The Bitcoin (BTC) market has exhibited unexpected downside movement ahead of a potential decision on a spot ETF, while alternative cryptocurrencies are experiencing upward momentum as Ethereum’s sentiment turns bullish.
On January 9th, there was a significant turn of events when the United States Securities and Exchange Commission (SEC) posted on social media that they had approved applications for spot Bitcoin (BTC) exchange-traded funds. However, they later clarified that their social media account had been compromised, and no ETF approvals had been granted.
Following the erroneous tweet, Bitcoin saw a rapid price increase to approximately $48,000, only to retreat and fall to $46,000 within minutes. QCP Capital, a trading firm, observed the subdued market response and suggested that the anticipated approval may have already been factored into prices, potentially limiting the extent of any significant post-approval rally.
Although the event may boost volatility in the short term, the long-term trend could remain intact. Even if the markets sell off after one or more spot Bitcoin ETFs are greenlit, the downside will likely be limited as the long-term investors may view the dips as a buying opportunity.
What are the crucial support and 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 closed above the ascending triangle pattern on January 8th, indicating the start of the next leg of the uptrend. The pattern target of the bullish setup is $49,178.
The bears try to pull the price back below the breakout level of $44,700 and trap the aggressive bulls. If they do that, the BTC/USDT pair may witness long liquidation and drop to the 50-day simple moving average ($42,078). The selling could accelerate below this support, and the pair may dive to $37,980.
Instead, if the price rebounds off $44,700, it will suggest that the bulls are trying to flip the level into support. That will improve the rally prospects to $49,178 and, after that, to $52,000.
Ether (ETH) price analysis
Ether rose sharply from the 50-day SMA ($2,232) on January 9th, indicating solid buying at lower levels. The bulls continued their purchase on January 10th and kicked the price above the overhead resistance of $2,400.
If buyers sustain the price above $2,400, it will indicate the resumption of the uptrend. The ETH/USDT pair could jump to $2,700 and then toward the psychologically important level of $3,000.
This optimistic view will be invalidated soon if the price turns down and breaks below the 20-day EMA ($2,294). That will suggest a range-bound action between $2,100 and $2,400 for some more time.
BNB price analysis
The bulls managed to maintain BNB above the 20-day EMA ($298) on Jan. 8 and 9 but failed to start a meaningful recovery. This suggests a lack of demand at higher levels.
The flattish 20-day EMA and the RSI just above the midpoint do not give a clear advantage to the bulls or the bears. If the price closes below the 20-day EMA, the BNB/USDT pair may plunge to the neckline.
The bulls must push and sustain the price above $310 to suggest that the selling pressure is slowing down. The pair could then attempt a rally to $327 and later to the high of $338.
Solana (SOL) price analysis
Solana snapped back from the uptrend line on January 8th, but the bulls could not overcome the obstacle at the downtrend line.
The 20-day EMA ($96) has flattened out, and the RSI is near the midpoint, indicating a balance between supply and demand. This suggests that the SOL/USDT pair may remain stuck between the uptrend and downtrend lines for some time.
If bears sink the price below the uptrend line, the selling could worsen, and the pair may plummet to $67. Alternatively, if the price turns up and breaks above the downtrend line, it will suggest that the bulls are back in the game. The pair may then rise to $117.
XRP price analysis
XRP has been oscillating around the $0.57 level for some time, indicating a tough battle between the bulls and the bears.
The 20-day EMA ($0.59) slows down, and the RSI is below 38, indicating that bears hold the edge. If the price skids below $0.54, the selling could pick up, and the XRP/USDT pair may plummet to $0.50.
On the upside, the bulls must propel the price above the moving averages to indicate strength. The short-term trend could tilt in favour of the buyers after the price rises above the downtrend line. The pair may climb to $0.67 and subsequently to $0.74.
Cardano (ADA) price analysis
Cardano’s sharp bounce off the $0.46 support on January 8th stalled near the 20-day EMA ($0.55), signalling that the bears have not given up.
The price could slide to the $0.46 support, which remains critical to watch out for. Buyers are expected to fiercely guard this level because a break below it may intensify selling and sink the ADA/USDT pair to $0.37.
If the price rebounds off $0.46, the bulls will again try to overcome the barrier at the 20-day EMA. If they succeed, the pair could rise to the downtrend line, where the bulls will likely encounter strong resistance from the bears.
Avalanche (AVAX) price analysis
Avalanche turned down from the neckline of the head-and-shoulders pattern on January 9th, indicating that the bears are trying to defend the level aggressively.
The AVAX/USDT pair could drop to $31, a critical level to watch out for. If the $31 support cracks, the selling could intensify, and the pair may descend toward the pattern target of $26.
On the contrary, if the price rebounds off the $31 level with force, it will suggest that the bulls vigorously protect this level. That could keep the pair between $31 and $38 for some time. A break and close above $38 will indicate that the bears may be losing their grip.
Dogecoin (DOGE) price analysis
Dogecoin’s recovery attempt on January 9th fizzled out near the 20-day EMA ($0.09), indicating that the bears are active at higher levels.
The bears will try to strengthen their position further by pulling the price to the next support at $0.07. This level may attract buyers, but if the bulls fail to clear the hurdle at the 20-day EMA, the likelihood of a drop to $0.06 increases.
Contrary to this assumption, if buyers kick the price above the 20-day EMA, it will suggest that the selling pressure could be reduced. The DOGE/USDT pair may rise to the $0.10 to $0.11 overhead resistance zone.
Polkadot (DOT) price analysis
The bears pulled Polkadot below the 50-day SMA ($6.96) on January 8th, but they could not sustain the lower levels, as seen from the long tail on the candlestick.
A minor negative is that the bulls could not maintain the tempo and push the price above the 20-day EMA ($7.58). This suggests that the bears try to flip the 20-day EMA into resistance. If the price dips below the $6.50 support, the DOT/USDT pair will complete a bearish H&S pattern. The pair may then tumble to $5.
Bulls must drive the price above the $7.90 resistance if they want to prevent the downward move. That may open the gates for a rally to $8.80.
Polygon (MATIC) price analysis
Polygon bounced off $0.73 on January 8th, but the recovery faces selling near the 50-day SMA ($0.85).
The downsloping 20-day EMA ($0.87) and the RSI just below the midpoint indicate a minor advantage to the bears. If the price turns down from the moving averages, the MATIC/USDT pair may again slump toward the strong support at $0.70.
Contrarily, if buyers drive the price above the moving averages, it will suggest solid demand at lower levels. The pair may then attempt a rally to the overhead resistance at $1, which may be a difficult hurdle to cross.
