21st January: BTC/USD Test 31,000 Once Again, ETH/USD Reverses Uptrend for Downtrend

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by Konstantin Anissimov · 3 min read
21st January: BTC/USD Test 31,000 Once Again, ETH/USD Reverses Uptrend for Downtrend
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Konstantin Anissimov, Executive Director at CEX.IO, shares his insights about the Bitcoin (BTC) and Ethereum (ETH) daily price movements. Jan 21


BTC/USD opened Thursday, 21st January, at 35,367 and headed straight down from the start of the trading session. The trading pair quickly reached 34,400 between 04:00 and 05:00 UTC; a slight rebound between 05:00 and 08:00 UTC briefly took the pair to the 33,967 intraday technical level. And BTC/USD resumed its downward trading course at 09:00 UTC.

A sharp drop took place in the hour between 09:00 and 10:00 UTC, with BTC/USD closing at 33,247. The bearish dynamics continued through to 15:00 UTC, with the pair touching 31,005 at a moment between 15:00 and 16:00 UTC. The 2.618 Fibonacci level positioned at the 31,000 was expected to create some countertrade and did trigger a meaningful rebound between 16:00 and 20:00 UTC, which sent the pair to 33,560 as per the exchange rate on CEX.IO.

We expect that the price dynamics will not change radically until the end of the week of 18th January, and the selling sentiment will continue to dominate the BTC/USD trading. Therefore, we expect the BTC/USD price to break down below the 31,000 level in the near term.  When that happens, there will be no serious technical barrier that could substantially reverse the downward dynamics until the 19,000 – 20,500 region.

However, new appointments to financial institutions in the United States could affect the price action of BTC/USD. Therefore, BTC traders should keep an eye on the key personnel reshuffle within the U.S. economic regulators.


ETH/USD opened the trading session of 21st January at 1,377.3, making a quick drop to the 4.236 Fibonacci retracement level at 1,324.7 in the first three hours. The falling did not stop there and continued for the better part of the day until 17:00 UTC.

In the time between 04:00 and 17:00 UTC, ETH/USD managed to gradually descend from 1,326.8, to the 3.618 Fibonacci retracement level at 1,164.9. The level generated some certain countertrade volumes, making the price bounce to 1,234 at the close of the hourly candlestick between 19:00 and 20:00 UTC as per the exchange rate on CEX.IO.

The ETH/USD trading results of 21st January indicate a clear downtrend reversal in the pair on the 4-hour timeframe. The uptrend still looks continued on the daily timeframe; therefore, the direction ETH/USD continues in the near term will depend greatly on how the price goes around the 3.618 Fibonacci level at 1,164.9.

In case the level gets broken down, it will open the path for ETH/USD to 1,045.1. That is the most probable scenario as ETH/USD is showing a growing correlation with BTC/USD, which is on a clear downward corrective path. Therefore, buying bets for ETH/USD should be considered high risk in the near-to-mid-term future.

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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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