Over the weekend, the cryptocurrency market experienced minimal volatility, with only a modest correction in Bitcoin on Monday morning, now trading near the $41,000 mark. Here's an analysis of the market situation for Bitcoin (BTC), Ethereum (ETH), and Pax Gold (PAXG) as of Monday, January 22.
Bitcoin (BTC)
On the morning of January 22, the leading cryptocurrency witnessed a further downward trend, reaching a new local low at $40,295. Currently, the asset is trading close to the buyer's zone, which lies between $40,300 and $40,750.
A continuing correction seems to be the more likely scenario for now. Buyers might step in around the levels of $39,286 and $38,640, which is where the CME gap (price disparities between the closing and opening prices on the Chicago Mercantile Exchange) is situated.
For Bitcoin's growth to resume, there needs to be a confirmed show of strength from buyers. This could happen if Bitcoin manages to stabilize above the $42,100-$42,900 zone, potentially paving the way to reach the $44,000-$45,120 range.
BTC chart on the H1 timeframe
Ethereum (ETH)
Ethereum, largely mirroring Bitcoin's trajectory due to its strong correlation, is currently positioned within the buyer's zone of $2,382-$2,416, which it has tested three times in the past 12 hours.
A downward trend continuation seems to be the prevailing direction for Ethereum at the moment. Sellers might aim for the support levels at $2,344, and then the wider range of $2,251-$2,314.
For an uptrend to initiate, Ethereum needs to firmly establish itself above the $2,500-$2,533 resistance zone and maintain growth on significant trading volumes. Achieving this could enable the coin to reach new local highs and challenge the $2,581-$2,645 resistance zone.
ETH chart on the H1 timeframe
Pax Gold (PAXG)
In recent weeks, PAXG has exhibited remarkable stability. It has been oscillating between the support zone of $1,953-$1,982 and the resistance zone of $2,043-$2,071 for over a month, without a clear directional trend.
Given its recent peak towards the end of 2023, a continued upward movement for PAXG appears to be the more likely scenario. The next target for buyers would be the $2,100 resistance level, breaching which would signify a dominance of buying activity.
In the event of a downward correction, the asset might fall to the support zone of $1,900-$1,933 and potentially test the $1,868 level. These points could present attractive opportunities for spot purchases.
PAXG chart on the D1 timeframe
This week's economic sector features several key news items and events:
- US crude oil inventories and Manufacturing PMI Index (Wednesday, January 24);
- Q4 GDP and core jobless claims (Thursday, January 25);
- Core Personal Consumption Expenditures Price Index (Friday, January 26).
Check out GN Crypto for the latest cryptocurrency rates and chart analysis.
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) โ a chronological period equal to the time it takes to form one Japanese candle on the chart.
Horizontal channel (flat, sideways, range) โ the price movement between support and resistance levels, without going beyond the given range.
ะ โ simplified designation of one thousand dollars of the asset price (for example, 23.4K โ $23,400).
Gray range on the chart โ a support zone.
Red range on the chart โ a resistance zone.
Correlation โ 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:
