The crypto market remains on the green territory with the vast majority of the top-20 coins that have shown a positive momentum in the early Asian hours. The weekend rally, which pushed Bitcoin above the critical $ 4,000 price, improved the market sentiment. However, consolidation at the beginning of this week may signal that the bulls are not yet ready for a decisive upside move.
From a fundamental perspective, it may take time for the US Securities and Exchange Commission (SEC) to approve Bitcoin’s ETFs, with the temporary shutdown of the government also exerting its negative influence. However, Japanese regulators are already considering an Exchange traded fund (ETF) for Bitcoin.
Satoshi Nakamoto’s coin celebrates its 10th birthday, and an ETF would be a good gift. And the charts show that the main cryptocurrency has some room to move one step up.
Another positive factor in the crypto market is the modernization of the Ethereum network. The new protocol, also known as an upgrade under the name Constantinople, is scheduled for January 16th. And the current king of the Altcoins manages to hold his recent gains.
Constantinople is a hard fork. The fork will take place at 7,080,000 blocks, which means that all client applications with full node support will be refreshed at this time and will start the new version of the protocol to avoid multiple forks.
Unlike the recent poor organization with Bitcoin Cash, which has led to a messy, hard fork, the Ethereum community has no inconsistencies regarding the upcoming changes. Still, however, this may lead to a period of uncertainty and create some risks for active traders. Can we see a further rise in the price?
Currently, Ethereum is traded around $ 150 or a 2% increase over the past 24 hours. However, the downside retreat on Monday suggests that the bears are again working to stop the crypto currency’s recovery rally. So, in my opinion, it is quite possible to see continued consolidation shortly, while bears continue trying to push the price to pre-Christmas levels.
If the bulls manage to gain momentum, the next level of resistance is at $ 161.25, where the 100-day moving average on the daily chart is located, near to the high of Sunday.
A clear break above this level should trigger a further rise to testing the resistance around the round $ 170 level.
On the downside, the first support is seen at $ 137.06, where the average line of Bolinger Bands is located on the daily chart. A clear break and convincing movement below it will send the price downside to testing the daily MA-50 around $ 117.60.
Author: Silviya Velcheva
* The views expressed in this material do not constitute a recommendation or advice for the purchase or sale of cryptocurrencies in the digital assets market or other financial instruments. The predicted forecasts meet the expectations of the author of the material and may not materialize. Trading in currencies, contracts for differences on margin or cryptocurrencies poses a high risk and may not be suitable for all investors. Past results are not a guarantee of future success.