14.01.2018. Market Review. Results of the day. Uncertainty in BTC

January 15, 2018

14.01.2018. Market Review. Results of the day. Uncertainty in BTC

News review:

  • Kraken resumed operation after a more that 48-hour outage, cut transaction fees as a compensation. 
  • Bitfinex set $10,000 as the minimum deposit amount.

Changes (24h):

BTC $ 13,416

ETH $ 1,310

XRP 1.8 $

BCH 2 495 $


Technical analysis.

Interesting pattern is forming on a daily timeframe of BTC. There are three possible scenarios (or three options of interpretation of this situation).

  1. If the pattern is actually expanding (from December 2017 up to this day), then there would happen a breakout to $17,000 from $13,000.
  2. If it turns out to be a flag pattern (highlighted red), then a breakdown to $11,000 would happen.
  3. The most 'boring' option: pattern narrows into a triangle and forms a diamond. 

After a period of high volatility financial markets enter a calm period. Traders know that about 80% of the time shares, futures and currencies are being flat and there are no obvious trends. Therefore there are only 20% of the time to make money on strong trend movements.

If you take into consideration that cryptocurrencies has grown incredibly in last few months and assume that they are not particularly different from other financial assets traded on traditional exchanges, then a possibility that a period of stagnation is coming is higher that a further growth or a drop.

Paying extra attention to the level from $13,000 to $14,000 is worth it. Because whether BTC rate will leave this range or not is crucial. Confirmation of this thought is on the daily time frame of BTC: expanding pattern is forming there, which means that the market is in the state of uncertainity.

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