Cryptocurrencies On The Bear To Close Week
Shain Vernier • 1 min read
It has been a rough week for cryptocurrencies, headlined by a 13% decline in Bitcoin (BTC). Sentiment has steadily soured as calls for crypto regulation have gained steam. The latest in the dialogue was from ECB head Christine Lagarde.
Citing concerns over Bitcoin market manipulation and functionality, Lagarde issued several comments worthy of note directed at cryptos in recent days. Here are few of the key quotes:
- “Bitcoin is a highly speculative asset, which has conducted some funny business and some interesting and totally reprehensible money laundering activity.”
- “There has to be regulation. This has to be applied and agreed upon at a global level.”
The tone from Lagarde facing BTC was ominous. However, the ECB president cited no specific instances of BTC money laundering or market manipulation. Since the comments, the leading cryptocurrencies have struggled to hold onto marketshare. Over the past 24 hours, BTC (-8.43%), Ethereum ETH (-5.44%), XRP (-6.10%), Litecoin LTC (-8.57%) and Bitcoin Cash BCH (-9.41%) are all deep into the red.
Cryptocurrencies Lag, Remain In Bullish Territory
Below is a look at January Bitcoin futures as of yesterday’s close. The story has been much different today ― prices are down big and in rotation just above the 35,000 level.
For early next week, there are two levels on my radar:
- Resistance(1): All-Time High, 42730
- Support(1): 38% Current Wave, 32787
Bottom Line: As you can see from the chart above, the bullish trend for January BTC futures is very much intact. Price is firmly above the 38% Retracement level, confirming the daily uptrend. If today’s pullback extends, a buying opportunity may come into play.
Until new all-time highs are made, I’ll be looking to buy BTC from $33,025 on the cash markets. With an initial stop loss at $29,450, this trade produces $3000 on a slightly sub-1:1 risk vs reward management plan.