I began yesterday's commentary by describing proceedings as subdued. The word "static" would be more applicable today! Maybe it's the equity and currency markets' day to focus on trade wars, government shutdowns, BREXIT and Federal Reserve meeting notes.
Or maybe just some calm before the next big move. Regardless, we find Bitcoin (BTC) glued to $4,000 and Ethereum (ETH) similarly tied to the $150 level.
One report I read had BTC bullish sentiment at its highest since early August of last year. Based on a simple ratio of positions held by traders on one exchange, longs surpass shorts 3:2. As we all know, sentiment is one thing, actual market direction could be very different.
But it's still interesting to note given the recent price action. On a rather sad and disturbing front, I also read an article published by the BBC about a ransom demand from the kidnappers of the wife of a wealthy Norwegian businessman.
They are demanding the equivalent of $10 million of the cryptocurrency Monero (XMR) . Let's hope that the lady concerned is returned safely to her family and that this is one transaction that never takes place.
Technical Analysis On a day of limited price action, it can be challenging to bring up a noteworthy chart that we haven't already looked at.
But given ETH has recently broken a strong trendline dating back to mid-December, I thought it would be worthwhile looking at a couple of support levels. Obviously there are a number of levels we could highlight but I'm picking three.
$144.30 is the most immediate level of support. $130.88 represents a deeper pullback but provides support ahead of the $125-130 level that has been pivotal in the past.
And finally $112.35 is the low on the pullback from the first attempt to breach $160, prior to the Christmas holidays.
Daily Commentary 10th January 2019 David Hannigan
Disclaimer: All opinions expressed by Jim Preissler are solely his opinions and do not reflect the opinions of Forbes, Forbes CryptoMarkets, their parent company or affiliates. [Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.] With additional commentary & technical analysis by David Hannigan....