ShapeShift Founder: "BTC Will Soon Be in the Top 10 Global Currencies" – Price Analysis, 11 Jan 2021
Last week, Bitcoin set a new all-time high by surpassing the psychological level of $41,000 per digital coin. Because of this, Tesla and SpaceX founder Elon Musk (who has recently become the world's richest person, as his net worth crossed $185 billion) admitted he didn't mind getting paid in Bitcoin.
Therefore it seems that the billionaire is slowly becoming a cryptocurrency enthusiast. Earlier, he was more or less crypto neutral.
The sharp price increase of Bitcoin has significantly intensified the bullishness in the crypto community. Erik Voorhees, the founder of ShapeShift and a well-known crypto enthusiast, highlighted that Bitcoin would soon become one of the Top 10 global currencies:
As can be seen from the tweet above, Bitcoin is now the 14th largest currency by market cap: one position above the Russian ruble and just below the Swiss franc.
After another very positive but very volatile week for the cryptocurrencies, the Monday market starts with a massive sell-off. At the time of writing, according to Coin360.com, one Bitcoin costs €28,814.63 (-12.91%), one Ethereum – €900.57 (-17.14%), and one LINK – €12.08 (-17.24%):
Source: Coin360.com (Daily crypto market performance)
Now let us check the popular crypto price charts against the euro and find out if the current sell-off is the beginning of a trend reversal.
Bitcoin has experienced a substantial price pullback in the last 24 hours. However, the current bearish candlestick is still within the body of the previous bullish candlestick (in the weekly chart (1W)). Therefore, there is no reliable signal pointing to trend reversal:
We think that if the pullback continues, then BTC/EUR will receive support at the level of the 30-day Moving Average (MA 30) or the 1.618 Fibonacci extension level:
Such a potential price pullback may open a favorable opportunity to open a long trade and take advantage of a possible price rebound.
Ethereum has experienced a rapid price decline for the last 24 hours as well. The weekly price chart (1W) of ETH/EUR is very similar to the price chart of BTC/EUR: the current bearish candlestick is still within the body of the previous bullish candlestick:
That is why we think that the dominant trend remains bullish, and it is preferable to wait for a favorable moment to open a long position.
In case of continuation of the price decline, we consider the 61.8 Fibonacci retracement level (or a level of approximately €750) as potential support and a good entry point for long trades:
In the daily time frame (1D), the price chart of LINK/EUR has returned into the Ascending channel (uptrend) again:
Since LINK/EUR is already in the Ascending channel, the question of how to trade ascending channels arises again.
Usually, traders wait for the price chart to drop to the lower line of the channel (support line):
If the price rebounds from the support, they open a long position with a stop-loss below the support line or below the last local low. As a take-profit, traders set levels close to the latest local high or even close to the resistance line.
Traders will continue to apply this strategy until the trend breaks and closes their positions at stop-loss.
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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.