Jan 3, 2021: Crypto market review

by | Jan 3, 2021

Welcome to the 2021 year HyperTraders! Let us hope that the whole 2021 year will be like December 2020 in crypto trading.

With the review, I will continue with the analysis for BTC and a couple of selected alts. As always, I will be starting with the macro perspective (monthly, weekly) charts, and then I will drill down to lower time frames.

So let’s start the first review of 2021 with a closer look at the price action for the king of them all.

BTC

It is hard to make any analysis for BTC right now. In short – it is bullish, and there is no historical data to support research. I don’t know what will be the next ATH level. I don’t even know what will be the first profound rejection level. BTC is merely bullish.

In a situation where there are many unknowns, I focus on what I know. There are a couple of things:

The FIB

The following chart is presenting a FIB, which I have been discussing since November. If you would like to know more about it, please refer to my previous reviews, like Dec 28, 2020: Crypto market review – HyperTrader.

As we have at the moment, all I am doing is just adding another Fibonacci level. At the moment of creating this review, BTC was around the -3 level. The FIB levels are used to predict the potential points of rejections and supports.

When daily candles start closing below the FIB level, I will take it as a possible rejection level.

Support levels

During a run like this, I am looking for support levels in case of a sudden drop. These points may also be used for long late entries or to add to your current position.

The daily chart below presents levels where the price should find support during the pullback.

These levels are ICT’s bullish Order Blocks, which I have found on the daily chart. They usually support the price for a controlled retrace.

Institutional levels

Current Institutional levels are: 

$35,000

$32,000

$30,000

$28,000

The price is currently oscillating between $32,000 and $35,000, but it has not breached the $35,000 level yet.

Warning

During a bull run like this, many trailing stop losses are piling up below the current price. When they trigger, we might witness a large wick, like a couple of thousand dollars drop. The price should recover after that.

XRP

I am not going to elaborate on the controversies around XRP and SEC. A chart is a chart, and this is going to be a purely technical analysis.

In my review from 13/12, I have pointed to the swing high with high volume and equal lows, usually preceding a drop. You can find the review here: Dec 13, 2020: Crypto Market Review – HyperTrader.

The weekly chart below is presenting the same levels I have pointed out in that review.

Since then, the price has dropped significantly, BUT it has “magically” bounced off from the line named Level 1 defended. The buyback, as of today, is +30%. This would suggest that the 0.17500 level is essential.

This is the 240 chart.

Drilling into 240 charts, there are a lot of details:

  • Volume. The current work (right arrow) is a lot higher than the swing high (left hand).
  • No lower lows since the bounce off from the 0.17500 level.
  • A higher-high with equal tops. This is very good for a potential continuation of the bounce off.

Conclusion: short term, I am bullish on XRP in terms of the technical analysis. I would like to see the price reaching the 0.28 and 0.32 levels before thinking about higher levels, like 0.38, for example.

Everything depends on upcoming news about XRP delistings and further steps concentrated on the XRP and SEC story.

ETH

This coin has finally awakened. I mean – it was bullish before, but eventually, we have witnessed a +20% daily candle.

The reason for this lies in the weekly ETH/BTC chart.

There are two bullish factors presented on the chart:

  • Weekly bullish OB
  • Matching tops on the weekly.

In my opinion, the price will reach the Equal tops but will not breach it. Then it should retrace a little, reverse and breach equal tops. On the day it happens, we may be witnessing a huge green candle for ETH USD.

The following chart shows how precisely the price is being controlled.

It has hit the daily OB. Daily candles closed twice EXACTLY at the pivot point level.

For this alt, I am presenting the weekly range with BUY and SELL zones for a month now.

On the chart below, we may see how LINK dipped into the BUY zone this week.

Even with the overall bullish situation on the crypto market, we may see a rejection from the SELL zone

Written By Olinus

Olinus started in 2015 with Forex trading. He entered the Crypto market at the beginning of 2018. Since then he combines trading techniques for both markets.
Disclaimer

Posts on the HyperTrader blog and associated HyperLinq websites are for educational and informational purposes only. These posts should not be taken as financial advice, nor are they meant to be viewed as trading advice. HyperLinq Inc. or the authors take no responsibility for any damages or losses.

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