Cryptocurrency market correction

4:43 PM 20 January 2021

On Tuesday we saw solid gains in the cryptocurrency market. Ethereum deserves special attention as it has reached new historical highs. Nevertheless, today's session brings a sudden twist, with Ethereum losing over 9% and Bitcoin is trading 7% lower. In the previous post, we discussed the technical situation on the ETH market, now let's focus on BTC.

Looking from a technical point of view at the Bitcoin chart, upward momentum has been slowing down for some time. A dynamic downward correction appeared shortly after the first break above the round $40 000 level. Another attempt of breaking above this psychological level turned out to be unsuccessful. Currently a chance for a deeper correction occured. The nearest support is provided by an upward trend line. If sellers will manage to break below, the downward move may even reach the horizontal zone at $28,000. On the other hand, a break above the downward trend line could launch another upward impulse towards $40,000 level.

Bitcoin interval H4. Source: xStation5

Share:
Back

Join over 1 600 000 XTB Group Clients from around the world

The financial instruments we offer, especially CFDs, can be highly risky. Fractional Shares (FS) is an acquired from XTB fiduciary right to fractional parts of stocks and ETFs. FS are not a separate financial instrument. The limited corporate rights are associated with FS.
This page was not created for investors residing in Brazil. This brokerage is not authorized by the Comissão de Valores Mobiliários (CVM) or the Brazilian Central Bank (BCB). The content of this page should not be characterized as an investment offer in Brazil or for investors residing in that country.
Losses can exceed deposits