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Bitcoin, Ethereum, Ripple Prices Diverge; South Korea Mulls Ban

Bitcoin, Ethereum, Ripple Prices Diverge; South Korea Mulls Ban

Nick Cawley, Strategist

Bitcoin/Cryptocurrency News and Talking Points

- No real trend in the cryptocurrency heavyweights BTC, ETH and XRP, leaving market capitalization little changed.

- South Korea needs ‘sufficient consultation’ before any cryptocurrency ban.

Cryptocurrency Market Capitalization Remains Rangebound

The top three digital currencies by market capitalization, Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) are taking different paths today as traders position themselves for the latest round of news from the South Korean Government. The ‘will they/won’t they’ ban cryptocurrency trading took a new turn on Monday when South Korean authorities said that before they make a decision, they would need ‘sufficient consultation and coordination of opinions,’ a vague phrase with no real time frame. In reasonable turnover Monday, BTC rose by around 5%, ETH traded flat, while XRP fell by over 2% - all minor changes compared to recent moves. DailyFX analyst Paul Robinson looked at the technical set-ups in all three digital coins last week in his Weekly Cryptocurrency Trading Outlook.

Bitcoin and Ethereum prices fell sharply last week after South Korean authorities raided various cryptocurrency exchanges.

After hitting a market capitalization in excess of $850 billion at the start of the year, mainly driven by a surge in altcoins, the cryptocurrency market cap has steadied over the last week with gains in market heavyweights being countered by losses in altcoins and vice versa as traders balance positions.

Cryptocurrency Market Capitalization One Week Chart (January 8 - 15, 2018)

Bitcoin (XRP) Price Charts Shows a ‘Tightening Triangle’

A potential ‘Tightening Triangle’ formation on the Bitcoin chart below could spell a sharp move to the upside in the coming days, following the underlying uptrend. A break to the upside could see BTC setting itself up for another fresh attempt at the all-time high, while a break to the downside could see support at $11,600 – low on December, 6, 24 and 30 – kick in, keeping the overall move higher intact.

Bitcoin (BTC) Price Chart Daily Timeframe (October 1, 2017 – January 15, 2018)

Top 8 Cryptocurrencies by Market Capitalization – January 15, 2018

Cryptocurrency Trader Resources

If you are interested in trading Bitcoin, Bitcoin Cash, Ethereum, Ripple or Litecoin, check out our Introduction to Bitcoin Trading Guide.

--- Written by Nick Cawley, Analyst.

To contact Nick, email him at nicholas.cawley@ig.com

Follow Nick on Twitter @nickcawley1

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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