Jan 27 Evening technical analysis: BTC, ETH, XRP

BTC price action prompted significant buying during the early New York session, up more than 5%. Likewise, ETH price is up more than 24% from the weekly low. XRP price continues to lag behind BTC and ETH in terms of performance, but is expected to recover soon.

BTC aims back at $40,000

Bitcoin is preparing for a significant move higher or a brutal bearish continuation. On the daily Ichimoku chart, Tenkan-Sen’s intraday resistance stands at $38,275. The price not moving and closing above the Tenkan-Sen on the daily chart could trigger a sell order again. This is especially true today as it is the first “Fed Day” of 2022.

If buyers can close the price above the Tenkan-Sen, the next resistance will be between $40,000 (Kijun-Sen) and $41,000 (61.8% Fib retracement).

Ichimoku Kinko Hyo BTC/USD daily chart | Source: TradingView

Bitcoin upside potential beyond $40,000 could be capped at the 50% Fib retracement level at $45,500. Downside risk is limited to the 2022 swing low at $33,000.

ETH moves higher in the 4th trading session

ETH is on the rise. It’s hard to believe that since the price opened this week, the price is down 18% and is now up 4%. As if that weren’t enough, the largest altcoin by cap is likely to continue moving north. The 24% rally from weekly chart lows may have triggered more short squeezes yet to materialize.

The main technical action in ETH price is a return on the weekly Ichimoku cloud. The cloud weekly close combined with the extremely oversold conditions in the weekly oscillators provides a solid foundation for ETH to retest the $4,000 region.

Weekly Ichimoku Kinko Hyo ETH/USD chart | Source: TradingView

Traders should be cautious despite the current bullish activity, especially today as it is Fed Day. The US Federal Reserve (Fed) will provide forward-looking comments and guidance on interest rates, monetary policy contractions and future inflation. Any hint of heightened caution from the Fed could have a negative impact on ETH price and all risky markets like crypto.

A weekly close below the cloud low at or below $2,300 will invalidate any bullish outlook.

XRP back to $1

XRP has found strong support near the 50% Fib retracement at $0.64 and the 161.8% Fib retracement at $0.60. This support comes as XRP develops very oversold conditions in the RSI, Composite Index, and Optex bands.

Perhaps the most important warning sign that a new bull run is coming is the Gann Cycle 180 days a year (180 to 198 days). This is the second strongest annual cycle. Gann wrote that a 180-day cycle has a high probability of establishing necessary support-1 or resistance levels. In addition, he noted that reversals are common in this time cycle.

Ichimoku Kinko Hyo XRP/USD Chart | Source: TradingView

The bulls should look for a move back to test the $1 value zone if XRP can close above the 50% Fib retracement at $0.64. Downside pressure remains but is likely to be limited to the 61.8% Fib retracement level and the psychological price barrier of $0.50.

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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