Bitcoin (BTC) has dropped below the significant support level of $90,000, suggesting that bears might be attempting to gain dominance. Interestingly, past trends indicate that Bitcoin typically experiences a decline in January following the halving event. For instance, Bitcoin decreased by 30% in January 2017 and 25% in January 2021. However, it’s worth noting that these declines were followed by recoveries, ultimately leading to new record highs later in those years.
In recent days, it’s not just Bitcoin that’s experiencing a downturn; the S&P 500 (SPX) has also seen corrections. The robustness of the U.S. Dollar Index (DXY) is causing strain on risky assets. Moreover, the markets are adapting to the prospect of fewer interest rate reductions than initially expected in the future. According to the CME Group’s FedWatch Tool, there’s only a 2.7% chance of a 0.25% rate cut during the January meeting.
Despite the short-term fluctuations or uncertainties, long-term investors continue to acquire more Bitcoin. As stated by Michael Saylor, founder and chairman of MicroStrategy, on January 13th via Twitter (X), the company purchased 2,530 Bitcoins at an average cost of $95,972, thereby increasing their Bitcoin hoard to a total of 450,000.
Is there a possibility that Bitcoin’s decline might continue, or could the current $90,000 level serve as a stronghold for buyers? Let’s delve into the chart data to discover the answer.
S&P 500 Index price analysis
On January 10th, the S&P 500 Index (SPX) finished a head-and-shoulders chart formation and dropped below its support level of 5,853, which indicates a potential trend reversal.
In simpler terms, the bulls aim to push the price back above the critical threshold, but the bears will strive to keep it there. If the price persists below 5,853, the pair might fall towards the 5,670 support level. The buyers are anticipated to show strong resistance at this point.
Positively speaking, if the price line surpasses and stays above its 20-day exponential moving average (around 5,929), it suggests that the fall below 5,853 might have been a deceptive bear trap. In this scenario, the index could potentially rise towards the resistance area of 6,050 to 6,100.
US Dollar Index price analysis
On January 7th, the U.S. Dollar Index rebounded from its 20-day Exponential Moving Average (at 108.40), indicating a continued optimistic outlook among traders, who appear to be purchasing when prices drop.
The prices have been propelled beyond 109.53, signifying a return of the upward trend. Both moving averages are climbing, while the relative strength index (RSI) is within the overbought range, suggesting that the bulls are dominating the market. It’s possible for the index to increase towards 111.27, and potentially even reach 113.14 in the future.
The clock is ticking for the bears, as they must pull the price down under the 108 breakout point to avoid an upward trend if they wish to prevail.
Bitcoin price analysis
On January 13th, Bitcoin’s trajectory shifted away from its 20-day Exponential Moving Average (EMA) at around $95,738, indicating that bears might be offloading their holdings during market upticks.
The BTC/USDT pair has dropped below the $90,000 support line, yet there’s a small upside as the bulls are making efforts to maintain this level on a daily close. For the trend to indicate potential continuation of the range-bound trading, traders need to drive the pair above their 20-day moving average.
It’s likely that sellers have alternate strategies in place. They aim to push and maintain the price below the $90,000 mark. If they succeed, the price might drop to the $85,000 support level. However, buyers are anticipated to fiercely protect the $85,000 level, as a breakthrough and close beneath it could pave the way for a potential slide down to $73,777.
Ether price analysis
On January 13th, Ether (ETH) dipped beneath the support line of a head-and-shoulders chart configuration, suggesting that bearish forces are currently dominating the market.
The ETH/USDT pair might drop towards a strong support level at $2,850, where traders are predicted to jump in and buy. If there’s a rebound from the $2,850 mark, it may encounter selling activity at the neckline. Should the price fall from the neckline, it raises the possibility of a fall below $2,850. In this case, the pair could plummet to $2,400.
Instead of pushing down, a drop and rise above the resistance line indicates that buyers might be taking advantage of price declines. If we see a break and close above the 20-day Exponential Moving Average ($3,383), the bullish momentum could strengthen.
XRP price analysis
On January 11th, XRP (XRP) surpassed the upper boundary of a symmetrical triangle formation, indicating that the buyers are now in control, suggesting an upward trend may be imminent.
1. With the 20-day Exponential Moving Average (EMA) pointing upward at $2.35 and the Relative Strength Index (RSI) in a positive zone, it seems the trend is moving upward. If buyers can maintain the price above the triangle formation, there’s a higher chance of breaking through $2.60. The XRP/USDT pair might potentially rise to $2.73 and then possibly reach $2.91.
Instead of thinking otherwise, a drop below the moving averages might catch the overly optimistic bulls off guard. After that, the pair might descend towards the support level, which is where the bulls are anticipated to launch a robust counterattack.
BNB price analysis
Over the last few days, the bulls haven’t been successful in getting BNB (BNB) to surpass its 20-day Exponential Moving Average ($697), suggesting that interest or demand decreases as prices rise towards this level.
The bears intend to push the BNB/USDT pair down towards the important support of the uptrend line. If the price drops below this uptrend line, it could indicate that the bears are trying to regain control, potentially causing the pair to fall to around $635.
Should the price rise beyond its upward trendline, this could indicate that the buyers are still active and taking advantage of price drops. They might then try to push the price past $745 again. If they manage to do so, the pair could potentially reach $794.
Solana price analysis
On January 13th, Solana (SOL) dipped beneath its upward trendline, suggesting that the sellers have managed to keep up the pressure and potentially signal a shift in market momentum.
If the cost falls beneath the upward trendline, the SOL/USDT pair could initiate its descent towards approximately $155. The bulls might try to protect $155, but any rebound could encounter selling pressure at the trendline. Should the price reverse from the trendline, it would suggest that the bears have changed the line into support. This makes a drop to around $133 more likely.
As a crypto investor, I’m keeping a close eye on the market. A strong indication that we might be headed for an uptrend would be if the price breaks and closes above our 20-day Exponential Moving Average (EMA), currently at $196. If this happens, it’s time to consider buying as the buyers will then need to push the pair above $220 to truly take control of the market direction.
Dogecoin price analysis
Dogecoin’s price has recently started dropping below its 20-day Exponential Moving Average, which suggests that the selling pressure might be growing stronger compared to the buyers.
Support for the DOGE/USDT pair is solid at approximately $0.30, but if this level weakens, it could lead to a potential drop down to around $0.27, which represents about 61.8% Fibonacci retracement. Traders are anticipated to vigilantly protect the $0.27 to $0.23 range as potential buying zone.
If the price bounces back from $0.30, this could indicate that buyers are taking advantage of the dip, or buying at lower prices. If the price breaks through and closes above its 20-day Exponential Moving Average (EMA), it might suggest that the pair could oscillate between $0.30 and $0.40 for a while.
Cardano price analysis
The upward trend of Cardano (ADA) came to a halt near its 50-day Simple Moving Average ($1.01) on January 12, suggesting that investor feelings continue to be pessimistic.
In simpler terms, sellers might attempt to weaken their opponents by lowering the price under the rising trendline. If they succeed, the price of ADA/USDT could potentially drop to $0.80 and then further to $0.76. However, buyers are predicted to fiercely protect the $0.76 mark.
If the price recovers from the uptrend line and surpasses the 50-day Simple Moving Average, it would suggest that the pair could prolong its time within the triangle for additional days. In this case, the bulls would regain control upon breaking and closing above the triangle.
Avalanche price analysis
On January 13th, Avalanche (AVAX) dropped beneath its nearby support level of $34.87, suggesting that the bearish forces currently control the market.
At approximately $33.60, there’s a small resistance, which might give way. If this happens, the AVAX/USDT pair could potentially fall to around $30.50. This level is significant for the bulls as they must hold it; otherwise, the pair might plummet to $22.35.
Efforts to initiate a recovery could encounter resistance at the 20-day Exponential Moving Average (around $38.67) and then again at the $45 mark, which has served as a barrier previously. For a potential reversal of the corrective period, traders will need to drive the pair above the $45 level.
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2025-01-13 23:10