In anticipation of growth: what does a trend change in the cryptocurrency market mean

In January, many cryptocurrencies won back the losses of the previous two months. However, the rise in prices became less pronounced, and somewhere completely changed to a fall.. What are the reasons for this turn of events?


Last Friday, January 20th, BTC was able to fully recoup the losses incurred after the collapse of FTX. The first cryptocurrency crossed the mark of $21,473 and closed at $22,678. On that day, bitcoin rose by more than 7.5%, while the bulk of the growth occurred at a time when it was night in Russia. However, the success of that day could not be developed in a week.. The maximum that BTC could show in the past seven days is a growth rate of 1.84% on January 25. In general, the dynamics for such a volatile asset turned out to be extremely modest: only 1.5%.


Last week we wrote about the growth slowdown. True, then (already after writing the material) BTC soared for a short time by the already mentioned more than seven percent. But this week, traffic has slowed down quite a bit.

There were no revolutionary news events around the historically first cryptocurrency in a week. However, several interesting ideas and proposals were made.

Samson Mow, the former head of security for bitcoin and blockchain technology company Blockstream and now founder and CEO of Pixelmatic, expressed his belief that it is critical to assess the behavior of the price of bitcoin relative to the 200-day weighted moving average:

“The 200-day weighted moving average is something of a magnet.. When the price is below it, there is a positive force driving the price up.. When we crossed it, the polarity changes: the price seems to push off and rush upwards.

In general, there is a grain of truth in Mou's words.. Now, on the evening of January 27, the price of BTC is above the 200-day weighted moving average, which is positive for the bulls.


But in the state of Arizona, activists are trying to push through a bill that would give bitcoin the status of a legal tender. We are not talking about the entire territory of the United States, but only specifically about Arizona. Initiated by Senator Wendy Rogers. This is not the first attempt to “legitimize BTC without restrictions”. True, while all the previous ones were rejected. However, one cannot fail to note the positive attitude of the politicians of a particular state towards cryptocurrencies, which has become a positive moment for crypto enthusiasts.

In terms of technical analysis, Bitcoin is in the area of September 2022 highs.. Since the price has been above $22,781 for several days, it can be considered a support level. Immediate resistance is the August high of $25,212.


The fear and greed index entered the “greed phase” for the first time in a long time. Its value is 55, which is an alarming signal for the bulls.


If bitcoin showed, though not big, but growth, then ethereum turned out to be in the red this week. On January 20, the token of Vitalik Buterin’s brainchild also grew by almost 7%. However, quotes did not rush into the stratosphere. For the week from January 20 to January 27, the ether was not in the red for only two days, while in one of them it grew by a purely conditional 0.1%. Not surprisingly, the overall result of the week was a drop of more than 4.5%.


A slight consolidation is explained by the fact that, firstly, the cryptocurrency has approached a strong resistance level, and secondly, by the fact that since the beginning of the year it has gained 40% in value. Not surprisingly, individual investors decided to take profits.

And so the platform is all right. The Ethereum team continues to prepare for the Shanghai fork, tentatively scheduled for March. On January 23, a shadow fork of Shanghai was implemented to test how the planned changes will affect the operation of the network.. This was announced on his Twitter programmer Marius van der Weyden (Marius Van Der Wijden).

From the standpoint of technical analysis, the week brought nothing new. The nearest support and resistance levels remained the same: $1,501.4 and $1,676.8 respectively.



Since the beginning of the year, the Cardano cryptocurrency has grown by more than 57%. During the week from January 20 to 27, the ADA platform token increased in price by 3.23%. On the evening of January 27, its value is $0.3766, while back in December the token was worth $0.246.


The slowdown in the growth rate of Cardano, like all other cryptocurrencies, can be explained by the fact that the previous growth was very impressive.. In addition, the platform crashed last week. Issues were resolved fairly quickly.. Nevertheless, the work of some nodes was temporarily difficult.

In addition, on the 20th, a significant event for Cardano took place – the SundaeSwap decentralized exchange was launched.. True, there were some excesses: some users complained that transactions did not go through.

Djed stablecoin to be launched on Cardano platform in early February. The event is significant, but do not expect it to catapult ADA immediately to the $1 area. Cryptocurrency growth was expected in September after the launch of the Vasil hard fork. As a result, we waited – ADA fell in price and has not yet returned to those levels (about $0.48).

According to technical analysis, it can be said that it will be important for Cardano to overcome the mark of $0.385-0.386. If we manage to close above this resistance level, we can expect further growth.. The nearest support level is $0.347, the low of January 25, when it looked like the bears were taking over. But the price eventually rose by almost 4%.


Thus, the past week turned out to be multidirectional: BTC and ADA grew up, Ethereum fell. At the same time, events are soon expected for altcoins (the Shanghai fork and the launch of the stablecoin Djed), which can lead to noticeable movements.

This material and the information in it does not constitute individual or other investment advice. The opinion of the editors may not coincide with the opinions of the author, analytical portals and experts.