BTC, ETH and PAXG Price Analysis for January 8, 2024
The New Year holidays didn’t bring significant changes to the BTC chart, and the first week of January stayed within the previously identified support and resistance zones. Here’s an analysis of the current market situation for Bitcoin (BTC), Ethereum (ETH), and Pax Gold (PAXG) as of Monday, January 8.
Bitcoin (BTC)
Currently, BTC is experiencing low volatility due to the holiday season and a lack of significant news events. The asset is trading within two sideways ranges. The smaller range spans between the support level at $43,100 and the resistance level at $44,700, while the broader corridor extends from $42,050 to $45,900.
Hence, a breakout from the flat movement in either direction of the first range may signal a trend towards the corresponding boundary of the second, broader range.
Overall, Bitcoin maintains an upward trend in the global market. However, the spotlight is on a crucial factor—the potential approval of a Bitcoin ETF this week. If ETF applications are given the green light, BTC could extend its upward journey and potentially reach a new local high soon.
Conversely, any unexpected developments regarding Bitcoin ETF approval, such as a delay, could have adverse effects on the asset's price, potentially triggering a deeper correction towards support levels at $40,600 and $39,500.
BTC chart on the M45 timeframe
Ethereum (ETH)
Ethereum is currently trading within a sideways range between the support level at $2,168 and the resistance level at $2,297. The Ethereum chart is marked by minimal volatility, primarily due to its strong correlation with BTC.
The prevailing scenario is to uphold the overall uptrend and support ETH's growth. If ETH successfully breaks through the current resistance at $2,297, the next resistance zones to monitor are $2,325–$2,364 and $2,386–$2,430. The possibility of establishing a fresh local high hinges on the BTC performance.
In the event of a corrective move in the ETH chart, prices could potentially dip to support levels at $2,104 and $2,070.
ETH chart on the H1 timeframe
Pax Gold (PAXG)
The Pax Gold (PAXG) chart has seen minimal changes since the previous analysis. Gold's price continues its upward trajectory, with the next high being the most probable outcome.
At present, PAXG's price is approaching the psychological milestone of $2,000, which is likely to trigger market reactions. A breakthrough beyond this level could propel the asset higher, testing the resistance zone at $2,050–$2,071 and potentially aiming for highs around $2,100.
Conversely, a more pronounced correction could bring the PAXG price down to support zones at $1,940–$1,960 and $1,890–$1,910, offering an opportunity to accumulate the asset on the spot market.
Pax Gold (PAXG) chart on the Daily timeframe
The coming week is filled with several significant economic news events. These include data on US crude oil inventories (Wednesday, January 10), the Consumer Price Index, initial jobless claims (Thursday, January 11), and the Producer Price Index. These events could introduce substantial volatility to cryptocurrency charts, given their ties to the US dollar. It is advisable to exercise caution during these periods, either by refraining from trading or by reducing risk exposure on each trade.
Check out GNcrypto for the latest cryptocurrency rates and chart analysis.
Disclaimer
Please note that the analysis provided above should not be considered a trading recommendation. Before opening any deals, we strongly advise conducting your own research and analysis.
Abbreviations
TF (Timeframe) — a chronological period equal to the time it takes to form one Japanese candle on the chart.
Horizontal channel (flat, sideways, range) — the price movement between support and resistance levels, without going beyond the given range.
К — simplified designation of one thousand dollars of the asset price (for example, 23.4K – $23,400).
Gray range on the chart — a support zone.
Red range on the chart — a resistance zone.
Correlation — the tendency of prices of different cryptocurrencies to move in sync, often influenced by the dominance of one of the assets.
Initial materials
This analysis was informed by the following educational materials and articles from GNcrypto:
- TOP 5 Useful Chart Analysis Tools on TradingView
- How Are Trading Volumes Useful in Cryptocurrency Analysis?
- Candlestick Patterns: Types and How They Work in Trading
- The Most Popular Chart Patterns for Crypto Trading
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