CRYPTOCURRENCIES – January 16, 2022
BTCUSD is trying to hold support at 41K. Failure to gain strength can result in some selling pressure in several other pairs. In this report I discussed two of my favorite, text-book descending triangle setups as well as some range-trading opportunities with bullish breakout setups.
BTCUSD
BTCUSD is testing support area between 41K and 44.6K. Earlier price rebounded from the 41K and I’m monitoring the pair for a possible rebound. I want to see price back above the year-long average at 44.6K to get bullish on BTC. There is no clear chart pattern other than the possible long-term rectangle between 28.6K and 65K. Breakdown below 41K can target 28.6K.
ETHBTC
ETHBTC rectangle breakout failed with last week’s reversal below 0.08 horizontal boundary. I will be looking for a recompletion above the resistance in the following weeks. Rectangle price target stands at 0.104 levels. (A short video on how to re-enter a position after a hard re-test)
ANTUSD
ANTUSD formed a 4 month-long well-defined rectangle with the upper boundary acting as resistance at 14.8 levels and the lower boundary as support at 2.5 levels. This is a wide trading range and a breakout has price target that can offer 100% return. The price target stands at 28 levels. Well-defined boundaries offer trading opportunity between those horizontal lines until a breakout takes place. (Learn more about trading range bound price action in this educational video)
SRMUSD
We might be at the early stages of this possible rectangle chart pattern but SRMUSD can offer a good trading opportunity between the boundaries. Price is close to support level and the range of this wide rectangle can offer great upside potential. 2.6 is the support and 12.2 is the resistance. (Learn more about trading range bound price action in this educational video)
UNIUSD
Descending triangle is a bearish chart pattern. Its downward sloping upper boundary gives the pattern the bearish bias. It shows sellers impatience to sell at lower levels every time price rebounds from the horizontal support. Breakdown below the horizontal support after several tests can complete the chart pattern with the possible price target of 4.5 levels. If cryptocurrencies come under pressure, this will be a pair I will be looking form the short side given the well-defined horizontal boundary.
THETAUSD
THETAUSD is another pair that has possibly formed a descending triangle chart pattern. The lower boundary is well defined with several tests. The upper boundary is clearly downward sloping showing lower highs. Breakdown below 3.61 levels can target 0.92 levels. This is another pair I will play the short side if cryptocurrencies in general come under selling pressure.
BNBBTC
Earlier reports covered pairs against BTC. I saw several pairs with the potential of outperforming against BTC. Here is a new addition to the ones I’ve discussed before. BNBBTC is possibly ready to complete a 7 month-long rectangle. There has been several test of the pattern boundaries. Breakout above 0.012 can target 0.017 levels. I like bullish setups that complete above the year-long average. I view them as high conviction trades as they go in the direction of the overall trend.
