Elon Musk Helping Cryptocurrencies Keep the Safe Haven Status, As they Hold the Gains

It seems like cryptocurrencies are keeping the safe havens status they earned last year, after the surge in the last quarter of 2020. There was concern whether the surge of the last few months, which also continued in the first week of January. But, now after nearly a month after the surge ended, cryptocurrencies are holding to the gain.

ETHEREUM which is shown on the chart above continued to make higher highs after the surge ended. The 20 SMA (gray) held as support on the weekly chart and the price bounced off that moving average, breaking above the previous high. Now it remains close to the highs, so it looks like we will see Ethereum continue the uptrend; probably not like in the end of 2020, but in amore normal manner.

Chainlink went through a surge in summer, but it retreated back down and missed most of the surge at the end of last year. Although it caught up with other cryptos in January this year, as it surged from around $ 10 to $ 26. There was a retreat this week, but the price is closing more than half way up on the weekly candlestick.

LINK?USD has claimed back more than half of this week’s losses

BITCOIN turned bullish last year and surged in  Q4 of 2020, as they acquired the status of safe havens. Bitcoin was leading the pack, surging pretty close to $ 42,000 in the last week of this month. But, the surge ended and in the second week most of the crypto market retreated lower, apart from ETHEREUM which continued to make new highs.

Bitcoin retreated lower and fell close to $ 30,000 in the second week of January, but the 20 SMA (gray) held as support for more than a week. Although, that moving average was broken in the fourth week of this month and Bitcoin fell below $ 29,000.

But the 50 SMA (yellow) turned into support on the daily chart and BITCOIN bounced to $ 34,800. This week sellers returned again and they retested the 50 SMA for a second time, failing once again, as the 50 SMA provided solid support below $ 30,000.

The 20 SMA didn’t turn resist too long for Bitcoin

On Thursday, the price bounced off the 50 SMA and and of Friday we saw  a continuation of the bullish momentum, although the price has come off the highs ad around $ 34.400. So, buyers are back in charge now which means that the bullish trend is back on.

The jump in Bitcoin came after Elon Musk tweeted #Bitcoin. No one knows what it really meant, but Bitcoin jumped around $6,000 higher that day after the tweet, which apparently gave buyers a signal to go long. So, Cryptocurrencies are keeping the safe haven status, since they are holding on to the gains they made during the surge. Those who though that we would see a reversal in the beginning of 2021, like the one in early 2018 after the surge in 2017, are being proven wrong by cryptos.