. Daily Crypto Analysis - Bitcoin Dive, Ethereum at $2k, Chainlink Bubble, XRP Struggles.

Daily Crypto Analysis – Bitcoin Dive, Ethereum at $2k, Chainlink Bubble, XRP Struggles.

Daily Crypto Analysis – Bitcoin Dive, Ethereum at $2k, Chainlink Bubble, XRP Struggles.

23 Jan 2024

Introduction

Bitcoin plunges below $40k as enthusiasm surrounding spot ETF approval diminishes. Despite initial optimism, the cryptocurrency struggles to sustain gains post-SEC approval. Ethereum faces a potential drop to $2,000 as on-chain metrics indicate profit-taking by whales. Chainlink exhibits short-term bubble risk, breaking out of a bullish channel with a potential trend reversal. XRP experiences a 9% decline as traders grapple with losses exceeding $130 million, with diminishing demand and anticipation for a Spot XRP ETF failing to halt the altcoin’s downward trajectory.

Markets In Focus Today – BITCOIN

Bitcoin breaks below $40k as spot ETF hype wanes.

Bitcoin fell sharply to an over seven-week low while also breaking below key levels on Tuesday as an initial boost from the approval of several spot exchange-traded funds now appeared to be waning. The world’s largest cryptocurrency saw a strong melt-up over the past year amid speculation that the Securities and Exchange Commission (SEC) would approve ETFs that directly track the price of the token- a first for U.S. markets. The token peaked at a near two-year high earlier this month, just as the SEC approved the spot ETFs. But bitcoin’s performance since the approval has been largely underwhelming, defying forecasts that the price would shoot up with the entrance of more institutional capital.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 41519.88 | Negative Crossover | Bearish
  • MA 20 : 42364.96 | Negative Crossover | Bearish
  • MA 50 : 41946.62 | Negative Crossover | Bearish

Simple :

  • MA 10 : 41593.45 | Negative Crossover | Bearish
  • MA 20 : 43246.90 | Negative Crossover | Bearish
  • MA 50 : 43159.75 | Negative Crossover | Bearish

RSI (Relative Strength Index): 35.99 | Sell Zone | Bearish

Stochastic   Oscillator : 6.17 | Sell Zone | Neutral

Resistance   And Support Levels :

  • R1 : 44310.51 R2 : 45983.99
  • S1 : 38893.00 S2 : 37219.52

Overall Sentiment: Bearish Market Direction: Sell

Trade Suggestion: Limit Sell: 40285.04 | Take Profit: 37324.01 | Stop Loss: 42285.73

ETHEREUM

Ethereum price could suffer a setback to $2,000 according to bearish on-chain metrics.

Ethereum is currently in a key demand zone, a drop below the $2,300 level could result in a further decline in ETH. Ethereum whales are likely realizing profits, profit-taking could push ETH lower, according to on-chain metrics. ETH volume has been on a decline since January 20, alongside the Ethereum price drop, supporting a bearish thesis for the altcoin. Ethereum is trading at $2,303 on Tuesday. This puts the altcoin in a key demand zone. If the Ethereum price drops below the demand zone, the altcoin is likely to suffer a setback to $2,000.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 2425.61 | Negative Crossover | Bearish
  • MA 20 : 2418.53 | Negative Crossover | Bearish
  • MA 50 : 2322.44 | Negative Crossover | Bearish

Simple :

  • MA 10 : 2461.67 | Negative Crossover | Bearish
  • MA 20 : 2430.04 | Negative Crossover | Bearish
  • MA 50 : 2339.15 | Negative Crossover | Bearish

RSI (Relative Strength Index): 44.32 | Neutral Zone | Neutral

Stochastic   Oscillator : 24.35 | Sell Zone | Negative

Resistance   And Support Levels :

  • R1 : 2410.75 R2 : 2505.13
  • S1 : 2105.19 S2 : 2010.81

Overall Sentiment: Bearish Market Direction: Sell

Trade Suggestion: Stop Sell: 2342.02 | Take Profit: 2166.12 | Stop Loss: 2459.30

Chainlink

Chainlink is in Short Term Bubble Risk.

Slowly and steadily, the bears are regaining their power, which has waned in the past few weeks. By slashing the Bitcoin price below $40,000, they have validated their presence, which may not be a good signal for a healthy price rally. With this, the Chainlink price also broke down from a bullish channel, suggesting a fine trend reversal may make its way out soon. It’s worth noting that the Chainlink price has undergone a prolonged consolidation for an extended period below $10. The bulls, however, managed to elevate the price by over 130% in November 2023, and since then the trend has consolidated within the gained levels. The bears have been constantly trying to drag the price below the lower support, but the bulls have reciprocated strongly.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 15.00 | Negative Crossover | Bearish
  • MA 20 : 14.94 | Negative Crossover | Bearish
  • MA 50 : 14.67 | Negative Crossover | Bearish

Simple :

  • MA 10 : 15.18 | Negative Crossover | Bearish
  • MA 20 : 14.68 | Negative Crossover | Bearish
  • MA 50 : 15.01 | Negative Crossover | Bearish

RSI (Relative Strength Index): 46.81 | Buy Zone | Bullish

Stochastic   Oscillator : 46.48 | Buy Zone | Negative

Resistance   And Support Levels :

  • R1 : 16.97 R2 : 17.93
  • S1 : 13.87 S2 : 12.92

Overall Sentiment: Bearish Market Direction: Sell

Trade Suggestion: Stop Sell: 14.26 | Take Profit: 12.71 | Stop Loss: 15.44

RIPPLE

Traders may witness an additional 9% decline in XRP price as they come to terms with losses exceeding $130 million.

XRP traders have realized $130.24 million in losses since the beginning of January as the Ripple price declined. XRP active addresses have decreased by 34% since January 1, signaling a decrease in demand and relevance of the altcoin. XRP price is in a downward trend that has shed around a quarter of the altcoin’s value in the last few months. The price decline came even as the community anticipated the approval of a Spot XRP ETF after the recent approval of the Bitcoin ETFs by the SEC. Still, investors with XRP holdings have realized losses in large numbers in January, on-chain data shows, putting Ripple’s token on the path for another 9% decline if the current trajectory persists.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 0.55 | Negative Crossover | Bearish
  • MA 20 : 0.56 | Negative Crossover | Bearish
  • MA 50 : 0.59 | Negative Crossover | Bearish

Simple :

  • MA 10 : 0.55 | Negative Crossover | Bearish
  • MA 20 : 0.57 | Negative Crossover | Bearish
  • MA 50 : 0.60 | Negative Crossover | Bearish

RSI (Relative Strength Index): 31.14 | Sell Zone | Bearish

Stochastic   Oscillator : 12.30 | Sell Zone | Negative

Resistance   And Support Levels :

  • R1 : 0.68 R2 : 0.71
  • S1 : 0.59 S2 : 0.56

Overall Sentiment: Bearish Market Direction: Sell

Trade Suggestion: Stop Sell: 0.50 | Take Profit: 0.46 | Stop Loss: 0.53

Elsewhere In The Crypto Market

Bitcoin is down (1.89%) at 40,774, Ethereum is down (2.79%) at 2,387.3, Litecoin is up (0.51%) at 67.64, Solana is down (5.80%) at 83.10, Dogecoin is down (1.20%) at 0.080.

Key Economic Events & Data Release Today:

(JPY) BoJ Interest Rate Decision Forecast –0.10%, Previous –0.10% at 08:00. (JPY) BoJ Outlook Report (YoY) at 08:30. (JPY) BoJ Press Conference at 12:00 (CAD) New Housing Price Index (MoM) (Dec) Forecast 0.0%, Previous –0.2% at 19:00.