Your Crypto Focus: 15th – 21st January
This week is looking like a fightback week for crypto markets. After weeks of weakness, we finally saw some firm buyer demand sweep in last Tuesday. Not only the top traded higher, but we saw nice gains across the boards. SHIB has put on 16% after doing very little for a period. DOGE has soared, gaining 378% at its weekly high. These two are just examples. This pattern was seen across mainly of the top 200. Thursday sent some ripples through new confidence, and we did see some selling, mainly on the top 5. In Thursday’s US session, a Tech stock sell-off was the primary influence driving risk markets.
While we are seeing plenty of money coming back into the smaller coins on Friday, we notice that the top two coins are not seeing the same type of interest.
Let’s look at Ethereum on its daily chart. This week’s high could be a new LH on the main trend if buyers cannot rebreak it. This maintains the current pattern of trend. LH followed by LL indicates a normal trend. The Key is this weeks high that lines up with previous resistance. Buyers break that level with a close, and the pattern starts to change. That could also begin to tell us that the current leg higher is trying to develop into something more. If sellers regain control and can push price lower we will look at 3065 to come back in as support.