Happy birthday, Bitcoin! What a reversal!

In the day of its eleventh anniversary, and after dropping more than 5% in less than 24 hours and touching the $6,850, Bitcoin's price took a 180-degree turn and went up about 400 points, dragging most cryptocurrencies to the positive side. Some Twitter sources blamed this turn of the Bitcoin on the US attack on the commander-in-chief of the Iranian armed forces this morning, in which General Oasem Soleimani and the vice-president of the Iraqi Shia militia Mahdi al Mohandes were killed. 

Research firm Skew Markets stated that more than $16 million in short positions on BitMEX were closed in this massive spike.

The most bullish was Monero (+6.29%) and ALGO( +5%). But a special mention must go to BlockStamp, which jumped from $0.37 to $142 in a few hours. 

The capitalization of the sector is now $186.839 billion, while the volume traded in the last 24 hours jumped by 50% to $27.77 billion, and the dominance of Bitcoin moved to 68.27%.

 

Hot News

Every January 3rd The Bitcoin community is invited to participate in the Proof of Keys celebration. On this event, participants demand and take possession of all their bitcoins held by third parties on their behalf.

"By demanding and taking possession of their assets, individuals will learn real fast with blockchain proof whether they are part of the elite HODLers or not. Proof of Keys is the annual HODLer initiation."

Even though in the last months of 2019, the negative sentiment in the cryptocurrency investors domiciled, the sector generated very positive data. According to a Coinmetrics report, Bitcoin generated $14.2 Million per day to miners, while Ethereum generated an average of 2.6 million per day. No other asset could generate beyond $900K per day.

 

Technical Analysis - Bitcoin

Bitcoin had a sharp 4.4 percent reversal in the last eight hours that moved the price from a bottom of $6,909 to over $7,400, although some of the gains were retraced. Currently, the price is moving at $6.256 and touches the +1SD line of the Bollinger bands. The confirmation of the change of mood of the Bitcoin investors will come after the price closes above $7,300, which would lead BTC towards $7,500 and $7,700.

Looking at the low made early morning, we can see a BTC making a higher low, which is excellent news for the buyers and HODLers. A potential new high above $7.700 would confirm the asset is starting a new bullish phase.

Supports	Pivot Pivot	Resistances
6,909	7,060	7,300
6,794		7,420
6,630		7,525

 

Ripple

Ripple made a comeback after touching and being rejected by the $0.186 level. That shows the price still moves in a wide horizontal channel between this level and $0.20. The price has also crossed the $0.19 key level. The MACD and price still show signs of bearish motion, but the sharp price reversal has increased the chance for more upside, at least $0.195.

Supports	Pivot Pivot	Resistances
0.1860	0.1890	0.1920
0.1820		0.1950
0.1770		0.2000

 

Ethereum

Ethereum was stopped slightly below the $125 level, its price making a morning star pattern, and now moves strongly up. The MACD is still in the process of making a bullish transition, whereas the price is making its transition to the upper side of the Bollinger bands. The next resistances it will encounter are $130 and $132. Ethereum is not yet out of the bush, as the price needs to cross the descending trendline and move to the upper side of its Bollinger bands.

Supports	Pivot Pivot	Resistances
125.70	127.70	130.00
123.00		132.00
120.70		133.50

 

Litecoin

Litecoin reversed today creating, also a morning star figure in its 4H chart. The price continues moving strong, confirming the reversal, and now has crossed the $41 level, coming from the low of $38.963. The MACD is ready to make a bullish crossover, whereas the price has crossed to the upper side of the Bollinger Bands, and made a breakout of the descending trendline, which was driving the recent leg down. Therefore, we expect a new leg up with a new visit to the $44 level.

Supports	Pivot Pivot	Resistances
38.96	40.20	41.10
37.60		42.25
36.00		43.20

 

---

 

Try Secure Leveraged Trading with EagleFX!

---