Weekly Crypto Market Analysis with Geco.one 17.01.2022
Bitcoin’s prices fell between 10th November 2021 and 10th January 2022. Over $ 29,000 from $ 69,000, down to under $ 40,000. It means that the BTC price fell by almost 43% in just two months.
Even though the sell-off stopped near the extremely important zone, the demand response in this area is disappointing, to say the least. At the moment, it indicates that the increases observed over the past days may finally turn out to be a form of correction, after which the BTC price will return to the downward path.
This fact means that while there is some potential for bitcoin to return to around $ 45,000 in the short term, it still seems highly likely that bitcoin will slide to $ 37,000 before returning to the path of stable growth.
We could also expect potential drops in the near future on the Ethereum quotations, the price of which fell between 10th November last year and 10th January by almost 40%, thus falling to the lowest level since September last year.
Although we have seen a slight rebound over the last week, it is worth noting that these increases stopped in the vicinity of $ 3,400, where a supply reaction appeared a few days ago. If only this zone is finally rejected, the ETH rate could drop to the level of $ 2,750.
The current situation on the BNB quotes is also very similar. The price of this cryptocurrency has recently dropped below the technical support of $ 505 and then returned to its vicinity due to a week-long correction. At the beginning of the new week, the supply reaction reappeared and if this zone is rejected, the BNB rate could fall to around $ 395, or even further to $ 330.
The current situation on the Solana market is also pro-declining, the rate of which is currently re-testing the recently broken support (now resistance) of $ 153. Permanent rejection of this zone could open the door to further sales, for which the range seems to be around $ 120, or even further support of $ 80.
The current situation on the XEM quotes is also very similar. The course of this cryptocurrency is also re-testing the recently defeated support. In this case, it is a resistance of $ 0.12. It is also worth noting that this level corresponds to 38.2% Fibonacci retracements from an earlier downward move, which may support its rejection. If that happens, the XEM rate could drop to as low as $ 0.09.
We could expect potential declines also in the EOS stocks in the near future. After the price of this cryptocurrency slipped below the technical support of $ 3, thus breaking the bottom from a month-long consolidation, over the past few days, we have seen a slight rebound, as a result of which this level has been tested from the bottom (as resistance). Its permanent rejection could fuel a further sell-off, which in turn could lead to a re-test of $ 2.30 support, which would be the lowest price level since December 2020.