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Bitcoin and Ethereum Market Analysis – 18.01.2023

Bitcoin prices (BTC) have made a remarkable recovery over the past seven days, driving it above $20k. Despite growing concerns of a global recession, BTC/USD has risen over 26% this month, pushing prices to another barrier of resistance at the November high of $21,473.
If Bitcoin successfully surpasses the $21.5K level, the demand will be more likely to return to the market, and a new rally toward higher levels may take place. In case of a breakout, the $25K level will be the next barrier on Bitcoin’s path. However, if Bitcoin can reclaim the $25K price level and stay above it, it could instill enough investor faith to fuel another bull run.

Overall, this is an encouraging moment in the cryptocurrency market as the other top 10 cryptocurrencies have recorded massive rise in trading volume.

The BTC daily chart shows the price action, holding up well after the tremendous move higher off the lows via time, and not price, in the last seven days. BTC is back into the higher band of BB, trading above the 10-day MA, and consolidating well for another move higher.

We should expect a slight pull into mid-cycle point for a long trade to load before another bullish continuation. Still early in the 60-day cycle and the fact that, BTC didn’t retrace sharply tells me, the next logical target is the Aug 2022 high at the $25k level.

A sustained breach of the psychologically important threshold could catalyze wide-scale capital inflows into BTC and consequently initiate a rapid surge in prices, putting Bitcoin en-route toward new historic highs.

Chart 1. Price holding up well after the tremendous move higher off the lows via time, and not price, in the last seven days
Source: Paid Content by Peter Brendt and his partners at , BTCUSD Chart by TradingView

Looking at BTC weekly chart we see a long green candle, putting the early 60-day cycle in the position to form a right translated cycle for the next 4-cycle.

BTC/USD needs to tackle resistance at the November high of $21,470. A minor retreat wouldn’t be surprising given the significance of the hurdle. Beyond the short term, BTC/USD needs to clear this key level-$21,470, for the medium-term downward pressure to fade.

Let’s see whether the price will spend more days rising or consolidating. If that happens, expect more upside possibilities of the rising portion of the new 60-day cycle.

Chart 2. A long green candle, ending a 60-day cycle low above the $20k mark.
Source: , BTCUSD Chart by TradingView

Trending again in the right direction, above the 10-day MA. Having held those lows and now gone up on a counter trend move, expect a retest of the $1,600 resistance. If this level is scaled on a closing basis, the pair could soar to $1,800 and probably higher.

As of the time of writing this report, the 14-day RSI is tracking at 84.18, which like bitcoin, is deep in overbought territory.

If the price continues to consolidate in a tight range near $1,580, it will enhance the prospects of a break above the overhead resistance.

Chart 3. Ethereum trending in the right direction, above the 10-day MA and RSI being in upper boundary.
Source: , ETHUSD Chart by TradingView