In this one of the latest blockchain magazine, you will get to know all the weekly updates regarding the market. Bitcoin had reached a market capitalisation of about $779 billion on January 8 and from there it plunged to a market cap of $583 billion on January 11. Some of the main reasons that may have caused this fall could be profit booking by the miners, who sold their inventory. Even institutional investors who may have entered crypto markets from a short-term perspective and had purchased at lower levels could have been tempted to book profits after the sharp rally of the past few days.

As the price turned down, these leveraged positions could have generated margin calls, resulting in liquidation by the brokers at the market price. This further intensified selling and drove the buyers away who avoided buying until the selling exhausted. Vertical rallies are followed by sharp falls but the strong rebound suggests accumulation at lower levels. However, after large volatile moves, the crypto markets may enter a lull period as both bulls and the bears try to establish their supremacy.

OUR BLOG ARTICLES FOR THIS SPECIAL ISSUE ARE:

THE FUTURE GROWING TRENDS OF CRYPTO EXCHANGES IN 2021

TOP CRYPTOCURRENCIES WHICH WILL EXPLODE IN 2021ALL

&

HOW THE BLOCKCHAIN REVOLUTION CAN WORK FOR YOU – THE QUIVERX APPLICATION

Bitcoin has been in a strong uptrend that pushed the RSI deep into overbought territory. This suggests that traders are buying at every higher level due to FOMO.

We had projected a target objective of £31,399 in our previous analysis and Bitcoin rose to an intraday high at £30,936 on January 8. We had also mentioned that the RSI is in overbought levels and such markets can turn around quickly. We saw an example of that on January 11 when the BTC/USD pair plummeted below the 20-day EMA and fell to an intraday low at £21,000. The bulls aggressively purchased the lows, which is a positive sign as it shows strong demand at lower levels.

If the bulls can build upon yesterday’s recovery, the pair may again gradually attempt to move up to £30,000. However, the possibility of the uptrend resuming is low. The higher levels are likely to attract selling by traders as many may want to book profits. If the pair fails to break out to new highs, the selling is likely to intensify and that could again pull the price back towards £20,000. The pair could remain range-bound for a few days before starting the next trending move. We do not find any reliable setups that offer an attractive trading opportunity.

Enjoy the issue. You can subscribe to our latest blockchain magazine for the latest updates about profit and loss in cryptocurrency.

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