Bitcoin’s (BTC) potential for market decline appears limited as outflows from GBTC decrease, and traders turn their attention to the upcoming BTC halving in April.
The month of January has witnessed Bitcoin’s price exhibiting volatility. Initially, it surged close to $49,000 in anticipation of the introduction of spot Bitcoin exchange-traded funds (ETFs). However, it subsequently experienced a downturn as the Grayscale Bitcoin Trust (GBTC) encountered significant liquidations.
Nevertheless, a promising development is the recent reduction in GBTC’s outflows. According to real-time market data provided by intelligence firm Arkham, there have been outflows of $340 million from Grayscale’s fund. This represents a slight increase compared to the $270 million outflow on January 30th but is significantly lower than the peak outflow of $641 million recorded on January 22nd.
Traders will gradually shift their focus from the Bitcoin ETF flows to the upcoming halving in April. Pseudonymous crypto trader Rekt Capital said in an X post (formerly Twitter) on January 29th that any dip in Bitcoin over the next two weeks could be the last chance to buy before the pre-halving rally kicks in.
What are the critical overhead resistance levels that need to be crossed for the upmove to resume in Bitcoin and select altcoins? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin (BTC) Market Analysis
Bitcoin rose above the 50-day simple moving average ($42,893) on January 29th, but the bulls could not maintain the momentum and catapult the price above $44,700.
The bears tried to sink the price below the 20-day exponential moving average ($42,277) on January 31st, but the bulls held their ground. This suggests the buyers are trying to flip the 20-day EMA into support.
The bulls will again try to propel the price above $44,700. If they do that, the BTC/USDT pair could pick up momentum and skyrocket toward $49,000.
Alternatively, if the price turns down from $44,700, it will suggest that the bears are vigorously defending the market level. The pair may trade within a tight range between the 20-day EMA and $44,700.
Ether (ETH) Market Analysis
The bulls kicked Ether above the moving averages on January 30th but could not clear the overhead hurdle at $2,400.
Sellers are trying to tug and maintain the price below the moving averages. If they succeed, it will signal that the ETH/USDT pair may oscillate inside the $2,100 to $2,400 range for a while. The flattish moving averages and the RSI just below the midpoint indicate a possible consolidation in the near term.
The next trending move will likely begin on a break above $2,400 or below $2,100. If the $2,400 level gives way, the pair may soar to $2,700 and eventually to $3,000.
BNB Market Analysis
BNB turned lower from the downtrend line on January 30th, indicating that the bears fiercely guard this level.
If the price dips below the 20-day EMA ($305), the BNB/USDT pair could dip to the 50-day SMA ($295) and the vital support at $288. Buyers are expected to defend this level with all their might because if they fail to do that, the pair will complete a descending triangle pattern. This negative setup has a pattern target of $238.
If the price rises from the current level and breaks above the downtrend line, it will invalidate the bearish setup. The pair may then climb to $338.
Solana (SOL) Price Analysis
Solana’s break above the downtrend line is the first sign that the Bulls are trying to make a comeback.
Buyers tried to strengthen their position further by pushing the price above the nearest resistance at $107, but the sellers had other plans. The long wick on the January 30th candlestick shows that the bears have not given up and are selling at $107.
If the price turns up from the current level or the moving averages, it will suggest that dips are being bought. That will increase the likelihood of a break above $107. If that happens, the SOL/USDT pair may surge to $117 and then to $126.
XRP Price Analysis
The failure of the bulls to push XRP above the 20-day EMA ($0.54) on January 30th may have attracted strong selling by the bears.
The bulls are trying to protect the $0.50 support, but the repeated retest of a support level tends to weaken it. If the price maintains below $0.50, the XRP/USDT pair may descend to the crucial support at $0.46.
The 20-day EMA remains the first key resistance on the upside. The pair could rally to the downtrend line if bulls overcome this barrier. The bears are expected to defend this level aggressively.
Cardano (ADA) Price Analysis
Buyers drove Cardano above the 20-day EMA ($0.51) on January 29th but could not build upon this strength. This suggests that bears are active at higher levels.
The 20-day EMA has flattened out, and the RSI is near the midpoint, signalling a range-bound action in the near term. If the price sustains below the 20-day EMA, the ADA/USDT pair could plunge to $0.46 and later to the channel’s support line.
Instead, if the price rises from the current level and rises above $0.54, the pair may climb to the downtrend line. Buyers must overcome this obstacle to suggest that the correction may be over.
Avalanche (AVAX) Price Analysis
Avalanche has been corrected inside a descending channel pattern, indicating buying on dips and selling on rallies.
The price turned down from the downtrend line on January 30th and reached the 20-day EMA ($34.29). A drop below the 20-day EMA suggests that the AVAX/USDT pair may remain inside the channel.
Contrarily, if the price rises and breaks above the downtrend line, it will suggest that bulls are in the driver’s seat. The pair may start the next leg of the up move to $44 and subsequently to the psychological resistance at $50.
Dogecoin (DOGE) Price Analysis
Dogecoin has witnessed a tough battle between the bulls and the bears at the 20-day EMA ($0.08).
The bears have repeatedly thwarted attempts by the bulls to clear the 20-day EMA, but a positive sign is that the buyers have not given up much ground. This suggests that the bulls anticipate a move higher toward the downtrend line.
This is critical to watch out for because a break above it will indicate a short-term trend change. The DOGE/USDT pair may climb toward the $0.10 to $0.11 resistance zone. This optimistic view will be invalidated if the pair turns down and breaks below the $0.07 support.
Polkadot (DOT) Price Analysis
Polkadot rose above the 20-day EMA ($6.95) on January 29th, but the long wick on the day’s candlestick shows selling at higher levels.
Both moving averages have flattened out, and the RSI is just below the midpoint, indicating that the selling pressure is reducing. The DOT/USDT pair may stay range-bound between $6 and the 50-day SMA ($7.46) for some time.
If the price rebounds off the current level, the bulls will try to push the pair to the 50-day SMA. A break and close above this resistance could propel the pair to $8.50. On the contrary, a break below the neckline could pull the pair to $6. If this level cracks, the pair may slide to $4.80.
Chainlink (LINK) Price Analysis
Chainlink has been range-bound between $12.85 and $17.32 for many days, indicating a balance between supply and demand.
Usually, in a range, traders buy near the support and sell at the resistance. The break above the moving averages on January 29th opened the doors for a rally to the overhead resistance at $17.32. This level is likely to attract strong selling by the bears.
If the price turns down sharply from $17.32, the LINK/USDT pair may extend its stay inside the range for a few more days.
The bulls will have to drive and sustain the price above $17.32 to signal the start of the next leg of the uptrend. The target objective on the upside is $21.79.
