The Bitcoin ETFs saw significant trading activity on January 11th. However, this did not lead to a notable increase in Bitcoin prices, indicating that the market had already factored in the event.
After receiving approval from the United States regulator on January 10th, several ETFs tracking Bitcoin’s (BTC) spot price commenced trading on January 11th. The widespread anticipation and discussions surrounding this event did not result in a significant surge or sharp price decline, suggesting that the approval had already been priced into the market.
Despite the absence of a substantial bullish or bearish reaction, the Bitcoin ETFs attracted considerable attention from traders, with data indicating that their combined trading volume on the first day of trading reached $4.5 billion.
After an initial correction, Bitcoin may enter a range soon as traders wait for the institutional flows into Bitcoin ETFs to begin. However, in the long term, Bitcoin ETFs, along with Bitcoin halving in April 2024, are likely to cause a supply squeeze, boosting prices higher.
What critical support levels may attract buying in Bitcoin and altcoins? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin (BTC) price analysis
Bitcoin has been volatile in the past few days, as seen from the long tail on January 10th and the long wick on the January 11th candlestick. This suggests buying at lower levels and selling on rallies.
The bears have pulled the price below the breakout level of $44,700, signalling that the markets have rejected the higher levels. The bulls will try to arrest the fall at the 50-day simple moving average ($42,404).
If the price rebounds off the 50-day SMA, the bulls will try to kick the price back above the overhead resistance at $44,700. If they can pull it off, the BTC/USDT pair may climb to $49,000 and then to $52,000.
On the contrary, a break below the 50-day SMA could accelerate selling, and the pair may plunge to $40,000 and eventually to $37,980.
Ether (ETH) price analysis
Ether skyrocketed above the overhead resistance of $2,400 on January 10th, signalling the start of the next leg of the uptrend.
The first target on the upside is $2,700, which may tempt short-term traders to book profits. However, if the ETH/USDT does not give up much ground from this level, it will suggest that every minor dip is being purchased. That could improve the prospects of a move to the psychologically important level of $3,000.
The first support on the downside is $2,566. If this level is removed, the pair may drop to $2,500 and then to the breakout level of $2,400.
BNB price analysis
BNB’s pullback stalled at the 20-day EMA ($300) on January 8th, indicating that the sentiment remains positive and traders are buying on dips.
The bulls started a recovery on January 10th but could not maintain the momentum. This suggests that rallies are being sold into. If bears sink and sustain the price below the 20-day EMA, the selling could intensify, and the BNB/USDT pair may plummet to the neckline.
Instead, if the price once again bounces off the 20-day EMA, it will suggest that the bulls remain in control. That will increase the possibility of a rally to $350. The BNB/USDT pair could reach $400 if buyers overcome this resistance.
Solana (SOL) price analysis
Solana has been squeezed between the uptrend line and the downtrend line for the past several days.
The flattish 20-day EMA ($97) and the RSI near the midpoint do not give a clear advantage to the bulls or the bears. If the price sustains below the 20-day EMA, the SOL/USDT pair could dip to the uptrend line. If this support also cracks, the correction may deepen to $67.
On the contrary, the bulls must drive and sustain the price above the downtrend line to gain the upper hand. The pair may then ascend to $117 and subsequently to $126.
XRP price analysis
XRP clawed back above the breakdown of $0.57 on January 10th, indicating solid buying at lower levels.
Both moving averages have flattened out, and the RSI is just below the midpoint, suggesting that the selling pressure is reducing. The bulls will have to shove and sustain the price above the downtrend line to signal the start of an up move. The XRP/USDT pair may attempt a rally to $0.67 and later to $0.74.
Bears must quickly yank the price below the strong support at $0.54 if they want to prevent the upward move. If they succeed, it will clear the path for a further decline to $0.50 and eventually to $0.46.
Cardano (ADA) price analysis
Cardano rose above the moving averages on January 10th, but the bulls could not maintain the momentum and clear the hurdle at the downtrend line.
The bears are trying to pull the price below the 20-day EMA ($0.56), which may start a downward move toward $0.46. That may keep the ADA/USDT pair between the downtrend line and $0.46.The flattening 20-day EMA and the RSI just above the midpoint do not give a clear advantage to the bulls or the bears.
This view will be invalidated if the price bounces off the 20-day EMA and pole vaults above the downtrend line. The pair could then retest the overhead resistance at $0.68. If this hurdle is cleared, the pair may rally to $0.90.
Avalanche (AVAX) price analysis
Avalanche turned up from the 50-day SMA ($34.83) on January 10th and rose above the neckline at $38, indicating that the bulls are trying to trap the aggressive bears.
The 20-day EMA ($38.06) is flattening out, and the RSI is near the midpoint, indicating a balance between supply and demand. A close below the 20-day EMA could sink the AVAX/USDT pair to the 50-day SMA and later to $31.
Contrarily, if the price turns up from the current level, it will suggest that the bulls are trying to flip $38 into support. The pair may climb to $44, where the bears will likely mount a strong defence.
Dogecoin (DOGE) price analysis
Buyers pushed Dogecoin above the 20-day EMA ($0.09) on January 11th but could not achieve a close above it. This shows that the bears are viewing the rallies as a selling opportunity.
If the price continues lower, the bears will try to tug the DOGE/USDT pair to the next support at $0.07. Buyers are expected to defend the level with vigour because a failure to do so could sink the pair to $0.06.
On the upside, the bulls must drive and sustain the price above the moving averages to indicate that the corrective phase may be over. The pair may climb to the $0.10 to $0.11 overhead resistance zone.
Polkadot (DOT) price analysis
Polkadot bounced off the 50-day SMA ($7.09) and rose above the overhead resistance of $7.90 on January 10th.
The bulls tried to continue the up move on January 11th, but the long wick on the candlestick shows selling at higher levels. The bears are trying to pull the price below the 20-day EMA ($7.74). The DOT/USDT will form a symmetrical triangle pattern if they do that.
Usually, the symmetrical triangle is a continuation pattern, but it sometimes behaves as a reversal setup. A slide below the support line could start a sharp decline, while a break above the triangle will open the doors for a possible retest of $9.59.
Polygon (MATIC) price analysis
Polygon surged and closed above the moving averages on January 10th, indicating aggressive buying by the bulls.
The 20-day EMA ($0.88) has started rising, and the RSI is just above the midpoint, signalling a slight advantage to the buyers. If the price bounces off $0.89, the bulls will try to propel the MATIC/USDT pair to $1.
Conversely, if the price turns down and skids below the 20-day EMA, it will suggest a lack of demand at higher levels. That may keep the pair range-bound between $0.70 and $1 for a few more days.
