Bitcoin and Ethereum Prices Get a Chinese New Year Booster in Next Leg of Rally?
On January 20th, Bitcoin is on a bullish run, breaking above a double top resistance level of $21,600 that's exposing BTC towards the $22,500 level. Ethereum has also violated a major resistance area of $1,610 and is closing candles above this level are opening further room for buying until $1,675.
The Chinese New Year is coming up on Sunday, January 22nd, which often leads to market volatility.
The largest national holiday in China is called the "golden week," and has 12 days of celebrations with different animal themes. In 2021, the theme of the year is "The Year of the Dog," which begins on June 18th and 2023 will be "The Year of the Rat."
The Shanghai and Shenzhen Stock Exchanges will be closed from 23rd to 27th Jan. 2018 due to the Lunar New Year Holiday period. This will impact the stock market and global trade volumes as a result.
Therefore, customers have more incentive to manipulate assets during the holiday season especially since there is a profit gain if you're able to sell before December 28th.
Bitcoin is usually red the weeks before Chinese New Year. In 2019, the price dropped steadily from $3,491 on January 1st to lows at $3,397 on February 2nd. It is typical for cryptocurrencies to fall at the beginning of a new year. They tend to be buoyed by the holidays and then crash back down after.
By Thursday, prices had recovered somewhat and were valued at $8,526 on Friday morning. This history has repeated itself before, which will lead investors to predict the end of its future trajectory
A gradual increase followed by a huge surge in tech stocks happened during the first week of February, with a big 2-day rally to end the week.
After the Chinese New Year event, prices started to retrace a bit back to $46.2k.
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