(WEEKLY NOTION): A Great Week for BTC/USD, ETH/USD, XLM/USD, Will the Cryptocurrency High Continue? Next Mover: Nonfarm Payrolls

BTC/USD (as of Jan 8, 2021, 12.10 p.m., GMT +8)

Source: Yahoo Finance

ETH/USD (as of Jan 8, 2021, 12.10 p.m., GMT +8)

Source: Yahoo Finance

XLM/USD (as of Jan 8, 2021, 12.10 p.m., GMT +8)

Source: Yahoo Finance

Overall, this has been a momentous week for cryptocurrencies as its market value has passed the $1 trillion mark. BTC/USD has crossed the $40,000 level on Jan 7. Other altcoins are following in its footsteps. In the span of 24 hours, Stellar was seen to rise 78%, Nano by 96% and Status by 100%. 

BTC/USD

It was a glorious week for the digital gold as it surpassed the $40,000 mark on Jan 7. The flagship cryptocurrency is solidifying its position by capturing 68.5% of the total cryptocurrency market share, according to data by CoinMarketCap.

Its value has soared by four times in the span of 12 months. JPMorgan Chase has even acknowledged as the shift of capital to BTC/USD would impact gold. 

However, analyst John Isige from FX Street is cautioning of a majorly overbought condition in the market. The overbought situation is no surprise, given the draw of the ‘Fear of Missing Out’, or FOMO, rally that followed BTC/USD’s meteoric rise.

Isige also pointed out the formation of a rising wedge on the four-hour chart which is an extremely bearish pattern. It suggests that BTC/USD’s trading volume is decreasing and a reversal is likely in the near-term.

ETH/USD

ETH/USD has achieved $121 billion of total market capitalisation. This would be its highest achievement, which is accompanied by a growing share of market dominance to 14.3%. 

Analyst Anil Panchal from FX Street opines that the bulls are taking a break. A short-term bearish chart pattern (rising wedge) is being portrayed. This can lead to a consolidation of recent gains.

XLM/USD

XLM/USD experienced a tremendous start to the year, following a technical breakout above a descending parallel channel with successive bullish candlesticks observed.

After hitting a high of $0.3986 on Jan 7, XLM/USD has been on a decline. However, the Relative Strength Index (RSI) is currently at 34, reaching oversold territory. An oversold territory indicates that the market is undervalued, and a recovery could be on the way. Could Stellar have a ‘stellar’ year? Let’s keep an eye here.

CONCLUSION 

A growing number of traders are viewing the cryptocurrency market as a hedge against inflation. However, analyst Isige has cautioned a high degree of volatility in the market, making it hard to predict what the future days will bring. After all, we are living in unprecedented days. 

In the meantime, stay tuned for the results of the nonfarm payrolls today. This will provide the last employment snapshot under outgoing President Trump.

FOLLOWME BTC/USD Overall User Sentiment (as of Jan 8, 2021 at 12.10 p.m.)

Short – 69.59%

Long – 30.41%

BTC/USD (as of Jan 8, 2021, 12.10 p.m., GMT +8) - $ 39,377.28

ETH/USD (as of Jan 8, 2021, 12.10 p.m., GMT +8) - $ 1,192.21

XLM/USD (as of Jan 8, 2021, 12.10 p.m., GMT +8) - $ 0.3015