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Bitcoin & Ethereum Market Analysis – 10.01.2021

It has been a wild ride of BTC’ price in the last 3 months but it seems, that is taking a U-turn. We had a weekend of mixed feelings as the BTC’s high volatility is giving investors/traders so much to worry about. The BTC price has dropped to $7,000 (about 10%) in the last 24hours signaling a deeper correction may be in the horizon.

The high volatility has been insane that, we do not know whether we’ll see BTC 50k, or BTC 30k in the next morning. With a purported supply shortage and the buying frenzy now spilling over into retail, the rally may still have a lot more room to run vertically.

In the shadows of Bitcoin as we’re expecting a short term correction, attention may be shifted to Ethereum (ETH) which has had a fantastic closing year 2020 as Ether’s price rallied by an unprecedented 475% in less than 2 months.

Bitcoin
Looking at the BTC daily chart, we could see volatility and price breaking out from the vertical pattern to retest the support. Are we going to see a deep correction? I don’t think so, based on the tight trading range of the upper BB and the EMA 8.The new support area of $27,000 -$31,000 should be keenly watched and probably put our stop-loss in that area.

Fig.1.Bitcoin:Let’s keep an eye on the new support area at $27,000-$31,000:
Paid Content by Peter Brendt and his partners at bitcoin.live

Treat the dips as a buying opportunity and the best entry comes during retest of support. This correction is not a selling signal as it’s like to rebound and continue its vertical rally.

From the BTC weekly chart, we have a wide range candle and the highest volatility in the last six months. We have seen some sorts of pulling backs resulting to potential momentum loss. I have to be conservative here, we have not had 3 red zones since the $11,500 mark and any likelihood of having it now, portends treat to vertical uptrend. But the way we have been consolidating, I do not believe we’ll have a large correction.

Fig2. Bitcoin: Some pulling backs resulting to potential momentum loss. Source: bitcoin.live

So for now, let’s keep watching the EMA 8 and keep buying the dip until bears show us something.

Ethereum
Ethereum is still pretty uptrend here with a high way spinning top. It’s really closing up to the all-time high of $1400 despite the little pull back. It was not that long ago we were talking about $450 break and then ascending triangle target of $750. Now the new all-time high is near, and it really seems like it’s going to take a miracle for bears to keep the price from penetrating it. If BTC takes huge correction, the funds could flow into Ethereum (ETH).

We should put our stop loss below the new support level of $1134. We are for sure in buy the dip mode here.

Fig.3 Ethereum: The stop loss at the new support level of $1134. Source: bitcoin.live

I see bullish the current situation, despite it seems we are going through the short term correction.

Top Takeaways

$BTC $27000-$31000 support 42k area resistance
$ETH $1000-$1170 area support $1400 area resistance

🔴This Market Update is created using Paid Content by Peter Brendt and his partners at Bitcoin.live. Peter Brendt is a Trader since 1975. Author and publisher of the Factor Report as well as Best Selling Trading Books. If you want to read full content by him and his partners, trading signals/calls in real time, daily/weekly/monthly reports, trading videos and podcasts, trading tips check out his VIP Subscription Service


🔴This Market Update is created using Paid Content by Peter Brendt and his partners at Bitcoin.live. Peter Brendt is a Trader since 1975. Author and publisher of the Factor Report as well as Best Selling Trading Books. If you want to read full content by him and his partners, trading signals/calls in real time, daily/weekly/monthly reports, trading videos and podcasts, trading tips check out his VIP Subscription Service