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Technical analysis of ETH/USD for Jan 22, 2020
Crypto Industry News:
The situation in the cryptocurrency space in Thailand is still developing – the country recently received another licensed cryptographic exchange, which increases the total number of exchanges to six. According to the announcement of the Thai SEC, the latest trading platform that has received the Bitcoin trading license is known as Zipmex.
The emergence of Zipmex on the Thai cryptographic scene has brought even greater competition to the developing cryptographic sector in this country. The SEC’s new move came after the regulator recently announced that it plans to update the list of companies that have obtained a license to trade in digital assets.
The regulator’s website shows that Zipmex is now officially on the list of licensed cryptographic trading services. This is the sixth stock exchange that received such a license, after BX, Satang Pro, Bitkub, Bitherb and Huobi.
The company’s website has not yet disclosed when the service may start, although the message “Get ready for a meeting with Zipmex” suggests that the stock market may start working in the near future.
Mentioned earlier, Bx was the oldest Bitcoin trading platform in Thailand, although it is no longer operational. The platform announced the closure on September 30, 2019, giving its clients a month to withdraw funds before the stock exchange closes on November 1.
The company allegedly decided to “focus on other business opportunities”, which is why it announced that it would not demand a license to continue operating in 2020. However, its closure has left a serious hole in the Thai cryptographic market, which has led to strong competition in the country’s cryptographic sector.
Technical Market Overview:
The ETH/USD has reversed from the level of $178.12 after the Pin Bar candlestick pattern was made. The bears have broken out form the local consolidation zone located between the level of $178.12 – $172.91 and managed to hit the technical support at the level of $163.11 and the low was made at the level of $159.93. Currently, the market has bounced slightly and is consolidating around this level because the bounce is very shallow so far. There is a visible Bearish Flag price pattern at the H4 chart (thick orange line). If the bearish pressure intensifies again, then the next target for bears is seen at the level of $157.37 and $151.37. Please notice that this is a quite strong technical support zone due to the short-term ascending trendline presence around these levels.
Weekly Pivot Points:
WR3 – $219.38
WR2 – $198.31
WR1 – $181.78
Weekly Pivot – $161.46
WS1 – $144.93
WS2 – $123.85
WS3 – $107.13
Trading recommendations:
There is a possibility that the wave 2 corrective cycles are completed at the level of $115.05, so the market might be ready for another impulsive wave up of a higher degree and uptrend continuation. This strategy is valid as long as the level of $146.94 is not violated. Nevertheless, the larger timeframe trend is still down and all the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend until the level of $196.61 is cleary broken
The material has been provided by InstaForex Company – www.instaforex.com
