First of all, I would like to apologize for the delay in producing our weekly article, we promise that 2020 will start!
We went through a period of high demand and defining new strategies, as some know here, we are expanding the operation and opening up a new opportunity for everyone, which is our cryptocurrency fund.
We have already managed clients with a Private profile (accounts over 100k USD) and, at the moment, we will be opening a fund for the profile of smaller contributions, thus democratizing investment.
The study below is not a guide to buying or selling. Manage your risk properly.
Bitcoin Graphical Analysis
Bitcoin technical analysis over 4 hours
After the sharp rupture of the historic top of the $ 20,000, Bitcoin reached almost $ 42,000 which represents more than 100% appreciation.
The normal thing, after such a strong increase, is that we have a correction (drop) in prices, which is already happening.
In the analysis, we highlight 3 support areas (supports are areas where we find buyers, who can make the price hold and rise again).
Zone 1: $ 30,000 - $ 32,000
Zone 2: $ 23,000 - $ 25,000
Zone 3: $ 19,000 - $ 20,000
In other words, we will be looking at these price levels and making partial purchases (or the strategy that you find most convenient, according to the way you operate).
We believe in a resumption of prices for a final target, in the area of U $ 49,000 - U $ 54,000.
Remembering that we always talk about zones, never an exact value.
Therefore, as much as we see Bitcoin correcting in the coming days, we already have a strategy and vision of the moment.
Let's see the Altcoins ..
Analysis of Altcoins
Above we highlight the views of the main cryptocurrencies in the market and, which are more promising.
We also remember that if there is a drop in BTC to levels of 25k USD, alts may suffer in the USD pair, however in the BTC Pair (ALT / BTC) they may appreciate and, with that, you would earn more bitcoins for the Long Term.
Those that are positive are the best when compared to others.
Neutrals are in between, prefer positive ones.
By: Isabela Ruiz Roque da Silva
HashRate (Total Hash Rate)
The Total Hash Rate (TH / s) is a metric to measure the mining power of the blockchain network. The higher the number of hashrates, the greater the security of the network and the greater its resistance to attacks in general. It is an important metric for analyzing miners' investments in mining equipment and long-term investments.
Figure 1. Total hash rate on January 18, 2021. Source: Blockchain.com.
Figure 2. Total hash rate on January 23, 2021. Source: Blockchain.com.
At the beginning of the week on January 18th, the total hash rate was over 150m, but over the course of the week, the rate began to decline. Always remembering that the total hash rate falling does not indicate a good sign for Bitcoin, because the higher the total rate, the greater the trust in the network and more miners are keeping the network safe. From the 22nd to the 23rd we have already noticed a slight increase. If this increase continues during this week, it would indicate an optimism on the part of the sellers and consequently an increase in the price of Bitcoin.
NVT (Moving Value)
The NTV is an indicator that indicates whether the price of Bitcoin is in line with the financial volume of the cryptocurrency in the last 90 days: if the price of the cryptocurrency has gone up and there is little volume in the market (few transactions in the currency), the indicator will always show a peak.
Figure 3. Bitcoin NVT, January 18, 2021. Source: Coinmetrics.io.
Figure 4. Bitcoin NVT, January 24, 2021. Source: Coinmetrics.io.
At the beginning of last week, the NVT started to decline and we reached the minimum value of 54.37 on the 19th of January, but this level was not sustained for long and soon we started a very sharp upward movement and now we have the NVT well above of 100, in the range of 146. Remembering that above 80, it is already a worrying value because the closer to 100, the greater the chance that the price of Bitcoin will not sustain itself and fall considerably and as we are above 100, then the chances Bitcoin's fall are bigger. This indicator is sending us a warning signal at the moment for the short term.
Bitcoin has a slightly bearish format and, in our analysis, we highlight possible good areas for positioning.
In the meantime, some altcoins can perform well on the Pair ALT / BTC and poorly on the Pair / USD.
If the correction for the highlighted levels occurs, the projection of Bitcoin's movement is close to 50k USD, which would give 100% profit by then, in case Bitcoin retreats to 25k usd.
Therefore, not every setback should be viewed as desperate, at least if you don't know what to do.
Know how to manage your assets properly, choose a position and know exactly how much you are risking.
This is our advice to you.