Technical analysis of crypto majors – January 25th

Technical analysis of crypto majors – January 25th

BTC/USD Daily:

Technical analysis of crypto majors – January 25th 1

Bitcoin has a market cap of 151.8 billion USD and trades around 8.310 USD on Coinbase as it continues moving lower after reaching previous resistance area around 9,070-9,400 USD as well as 200 day moving average green line with a rejection on 19th of January.

Since the previous major swing high was not reached, the overall trend remains bearish, however, since previously we saw a clear break above several month descending trendline, we can start to look for the first sign of major trend reversal in the form of a new major higher low. A potential area of support can be seen around previous resistance around 7.6-7.7k USD or 6.4-6.8k USD previous swing low.

For now, however, best is to stay neutral and wait for further price action development as the price continues retracing from the upswing that was seen during the past weeks.

ETH/USD Daily:

Technical analysis of crypto majors – January 25th 2

Ethereum currently has a market cap of 17.5 billion and trades at 159.7 USD on Coinbaseas it continues retracing after having very bullish past weeks as it tested 180 USD resistance, as well as 200 day, moving average. After almost touching the 180 USD resistance, a very bearish close was seen on the 19th of January and could have been used to short the market.

Yesterday the price reached first support level around 155-156 USD, as well as 100 day, moving average and a slight rejection was made indicating we could see a slight bounce in the upcoming days, however, overall we can expect further downside as the overall trend continues being very bearish and no signs of a major trend reversal can be seen yet. Therefore, any slight pullback could be used in order to enter a short position in the expectation that a new major lower low will be set in the following weeks.

XRP/USD Daily:

Technical analysis of crypto majors – January 25th 3

People seem to be interested in Ripple so I will include it every so often. Ripple currently has a market cap of 9.6 billion and is trading around 0.22 USD on Coinbase as it has also reached previous major support around 0.233-0.243 USD, as well as 100 day, moving average blue line, in addition, to briefly testing 50% Fib retracement from the previous downswing with a clear rejection.

Following this, price moved lower and currently looks to test previous minor support/resistance area around 0.2-0.21 USD, however, since the overall trend is still very bearish, we can expect this area to provide only a slight support, after which, further move in an attempt to set another major lower low will be made in the upcoming weeks.

Alternatively, if the price can set a higher low, we could see the first signs of a major trend reversal and a head and shoulders reversal pattern developing.

LTC/USD Daily:

Technical analysis of crypto majors – January 25th 4

Litecoin has a market cap of 3.41 billion USD and currently trades around 53.42 USD on Binance as it peaked around 62 USD earlier this month and reversed back to the downside along with the overall major bearish trend.

Currently, the price is being supported by 49-52 USD support/resistance area as well as 100 day moving average blue line, however, once a slight bounce is seen in the upcoming days, we expect further bearish momentum to continue as the price looks to set a further lower low below the 35.77 USD current major low.

Therefore, unless a very strong rejection for further downside is seen, we are bearish for the upcoming weeks and expect the overall bearish trend to continue.

DASH/USD Daily:

Technical analysis of crypto majors – January 25th 5

Dash has a market cap of 0.92 billion USD and trades around 99.1 USD on Kraken as it set a new major lower high around 155 USD on the 15th of January after several days of very bullish and volatile price action.

The overall several-year trend continues being bearish as the price continues retracing from the 1,627 USD all-time high that was set in December of 2017 and has resulted in an overall loss of 97.65% to the low of 38.16 USD. However, the previous low was only slightly lower than the 56.214 USD low that was set in December of 2018 and it did take almost a year for it to be broken. This indicates a major slowdown in the bearish momentum and indicates that we could potentially see a reversal back to the upside this year.

Therefore, much depends on how far the retracement from previous week upswing moves. If a new higher high can be set above 38.16 USD and the price starts to reverse back to the upside, a long position can be taken in the expectation that a new major higher high above 155 USD will be made.

However, until then, it is best to stay neutral or potentially short the market in the expectation that more downside will be seen as the price looks to set another major swing lower low.

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Joshua Scigala

CEO of Vaultoro.com Lover of asset-based money like bitcoin and gold. I'm also a bit believer that the non-aggression principle and peaceful parenting can change the world.