Bitcoin’s price is back around $14,000 and is eyeing a short phase of rangebound trading.
Despite yesterday’s bearish price action, the sell-off in the world’s largest cryptocurrency by market capitalization seems to have come to a halt today.
As per Bitcoin Price Index (BPI), bitcoin (BTC) found takers at $12,878.60 (price at 00:44 GMT) and moved to an intraday high of $13,773.34. Soon before press time, prices were at $14,090 levels – that’s up around 9.4 percent from the 12-day low of $12,878.
The sharp recovery indicates the markets may have digested reports of a trading ban under consideration in South Korea. Further, investors may have realized that South Korea is unlikely to announce the move anytime soon, if at all.
So bitcoin may have found a short-term bottom, but that doesn’t necessarily mean the cryptocurrency is heading back to record highs, as fears of a Korean clampdown could remain in the air for some time yet.
While, BTC could have a hard time seeing big gains in the short-term, the technical charts do point to consolidation ahead.
Ethereum broke out of the ascending channel yesterday, Jan. 7, and rose to $1,191 levels, where it witnessed profit booking. We had mentioned $1,200 as one of the possible targets in our previous analysis. If bulls manage to break out of $1,200, the next target on the upside is $1,310, which is arrived at by adding the width of the channel to the breakout point of the channel.
However, currently, the price has turned down and has entered into the channel once again, which is a negative sign. Levels that can offer support are $993.91 and $933.03, which are 38.2 percent and 50 percent retracement levels of the latest leg of the rally.
If the bulls fail to propel the ETH/USD pair back above the channel quickly, we most likely see a fall to $820, which is the trendline support of the channel increase.
Bitcoin Analysis Update
Bitcoin Making Chyper Pattern and We Can See Uptrend In Next Days/Weeks for Upto $19.5K and If Break Major Reistance Area then Rally to $24K Otherwise If Break $12.5K Support then It Can Drop Around $10K
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