The approval of Bitcoin spot exchange-traded funds (ETFs) by the United States regulator on January 10 marked a significant development, with multiple ETFs commencing trading on January 11. Despite extensive discussions, the event didn’t trigger a massive market surge or sharp decline, indicating that the approval was largely anticipated.
The newly launched Bitcoin ETFs, even without a strong bullish trend, garnered substantial interest, witnessing a combined trading volume of $4.5 billion on the first day. While Bitcoin may experience short-term consolidation, long-term prospects seem optimistic with the potential for institutional flows into Bitcoin ETFs and the upcoming Bitcoin halving in April 2024, which could lead to a supply squeeze and higher prices.
To better understand potential market movements, let’s delve into the charts of the top 10 cryptocurrencies.
Bitcoin Price Analysis: $BTC Bitcoin’s recent volatility is evident, with fluctuations in both the long tail on January 10 and the long wick on January 11 candlesticks. A bearish move below $44,700 suggests market rejection at higher levels. Rebounding from the 50-day SMA ($42,404) could pave the way for a climb above $44,700, targeting $49,000 and $52,000. Conversely, a break below the 50-day SMA may lead to a decline to $40,000 and eventually $37,980.
Ether Price Analysis: $ETH Ether surged above the $2,400 resistance, indicating an uptrend’s initiation. Potential profit booking at $2,700 could precede a move to the crucial $3,000 level. Initial support lies at $2,566, with further downside targets at $2,500 and $2,400.
BNB Price Analysis: $BNB BNB’s pullback halted at the 20-day EMA ($300), showcasing positive sentiment. While a recovery attempted on January 10 faced resistance, sustained trading below the 20-day EMA may lead to a drop to the neckline.
Solana Price Analysis: $SOL Solana’s range-bound movement between the uptrend line and downtrend line is evident. The 20-day EMA ($97) and RSI near the midpoint suggest a balanced scenario. A break below the 20-day EMA may lead to a dip to the uptrend line, and further breakdown could extend to $67. Alternatively, surpassing the downtrend line may propel the price to $117 and $126.
XRP Price Analysis: $XRP reclaimed the $0.57 level, signaling strong buying. Flattened moving averages and RSI near the midpoint suggest reduced selling pressure. Bulls must sustain the price above the downtrend line for an upward move, targeting $0.67 and $0.74. Bears aiming to prevent an uptrend may target $0.54, with a breakdown potentially leading to $0.50 and $0.46.
Cardano Price Analysis: $ADA Cardano rose above moving averages but struggled at the downtrend line. Bears aiming for a price drop below the 20-day EMA ($0.56) could lead to a downward move towards $0.46. The 20-day EMA and RSI near the midpoint indicate an unclear advantage for bulls or bears.
Avalanche Price Analysis: $AVAX Avalanche’s bounce from the 50-day SMA ($34.83) on January 10, breaking above $38, suggests bulls attempting to trap aggressive bears. A close below the 20-day EMA ($38.06) might lead to a dip to the 50-day SMA and later $31.
Dogecoin Price Analysis: $DOGE Dogecoin briefly crossed the 20-day EMA ($0.09) on January 11, indicating bears viewing rallies as selling opportunities. Bears targeting $0.07 could face defense from buyers. Bulls need sustained trading above moving averages to suggest the end of the corrective phase, targeting $0.10 to $0.11.
Polkadot Price Analysis: $DOT Polkadot bounced off the 50-day SMA ($7.09), rising above $7.90 on January 10. A potential symmetrical triangle pattern may form if the price drops below the 20-day EMA ($7.74). Breaking below the support line could trigger a sharp decline, while surpassing the triangle may lead to a retest of $9.59.
Polygon Price Analysis: $MATIC Polygon surged above moving averages on January 10, indicating aggressive buying. A bounce off $0.89 could propel the MATIC/USDT pair to $1. Conversely, a downturn below the 20-day EMA may suggest range-bound movement between $0.70 and $1.
