The total cryptocurrency market cap added $130 billion of its value for the period since Monday and now stands at $2.07 trillion. The top ten coins all appeared green over the last 24 hours, with Solana (SOL) and Terra (LUNA) topping the group with increases of 6.3 and 4.5 percent, respectively. At the time of writing, Bitcoin (BTC) is trading at $432,677. Ether (ETH) is priced at $3,343.
BTC / USDr
Bitcoin dropped to a 3-month low last Saturday hitting $40,450 intraday trading before recovering to $41.70 at the close of the daily candle. The Relative Strength Index (RSI) also reached a level last seen during the May 2021 crash as Bitcoin remained largely oversold.
On Sunday, January 9, the coin formed a small green candle at $41,900 as many traders were betting on $40K – a strong horizontal support and resistance line. A short-term relief bounce can be expected.
The BTC/USDT pair ended the last seven days with a loss of 11%.
On Monday, bulls saw Bitcoin drop to $39,700 in the early part of the session as a result of the ongoing debate at the Federal Reserve about upcoming interest rate hikes to tackle inflation in 2022. Interest rates are expected to increase. It will affect risk assets such as stocks and cryptocurrencies.
But Tuesday’s session was very different. The largest cryptocurrency started a bullish reversal by jumping 2.3 percent to $42,780. The move was followed by another strong trading day on Wednesday during which buyers pushed the price to $44,000. However, it remains below the 21-day moving average and the previous short-term support around $45,500-$46,000.
What we see midday on Thursday is a relatively quiet session with Bitcoin trading at $43,677.
ETH / USD
The Ethereum ETH project token reached a weekly low of $3,000 on Saturday, January 8, in September. The coin has been following Bitcoin closely on its way lower, but unlike its older brother, it has been showing some signs of strength, especially on the weekly time frame where the $3900 support was last breached but not the last low recorded during the September 2021 correction.
On Sunday, it formed a short green candle to $3,140 but nevertheless ended the week with a 17 percent loss.
The RSI reached 27 – a value not seen since the coronavirus crash in March 2020. Analysts were referring to this as a short-term buying signal now that the Fed rate hike news has been digested and priced in.
Monday’s session started with a new low – $2,941. However, the bulls reacted quickly and regained positions again above the mentioned support above $3000 and the control point of the profile volume.
On Tuesday, January 11, the ETH/USDT pair rose by $3,237, adding 5.4 percent to its value.
Ether formed its second consecutive green candle on the daily chart on Wednesday, reaching $3,372 – a potential resistance area.
As of the time of writing, the coin is trading at $3,347.
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