-
Cryptocurrency market remains under pressure as Lunar New Year gets underway
-
Ethereum threatens declines as head and shoulders pattern surfaces
-
EOS breaks below crucial support level
After strong price gains at the start of the year, correction has arrived on the cryptocurrency market. Bitcoin declined 10% and dragged altcoins lower along. Moreover, the most famous cryptocurrency has painted a head and shoulders pattern. Traders should keep in mind that liquidity on the cryptocurrency market may be lower in the coming week due to Lunar New Year in Asia. Apart from that, coronavirus concerns may also play a role in the ongoing downward move.
Ethereum
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appEthereum halted upward move at key $175 handle after breaking above the topside resistance of the downward channel. Price started to pull back later on and has painted a head and shoulders pattern with neckline at 160 USD handle. When it comes to the nearest support levels to watch, one should focus on the 100-period moving average and price zone ranging below 141 USD handle.
Source: xStation5
EOS
EOS also took a dive amid Bitcoin depreciation. The altcoin has lost around 15% in value since the beginning of a week. Price is attempting to break below support ranging around 61.8% Fibo level at press time. Should it break lower, 200-period moving average could be the next target for sellers. The final support level is localized at 2.60 USD. The nearest resistance can be found at the recent peak of 4.05 USD. However, as the altcoin is showing clear downtrend structure with lower lows and lower highs, looking for a long position could be a risky play.
Source: xStation5
Cryptocurrency News
So far, central banks lacked common stance on the topic of digital currencies. The situation may change as some of the world’s most important monetary institutions decided to team up for research purposes. The group consists of the European Central Bank, the Bank of Canada, the Bank of England, the Bank of Japan, the Riksbank and the Swiss National Bank. The Bank of International Settlements will also take part in studies. The aim of the group is to see whether there is a case for central bank digital currencies.
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
