Welcome to our weekly brief. Here you will find what is going on on the markets and what are expected events in week 02. It should help you with jumping back on track.
Fundamentals and expected events: week 02
- Cryptocurrencies: The crypto markets fell deep into red numbers on Monday after Bitcoin began a sharp correction from its weekend ATH. At present, there is a massive market correction on the cryptocurrency markets as all major cryptoactive assets are receding from recent highs. The big sell-off, which began on Sunday, January 11, resulted in a huge outflow of capital from the sector, which has already exceeded $ 150 billion. The overall market capitalization reached a record high this weekend, just over $ 1.1 billion, but there seems to be a key resistance. During Monday morning’s Asian trade session, that figure dropped to $ 950 billion. Further development on global markets and other fundaments will be crucial for next development.
- Stock and commodity markets: European stock markets also started the new week with a correction. The most likely reason seems to be that investors are probably beginning to question whether the previous growth of the markets is justified and they wanted to collect profits before prices fall. Some companies have already announced that they expect a drop in profits of about 8% in 4Q20. Markets do not wait and collect profits that also exceed expectations.
- Important events: Newly elected US President Joe Biden has promised more massive fiscal aid in the order of several trillion USD. However, some economists are already expressing concerns about whether such aid will help in the long run or rather harm. Nervousness is also growing around the world about the COVID-19 pandemic, as the situation is deteriorating in most parts of the world, including controversial vaccine reports. In addition, there was a report of already 3rd mutation of the virus, which was confirmed in Japan.
Cryptomarkets and marketcap: week 02
- Today, we reached a marketcap value of $867 billion.
- Last week we were recording a low of $828 billion and a high $1 112 billion. Bitcoin is low at $31 800 over the same period. High on Bitcoin at $41 000, now $31 800.
- Bitcoin dominance is now 64%, down from 70% last week.
- Market sentiment is at 90 points, still meaning extreme greed, last week it was at 94 points.
The expected Bitcoin crash has arrived. And following established patterns, it’s bound to cause a stir.
In just a few hours, the gains accumulated during the first week of January have been wiped out. It is the biggest crash in Bitcoin’s history with a loss of $9,300 from the records set on Friday, January 8th, just short of $42,000.
Support level: $30 500, $26 000
Resistance level: $37 000, $40 000,
Ether was not spared by the decline, with the price losing 30% from the highs of 1,350 USD recorded in the early hours of yesterday, Sunday. The descent finds its first support below 1,000 USD with a long-term technical structure similar to that of Bitcoin. In fact, the 1,000 USD, besides being a relevant psychological level, corresponds to 25% of the Fibonacci retracement, taking the same references i.e. the March 2020 lows and yesterday’s highs.
Support level: $1000, $745
Resistance level: $1 200, $1 420
The most actual price for one Bitcoin Cash [BCH] is $427.53. Bitcoin Cash is listed on 122 exchanges with a sum of 387 active markets. The 24h volume of [BCH] is $6 546 888 255, while the Bitcoin Cash market cap is $7 933 046 421 which ranks it as #6 of all cryptocurrencies.
Bitcoin Cash fell by 20% over the past 24 hours but the selling volume was not as great as the buying volume that drove the rally, which is bullish for BCH in the long-term.
Support level: $615
Resistance level: $430