The Bitcoin (BTC) market is currently being traded slightly under the mark of $45,000, with market participants closely monitoring the SEC’s imminent ruling on spot Bitcoin ETF submissions.
The past 48 hours have seen a rise in Bitcoin’s price fluctuations as speculation mounts over the outcome of the spot Bitcoin ETFs. While some experts anticipate approvals might start rolling out by January 5th, Bloomberg’s ETF analyst James Seyffart maintains that approvals are more probable between January 8th and 10th.
A few analysts believe that in a classic case of buy the rumour, sell the news, Bitcoin may fall even if one or more Bitcoin ETFs are approved. But John Bollinger, creator of the Bollinger Bands volatility indicator, thinks otherwise. In a post on X (formerly Twitter), Bollinger said he expects Bitcoin to “break higher.”
What are the critical resistance levels to watch out for in Bitcoin and altcoins? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin (BTC) price analysis
Bitcoin climbed back into the ascending triangle pattern on Jan. 3, suggesting that the sharp fall to the 50-day simple moving average ($41,205) may have been a bear trap.
The bulls will try to strengthen their position by shoving the price above the $44,700 resistance. The BTC/USDT pair will complete the bullish setup if they do that. That could start a rally to the overhead resistance zone between $50,000 and $52,000.
Bears must drag the price back below the triangle if they want to prevent the upside move. There is minor support at $40,000, but if the price skids below this level, the decline could extend to $37,980.
Ether (ETH) price analysis
Ether tried to rise above the 20-day exponential moving average ($2,269) on Jan. 4, but the bears did not relent.
The 20-day EMA has flattened out, and the RSI is just below the midpoint, indicating a range-bound action in the near term. If the price rises above the 20-day EMA, the ETH/USDT pair could jump to $2,400. A break and close above this resistance could clear the path for a potential rally to $2,700 and then to $3,000.
The first support on the downside is the 50-day SMA and then $2,100. If the supports break down, the pair may drop to $1,900.
BNB price analysis
BNB has been consolidating in an uptrend for the past few days. Barring the sharp intraday dip on Jan. 3, the bulls have managed to keep the price above the 50% Fibonacci retracement level of $300.
The upsloping 20-day EMA ($295) and the RSI in the positive territory indicate that the bulls are in control. If the price rebounds off the 20-day EMA, the buyers will try to kick the BNB/USDT pair to the overhead resistance at $338. If this obstacle is overcome, the pair could start the next leg of the uptrend to $370 and then to $400.
A slight negative in favour of the bears is that the RSI forms a negative divergence, indicating a weakening momentum. If the 20-day EMA cracks, the pair may dive to the neckline.
Solana (SOL) price analysis
Solana slipped below the 20-day EMA ($97) on Jan. 3, but the bears could not achieve a close below it.
The bulls tried to start a relief rally on Jan. 4, but the bears did not relent. The price has again declined to the 20-day EMA, which remains the critical short-term level to watch. If the price closes below the 20-day EMA, the selling could pick up momentum, and the SOL/USDT pair may plunge to the 50-day SMA ($77).
Conversely, if the price turns up from the current level and rises above the downtrend line, it will signal that the correction may have ended. The pair could then retest the high at $126.
XRP price analysis
The bulls did not allow XRP to close below $0.57 on Jan. 3 and are again trying to protect the level on Jan. 5.
The 20-day EMA ($0.61) has started to turn down, and the RSI is in negative territory, indicating an advantage to the bears. A bounce off the current level will likely face selling at the 20-day EMA.
If the XRP/USDT pair continues lower or turns down from the overhead resistance, it will increase the likelihood of a close below $0.57. That could start a downward move toward $0.50 and then to $0.46. The bulls must kick the price above the downtrend line to negate the bearish setup.
Cardano (ADA) price analysis
Buyers tried to push Cardano back into the symmetrical triangle pattern on Jan. 4, but the bears held their ground.
The bears will make one more attempt to sink the price below the 50-day SMA ($0.51). If they succeed, the ADA/USDT pair could plummet to the breakout level of $0.46. This level is likely to attract strong buying by the bulls.
This negative view will be invalidated soon if the price turns up and breaks above $0.64. Such a move will suggest aggressive buying at lower levels. The pair could then rally to the overhead resistance at $0.68.
Avalanche (AVAX) price analysis
The bulls pushed Avalanche above the neckline of the head-and-shoulders pattern on Jan. 4, but they could not overcome the barrier at the 20-day EMA ($39.44).
The immediate support on the downside is $36. If this level is removed, the AVAX/USDT pair may slump to the 50-day SMA ($32.70). Buyers are expected to vigorously defend the zone between the 50-day SMA and $31.
The bulls must push and sustain the price above the 20-day EMA to signal that the correction may be over. The pair could then rise to $44; if this level is scaled, the pair may ascend to $50.
Dogecoin (DOGE) price analysis
Dogecoin closed above $0.08 on Jan. 3, as seen from the long tail on the candlestick. The bulls maintain the price above $0.08 but struggle to start a strong relief rally.
The moving averages are on the verge of a bearish crossover, and the RSI is in negative territory, indicating that the sellers have the upper hand. If the price turns down from the 20-day EMA ($0.09), the bears will attempt to tug the DOGE/USDT pair to $0.07.
The first sign of strength will be a break and close above the moving averages. That will open the doors for a rise to $0.10. The zone between $0.10 and $0.11 will likely be a significant hurdle for the bulls.
Polkadot (DOT) price analysis
Polkadot’s recovery faces selling at the 20-day EMA ($7.90), indicating that the bears sell on rallies.
The flattening 20-day EMA and the RSI just below the midpoint suggest a range-bound action in the near term. The DOT/USDT pair may swing between $6.50 on the downside and $8.80 on the upside.
If the price rises above $8.80, it will signal that the corrective phase may be over. The pair may then climb to the overhead resistance of $9.59. Contrarily, a drop below $6.50 could start a deeper correction to $5.89.
Polygon (MATIC) price analysis
Polygon took support at the 50-day SMA ($0.85) on Jan. 3, but the bulls failed to push the price above the $0.89 resistance on Jan. 4.
The bears and the bulls are witnessing a tough battle near the 50-day SMA. If the price sustains below the 50-day SMA, the selling could pick up further, and the MATIC/USDT pair could plummet toward $0.70.
On the contrary, if the 50-day SMA holds, the bulls will try to use it as a launchpad and propel the pair above the 20-day EMA ($0.90). The pair may start a northward march toward $1 if they do that.
