Bitcoin and Ethereum Market Analysis – 27.01.2023

Bitcoin and other top altcoins continue to consolidate near their recent highs, increasing the possibility of an upside breakout. The leading cryptocurrency (BTC) managed to add around 9% this week and is now battling for the important level at $23,000. A couple of days ago, the price pushed toward $24K aggressively but was immediately rejected in what were a few hours of massive volatility. It remains very interesting to see if this will continue or if the broader concerns of a macroeconomic downturn will drag it down in the coming weeks.

We’re almost at the midpoint of a start of bullish Cycle. BTC & Ethereum are consolidating in preparation for another move higher. I’m happy the selling pressure has decreased and this has put the entire market bubbling. If you’ re an investor, you shouldn’t let the day-to-day emotions affect your game plan.

The BTC/USD daily chart shows BTC, being in the mid-cycle point, maintaining and holding the 10-day MA for any possible move upward. We’re in Day-29 of the 60-day cycle targeting to form a right translated cycle. Bitcoin is currently trading at $23,200 and seems to be paving the way for the conquest of new levels.

I don’t want to throw up price target but I see it forming a right translated cycle up to $28k area. In that kind of move, you can structure a long trade.

Having said that, momentum, though still very bullish, has eased a bit in recent days, as the accompanying daily chart shows. Anyway, the stall in price is not surprising given the nearly 40% jump since the end of December.

When you see a big move that doesn’t retrace but consolidating profitably, there is every tendency that it going to continue the upsurge especially for a new cycle. We will experience a small decline that will shake-off some people before continuing to form a right translated cycle.

Chart 1. BTC currently trading at $23,200 and seems to be paving the way for the conquest of new levels.
Source: Paid Content by Peter Brendt and his partners at bitcoin.live , BTCUSD Chart by TradingView

Looking at the BTC/USD weekly chart, we see a clear break away from the lower low (downward channel) of the last 60-day cycle. The price action is approaching another cap at the August/2022 high of $25200, near the 20-week MA (now at about $24650). We can look for little retrace, that’s okay but coming weeks will form a right translated cycle.

For the short-term outlook to stay bullish, BTC/USD needs to stay above the key support cushion zone ($20370-21650) again this week. As at the previous update noted, BTC/USD needs to clear the $24650-25200 area for the medium-term downward pressure to ease.

Even though the market remains in consolidation phase at the moment, I think that buying volumes is incrasing.

Chart 2. A clear break away from the lower low (downward channel) of the last 60-day cycle
Source: bitcoin.live , BTCUSD Chart by TradingView

Ethereum
Eth/USD is consolidating more as BTC is showing more strength. Consolidating into the mid-cycle and closing up the 20-day MA.

Ethereum is trading at $1600, The next resistance is at $1,700, a zone the bulls have not visited since September 2022.
A break above that level would take us back to the rising portion of the 4-year cycle. All ETH/USD needs is to keep the momentum high.

Chart 3. ETH/USD consolidating into the mid-cycle and closing up the 20-day MA.
Source: bitcoin.live , ETHUSD Chart by TradingView