Bitcoin’s price volatility is expected to increase following remarks from Federal Reserve Chair Jerome Powell, though the direction of the movement remains uncertain for many traders. At present, Bitcoin maintains a position above the $100,000 threshold, awaiting a trigger to achieve a new high beyond $109,588. Traders are particularly attentive to Powell’s expected comments on January 29, as a more hawkish tone may exert downward pressure on Bitcoin. Conversely, a dovish approach might push the price higher.
Market analysts predict limited downside risk in the near term. Dr. Sean Dawson, Head of Research at Derive, stated that Bitcoin has a 9.2% likelihood of slipping below $75,000 in Q1 of the year.
Currently, Bitcoin is navigating between the 50-day simple moving average (SMA) set at $99,183 and resistance at $109,588. If Bitcoin can surpass these levels, the BTC/USDT pair may possibly rise to $118,109 and subsequently to $126,706. However, failure to hold above the 50-day SMA might cause a dip toward the $90,000 mark, with buyers expected to protect the $90,000 to $85,000 support zone.
Ether (ETH) is experiencing a similar challenge, struggling below the head-and-shoulders pattern neckline without further decline to $2,850, denoting a lack of selling pressure at lower levels. Bulls are attempting recovery, faced with resistance at the 20-day EMA of $3,272. Any sharp downturn from there may push the price back to $2,850. Conversely, a close above $3,525 could propel ETH to rise toward $3,745.
XRP shows signs of buying interest at lower levels as indicated by recent candlestick patterns, though pressure persists near key trend lines. A breakout above the downtrend line may fuel a rally toward $4 and subsequently $4.84, while a downturn suggests continued bearish activity, aiming for the 50-day SMA at $2.57.
Solana (SOL) finds itself supported at $217, reflecting a balance between buyers and sellers, with significant resistance at the 20-day EMA. Breaking below the 50-day SMA could favor bears, potentially dropping SOL to $200.
Binance Coin (BNB) faces a crucial test at the $635 support level. A rebound past the averages could stabilize BNB within a $635 to $745 range. Conversely, a breach below support may see it descend to $593.
Dogecoin (DOGE) and Cardano (ADA) are both contending with immediate resistance and crucial support, with potential for both upside rallies and risk of notable declines depending on market movements.
Chainlink (LINK) engages in a standoff near the moving averages, with opportunities for a rally if bulls regain upper ground. Failure to hold prices might challenge support at $20.
Avalanche (AVAX) risks a significant decline if prices fall below the $30.59 support zone, though a climb above averages might stimulate bullish action toward higher resistance levels.
Stellar (XLM) is hovering above $0.39, with bearish indicators suggesting potential risks. A push above the 20-day EMA could mark a bullish reversal, offering a chance toward $0.50.
The provided analysis does not constitute financial advice, and individuals should perform their own research when making investment decisions.
