Cryptos Resisting Bad News, But Technical Charts Weigh

The Chicago Board Options Exchange (CBOE) surprised by withdrawing a rule change with the Securities and Exchange Commission (SEC) that would allow an Exchange Traded Fund (ETF) on Bitcoin. The CBOE-owned BZX withdrew a request that was also backed by VanEck and SolidX.

Crypto markets were obsessed with the potential approval of a crypto ETF and prices fell when the SEC rejected applications or postponed decisions. The motive for the withdrawal was the ongoing government shutdown as the deadline approaches. A CBOE spokesperson said the CBOE plans to resubmit the request at a later date.

The delay did not have a detrimental effect on cryptos, which initially dropped, but held onto the familiar ranges.

Something that cannot fall on bad news should rise on good news.

The good news is awaited, but the resilience is an encouraging sign. However, technical levels show a more complicated picture for digital assets.

(Click on image to enlarge)

Bitcoin Ethereum Ripple January 24 2019

BTC/USD battles $3,577

Bitcoin is trading around the critical cluster of $3,577, an area which includes the following technical lines: the Fibonacci 38.2% one-month, the SMA 200’15m, the SMA 50’1h, the previous 4h-high, the Fibonacci 38.2% one-week, the B 1h’Upper, and the SMA 5’one-day.

Recapturing this critical level opens the door to $3,700 where we see the SMA 50-one-day, the PP one-day R3, the BB one-day Mieel, and more.

The next level to watch is $3,850 where the PP one-week R2 and the Fibonacci 61.8% one-month converge.

Looking down, BTC/USD has significant support only at $3,133 which is the convergence of the PP one-month S1, last year’s low and last month’s low.

ETH/USD faces fierce resistance

Ethereum is in a precarious situation. It faces immediate resistance at around $118 which is the confluence of the BB 4h-Middle, the previous 4h-high, the SMA 10-4h, the SMA 100-1h, the SMA 200-15m, and the SMA 50-1h.

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