Daily Crypto Analysis - 30th Jan - Technical AnalysissteemCreated with Sketch.

Bitcoin

Bitstamp:BTCUSD 1h
(Bitstamp:BTCUSD 1h)

Bitcoin has dropped through the $11160 support and dropped hard. It paused briefly at the $10780 support before continuing down.
Such a sharp sell off is a pretty bearish sign for Bitcoin in the medium term, as the failed break upwards could mark the start of a bear market.
Bitcoin has been in a huge bull market for over 2 years and, as we know, every market must correct at some point.

Bitstamp:BTCUSD 4h
(Bitstamp:BTCUSD 4h)

The first major support here will be $9222 (the bottom of the previous selloff), followed at ~$8600 with the 78.6% support of the macro trend and finally $7888, the peak of the previous bull run.
During the bull run of the last 2 years, Bitcoin generally corrected to the peak of its previous bull runs, making $7888 a logical target area for this move.

Ethereum

Bitstamp:ETHUSD 4h
(Bitstamp:ETHUSD 4h)

As expected, Ethereum is following Bitcoin closely in this drop. When Bitcoin corrects hard the whole market will generally follow.
The historical supports to watch for are at $1022, $1000 (for psychological support) and $984. If Bitcoin continues correcting hard then we will likely break even lower, but that will have to be judged by the BTCUSD chart rather than watching ETHUSD for signals, as Bitcoin is the leader in these situations.

Bitstamp:ETHBTC 1h
(Bitstamp:ETHBTC 1h)

The ETHBTC ratio is still holding up quite well despite the BTCUSD drop. This is a fairly strong sign considering that historically we'd see ETHBTC following Bitcoin drops closely. If we remain above the support of the consolidation zone (~0.1027) then we could see Ethereum start to decouple from Bitcoin's price movements, leading to a rise in ETHBTC as BTCUSD falls.

Bitcoin Cash

Poloniex:BCHBTC 4h
(Poloniex:BCHBTC 4h)

Bitcoin Cash remains within its consolidation range after a bit of a spike through the resistance. If Bitcoin continues to drop then we may well a drawn out period within this channel until the market has cooled off. On the other hand, if BCHUSD can decouple from BTCUSD at a strong support level then we could see a bit of a bull run on the ratio.

NEO

Bitfinex:NEOBTC 4h
(Bitfinex:NEOBTC 4h)

After managing to break the 0.01448 resistance, Neo is now dropping back towards the historical resistance levels which will now become supports. We should keep an eye on this to see if it forms a flat channel or some other consolidation pattern near these highs or whether it drops sharply which would signal weakness. The next few days will be the deciding factor for how NEOBTC is looking in the short term.

Cardano

Bittrex:ADABTC 4h
(Bittrex:ADABTC 4h)

ADABTC is pushing to the bottom of its consolidation channel, following the drop in BTCUSD. Between the 5076 and the 4730 supports is where we are looking in case of a breakout downwards, with 4730 as a cutoff level for this position.
If we see a nice bounce from the support then this is still looking like a bit of a longer consolidation before any kind of break upwards, so we need to remain patient with this one.

Disclaimer

I will do my best to give unbiased, objective analysis, but I can make no promises about my accuracy.
All posts are based on my personal opinions and ideas and do not constitute professional financial investment advice.

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