The cryptocurrency market had a calm and low-volatility weekend. Here's an analysis of the market situation for Bitcoin (BTC), Ethereum (ETH), and Pax Gold (PAXG) as of Monday, January 15.
Bitcoin (BTC)
Following a correction on January 11, the price of the leading cryptocurrency has yet to fully recover to its previous highs. Bitcoin is currently trading within the range of $41,500–$42,500, an area it has tested several times.
The recent brief rally to $48,900 suggests that the drop in Bitcoin's price might have resulted from an overreaction to ETF approval news. This theory gains support from the absence of significant corrections on the BTC chart over the past three months. Therefore, the scenario of a continued decline is presently a priority.
Sellers' next targets are the support levels at $40,600 and $38,800–$40,000. It would be logical to reach these levels as part of a corrective movement for BTC. To resume the upward trend, Bitcoin needs to consolidate above the seller's zone of $43,400–$45,100 and test the $46,160 level. Only then will there be potential for new highs.
BTC chart on the H2 timeframe
Ethereum (ETH)
Overall, Ethereum's market dynamics reflect the situation with BTC. The asset recently underwent a minor correction and is currently trading near the support zone of $2,465–$2,500, where a buyer response can be expected soon.
For the continuation of the upward movement, ETH needs to break through the seller's zone of $2,581–$2,646 and test the high at $2,715. In such a scenario, an update of the yearly high becomes increasingly likely.
In the event of a correction, the next buyer zone to be tested is $2,382–$2,436. Below that lies the support level of $2,344, which could also be reached.
ETH chart on the H1 timeframe
Pax Gold (PAXG)
Surprisingly, the market situation for gold has remained unchanged for several weeks. PAXG continues to trade in a range between the support zone of $1,953–$1,982 and the resistance zone of $2,043–$2,071.
Positive momentum persists, making the continuation of the upward movement a priority. The next target for buyers is to update the yearly high at $2,100.
While a deeper correction on the PAXG chart seems unlikely, it should not be ruled out. Below the current support zone lies the buyer range of $1,900–$1,933, which could be tested in the event of a decline. This opportunity can be used for spot asset purchases.
PAXG chart on the D2 timeframe
There are no significant economic news events expected to impact cryptocurrency prices this week. Theoretically, increased volatility could be caused by updates on crude oil reserves and initial jobless claims data in the United States on Thursday, January 18. However, these events are unlikely to have a global impact on BTC prices.
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Disclaimer
Please note that the analysis provided above should not be considered a trading recommendation. Before opening any deals, we strongly advise conducting your own research and analysis.
Abbreviations
TF (Timeframe) — a chronological period equal to the time it takes to form one Japanese candle on the chart.
Horizontal channel (flat, sideways, range) — the price movement between support and resistance levels, without going beyond the given range.
К — simplified designation of one thousand dollars of the asset price (for example, 23.4K – $23,400).
Gray range on the chart — a support zone.
Red range on the chart — a resistance zone.
Correlation — the tendency of prices of different cryptocurrencies to move in sync, often influenced by the dominance of one of the assets.
Initial materials
This analysis was informed by the following educational materials and articles from GN Crypto:
