CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Crypto Newsletter: Digital currencies decline ahead of Lunar New Year

11:27 24 January 2020
  • 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

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Ethereum 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.

This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.

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