Cryptocurrency market review 02.02.2021
Cryptocurrency price analysis predicts fair volatility this week. After strong bullish momentum for Bitcoin on Friday, markets are relatively calm.
Crypto assets should recover
Much has changed in the value of cryptocurrencies over the past seven However, despite last week’s massive rise, Bitcoin remains relatively close to the starting price. The same could be said of Ethereum, as it fell nearly 1 percent.
The biggest leader among altcoins is Ripple. It managed to grow more than 100% from a low of $0.25 to a high of 0.52. This week, it continued moving even higher and recently tested the $0.60 mark.
After a strong rally on Friday, Bitcoin returned to the price level of 34 000$. It peaked at around 38,500, however failed to hold further highs, which is quite natural after such strong growth.
Currently, the BTC has risen above the support/resistance of $34,000 and is again testing 35K$ as resistance, but most likely to no avail. So even more declines should probably be expected this week. We will probably see Bitcoin moving towards a $30,000 support, which has held the BTC price several times in recent weeks.
Given the current value structure of the coin, a sharp upward reversal is unlikely. BTC should continue to consolidate and form the basis for preparations for another upward movement. Until Bitcoin can create a clear consolidation zone, it is best to remain neutral with respect to BTC/USD.
But the time of writing the cost of BTC was $34,204.
Last week Ethereum made a slightly lower high. After ETH found support at $1,250 on January 27, the market really formed a bullish momentum. Momentum was quickly cancelled once the historic high of about $1,450 was reached.
Once Ether tested the historic high, a sharp deviation drove the price down. Ethereum is now trading again near several weeks of uptrend. Until upward support is broken through, we can expect Ethereum to make another attempt to break through the historic high this week.
Alternatively, if ETH breaks below the trend line and falls below the horizontal support of $1,250, we can expect a much larger mid-term downward reversal. The following support is located at $1,050.
Overall, Ethereum should see further consolidation during the first half of the week. Much depends on whether ETH/USD can break the previously mentioned previous high or uptrend support in a few weeks.
At the moment, the cost of ETN is 1,340$.
At the end of the week, Ripple demonstrated extreme volatility. Last week, XRP soared to $0.52 after about $0.25 support was found on January 27.
After the pullback, Ripple continued to move upwards earlier this week. The $0.60 mark has already been broken, and probably today the XRP/USD exchange rate will continue to climb. The next target to pay attention to is the price mark of $0.70.
Overall, Ripple can experience a sharp reversal at any moment. So traders should be careful with any XRP position. The best option now would be to remain neutral and wait for further developments.
At the time of writing, XRP was at $0.56.
Overall, our forecast of cryptocurrencies is bearish. Most altcoins are over-hyped now and need correction. In addition, Bitcoin should also continue its decline after Friday’s incredible jump.
Markets should settle down for a couple of days. Therefore, the best option would be to wait for further development of price action this week. This is especially true for Ripple as the market has exceeded any expectations.