3 Feb 2022

Bitcoin, Ethereum and Litecoin Market Analysis from the past week.

Market Analysis from the last week of the most influent markets in the cryptocurrency world.

BTC/BUSD Market

Bitcoin ended January on a positive note, recovering partially from the previous week's drop, where its price went as low as below $33k for the first time in 6 months. Last week's candle closed approximately around the beginning of the upper resistance area, and this week is continuing with the positive momentum into this zone, which could prove to be really critical for BTC's price over the next few months.
BTC/BUSD weekly candles chart with supports and resistance
BTC/BUSD weekly candles chart with supports and resistance
Currently, Bitcoin is testing the support level ranging between $39k-37.8k with prices getting close to the upper bound last week. This would be a short-term positive gain, that if held, could see prices move towards its 50EMA level, approaching the next main resistance level around $45k-43k. This could signal a total change in trend, and see Bitcoin's price recover from the losses experienced over the last few months.

However, if Bitcoin price fails to hold this level we could see a further drop downwards and prices could likely head towards the lower support level around $32k-30k. This scenario is unlikely but not impossible and would be likely the result of prices trying to hold over the current resistance level but failing to do so. If this happens, a lot of other cryptocurrencies would see an even bigger drop as investors are likely to sell off their holdings resulting in prices dropping across the board.

Bitcoin price prediction would suggest a continuation of the current recovery with prices testing the $39k area. Once this area has been regained, Bitcoin USD is likely to either consolidate above it heading towards the next resistance level, before correcting by bouncing on the current resistance, that would have then turned into support; or fail to hold this level after gaining it, and falling back down below it, signaling a more bearing outlook on prices.

Relevant BTC News

In recent news regarding Bitcoin, Ophelia Snyder is teaming up with another big crypto advocate, Cathie Wood (head of Ark Invest), to bring a Bitcoin ETF to the U.S.
Ark Investment Management (Ark Invest) has predicted that the price of bitcoin could surpass $1 million per coin by 2030. "Our research suggests that bitcoin has the potential to transform monetary history by providing financial freedom and empowerment in a fair, global, and distributed way," Ark's analyst added.

Whilst there is still a lot of uncertainty regarding whether this will be approved by the SEC, which has been known for its stance against crypto, this could be great news for Bitcoin and would be a great opportunity for investors and U.S. citizens to be able to invest in the main cryptocurrency via regulated means.

ETH/BUSD Market

Ethereum price today has looked positive, and kept following quite closely the one of Bitcoin, as it did over the last few months, crashing after reaching new ATH over $4.6k last December. Around mid-January, the price failed to hold the 50EMA (on the weekly) and fell below the support level of $3k that had been tested several times. The crash was quite sharp and prices reached levels as low as below $2.2k.

Price of Ethereum has since recovered and is looking better than it did over the last few weeks, heading back towards the 50EMA, and moving over the current resistance level of $2.7k. The momentum will likely take ETH prices towards the upper resistance level of $3.k, which is also an important psychological price.
ETH/BUSD weekly candles chart with supports and resistance
ETH/BUSD weekly candles chart with supports and resistance
This next level will be the most important one for Ethereum price, as its outcome could determine how the market will move for the next several months. If prices manage to keep on recovering and move above the next resistance level, it would be a great sign and could signal potential uptrend in the following weeks. Prices will likely have to stay above the 50EMA, and would likely range between the 20EMA and 50EMA, before consolidating sideways or upwards.

On the other hand, the 50EMA could also be reached and rejected, signaling a more bearish outlook for Ethereum for the rest of the year.

Ethereum price prediction would suggest that ETH will likely recover over $3k, similarly to many other coins. Once this level has been reached, it's likely going to be tested, and it might be rejected in short time frames but eventually consolidate above it. The best scenario would be for Ethereum to break over this level and move sideways between the 50EMA and 20EMA. This would be a really great movement and would signal more up trends to follow.

Ethereum (ETH) news

In recent news regarding Ethereum, for the first time in a long while, network fees drop 53% in 20 days, showing a substantial decrease in the cost to transact on the Ethereum network.
Due to high volumes on decentralized exchanges and NFTs the Ethereum network has become one of the most expensive networks to transact on, often costing users more in transaction fees than the actual amount transacted. Whilst it's still unclear whether this drop in prices has been caused by the network being less congested, it is still positive for the traders using it. This can be seen in the Ethereum burning watch website that clearly shows a drastic decrease in transaction costs.

LTC/BUSD Market

Litecoin price over the last few months has been quite volatile, reaching a new ATH in May of 2021, before dropping to a third of its price, as slowly reaching the same ATH level again towards the end of the year in November. Over the last few months, the price has cooled down again and started following the one of Bitcoin more closely.
LTC/BUSD daily candles chart with supports and resistance
LTC/BUSD daily candles chart with supports and resistance
Unlike other coins, Litecoin USD had not followed closely its moving averages on high time frames and has often moved above or below these levels with little correlation. The same is not true for lower timeframes, such as the daily, where these levels are followed more closely.

Over the last two market cycles, we can see that Litecoin started from a floor level around $116 dollars before moving towards ATHs, this is usually followed by a price crash back between the $230 and $175 range before consolidating back towards the floor price around $116. We can notice that this occurred twice over the last two market cycles, following a similar recovery after.
Litecoin price prediction would suggest a positive new few months for the coin. Price levels currently are around historical support levels, sitting around the floor level of $116. Based on past price action when prices reach this level they usually recover and move back towards the $170 range. This would be a great sign for Litecoin and would signal more upwards potential to follow. If prices manage to consolidate above the $170 level, it's likely to see the $230 level be reached early in the year. On the other hand, if this level doesn't hold, or LTC struggles to regain momentum and reach this level, prices might fall further down in the short term.

Litecoin (LTC) news

Unlike other coins like Dogecoin, which have seen price rising due to increased popularity, Litecoin developers have kept on improving the product and added a new layer to the protocol that will enable it to be a privacy coin, with the new Litecoin mimblewimble update.
According to Litecoin Twitter, LTC network continues to grow exponentially by adding over 1,000,000 addresses in the last week. This is likely correlated to the Litecoin MWEB update that had been announced months ago but only took place in early January. According to what has been reported on MWEB Twitter and on the development page, this new update aims to provide more fungibility and use cases for Litecoin, competing in the market for privacy, currently populated by other coins such as Monero and Zcash. This could be a great opportunity for Litecoin which has always been known for its low transaction costs and could now have even more use cases.
BTC/BUSD, ETH/BUSD, and LTC/BUSD are available for trading on yanda.io dApp, together with hundreds of different market pairs.

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Author: Matteo Poole
info@yanda.io