Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) Price Analysis: Markets Weak

Bitcoin, Ethereum, and Litecoin have yet for finding their bottom. All three seem to be consolidating in preparation for a breakout in one direction or the other. The price action of Bitcoin seems to be where all the attention is currently focused.

 Bitcoin (BTCUSD)

Bitcoin continues to hover near the $10,000 price level where it has encountered support.

On January 16^th, Bitcoin made a sharp drop from $13,617, to a low of $9760.00 breaking below the $10,000 price level for the first time since it hit its all-time high near $20,000 in mid-December. When Bitcoin broke through the $10,000 price mark last November 29, 2017, on its way up, the financial news media went absolutely crazy over the cryptocurrency, bringing a great deal of attention to it, and in many ways creating an “irrational exuberance” among newcomers to the market, leading to the significant rise in demand, and the rapid price increase.

As can be seen in Chart #1 below, it took Bitcoin less than three weeks to go from $10,000 to its all-time high near $20,000.  Who’s to say that is can’t happen again.

However, the retracement to the $10,000 level once again has the financial media in a “Tizzy,” this time for a doom-and-gloom scenario. And once again, the news is drive prices.

Chart#1 Bitcoin Daily

The Bitcoin daily chart above is showing more downward price tendency with a descending triangle pattern forming.

However, the $10,000 level is definitely a key support level for Bitcoin and the entire cryptocurrency market.

Anyone that is involved in the cryptocurrency market is watching bitcoin’s price action to see which way price breaks. A significant move in either direction will cause the “herd to stampede” and the price move will be greatly amplified.

The savvy trader will pay close attention the volume patterns in the intraday price charts. They will reveal early on which way price will break.

Ethereum (ETHUSD):

Ethereum is the only one of the three cryptocurrencies I this article showing any indication of breaking to the upside.

As can be seen in Chart #2 below, the Euthereum daily chart is showing an inverted head-and-shoulder price pattern forming. This pattern is typically an indication of a price reversal to the upside.

Ethereum’s volume is below its normal average. When Bitcoin makes a move away from the $10,000 price level, in all likelihood, Ethereum will move with it.

If the price move is to the upside, Ethereum is primed to make new all-time highs.

Ethereum (ETHUSD):

Litecoin (LTCUSD):

Litecoin’s price action is mirroring Bitcoins.

Chart #3 below shows how Litecoin is trading at the apex of a descending triangle pattern for which it has broken slightly below the lower support level line.

Volume for Litecoin is very light, and the price seems to be reacting to moves by Bitcoin.

Chart#3 Litecoin Daily

In the cryptocurrency market where fundamentals are virtually non-existent, news and the bell-weather assets drive the market. From a technical analysis perspective, entire cryptocurrency is currently lumbering around with light volume, and no momentum, waiting for something to happen. The next few days may bring about some price movement that may spark some volatility.

We will be updating our subscribers as soon as we know more. For the latest ICOs, sign up below!

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency.

Image courtesy of coinmarketcap.com