Bitcoin shows surprising decline as Spot ETF decision approaches. On the contrary, while ETH is rising, altcoins are rising. What are the important support and resistance levels to look out for in altcoins like Bitcoin and XRP Coin? Crypto analyst Rakesh Upadhyay examines the charts of the top 10 cryptocurrencies to find out.
An overview of the cryptocurrency market
cryptokoin.comAs you follow from , the US Securities and Exchange Commission tweeted on January 9 that spot Bitcoin exchange-traded fund applications were approved. But then the SEC said its social account was hacked and no ETFs were approved. Following the hacked tweet, Bitcoin quickly rose to nearly $48,000. However, he later returned his earnings. Noting the muted reaction, trading firm QCP Capital predicts that the approval is “mostly priced in and there may not be a big post-approval rally.”
Although this event increases volatility in the short term, the long-term trend may remain intact. Even if markets sell off following the green light for one or more spot Bitcoin ETFs, the downside is likely to remain limited as long-term investors may view declines as a buying opportunity.
BTC, ETH, BNB, SOL and XRP Coin analysis
Bitcoin (BTC) price analysis
Bitcoin closed above the ascending triangle formation on January 8, indicating the start of the next leg of the uptrend. The target of the bullish formation is $49,178.
The bears are trying to sink the price below the $44,700 breakout level and trap the aggressive bulls. If they do this, it is possible that BTC will witness long liquidation. Thus, a drop to the 50-day simple moving average ($42,078) is possible. The sell-off could accelerate below this support and BTC could drop as low as $37,980. Instead, if the price recovers from $44,700, it would indicate that the bulls are trying to convert the level into support. This will increase the possibility of a rise to $49,178 and then to $52,000.
Ethereum (ETH) price analysis
ETH rose sharply from the 50-day SMA ($2,232) on January 9. This showed solid buying at lower levels. The bulls continued their buying on January 10 and pushed the price above the $2,400 overhead resistance.
If buyers sustain the price above $2,400, it will indicate a resumption of the uptrend. It is possible for ETH to rebound to $2,700 and then to the psychologically important $3,000 level. This optimistic view will be invalidated in the near term if the price declines and breaks below the 20-day EMA ($2,294). This would suggest a range-bound move between $2,100 and $2,400 for a while.
Binance Coin (BNB) price analysis
The bulls managed to keep BNB above the 20-day EMA ($298) on January 8 and 9. But they failed to mount a meaningful recovery. This indicates a lack of demand at higher levels.
The flat 20-day EMA and the RSI just above the midpoint do not give bulls or bears a clear advantage. If the price closes below the 20-day EMA, BNB is likely to drop to the neckline. The bulls will need to push the price above $310 and sustain it to show that the selling pressure is slowing down. It is possible that BNB may then try to move higher to $327 and then to a new high of $338.
Solana (SOL) price analysis
Solana bounced back from the uptrend line on January 8. However, the bulls were unable to overcome the hurdle at the downtrend line.
The 20-day EMA ($96) has flattened out and the RSI is near the midpoint. This shows that there is a balance between supply and demand. This shows that SOL will remain stuck between the uptrend and downtrend lines for a while. If the bears sink the price below the uptrend line, an increase in selling is possible. In this case, it is possible for SOL to drop to $67. Alternatively, if the price rises and breaks above the downtrend line, it will indicate that the bulls are back in the game. SOL is likely to rise to $117 later.
Ripple (XRP Coin) price analysis
XRP Coin has been floating around the $0.57 level for a while. This points to a tough battle between XRP Coin bulls and bears.
The 20-day EMA ($0.59) is sloping down. Also, the RSI for XRP Coin is below 38. This shows that the bears have the upper hand. If the price falls below $0.54, it is possible that sales will increase. In this case, a drop in the price of XRP Coin to $0.50 is on the table. On the upside, the bulls will need to push the price above the moving averages to show strength. It is possible that the short-term trend will change in favor of buyers after the price breaks above the downtrend line. XRP Coin price is likely to rise to $0.67 and then to $0.74.
ADA, AVAX, DOGE, DOT and MATIC analysis
Cardano (ADA) price analysis
ADA’s sharp bounce from the $0.46 support on January 8 stalled near the 20-day EMA ($0.55). This signaled that the bears were not giving up.
It is possible that the price could slide towards the $0.46 support, which remains a key level to watch out for. Buyers will fiercely protect this level. Because falling below this level could intensify selling and drop ADA to $0.37. If the price recovers from $0.46, the bulls will again try to break the barrier at the 20-day EMA. If they are successful, ADA is likely to rise to the downtrend line. Here the bulls are likely to face strong resistance from the bears.
Avalanche (AVAX) price analysis
AVAX turned down from the neckline of the head and shoulders formation on January 9. This shows that the bears are trying to defend the level aggressively.
It is possible for AVAX to drop to a critical level of $31. If it breaks the $31 support, your sales will increase. In this case, AVAX is likely to decline towards the $26 formation target. Conversely, if the price recovers strongly from the $31 level, it would indicate that the bulls are defending this level fiercely. This will likely keep AVAX between $31 and $38 for a while longer. A breakout and close above $38 would indicate that the bears may lose control.
Dogecoin (DOGE) price analysis
DOGE’s recovery attempt on January 9 faded near the 20-day EMA ($0.09). This shows that the bears are active at higher levels.
The bears will try to strengthen their position further by pushing the price to the next support at $0.07. This level will likely attract buyers. However, if the bulls fail to clear the hurdle at the 20-day EMA, the possibility of a drop to $0.06 increases. Contrary to this assumption, if buyers push the price above the 20-day EMA, it would indicate that the selling pressure will ease. DOGE is then likely to rise to the overhead resistance zone of $0.10 to $0.11.
Polkadot (DOT) price analysis
The bears pulled Polkadot below the 50-day SMA ($6.96) on January 8. However, they were unable to maintain lower levels, as seen from the long tail on the candlestick.
A minor downside is that the bulls failed to maintain the tempo and push the price above the 20-day EMA ($7.58). This shows that the bears are trying to turn the 20-day EMA into resistance. If the price declines below the $6.50 support, DOT will complete a bearish H&S pattern. If the bulls want to prevent a downside move, they will need to push the price above the $7.90 resistance. This will likely open the doors for a rally to $8.80.
Polygon (MATIC) price analysis
MATIC jumped from $0.73 on January 8. However, the recovery is facing selling near the 50-day SMA ($0.85).
The downsloping 20-day EMA ($0.87) and the RSI just below the midpoint indicate a slight advantage for the bears. If the price turns down from the moving averages, it is possible for MATIC to fall back towards the strong support at $0.70. Conversely, if buyers push the price above the moving averages, it will indicate solid demand at lower levels. In this case, MATIC may attempt a rally towards the overhead resistance of $1, which will prove to be a formidable hurdle.
To be informed about the latest developments, follow us twitter‘in, Facebookin and InstagramFollow on and Telegram And YouTube Join our channel!