 level and a slow grind below the 50 EMA that continued to broadcast bull weakness. The failure to hold the key 50 EMA at $43,000 saw sellers take control and with this consequential horizontal resistance level lost, Bitcoin fell 15% to $37,117. Buyers did find value in this area which was the very level bulls began their run to $54,000 on the 5th of January - the support here is joined with the 200 EMA and the reaction from buyers illustrates that this is a key level to hold. The sudden resistance gave wings to a 20% rally to $45,000, however, it failed, creating a lower high and bears again took over. Looking forward, the channel will continue to unfold as we get more data but it’s likely bears will make another hard push for the lower boundary at $38,000. On the flipside, if the consolidation loses power at the 200 EMA, there’s the potential to think this channel and the entire move since Jan highs is a large bull flag. If we see another bounce to the upper trendline and $45,000 then this could be in play. As Bitcoin consolidates the altcoin market has pulled back somewhat with DeFi cryptos holding up the most. For the major altcoins: Uniswap (UNI) leads all comers over 7-days with a rise of 43%. Aave (AAVE) continues its stellar rise this year, up 33%. Theta (THETA) has regained some momentum after a truly epic 2020, up 18% for the week and approaching a new ATH.

Read our full market update here.

Market update for beginners

Welcome to this week’s market update and another week in the extremely eventful cryptocurrency market. We began last week with a clear rejection at $50,000 AUD and a Bitcoin breakdown from the symmetrical triangle we were watching. We saw a steady fall from $46,848 to the 100-day exponential moving average (100 EMA) at $43,000, where sellers crushed Bitcoin down to a screaming low of $37,117. Confident investors finally responded here and rallied the price back above $45,000 for a brief period until further downside. The overall picture shows that the bounce and the clear lower highs are within a descending channel. The last 7-days was another rollercoaster of rapid 20% swings in either direction. Bitcoin’s weakness at $45,000 and its subsequent consolidation, movement between the top dark-blue resistance line and the bottom dark-blue support line, indicates the market is looking to correct further into the pattern, likely toward the red 200 EMA line.

Recapping Monday to Sunday last week in detail: we saw a convincing rejection of the $50,000 level and a slow grind below the green 50 EMA that continued to broadcast bull weakness - a lack of investors confident in the price trending up. The failure to hold the key 50 EMA at $43,000 saw sellers take control and with this consequential horizontal resistance level lost, Bitcoin fell 15% to $37,117. Buyers did find value in this area which was the very level bulls, confident investors, began their run to $54,000 on the 5th of January - the support line here is joined with the red 200 EMA and the reaction from buyers illustrates that this is a key level to hold. The sudden resistance gave wings to a 20% rally to $45,000, however, it failed to go higher, creating a lower high and bears again took over. Looking forward, the channel between the dark blue lines will continue to unfold as we get more data but it’s likely bears will make another hard push for the lower boundary at $38,000. On the flipside, if the consolidation loses power at the 200 EMA, there’s the potential to think this channel and the entire move since Jan highs is a large flag that buyers will be stepping in. If we see another bounce to the upper trendline and $45,000 then this could be in play. As Bitcoin consolidates the altcoin market has pulled back somewhat with DeFi cryptos holding up the most. For the major altcoins: Uniswap (UNI) leads all comers over 7-days with a rise of 43%. Aave (AAVE) continues its stellar rise this year, up 33%. Theta (THETA) has regained some momentum after a truly epic 2020, up 18% for the week and approaching a new ATH.

Read our full market update here.