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26th January: BTC/USD Declines to Test 31,000 Support Level, ETH/USD Holding above 1,300

UTC by Konstantin Anissimov · 3 min read
26th January: BTC/USD Declines to Test 31,000 Support Level, ETH/USD Holding above 1,300
Photo: QuoteInspector

Konstantin Anissimov, Executive Director at CEX.IO, shares his insights about the Bitcoin (BTC) and Ethereum (ETH) daily price movements.

BTC/USD

BTC/USD opened the week of 25th January, Tuesday, at 32,307 as per the exchange rate on CEX.IO. The pair rose to 32,800 in the first two hours of Tuesday’s trading session but was pressured by the 50-period SMA on the hourly timeframe and came down to 31,600 in the subsequent two hours.

After that the pair mainly kept within the trading range between 31,600 and 32,221 until 11:00 UTC, with a lower wick touching 31,200 between 07:00 and 08:00 UTC and an upper one rising to 32,400 between 10:00 and 11:00 UTC. Between 11:00 and 12:00 UTC, the pair closed below the local 31,600 support level at 31,300.

From 12:00 to 16:00 UTC, the pair was mainly going in a flat channel between 31,300 and 31,800, briefly sinking below the 2.618 Fibonacci retracement level at 31,000 and bouncing back between 14:00 and 15:00 UTC. Between 16:00 and 18:00 UTC BTC/USD rose back to the 32,200 region.

BTC/USD continues to test the 31,000 support level, which remains the main stumbling block to lower price levels. Being tested three times in January with a gradually descending price, the level is likely to be broken soon. A continuation of the bearish scenario remains largely more probable than a sudden bullish reversal. Therefore, we are expecting a breakthrough below 31,000 until the end of the week of 25th January.

ETH/USD

ETH/USD opened the trading session of 26th January, Tuesday, at 1,315 as per the exchange rate on CEX.IO. The pair edged closed at 1,369.6 at 01:00 UTC and, having risen very slightly in the next hour, took a dive below the local support level at 1,324.7 and was briefly below 1,300 between 02:00 and 03:00 UTC. It took a bounce above the 1,324.7 between 03:00 and 04:00 UTC and continued trading sideways mainly between 1,337.9 and 1.1314.4 until 12:00 UTC.

Starting from 12:00 UTC, the pair broke down below 1,300 and reached the day’s low of 1,240 between 14:00 and 15:00 UTC. A rebound began instantly at 15:00 UTC and continued through to 20:00 UTC. The pair first broke above the intraday level 1,324.7 in three bullish hourly candlesticks and, having stabilised above the level, climbed a few modest paces to 1,340 between 19:00 and 20:00 UTC. After 20:00 UTC, ETH/USD continued the recovery at a moderate pace.

The recent highly positive Ether price dynamics instill lots of hopes for Ether holders. This looks especially positive for Ether in the light of prevailing downside price action in BTC/USD. The reason behind the surprising bullishness in ETH/USD may be reside in the high growth across assets of the DeFi sector of the cryptocurrency market. The whole sector is demonstrating consistent and fast-paced growth, with some of the assets having recorded multiple all time highs since the start of 2021. Therefore, new highs for ETH/USD are a very likely scenario until the end of the week of 25th January.

Bitcoin News, Cryptocurrency news, Guest Posts, News
Kseniia Klichova
Author: Konstantin Anissimov

Executive Director at CEX.IO. His area of responsibility includes customer relationships with institutional and VIP-clients, overseeing the creation of the company’s development strategy, new products, markets and partnerships. As a member of the board of directors, Konstantin is also responsible for corporate governance.

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