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Cryptocurrency market remains under pressure as Lunar New Year gets underway
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Ethereum threatens declines as head and shoulders pattern surfaces
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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
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.
