Bitcoin, Ether, Major Altcoins – Weekly Market Update February 1, 2021
The total crypto market cap added $39 billion to its value for the last seven-days and now stands at $1,025 billion. The top 10 currencies showed mixed results for the same time period with XRP (XRP) and Stellar (XLM) registering 162 and 27 percent of increase respectively while Polkadot (DOT) lost 11 percent. By the time of writing bitcoin (BTC) is trading at $34,105, ether (ETH) is at $1,327.
Bitcoin was trading in the wide range between the weekly resistance at $33,000 and the lowest candle close on the 4-h chart at $31,000 on Sunday, January 24. It formed a short green candle to $32,270 at the end of the session and closed the seven-day period with a 10 percent loss.
What’s more important is that the BTC/USD pair continued to be caught in a solid downtrend channel movement and lacked the needed bullish momentum after touching $40,000 on January 14.
On Monday, bulls pushed the price all the way up to $34,900, surpassing both the horizontal resistance zone and the upper boundary of the mentioned channel. Still, it immediately pulled back to $32,270 after touching the short 26-day EMA. The move once again proved how unsustainable a potential reversal is.
The good news was that the $32,000 line was providing the required support and January 26 was the fifth consecutive day for BTC staying above that mark. Buyers were hoping for a proper consolidation in that area, which combined with the slightly increased volumes will trigger a new green wave across the markets.
The mid-week session on Wednesday proved them wrong. Bitcoin corrected its price down to $30,408, but not before touching the 50-day EMA at $29,100 during intraday. It decreased by 6.4 for the day but avoided a daily close below the psychological level of $30,000.
On Thursday, January 28, the BTC/USD pair jumped back from the horizontal support and the mentioned moving average and drew a huge green candle to $33,514, also adding 10.2 percent for the session. Next for bulls was the $33,800-$34,200 area where the Fibonacci 38.20 line was situated.
The situation was heating up on Wall Street and the GameStop (GME) Wallstreet bets army on Reddit was preparing for another offensive on Friday. They were joined by Tesla’s very own Elon Musk who on Friday morning changed his Twitter handle to Bitcoin. The news spread like fire and BTC skyrocketed to $38,700 in less than an hour. The extremely volatile day concluded at the $34,300 price mark.
The weekend of January 30-31 started with a relatively calm session on Saturday, during which BTC stayed in the above-mentioned zone.
Then on Sunday, we witnessed the standard end of week drop as the coin touched the $33,20 weekly support.
Below is the daily chart:
Unlike BTC, the ether was showing signs of serious strength in the last couple of weeks and days. The coin closed at $1,393 on Sunday, January 24, and continued to move upwards in a solid trend-supportive channel. It was 13 percent up on a weekly basis.
On Monday, the ETH token registered a new all-time high hitting the $1,476 mark in the morning part of the session. It was rejected at the upper limit of the channel and eventually fell down to $13,18, forming a red candle for the day.
The Tuesday session found bulls and bears fighting in the $1,230 – $1,360 zone. Even though the former managed to prevail, the $1,360 level was too strong of a resistance for them to surpass.
On Wednesday, January 27, the Ethereum token once again corrected its price, this time to $1,240. The move resulted in an 8.8 percent loss.
Buyers struck back on Thursday when the price of ether jumped back up from the 26-day EMA on the daily chart and the multi-timeframe support at $1,230 and registered a solid session, closing at $1,331. The coin also hit the $1,360 weekly resistance during intraday.
The entire cryptocurrency market was colored in green on Friday thanks to the already-mentioned Elon Musk Twitter update. The ETH token also benefited and grew by 3.7 percent. It peaked at $1,441 in the early hours of trading but was not able to print a new record high.
The first day of the weekend came with a drop below the daily/weekly support in the morning and a recovery to $1,375 in the evening.
On Sunday, January 31, the coin started heading south and closed the week and the month at $1,314.
Below is the 4-hour chart:
Ripple’s native token XRP made an unexpected comeback last week, adding 73 percent for the period. The coin moved to retake its spot as the 4th biggest cryptocurrency peaking at $0.518 on Saturday, January 30. It is unknown if the recent surge in price is somehow related to the Reddit unrest or it is caused by Ripple’s response to the US SEC charges of unregistered securities offering published on January 29. Naturally, the strong resistance around $0.70 will be the first big target in front of bulls in the short-term.
Current Price: $0.728
Below is the 4-hour chart:
Uniswap continued to be the best performing DeFi coin on CoinGecko’s Top 100 list. It added 93.4 percent for the last seven days and moved up to #14. The coin reached a new high of $20.55 on Sunday, January 31, and continues to be in a price discovery mode. It corrected its price down to $17.6 at the end of the week, so the next target in front of bulls will be to re-take and consolidate in the $20 area.
Current price: $18.58
Below is the 4-hour chart:
Altcoin of the Week
Our Altcoin of the week is Dogecoin (DOGE). The most popular meme coin benefited the most from the Wallstreet bets craze and added the stunning 387 percent of growth for the seven-day period.
Thanks to the widely promoted and coordinated attack on the coin in the second half of the week, it registered a new all-time high value of $0.088 on January 29.
Dogecoin added 1,028 percent to its value for the 24-hour period between Thursday morning and Friday morning European time.
As of the time of writing, DOGE is trading at $0.0398 on Binance, 1-hour chart: