Bitcoin and Ether Market Update January 27, 2022

Total crypto market cap added $116 billion to its value for the period since Monday and now stands at $1.64 trillion. The top ten coins are all in red for the last 24 hours with Solana (SOL) and Terra (LUNA) losing 7 and 6.1 percent respectively. At the time of writing bitcoin (BTC) is trading at $36,400. Ether (ETH) is at $2,430.

BTC/USD

Bitcoin closed the trading day on Sunday, January 23 with a small pump to $36,360 after a two-day long massacre that saw it erase 14 percent of its value.

The coin closed the seven-day period 14.7 period lower than the previous one as the big Head and Shoulders pattern on the weekly timeframe came into play with a solid break below the neckline. If we are to remain strict about following take profit target rules for this technical analysis figure then the current move should push the price of BTC towards the sub-$20,000 levels in the coming weeks.

On Monday, the BTC/USDT pair hit $32,835 during intraday to register a new 6-month low. However, bulls were quick to react and “bought the dip” heavily which help it recover and eventually close in green at $36,580.

The Tuesday session was no different and the leading cryptocurrency moved further up, this time to $37,000 making it 3 consecutive days in green.

The zone around $35,000 was established as short-term support, but the potential risk of a bear flag formation on the daily chart was more than obvious.

The mid-week trading on Wednesday came with an attempt to break above the $39,000 mark on the news that the US Federal Reserve (FED) will not be raising the interest rates immediately, but postpone this to March. The 5 percent increase was fully retraced in the evening part of the trading day due to the more hawkish comments from the FED Chairman Jerome Powell in its Q&A section after the Federal Open Market Committee (FOMC) meeting.

What we are seeing midday on Thursday is another red day as bears are still in control.

ETH/USD

 The Ethereum project token ETH was leading the altcoin market on its way down registering a 24 percent of decrease on a weekly basis.

The coin ended the trading day on Sunday, January 23 in green for the first time since January 16 as the $2,400 line was established as short-term support.

On Monday though, the ether dropped down to hit $2,150 during intraday. It quickly recovered climbing more than 12 percent to close the daily candle at $2,443. The trading volumes were starting to gain momentum and the Relative Strength Index was looking to rebound, jumping up from the oversold area.

The coin remained relatively stable around the 2,450 zone on Tuesday, January 25, confirming the mentioned support level.

The third trading day of the workweek came with a solid jump up to $2,730 on the Federal Reserve news of no immediate interest rate hikes. Still, it was fully retraced later in a 9 percent pullback.

As of the time of writing, ETH is trading lower – at $2,430.

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