Bitcoin (BTC) has momentarily retreated towards $95,000, signaling a potential resurgence of bearish activity. However, a slight edge seems to favor the bulls, as US spot Bitcoin exchange-traded funds experienced inflows totaling $52.4 million on January 7th, despite Bitcoin experiencing a drop of over 5%. This points towards investors holding onto their positions, suggesting they anticipate another bull market rally.
Arthur Hayes, co-founder of BitMEX, wrote in a blog post that an increase of up to $612 billion in liquidity during Q1 2025 could potentially boost Bitcoin. This potential growth may offset any potential delays in passing the proposed pro-crypto and business-friendly legislation by President-elect Donald Trump’s administration.
Analysts are not only expressing optimism towards Bitcoin, but also Ether (ETH). As per Dr. Sean Dawson, head of research, a favorable regulatory climate and the successful implementation of the Pectra update could potentially drive Ether’s price up to $12,000 by year-end.
What key resistance and support points should investors keep an eye on in Bitcoin and other altcoins? Let’s examine the price charts for the top 10 digital currencies to see where these levels may be found.
Bitcoin price analysis
The inability of Bitcoin to stay above $100,000 might have encouraged short-term investors to cash out their gains, which led to a drop in its value and caused it to fall below its average prices on January 7th.
The moving averages are becoming less dynamic, and the Relative Strength Index (RSI) is close to the middle, suggesting that Bitcoin’s upward push might be slowing down. If the BTC/USDT pair follows this pattern, it could potentially drop to around $90,000, a level that could serve as strong support. For a short-term trend change, traders would need to push the price below the $90,000 to $85,000 range, signaling potential weakness in the market.
If the price rises from its current point and surpasses its moving averages, it suggests that every small decline is being bought up. This strengthens the possibility of a rise above $102,725. In such a case, the pair could potentially revisit its record high of $108,353.
Ether price analysis
On January 7th, Ether dipped beneath the critical breakout point of $3,555, implying that the apparent breakout from the ascending triangle formation on January 3rd might have been a false signal or “bull trap.
In simpler terms, the price of Ethereum (ETH) has dropped below a trend line that was previously indicating an upward movement, breaking a pattern known as a triangle. This break in the triangle is considered a bearish sign because it indicates the failure of the bullish setup. If this continues, the ETH/USDT pair might fall to approximately $3,102 and then potentially drop further down to $3,000. The key levels for buyers to vigorously defend are around $3,000 up to $2,850.
Any recovery is likely to encounter resistance at the moving averages. In order for the bulls to indicate a resurgence, they need to break through the 50-day simple moving average ($3,576). If this happens, the pair may climb to $3,745 and potentially reach $4,094 later on.
XRP price analysis
It seems like the buyers haven’t been able to drive XRP’s price beyond the resistance level yet, suggesting it could stay within the triangular pattern a bit longer.
If the price dips under the 20-day exponential moving average (currently at $2.28), the XRP/USDT pair might drop towards its support line. If the price breaks through and closes below the triangle, it could indicate a short-term peak. This could trigger a downtrend that takes the pair to the 61.8% Fibonacci retracement level ($1.90) initially, followed by $1.62.
If buyers aggressively keep the price above the upper boundary (resistance line), the market is likely to be in their favor. This could potentially drive the price up to $2.73, followed by a further rise to around $2.91.
BNB price analysis
As a crypto investor, I observed that BNB’s tight trading range broke upward and closed above $722 on January 6th. However, despite this promising start, the bulls failed to maintain the elevated levels.
On January 7th, the price plummeted significantly, leaving the bold bulls in a tight spot. There’s a small barrier at the 50-day Simple Moving Average ($688), but it seems probable that this will be breached. If so, the BNB/USDT pair could fall to a more robust support level at $635.
As a researcher observing the market dynamics, I find myself in a position where I must share some insights. The clock seems to be ticking against the bulls. If they wish to maintain their dominance, swift action is required. They need to push the price above the $745 threshold. If successful, this could pave the way for a potential surge toward $794. However, it’s crucial to note that $794 is anticipated to serve as a formidable resistance, potentially halting any further upward momentum.
Solana price analysis
After attempting to rise above its 50-day Simple Moving Average ($217), Solana’s (SOL) rebound seemed to falter, suggesting that bears have been maintaining their presence at elevated price points.
On January 7th, the price dropped significantly and dipped beneath its moving averages. This created an opportunity for a further decline towards the significant support at the upward trendline. If the bears push the price below this trendline, the Solana-USD pair might slide down to $175 initially, and potentially drop even lower to $165 later on.
If the price falls and finds support at the uptrend line, this could indicate that the bulls are strongly guarding this level. Afterward, they would aim to drive the price over the 20-day Exponential Moving Average ($204). When the price breaks above $223 with a daily close, the buyers will regain control.
Dogecoin price analysis
The inability of Dogecoin (DOGE) to surpass the $0.40 barrier might have led short-term traders to sell off their positions, possibly due to taking profits on their investments.
On January 7th, the DOGE/USDT pair experienced a significant drop and fell below its moving averages. If the price continues to stay below the 20-day Exponential Moving Average ($0.35), it could lead to a potential price range between $0.30 and $0.40 for an extended period. The relatively flat moving averages, coupled with the Relative Strength Index (RSI) hovering around its midpoint, suggests that neither the bulls nor the bears currently hold a clear advantage.
If purchasers manage to maintain the rate over $0.40, it might lead to a reevaluation at around $0.48. Conversely, if there’s a fall below $0.30, the value could potentially drop to approximately $0.23.
Cardano price analysis
On January 7th, Cardano (ADA) surpassed the $1.12 barrier, suggesting a potential breakout. However, this surge proved to be a deceptive move, known as a “bull trap.
The price took a significant plunge, reaching the 20-day Exponential Moving Average (EMA) at approximately $0.98. If this 20-day EMA breaks, it’s possible that the ADA/USDT pair could slide down to a robust support level at around $0.80. Should there be a rebound from $0.80, it would increase the likelihood of a sideways pattern forming. Over the next few days, the pair may move back and forth between $0.80 and $1.18.
To regain control, buyers must keep driving the market and ensure the price stays above $1.18. If they manage this, the currency pair could potentially rise to $1.33.
Avalanche price analysis
On January 6th, Avalanche (AVAX) surged above its 50-day Simple Moving Average at $43.38, indicating a potential bullish trend. However, the upward momentum wasn’t sustained, as the bulls failed to hold onto the breakout.
On January 7th, the price dropped significantly and dipped beneath the moving averages, suggesting intense bearish selling during uptrends. The sellers aim to push the AVAX/USDT pair towards the robust support area ranging from $35 to $33.60.
As a researcher analyzing this pair’s movements, if the price bounces off the support zone and surpasses the 20-day Exponential Moving Average (EMA) at approximately $40.53, it might hold steady within a range of around $33.60 to $45 for some time. Conversely, should a break beneath $33.60 occur, there’s potential for the pair to dip down to around $30.
Sui price analysis
As I observe the market trends, it appears that SUI is correcting its trajectory in an upward trend. Notably, the price has touched the 20-day Exponential Moving Average (EMA) at approximately $4.58. This significant mark serves as a crucial near-term support level that I believe is worth keeping an eye on.
If the cost bounces back strongly from its 20-day Exponential Moving Average (EMA), this suggests that purchasers are still dominating the market. In such a scenario, the bulls will attempt to resume the upward trend by surpassing the immediate resistance at $5.36.
If the price falls beneath the 20-day Exponential Moving Average, there’s a possibility that the SUI/USDT pair might drop towards the 50-day Simple Moving Average (currently at around $4.16). Should sellers succeed in pushing the price below this point, they could gain control, potentially triggering a decline to approximately $3.50.
Chainlink price analysis
On January 7th, the bears managed to pull Chainlink (LINK) below its moving averages, suggesting that there was more selling happening at higher price points.
The LINK/USDT pair might drop to the neckline of the Head and Shoulders pattern, which is around $20. At this price point, traders are anticipated to put up a robust resistance. If the price recovers from $20 and surpasses the moving averages, it could suggest a potential short-term consolidation. The pair may oscillate between $20 and $26 for a while.
Conversely, if there’s a drop and a closing price below $20, it will finalize the bearish pattern, potentially leading to more falls. The value could then descend to around $16, and possibly even further down to approximately $14.
Read More
- HBAR PREDICTION. HBAR cryptocurrency
- IMX PREDICTION. IMX cryptocurrency
- TRB PREDICTION. TRB cryptocurrency
- MNT PREDICTION. MNT cryptocurrency
- LDO PREDICTION. LDO cryptocurrency
- JTO PREDICTION. JTO cryptocurrency
- FLOKI PREDICTION. FLOKI cryptocurrency
- XDC PREDICTION. XDC cryptocurrency
- TNSR PREDICTION. TNSR cryptocurrency
- Dandadan Shares First Look at Season Finale: Watch
2025-01-08 20:30