(MENAFN- DailyFX) Bitcoin/Cryptocurrency News and Talking Points
- After the stellar rises seen at the start of the year, the top three digital coins are fighting further falls.
- Trading volumes have fallen sharply as investors become wary of entering the high risk/reward cryptocurrency space.
Cryptocurrency Market in Need of a Boost if Rally is to Continue
The continued sell-off in the digital coin market is bringing technical support levels back into view as buyers remain reluctant to enter, or re-enter, the marketplace. Last week's heavy losses have been replaced by a relatively more gentle down move although most coins continue to post high single-digit losses which in other more mature marketplaces would prompt ‘bear market' headlines. Trading volume has slipped sharply, aided in part by , indicating that traders are holding back until price action indicates a more settled, less volatile market set-up. A period of base building will bring back market bulls but this is likely to happen at lower levels.
Bitcoin (BTC) Price Stuck Between Two Fibonacci Levels
Market heavyweight is currently trading below the 61.8% retracement level ($10,971) of the mid-November/mid-December rally and needs a sustained period of closes above to set the market up for the next upward move. On the downside, the 78.6% retracement level ($8,523) should act as a near-term floor and pull in some trading interest, although a sustained break lower brings $5406 into play, the start of the last bullish phase.
We will be looking at the latest chart set-ups and cryptocurrency news in our
Bitcoin (BTC) Price Chart Daily Timeframe (August, 2017 January 23, 2018)
Ethereum (ETH) Price May Fall Further Into Two Support Zones.
Ethereum is also looking weak in the short-termdespite dropping from a high of $1,280 to a low of $770 in two days last week. A close above $955 is needed to help support the second-largest coin by market cap, otherwise important support at $811 heaves into view ahead of the $770 recent spike low.
Ethereum (ETH) Price Chart Daily Timeframe (September, 2017 January 23, 2018)
Ripple Breaks Out of its Down Channel but Support is 30% Lower
One of the star performers in the early-December to early-Januarysurge XRP went from $0.20 to $3.30 in one month is bank settlement and currency exchange protocol Ripple. The 1100%+ rise leaves the coin vulnerable to sharp downside moves - with the chart currently highlighting one particular area of important support around $0.77 to $0.88. The area includes a double print on December 14 and 15, two low prints on January 16 and 17 and the 78.6% Fibonacci retracement level. While the breakout from its down channel may help push prices higher, the fall from the token's current level to chart support is still a hefty 30%+.
Ripple (XRP) Price Chart Daily Timeframe (September, 2017 January 23, 2018)
Cryptocurrency Trader Resources Free Practice Trading Accounts, Guides, Sentiment Indicators and Webinars
If you are interested in trading Bitcoin, Bitcoin Cash, Ethereum, Ripple or Litecoin, we can offer you a wide range of free resources to help you. We have an along with a . In addition we run a and have an to help you gauge the market and make more informed trading decisions.
--- Written by Nick Cawley, Analyst.
To contact Nick, email him at
Follow Nick on Twitter @nickcawley1
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