(WEEKLY NOTION): A Mixed Week for Cryptocurrencies as January Takes a Bow, Next Mover: GameStop's Progress

 BTC/USD (as of Jan 29, 2021, 12.40 p.m., GMT +8)

Source: Yahoo Finance

ETH/USD (as of Jan 29, 2021, 12.40 p.m., GMT +8)

Source: Yahoo Finance

XRP/USD (as of Jan 29, 2021, 12.40 p.m., GMT +8)

Source: Yahoo Finance

 As Bitcoin continues its correction, Ethereum records an all-time high this week and Ripple remains in limbo as a result of U.S. Securities and Exchange Commission’s lawsuit. One thing remains: cryptocurrency is still receiving a share of the limelight amongst traders. Here’s a snapshot of how the week was for BTC/USD, ETH/USD and XLM/USD.

BTC/USD

BTC/USD started the week well as it progressively moved up. However, after hitting a high of $34, 801.25, the price started tumbling down. It spends most of the week in a downward and hit a low of $29,370.64 on Jan 27. At the time of writing, the price has moved upwards and is presently at $33, 943.82. The Relative Strength Index (RSI) has also risen to an overbought territory and is currently at 87. 

Analyst John Isige of FX Street believes that it is important for BTC/USD to hold above $30,000 to catch an upward momentum to $40,000. 

However, Isige also reported that historical data on Bitcoin’s halving indicates that the flagship cryptocurrency has not revealed its full potential, and a breakout to $100,000 is possible. In a recent online question and answer session on Bloomberg, Vijay Ayyar, the head of Asia Pacific at cryptocurrency exchange Luno believes that Bitcoin could hit $50,000 over the next three, five and even ten years. Interestingly, he also stated that this would happen at the expense of gold’s market capitalisation.  

ETH/USD

As the week started, the ETH/USD bulls roared to hit an all-time high of $1,466.42. However, it has been on a downward trend since then. The bulls made a brief appearance on Jan 26 when the price moved upwards to hit $1,369.21. However, the brief bullish run was not sustained before it moved downwards again. 

Isige reported that the appearance of a double-top pattern on Jan 26 has validated ETH/USD’s tumble. He also believes that an increase of selling orders could see ETH/USD dipping even further. 

At present, the price has dipped to $1,299.23 while the RSI is in oversold territory at 27. 

XRP/USD

Many are questioning the fate of Ripple, as the legal battle with the U.S. Securities and Exchange Commission rages on. Kraken would be halting trading of XRP on its platform effective 5 p.m. today (PST). Kraken joins a list of other exchanges such as Coinbase and OKCoin who have suspended XRP trading. There is a heightened ‘wait and see’ feeling when it comes to XRP at the moment, as many traders seem to be waiting for an outcome of the battle with SEC. 

At present time, the price is at $0.2624, and the RSI stands at 40, mid-way between an overbought and oversold condition. 

Analyst Anil Panchal from FX Street believes that there could be further downside for XRP/USD as it keeps the break of a one-month-old support line. He believes that 0.2100, which is the monthly bottom, will be attractive to short-term XRP/USD sellers. If it dips below this level, 0.2000 and 0.1700 would be the next key levels to watch. 

CONCLUSION 

Despite a rather mixed week for these cryptocurrencies, a mixed sentiment seems to prevail in the market regarding the future of cryptocurrencies. Furthermore, the latest GameStop saga has also caused some outflow of funds from cryptocurrencies. The long-term question is how high can cryptocurrencies go, but it would be good for traders to remember that the journey to the top is usually not a straight line. Let’s continue keeping our eyes on this space. 

FOLLOWME BTC/USD Overall User Sentiment (as of Jan 29, 2021 at 12.50 p.m.)

Short – 65.50%

Long – 34.50%

BTC/USD (as of Jan 29, 2021, 12.40 p.m., GMT +8) - $ 33,943.82

ETH/USD (as of Jan 29, 2021, 12.40 p.m., GMT +8) - $ 1,299.23

XRP/USD (as of Jan 29, 2021, 12.40 p.m., GMT +8) - $ 0.2624

#GameStop#