Bitcoin's Surge: Will It Hit $1 Million as Nations Adopt It as a Reserve?

The price of Bitcoin (BTC) surpassed $104,500, indicating that the buyers are dominating the market. Much of this excitement is fueled by anticipation about the potential adoption of a national Bitcoin reserve in the United States. If this occurs, the U.S. Treasury would need to acquire a million Bitcoins over five years. This could result in a shortage of supply due to limited availability.

Analysts are extremely optimistic about the possibility of countries using Bitcoin as a long-term investment. In a recent post on X, crypto trader Alex Becker predicted that Bitcoin’s price could exceed $150,000 and potentially reach between $250,000 and $400,000. Another analyst, Will Clement, went even further in his prediction for X, suggesting that if countries were to adopt Bitcoin as a strategic reserve asset, its value could skyrocket to an astonishing $1 million.

Although many analysts are confident about Bitcoin’s future, there are some who feel that the immediate future looks uncertain. According to trading resource Stockmoney Lizards, Bitcoin is expected to stay within a range of $90,000 to $100,000 in the upcoming weeks.

Is it possible that Bitcoin reaches another record peak? And will other cryptocurrencies climb along with Bitcoin? To answer these questions, let’s take a look at the charts of the leading 10 digital currencies.

Bitcoin price analysis

On January 17th, Bitcoin surpassed its previous downtrend line and the resistance level of $102,724, suggesting that the recent price decrease might have ended.

The 20-day moving average is climbing (currently at $97,533), and the Relative Strength Index (RSI) has moved into a positive range, suggesting that buyers are currently in control. This BTC/USDT pair could potentially reach $108,353, but this level might serve as a significant barrier. If buyers manage to break through, the pair could rise further to around $126,706.

In simpler terms, if the price drops, the 20-day Exponential Moving Average (EMA) might provide significant support. However, if the price falls significantly and closes below $90,000, the trend could shift in favor of the sellers (bears).

Ether price analysis

If we’re talking about Ethereum (ETH), its rise from the neckline of the head-and-shoulders pattern might encounter resistance within the range where the moving averages overlap, indicating potential selling pressure.

With the 20-day Exponential Moving Average (EMA) slightly dipped at around $3,380 and the Relative Strength Index (RSI) hovering close to the midpoint, it appears there’s a balance between the supply and demand forces. If buyers manage to breakthrough and end the session above $3,745, the Ethereum-USD pair might surge towards $4,094.

If the price decreases and falls below the current support level (neckline), this optimistic outlook may prove incorrect. This drop might push the pair as low as $2,850, a point where traders are anticipated to buy.

XRP price analysis

On January 15th, XRP (XRP) surged past the $2.91 resistance level, suggesting a renewed upward trend.

Normally, once a price breaches a major resistance point, it often falls back to test this breakout point. The XRP/USDT pair might dip to around $2.91, where there could be intense competition between the bulls and bears. If the price bounces off $2.91 strongly, it would indicate that the bulls are aiming to transform this level into a support. Subsequently, the pair may try to surge towards $4.84.

In simpler terms, if the price moves above $2.91 and then falls, it suggests selling at higher levels is occurring. The pair might then slide down to its 20-day Exponential Moving Average (EMA) of $2.59. If the price drops below this 20-day EMA, it could mean that the pair has reached a peak in the short term.

BNB price analysis

Over the last few days, Binance Coin (BNB) has been moving within a range defined by its upward trendline and the resistance level of $745 above it.

Attempting to drive the price up toward $745 might be challenging due to this level serving as a potential obstacle. Should the price drop significantly from $745, the BNB/USDT pair could slide towards the moving averages. A robust recovery from the moving averages increases the likelihood of surpassing the $745 mark. If successful, the pair might escalate to around $794.

If the price trend reverses and falls below its upward trajectory, this optimistic perspective could prove incorrect. The pair could then potentially slide down to approximately $635, and subsequently, towards $600.

Solana price analysis

On January 16th, Solana’s (SOL) price line climbed over its 50-day Simple Moving Average ($209), signaling a decrease in the intensity of the selling force.

Over the past 20 days, the 200-day Exponential Moving Average (EMA) has begun to climb, while the Relative Strength Index (RSI) has moved into positive figures. This suggests that bullish momentum is returning. At present, there’s a slight barrier at $223, but it seems probable that this will be surpassed. If so, the price of Solana (SOL/USDT) might escalate to $247 initially and potentially reach $260 later on.

Conversely, should the price drop below $223, there’s a possibility it could move towards the 20-day Exponential Moving Average (EMA). For this to happen, sellers must push the price under the 20-day EMA consistently, indicating that the bullish trend might be losing strength.

Dogecoin price analysis

On January 15, Dogecoin (DOGE) managed to surpass its 50-day Simple Moving Average ($0.37), and efforts by the bearish investors to push the price down were unsuccessful on January 16. This indicates a shift towards optimistic market sentiment.

If the price consistently stays above $0.40, this suggests that the market’s doubt has been cleared in favor of the buyers. The Dogecoin-Tether pair might then escalate towards $0.48, a level at which the sellers, or the bears, are likely to present significant resistance.

Keep an eye on the 20-day Exponential Moving Average (EMA) at around $0.35 as it serves as a significant short-term floor. If the price drops below this level, it might indicate that bears are taking advantage of rallies, potentially causing the pair to slide down towards the robust support at $0.30.

Cardano price analysis

In simple terms, the price of Cardano (ADA) has touched the upper boundary of a symmetrical triangle pattern, a crucial point worth watching closely.

As a researcher, I’m observing the ADA/USDT market dynamics. If buyers manage to push the price beyond the resistance line, it might signal an upward trend towards approximately $1.33. Sellers might attempt to halt this rally at $1.33, but if the bullish momentum continues, the pair could potentially soar even higher, reaching around $1.64.

If the price drops from the resistance level and falls beneath the moving averages, it suggests that the pair could stay within the triangle for a bit more time. In this case, the bulls would need to push the price above the uptrend line to regain control.

Avalanche price analysis

On January 15th, Avalanche (AVAX) surpassed its 20-day Exponential Moving Average (EMA) at $39, suggesting that the control is shifting away from the bearish market.

There’s a possibility that the AVAX/USDT pair could hit the resistance level of approximately $45, at which point bears might put up a strong fight. If the price then decreases from this resistance, the pair might hover around the range of $32 to $45 for a few days before making a move again. The relatively flat 20-day Exponential Moving Average and the RSI slightly above the midpoint don’t clearly favor either the bulls or the bears at this moment.

Purchasers may take control when the price breaks and surpasses $45, potentially initiating an uptrend that might lead to $56.

Chainlink price analysis

On January 14, Chainlink (LINK) switched its course, suggesting that the fall below $20 might have been a deception by bears (those who sell with the hope of price decrease).

It appears that buyers are driving the price higher than the average prices over a certain period, indicating that the overly bearish traders might be exiting their short positions. The Ethereum (LINK) and USD Tether (USDT) pair could potentially reach $26, at which point sellers might attempt to stop the upward trend of this relief rally.

If the cost significantly drops from $26, it becomes more likely that a price range (between $20 and $26) will form temporarily. Should the pair fluctuate within this range, a break above $26 might signal the start of an upward trend towards $31.

Stellar price analysis

In a simpler phrase, here’s how you could rephrase the given statement: The price of Stellar (XLM) is finding resistance at the top line of an inverted “Head and Shoulders” pattern, yet a hopeful indication is that buyers are persistently pushing prices upwards.

Based on the 20-day Exponential Moving Average (EMA) at $0.43 rising and the Relative Strength Index (RSI) being above 61, it appears that the market trend is likely to move upward. If the price breaks through and closes above the resistance line, it could trigger a surge toward $0.64. However, reaching this level might prove challenging due to potential resistance, but if buyers manage to push past it, the possible next target could be $0.86.

The time available for the bears is diminishing. To avoid a potential rise, they need to act promptly and push the price under the moving averages. Following this, it’s likely that the XLM/USDT pair could drop down to approximately $0.38.

2025-01-17 20:58

Bitcoin’s Surge: Will It Hit $1 Million as Nations Adopt It as a Reserve?