Cryptocurrencies are at a crossroads - BTC, ETH, LTC price analysis, 20 Jan, 2020
Last week the crypto market was shining again - most major cryptocurrencies recorded double-digit gains. For instance, Bitcoin's price increased from $8,053.60 to $9,169.50 (+13.86%), Ethereum's price - from $142.24 to $178.97 (+25.82), and Litecoin's price - from $48.87 to $63.17 (+29.27%).
However, the top gainer among the major cryptocurrencies turned out to be Bitcoin Satoshi Vision (BSV). In the week ending January 19, 2020 the price of the cryptocurrency almost tripled, going from $158.69 up to $458.74:
The main reason behind the price hike was that on January 14 the self-proclaimed Bitcoin creator Craig Wright stated in a court filling to the U.S. District Court of Southern Florida, he would receive the keys necessary to decrypt the so-called «Tulip Trust» and Satoshi's Bitcoins. The «Tulip Trust» supposedly holds 1.1 million Bitcoins worth almost $9 billion.
The crypto community expects that if Craig Wright receives access to the fortune of «Tulip Trust», he will exchange the Bitcoins for Bitcoin SV - an event that may trigger a strong BSV price pump.
And while last week was extremely successful for the crypto investors, the current week starts with a red wave for the crypto market. According to Coin360, at the moment one Bitcoin costs $8,658.48 (-4.56%), one Ethereum - $166.22 (-5.15%), and one Litecoin - $56.71 (-7.67%):
Daily crypto market performance. Source: Coin360.com
Although the crypto market is in the red zone at the moment, the situation may change drastically in the next couple of days. Because, according to a recent Cointelegraph's analysis, Mondays are the best days to buy Bitcoin:
Yesterday the price of Bitcoin, after reaching the lower bound of the resistance zone (6H), dropped to the lower line of the «ascending channel» on the 6-hour chart:
If the upward movement within the channel resumes, then BTC will test the resistance zone again. In case of a bullish scenario, the first target is the lower line of the resistance zone or $9,088.20, and the second target is the upper line of the resistance zone or $9,670.70. This scenario is the most probable one, because the price of Bitcoin is still within the «ascending channel».
However, if the price breaks through the lower line of the «ascending channel», then it may reach the support level of the previous local low. In case of a bearish scenario, the price target is $8,067.70.
On the 12-hour chart (12H), the price of Ethereum has been fluctuating in a «descending channel» since the middle of July 2019. At the moment ETH/USD is testing the upper line of the channel:
In case of a bullish scenario, the price of Ethereum may break out of the downtrend. Hence, ETH/USD may reach the last local high (H1) or $195.21, and subsequently the level of the local high before (H2) or $224.79.
In case of a bearish scenario, ETH/USD may approach the level of the previous local low or $120.35.
We think at the moment there is neither a clear buy nor a clear sell signal.
The 12-hour (12H) chart of Litecoin resembles the chart of BTC/USD to some extent. LTC/USD is testing the resistance zone of the last local high (H1):
If the price of the «digital gold» (Bitcoin) resumes the uptrend, it may spur the further price increase of the «digital silver» (Litecoin). In case of a bullish scenario, LTC/USD may hit the upper bound of the resistance zone or $66.75, and later it may advance to the level of the previous local high (H2) or approximately $75.
But if the price of Bitcoin continues to decline, it may put pressure on the price of Litecoin. In case of a bearish scenario, LTC/USD can dip back to the support level of the last local low or approximately $40 per one digital coin.
We think LTC/USD will follow the price dynamics of BTC/USD with some lag throughout the week.
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The analysis is purely informational and does not constitute investment, financial, trading, or any other sort of advice and you should not treat any of Bitvalex's content as such. Bitvalex does not recommend that any cryptocurrency should be bought, sold, or held by you. You are solely responsible to conduct your own due diligence and consult an advisor before making any investment decisions.