Bitcoin price fell to unexpected lows following spot ETF approval. However, according to crypto analyst Rakesh Upadhyay, bullish price action from some altcoins could be an early sign of a reversal. Could inflows into Bitcoin ETFs reverse the decline in Bitcoin and altcoins? The analyst examines Bitcoin and 4 altcoin projects that have the potential to outperform in the near term.
Bitcoin (BTC) price analysis
Bitcoin has been everywhere for the last few days. The price’s failure to sustain above $48,000 may have encouraged short-term investors to book profits, which started a sharp decline on January 12. Bulls and bears are fighting hard near the support line of the ascending triangle formation. Buyers managed to defend the support line on a closing basis. However, it failed to mount a meaningful recovery. This shows that the bears continue their pressure.
Meanwhile, the 20-day exponential moving average ($43,933) has started to turn downwards. Additionally, the relative strength index (RSI) is just below the midpoint. This indicates that the bears are attempting a comeback. If the price stays below the triangle, a drop to $40,000 and then to $37,980 is possible. Buyers will need to push the price above $44,700 to regain control.
Internet Computer (ICP) price analysis
ICP bounced off the 20-day EMA ($12.11) on January 8th and January 13th. This shows that the bulls are fiercely defending this level. Upward sloping moving averages indicate an advantage for buyers. However, the negative divergence in the RSI indicates that the bullish momentum is slowing down. A breakout and close above $14.21 could open the doors for the altcoin to retest the high at $16.30. If this level is breached, the next stop is likely to be $18.
Meanwhile, the 20-day EMA remains the critical support to watch on the downside. If the altcoin price exceeds this level, the advantage will turn in favor of the bears. ICP is likely to drop to $9.36 later.
Altcoin Celestia (TIA) price analysis
Celestia (TIA) has been in a strong uptrend for several days. This shows that every small dip is bought. There is a minor psychological resistance at $20 from where TIA could witness a pullback. If buyers do not allow the price to decline below $17.29, it will indicate that the bulls are trying to turn this level into support. This will increase the chances of a break above $20. It is possible for the altcoin price to rise to $25 later.
Conversely, if the price drops sharply and declines below $17.29, it will indicate that traders are aggressively booking profits. The bears will then sense an opportunity and try to pull the TIA to the 20-day EMA ($14.89).
Mantle (MNT) price analysis
Mantle (MNT) broke above the ascending channel formation on January 10. It also rose sharply on January 11, reaching $0.85. However, the long wick on the day’s candlestick indicates profit booking at higher levels. The price has reached the breakout level from the channel where buyers are expected to step in. Both moving averages are gradually rising. This shows that bulls have the upper hand. However, the negative divergence in the RSI requires caution. If the price recovers from the channel breakout level, buyers will again try to push MNT to $0.85. This level is likely to pose a major hurdle. However, if it exceeds it, it is possible for the altcoin price to rise to $1.
Instead, if the price continues to decline and breaks below the 50-SMA, it will indicate that the uptrend may be coming to an end. In this case, there is a risk that MNT will drop to $0.65 and eventually to $0.58.
Altcoin Sei (SEI) price analysis
Sei (SEI) formed a symmetrical triangle formation indicating indecision between bulls and bears. In general, the symmetrical triangle acts as a continuation formation. However, in rare cases it can also act as a reversal formation. The rising 20-day EMA ($0.64) and the RSI in the positive zone show that buyers have an advantage. If the bulls push the price above the resistance line, this will signal the resumption of the uptrend. The target of this formation is $1.10.
This positive view will be invalidated if the SEI continues to decline and moves below the triangle. This would signal a potential trend reversal and the beginning of a deeper correction towards the 50-day SMA ($0.43).
To be informed about the latest developments, follow us twitter‘in, Facebookin and InstagramFollow on and Telegram And YouTube Join our channel!