Digital Asset Insights

Digital Asset Insights #101

Smart investors are taking advantage of the current uptrend experienced across the leading cryptocurrencies, there is no better tool guide you in making such life-changing choices that having the right information and expert predictions about these digital assets, and that is exactly what this newsletter offers.


Bitcoin (BTC)

Bitcoin opened the week by auctioning at $20,850, a pause after seven consecutive days of positive returns. The peer-to-peer digital currency digital asset is on its way toward the level of the 200-week Exponential Moving Average (EMA) at $24,490. A tag of the barrier would constitute an additional 20% uptrend gain move from the BTC price. 


On Wednesday, January 19, Bitcoin price traded at $20,750 as a profit-taking consolidation brought calm to the buying frenzy witnessed throughout the month. To recap, the peer-to-peer digital currency is up 25% since January 1. 


On Thursday, Bitcoin price continues to prove the skeptics wrong as the uptrend rally established at the beginning of the month has shown its first signs of continuation. On Friday, January 20, the peer-to-peer digital currency was up 5% on the day, blowing past November's monthly high at $21,480. As the price ascends, the only thing for traders to do was ride the trend and consider where profit will be taken along the way.


Towards the end of last week, Bitcoin price auctioned at $22,487. The recent surge was catalyzed after a brief stop near the psychological $20,000 level. The 8-day exponential average jumped in and provided the support needed to prompt the ongoing move.


Bitcoin is up 7.7% over the past week, trading at $22.7K on Monday morning. The total capitalisation of the crypto market, according to CoinMarketCap, rose 5.1% to $1.045 trillion during the week. The bitcoin rally pulled up the entire crypto market. And buying in BTC, in turn, intensified after US stock indices reversed to higher late Friday afternoon.


Like in the good old days, the crypto market is feeding off the rise in stock indices but growing ahead of the curve. Moreover, at the expense of reduced liquidity, the price surpassed $23K for the first time since August last year.


Bitcoin has started a new bull market and is headed for $24.8K, where the psychologically important 200-week moving average and the 161.8% Fibonacci level of the momentum from the December lows are concentrated. The 50-week MA is headed to the same area.


Ethereum (ETH)


Ethereum price opened the week by auctioning at $1540. The next key area for the decentralized smart-contract token to conquer was November's high at $1,680 and potentially the September top at $1,789. The bullish scenario creates space for up to a 17% rise from ETH's current market value. Unlike Bitcoin, the Ethereum price has already breached the 200-week EMA and a retest of the indicator is expected to occur.


On Wednesday, Ethereum price auctioned at $1,526 Similar to BTC, the RSI for the altcoin king remains elevated after breaching overbought conditions and is also testing previous levels of support. The decentralized smart-contract token witnessed its first engagement with the 8-day exponential moving average (EMA) post-rally.


Toward the end of the week, Ethereum price aims for $2,000. Ethereum price closed the week at $1,651, as the bulls matched Bitcoin's rally with a 6% spike of their own. The Ethereum price has two more liquidity levels in its' trajectory to challenge before ultimately re-acquainting with the psychological $2,000 level.


The first bullish target zone is the September 12 swing high at $1,789. The second target would be a broken support zone at $1,850. The aforementioned level lost support during the last week of August and has yet to be retested. The bullish scenario creates room for a 10% rally from the current Ethereum price.


Now that price is moving higher, invalidation of the uptrend could be placed at the $1,350 pivot point. If the level is tagged, investors could expect deeper correction underway, ultimately testing the ascending trend line near $1,280. The trend has been crucial throughout the early stages of the current uptrend rally, as it provided support on multiple occasions throughout the fall and winter.


Ripple (XRP)

When the market opened last week, XRP price had already risen by 20% in seven days after briefly tagging the $0.40 barrier. The surge enabled bulls to establish a classic morning star candlestick pattern on the weekly time frame, with confirmation. XRP price auctioned at around $0.38 on Monday, January 16 as markets were showing their first consolidation post-rally.


On January 19, Ripple price lingered neared the $0.40 zone. Following the 27% hike in the month, the digital remittance token has gone into consolidation mode, ricocheting back and forth between $0.39 and $0.40. On January 18, the bulls lost their footing, enabling a plummet into the $0.38 zone.


XRP price currently auctioned at $0.383 on Wednesday. Although the fluctuations have been minuscule in terms of percentage swings, the technicals suggest that the bulls in the market may be due to a challenge of lower support zones. The bears have pierced the 8-day EMA for the third time this week.


Going into the weekend, XRP price broke out of a 5-day consolidation to the upside and showed potential for a rally into the mid $0.40 zone. On January 20, the bulls confirmed that the uptrend established earlier in the month was likely to continue, provoking a 5% rally in less than 24 hours.


XRP price auctioned at $0.41. This is a subtle gesture of "rights-to-passage," which means the Ripple price could rally to the 61.8% level at $0.427. A broken support zone is also lying at $0.44, which remains untested since the bears breached the barrier in November. A tag of the liquidity zone would result in a 10% increase from the current XRP price.


Cardano (ADA)

Cardano price showed renewed strength that allowed it to rally explosively over the last two weeks or more. Cardano price rallied 54% between December 30, 2022, and January 14, 2023. This run-up, while impressive, is knocking on $0.403 - a particular hurdle that has played a significant role in the past.


As at Wednesday, January 18, Cardano price has been advancing in a very technical trade since the beginning of this year. A glance at the daily performance chart will reveal that ADA has been coming down to test support before the rally continued each time since the first trading days of January


Cardano price saw its strongest red day this year as the smart contract token fell by 7% on January 18. The decline came after three days of consolidation near the $0.35 zone. The 8-day exponential moving average, which served as a support level during a 3-day grapple, eventually gave way and has now acted as resistance on shorter time frames. Cardano price auctioned at $0.3385.


Cardano price showed early retaliation signals on Friday following five consecutive days of negative returns. The 5-day slump, which occurred after the bulls established a new monthly high at $0.3698, took 11% of the market value of the hands of ADA investors. On January 19, the bulls stopped the stair-stepping decline and have since prompted a 5% countertrend spike. Cardano price exchanged hands at $0.3459. Since January 1, the ADA price has increased by 55%.


Investors need to pay close attention to Cardano price, which shows a similar setup. Beyond $0.303, the 62% and 70.5% retracement levels at $0.288 and $0.277, respectively, are good places for buyers to make a comeback.


Solana (SOL)

As of January 17, Solana price managed to rise by almost 140% in the span of 17 days, rising from $9.63 to trade at $23.68 at the time of writing. Investors might wait to recover their losses a while longer as SOL is still pretty far away from its November highs. Solana price still needs to push by another 40% in order to reach $36.90, the value it was at prior to the FTX-induced crash. In order to do so, SOL needs to first reclaim the support at $28.28, which would enable the cryptocurrency to initiate a rise to breach the critical resistance at $32.06. From here on, the altcoin can climb to $36.90 and invalidate all previous losses.


Solana price tripled between December 29, 2022, and January 16, 2023, as it rallied 212% in less than three weeks. This explosive rally hit $23.38, which is the midpoint of the 79% crash that occurred between November 5, and December 29, 2022.


Going into the weekend, Solana price has managed to chart an increase of 151.82% in the span of three weeks. The trading price of SOL fell from $23.43 to $21.07, losing its immediate support at $22.77 on Friday.


In such a case, traders might need to watch certain levels to minimize their losses should SOL fall further. Solana price is currently hovering above the support level at $19.30. The loss of this support would push the price to tag the critical support at $17.89. If the altcoin falls below this level, it could end up slipping toward $15.90, marking a 22% crash.